2024Annual Report of Acter Technology Integration Group Co. Ltd.
Company Code: 603163 Company Abbreviation: Acter Group
Acter Technology Integration Group Co. Ltd.2024 Annual Report
1 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Important
I. The board of directors board of supervisors directors supervisors and senior managers of
the Company hereby guarantee the contents contained in the annual report (hereinafter referred
to as “this Report”) are true accurate intact and free of any false records misleading statements
or major omissions; otherwise they shall bear the individual and joint legal liabilities arising
therefrom.II. All directors of the Company attended the board meeting.III. ShineWing Certified Public Accountants LLP (special general partnership) has issued a
standard unqualified audit report for the Company.IV. Liang Jinli the director of the Company Chen Zhihao the person in charge of accounting
and Xiao Jingxia the director of accounting firm (accounting director) hereby declare that the
financial statements set out in this Report are true accurate and intact.V. Proposals for profit distribution or conversion of provident fund to capital stock within the
reporting period ratified in the form of board resolution
Through meticulous study the board of directors of the Company proposed to distribute a cash
dividend of RMB 7.5 (including tax) for every 10 shares to all shareholders on the basis of the total
share capital of 100000000 shares at the end of 2024 with a total bonus amount of RMB 75 million
(including tax); the stock was neither donated nor transferred to capital. The rest undistributed profits
were carried forward for distribution in the subsequent years.VI. Risk Disclosure of Forward-Looking Statements
√ Applicable□ N/A
The forward-looking statements in this Report including the future plans development strategies
etc. do not constitute the Company’s substantial commitments to investors who are kindly reminded of
the investment risks.VII. Whether there is non-operational appropriation of funds by controlled shareholders and
other related parties
No
VIII. Whether there is any violation of the required decision-making procedures for the
provision of external guarantees
No
2 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
IX. Whether more than half of the total directors are unable to guarantee the truthfulness
accuracy and intactness of the annual report disclosed by the Company
No
X. Significant Risk Warning
The Company has elaborated the possible relevant risks in this Report. For details please refer to thepossible risks mentioned in “(IV) Possible Risks in VI. Discussion and Analysis of the Company’sFuture Development of Section III: Management Discussion and Analysis”.XI. Others
□ Applicable √ N/A
3 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Table of Contents
Section I Definitions ................................5
Section II Company Profile and Key Financial Indic....7
Section III Management Discussion and Analysis ......12
Section IV Corporate Governance .....................42
Section V Environmental and Corporate Social Respo.. 61
Section VI Milestone Events .........................64
Section VII Changes in Shares and Information abou.. 88
Section VIII Preferred Stock ....................... 94
Section IX Relevant Information of Bonds ............94
Section X Financial Statements ..................... 94
The full text and abstract of this Report signed by the present legal
representative and sealed by the Company;
The financial statements signed and stamped by the director of the Company
the person in charge of accounting and the director of accounting firm
Catalog of Reference (accounting director).Documents The original audit report sealed by the accounting firm and signed and sealed
by the certified public accountants;
The originals of all the Company’s documents and the original manuscript of
the announcements publicly disclosed in the newspapers designated by the
CSRC within the reporting period.
4 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Section I Definitions
I. Definitions
In this Report unless the context otherwise requires the following terms shall have the meanings set out
below:
Definitions of the common terms
The Company we Acter
Group refer to Acter Technology Integration Group Co. Ltd.Sheng Huei Limited refers to Sheng Huei (Suzhou) Engineering Co. Ltd. thepredecessor of the Company
Sheng Huei International refers to Sheng Huei International Co. Ltd. a direct controllingshareholder of the Company
Acter (Taiwan) refers to Acter Co. Ltd. an indirect controlling shareholder ofthe Company
Suzhou Songhuei Business Management Consulting
Suzhou Songhuei refers to Partnership (limited partnership) an employee
shareholding platform of the Company
Suzhou Shengzhan Business Management Consulting
Suzhou Shengzhan refers to Partnership (limited partnership) a platform for
shareholding by the Company’s employees
Acter (Shenzhen) refers to Shenghuei Engineering Technology (Shenzhen) Co.Ltd.Shenzhen Dingmao refers to Shenzhen Dingmao Trading Co. Ltd.Acter (Vietnam) refers to Sheng Huei Engineering Technology Company Limited
Acter (Hong Kong) refers to Acter International Limited
Acter (Singapore) refers to Acter Technology Singapore Pte. Ltd.Acter (Indonesia) refers to Pt. Acter Technology Indonesia
Acter (Malaysia) refers to Acter Technology Malaysia Sdn. Bhd.Acter (Thailand) refers to Acter Technology Company Limited
Space (Thailand) refers to Space Engineering Company Limited
New Point (Seychelles) refers to New Point Group Limited
Indonesia Joint Venture refers to PT ACTER INTEGRATION TECHNOLOGYINDONESIA
HER SUO (Taiwan) refers to HER SUO ENG. CO. LTD.Enrich (Taiwan) refers to Enrich Tech Co. Ltd.NOVA (Taiwan) refers to NOVA Technology Corp.Winmega (Taiwan) refers to Winmega Technology Corp.WASTE refers to WASTE Recovery Technology Inc.Winmax (Shanghai) refers to Winmax Technology Corp.Suzhou Winmax Technology Corp. which was
Winmax (Suzhou) refers to previously known as Suzhou Guanbo Controlling
Technology Co. Ltd.Novatech (Singapore) refers to Novatech Engineering & Construction Pte. Ltd.Rayzher Industrial refers to Rayzher Industrial Co. Ltd.WNC refers to NEWEB VIETNAM CO. LTD.SIMPLO refers to SIMPLO TECHNOLOGY (Vietnam) CO. LTD.Wistron InfoComm refers to Wistron Info Comm (Vietnam) Co. Ltd.ALPHA NETWORKS refers to ALPHA NETWORKS VIETNAM COMPANYLIMITED
UNIEQ refers to UNIEQ INTEGRATED TECHNOLOGY CO. LTD
Wafer Works refers to Wafer Works (Shanghai) Co. Ltd.Reporting period refers to The period from January 1 2024 to December 31 2024
Articles of Association refers to The Articles of Association of Acter TechnologyIntegration Group Co. Ltd.
5 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Shareholders’ meeting refers to Shareholders’ meeting of Acter Technology IntegrationGroup Co. Ltd.Board of directors refers to The board of directors of Acter Technology IntegrationGroup Co. Ltd.Board of supervisors refers to The board of supervisors of Acter TechnologyIntegration Group Co. Ltd.CSRC refers to China Securities Regulatory Commission
Company Law refers to The Company Law of the People’s Republic of China
Securities Law refers to The Securities Law of the People’s Republic of China
RMB Yuan RMB 10000
RMB 100 Million refers to
Renminbi/Chinese Yuan RMB 10000 RMB 100
million
an enclosed space for high-end manufacturing industry
also known as clean plant and dust-free room to control
airborne particles harmful gases microorganisms
Clean room refers to temperature relative humidity spatial airflowdistribution airflow speed in all directions as well as
vibration static electricity electromagnetic interference
and noise etc. in order to satisfy the production process
of products.the concentration of the dust in the air within an air
environment. Typically it refers to the quantity of
Cleanliness refers to particles equal to or exceeding a specified particle size
within a designated volume of air. High dust load means
low cleanliness and vice versa.the business of combining software hardware and
communication technology to satisfy users’ needs of
information processing. The separated parts of the
System integration refers to integration are originally independent systems and the
parts of the integrated whole can work organically and
with each other to bring out the overall effect and
achieve the purpose of overall optimization.the connection from the main system piping to the
Hook-up refers to process equipment. The scope includes electricity watersupply and drainage pipes process piping exhaust
systems etc.a semiconductor manufacturing process in which a
number of parts and components such as transistors
IC semiconductor refers to resistors capacitors etc. are fabricated on a smallmonocrystalline silicon wafer and assembled into a
complete electronic circuit using multi-layer wiring or
tunnel wiring.the shell in which a semiconductor integrated circuit
chip is mounted which not only plays the role of
Package refers to placing fixing sealing protecting the chip andenhancing the electrical and thermal properties but also
serves as a bridge between the internal and external
circuits of chips.refers to the Building Information Modeling in short which is a
new tool for architecture engineering and civil
BIM engineering and is a computer-aided design tool based
on three-dimensional graphics object orientation and
architecture.refers to The Printed Circuit Board in short which is an
PCB important electronic component the support body ofelectronic components and the carrier for the electrical
interconnection of electronic components.
6 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
refers to the Surface Mounted Technology in short which is a
new generation of electronic assembly technology duly
developed from the hybrid integrated circuit technology;
SMT applied with is the surface mounting technology of parts
and components and backflow welding technology it
has become a new generation of assembly technology in
electronic product manufacturing.Boyuan Construction refers to Boyuan Construction Group Co. Ltd.Section II Company Profile and Key Financial Indicators
I. Company Information
Full Legal Name in Chinese 圣晖系统集成集团股份有限公司
Short Legal Name in Chinese 圣晖集成
Full Legal Name in English ACTER TECHNOLOGY INTEGRATION GROUP CO.LTD.Short Legal Name in English ACTER GROUP
Legal Representative Liang Jinli
II. Contacts
Board Secretary Securities Representative
Name Chen Zhihao Gao Jiejie
Address No. 189 Shilin Road Xushuguan No. 189 Shilin Road Xushuguan
Economic Development Zone Suzhou Economic Development Zone
Hi-Tech Zone Jiangsu Province China Suzhou Hi-Tech Zone Jiangsu
Province China
Tel. 0512-85186368 0512-85186368
Fax 0512-87773169 0512-87773169
E-mail acter.china@acter.com.cn 603163@acter.com.cn
III. Basic Information
Registered Address No. 189 Shilin Road Xushuguan Economic Development
Zone Suzhou Hi-Tech Zone Jiangsu Province China
Historical Changes in Registered Address N/A
Office Address No. 189 Shilin Road Xushuguan Economic Development
Zone Suzhou Hi-Tech Zone Jiangsu Province China
Zip Code of the Office Address 215151
The Company’s Official Website www.acter.com.cn
E-mail acter.china@acter.com.cn
IV. Information Disclosure and Retention Site
Name and website of the media for the China Securities Journal (https://www.cs.com.cn/)
Company’s disclosure of annual report Shanghai Securities News (https://www.cnstock.com/)
STCN (http://www.stcn.com/)
Securities Daily (http://www.zqrb.cn/)
Website of the stock exchange for www.sse.com.cn
publishing the Company’s annual report
Retention site of the Company’s annual The Company’s board office at No. 189 Shilin Road
report Xushuguan Economic Development Zone Suzhou
Hi-Tech Zone Jiangsu Province China
7 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
V. Corporate Stock
Corporate Stock
Stock Type Stock Exchange Stock Abbreviation Stock Code Stock Abbreviation
Before Change
A-share Shanghai Stock Acter Group 603163 N/A
Exchange
VI. Other Relevant Information
Firm Name ShineWing Certified Public Accountants LLP(special general partnership)
8/F Block A Fuhua Mansion No. 8
Accounting firm hired by the Office Address Chaoyangmen North Street Dongcheng
Company (domestic) District Beijing China
Name of the
Signatory Liu Yuehua Wang Ping
Accountants
Firm Name Soochow Securities Co. Ltd.Office Address No. 5 Xingyang Street Suzhou Industrial Park
Sponsor institution for Name of
performing supervisory Signatory Sponsor Xia Jianyang Zhang Boxiong
responsibilities continuously Representative
within the reporting period Period of
Continuous October 13 2022 to December 31 2024
Supervision
As the Company’s project invested by raising fund has not been completed yet the sponsor institution
still needs to perform the supervisory responsibilities continuously for the funds raised.VII. Key Accounting Data and Financial Indicators for the Previous Three Years
(I) Key Accounting Data
In RMB Yuan
YoY
Key accounting data 2024 2023 change 2022
(%)
Operating revenue 2007697317.98 2008924995.68 -0.06 1627895120.49
Net profit attributable to
shareholders of listed 114402314.36 138590474.42 -17.45 122867982.79
companies
Net profit attributable to
shareholders of the listed
company after 114319346.13 136061341.30 -15.98 113463515.78
extraordinary gains and
losses
Net cash flows from
operating activities -3708149.80 133522931.23 -102.78 161089465.80
YoY
End of 2024 End of 2023 change End of 2022
(%)
Net assets attributable to
shareholders of listed 1110435199.21 1082257514.27 2.60 1009348273.61
companies
Total assets 1952510883.69 1904362490.44 2.53 1777146294.25
8 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) Key Financial Indicators
Key financial indicators 2024 2023 YoY change(%) 2022
Basic earnings per share (RMB
Yuan/share) 1.14 1.39 -17.99 1.51
Diluted earnings per share (RMB
Yuan/share) 1.14 1.39 -17.99 1.51
Basic earnings per share after
extraordinary gains and losses 1.14 1.36 -16.18 1.4
(RMB Yuan/share)
Weighted average return on net Decreased by
assets (%) 10.56 13.67 3.11% 21.19
Weighted average return on equity
after extraordinary gains and losses 10.55 13.42 Decreased by2.87% 19.56Average return on net assets (%)
Explanation for key accounting data and financial indicators of the Company for the previous three years
as of the end of the reporting period
□ Applicable √ N/A
VIII. Differences in Accounting Data under Domestic and Overseas Accounting Standards
(I) Difference in net profit and net assets attributable to shareholders of the listed company
between the financial reports disclosed in accordance with international accounting standards and
those disclosed in accordance with China accounting standards
□ Applicable √ N/A
(II) Difference in net profit and net assets attributable to shareholders of the listed company
between the financial reports disclosed in accordance with overseas accounting standards and
those disclosed in accordance with China accounting standards
□ Applicable √ N/A
(III) Explanation for the Differences between Domestic and Overseas Accounting Standards:
□ Applicable √ N/A
IX. Key Financial Data of 2024 by Quarter
In RMBYuan
Q1 Q2 Q3 Q4
(January-March) (April-June) (July-September) (October-December)
Operating
revenue 353047565.61 578343469.68 515339248.32 560967034.37
Net profit
attributable to
shareholders 17806679.56 39171814.21 17114418.83 40309401.76
of listed
companies
Net profit
after
extraordinary 17655539.65 39359568.97 16897269.60 40406967.91
gains and
losses
9 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
attributable to
shareholders
of listed
companies
Net cash
flows from
operating -36492059.85 -58655553.80 117098005.72 -25658541.87
activities
Explanation for differences between quarterly data and data in disclosed periodic reports
□ Applicable √ N/A
X. Non-recurring Profit and Loss and Amount
√ Applicable□ N/A
In RMB Yuan
Non-recurring profit and loss items Amount for Note (If Amount for Amount for2024 applicable) 2023 2022
Profits or losses on disposal of
non-current assets including
elimination of provision for asset -8175.93 52564.23 237578.33
impairment
Government grants recognized in
profit or loss for the current period
except for those government grants
that are closely related to the
Company’s normal business
operations in line with national 433289.18 3731552.00 3524827.14
policies and in accordance with
defined criteria and have a
continuing impact on the Company’s
profit or loss
Profits or losses from changes in fair
value of financial assets and
liabilities held by non-financial
enterprises and profits or losses from
the disposal of financial assets and 117673.57
liabilities except for effective
hedging business related to the
Company’s normal business
operations
Occupancy fees charged to
non-financial enterprises recognized
in profit or loss for the period
Profits or losses on entrusted
investment or asset management
Profits or losses on entrusted external
loans
Losses on assets due to force
majeure such as natural disasters
Reversal of provision for impairment
of receivables individually tested for
impairment
Gain arising from the difference
between the cost of investment in
subsidiaries associates and joint
ventures and the fair value of net
10 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
identifiable assets of the investee at
the time of investment acquisition
Subsidiaries arising from a business
combination under the same control
Net gain or loss for the period from
the beginning of the period to the
date of the combination
Gain or loss on exchange of
non-monetary assets
Profits or losses on debt restructuring
One-time costs incurred by the
enterprise due to discontinuation of
relevant business activities such as
employee relocation expenses
One-time impact on profit or loss due
to adjustments in tax accounting and
other laws and regulations.One-time share-based payment
expenses recognized due to
cancellation or modification of the
share incentive plan
Gains or losses arising from changes
in the fair value of employee
remuneration payable after the
feasible date for cash-settled
share-based payments
Gains or losses from changes in fair
value of investment properties
subsequently measured using the fair
value model
Profits or losses from transactions
with an apparent unfair price
Gains or losses arising from
contingencies unrelated to the
Company’s normal business
operations
Custodian fee income from entrusted
operations
Non-operating revenue and expenses
other than those mentioned above -317988.82 -811609.16 -840019.94
Other profits or losses that meet the
definition of non-recurring profits or 9569293.94
losses
Less:Income tax effect 24156.20 445099.41 3204886.03
Effect of minority interests (after tax) -1725.46
Total 82968.23 2529133.12 9404467.01
The Company shall state why if it recognizes the items not listed in the Interpretative Announcement for
Information Disclosure of Companies Issuing Public Securities No. 1 - Non-Recurring Profit and Loss
as non-recurring profit and loss items and that the amount of such items is large or if it defines the
non-recurring profit and loss items listed in the Interpretative Announcement for Information Disclosure
of Companies Issuing Public Securities No. 1 - Non-Recurring Profit and Loss as recurring profit and
loss.□ Applicable √ N/A
11 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
XI. Items Measured at Fair Value
√ Applicable□ N/A
In RMB Yuan
Items Openingbalance Closing balance
Current period Amount of impact
changes on current profit
Structured deposits 50025000.00 50025000.00 25000.00
Strategic investments 12947918.04 12947918.04
on Wafer Works
Receivables 3572953.18 2499031.97 -1073921.21
financing
Total 3572953.18 65471950.01 61898996.83 25000.00
XII. Others
□ Applicable √ N/A
Section III Management Discussion and Analysis
I. Discussion and Analysis of Operating Conditions
In 2024 China's domestic economy continued to recover moderately. However the growth speed
of investment on China’s manufacturing industry was affected generally by the fluctuation of the global
supply chain geopolitical conflicts and insufficient domestic demand. In terms of domestic market
some clients from downstream were less willing to make investment or postponed their expansion plans.In consideration of the influential factors such as the stagnant construction industry and fiercer price war
ascribed to the intensified homogenized competition the Company's domestic main operating revenue in
2024 decreased by 15.45% YoY. Under the context of rebuilding the global industry chain Southeast
Asia's emerging markets attracted more investments from the semiconductor sector constantly. Countries
such as Malaysia Vietnam and Singapore had formed certain industrial cluster effect. However thanks
to the significant achievements of the Company's forward-looking strategic layout in Southeast Asia the
Company’s overseas main operating revenue increased by 55.39% YoY in 2024 becoming a key pillar
of the Group's second growth curve.The engineering industry market is full of changes. Only by complying with the latest market trends
and expanding the development potential of engineering undertaking can the industry survive and even
grow quickly under the market mechanism of selecting the superior and eliminating the inferior. In
consideration of the fiercer competition in China's engineering sector economic scale operational
efficiency and integrated services play a decisive role in the success of this sector. A complete
engineering framework and specialized technologies are the fundamental way to expand the
development potential of engineering business and foster a favorable ecosystem. According to the
present competitive pattern of the engineering industry the ability to grasp the information about
material supplies quickly and to render advanced engineering services for clients quickly are critical to
occupying a leading status in the industry. After improving the efficiency of projects in the entire
process systematically optimizing the control over supply chain procurement cycle and implementing
modular production systems the Company’s management team has cultivated the capacities of
implementing large-to-medium clean room and electromechanical engineering projects comprehensively
and precisely. By leveraging the advantages of resource integration in the whole industry chain the
Company has formed an engineering closed loop which ranges from design deepening prefabrication to
on-site assembly thus ensuring that clients in multiple fields can receive efficient response and quality
assurance in clean space construction and electromechanical system integration and enabling the
Company to continuously fulfill the performance commitments of key project nodes.In 2024 the Company's management upheld the business philosophy of “stable operation” in good
faith and focused on the Company’s core main business continuously. In the face of the complex
changeable market environment the Company always maintained its strategic strength and effectively
avoided market risks by accurately controlling the development pace. As a result the Company’s
12 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
revenue scale in 2024 was basically the same as that in the same period of last year laying a solid
foundation for its long-term development.II. Situation of the Company’s Industry within the Reporting Period
(I) Basic Overview of the Industry within the Reporting Period
The Company’s clean room engineering service belongs to the building installation industry.From
the perspective of the industry chain the clean room industry can be further divided into supply in
upstream construction in midstream and application in downstream. To be specific
Upstream industry involves the suppliers of raw materials and equipment such as building materials
system equipment and electromechanical equipment and exerts direct influence on the progress and
completion of projects. Their prices affect the industry’s costs directly and the profits of industry
enterprises significantly.The Company’s industry belongs to midstream which mainly includes engineering service
companies specialized in engineering survey engineering design and engineering construction.Downstream cover the industries where clean rooms are required for production or operation. The
major downstream industries of clean room engineering include IC semiconductor industry precision
manufacturing and photoelectricity whose development significantly influences the future development
of the enterprises in the industry.The IC semiconductor industry in the electronics sector is currently the
primary downstream industry for clean room engineering and its development exerts significant
influence on the future development of the enterprises in the industry. It poses certain demand for clean
room engineering services which are fulfilled by the enterprises in the industry. With the continuous
advancement of industrial technology downstream industries have posed higher and new requirements
for clean rooms constantly including their design level construction process and building materials etc.which as a result requires the enterprises in the industry to continually research and develop new
technologies and apply new construction techniques to comply with the latest market needs.The integration engineering service industry of clean room system refers to the engineering services
for clients such as the turnkey contracting services for clean room which is provided between project
owners and subcontractors of engineering materials equipment and projects based on owner’s needs and
by virtue of the engineering technologies in different fields. The relationship among its upstream
midstream and downstream is shown in the figure below:
13 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) Development Stage of Clean Room Industry
In 2024 China’s clean room industry was under a mature development stage featured by
large-scale expansion and technological upgrading. On the whole the industry ushered its steady growth
and technological innovation.Benefited from the rapid development of strategic emerging industries such as semiconductors PVs
and biomedicine especially the rigid demand for high-grade clean rooms in the semiconductor field
which has become the core growth engine of the industry the market scale of the clean room industry
expanded constantly.In terms of technological innovation the industry is undergoing transformation to a high-end
refined direction. Breakthroughs have been made continuously to the key technologies such as air
cleanliness control and temperature and humidity adjustment along with the increase of cleanliness
requirements of semiconductor manufacturing process. The implementation of the new version policies
such as the Standard for Clean Room Design and Standard for Clean Workshop Design in
Pharmaceutical Industry further standardized the technical indicators such as nano-particle monitoring
energy conservation and consumption reduction and pushed the further development of the industry
standardization. The technical upgrading of industries such as domestic chips new displays and the
soaring demand for high-grade clean rooms drove the industry’s further development towards high-end
direction.At present the distinct feature of the industry can be summarized as the coexistence of policies and
challenges. The supporting policies for such industries as semiconductor biomedicine etc. in the "14th
5-year Planning" period imply the demand for clean room construction. The lower demand for
traditional manufacturing industries and the lower industry profit margins have also led to obvious
pressure of small and medium-sized enterprises and structural adjustment of the local markets. Facing
intensified competition in the domestic market some enterprises made a layout on the overseas markets
at a faster speed such as Southeast Asian market and endeavored to explore new growth potential.Intellectualization and greening would become the main direction of industry upgrading. Clean
room engineering was gradually integrated with intelligent monitoring system and energy-savingtechnology with a view to reducing operating costs and responding to the “carbon peaking and carbonneutrality goals”. The regional cluster effect was further highlighted. Electronic information industry
clusters such as the Yangtze River Delta and the Pearl River Delta continued to attract high value-added
clean room projects based on their industry chain advantages. In general in 2024 the clean room
industry in China made steady progress in terms of scale expansion and technology iteration.(III) Cyclical Characteristics of the Clean Room Industry
The demand for clean rooms is closely related to the technology iteration and capacity expansion of
downstream industries such as semiconductors new displays and new energy. The semiconductor
industry is promoted by the technological upgrading of 5G and AI chips; the investment cycle is directly
related to the demand of clean room engineering thus forming the peak and valley of phased
construction. The semiconductors biomedicine etc. were listed as key development domains in the "14th
5-year Planning" period to promote the growth of clean room construction demands. Industrial policies
promote the development of industries such as semiconductors and integrated circuits as well as the
clean room engineering industry which belongs to an upstream industry. Therefore the periodicity of
this industry complies with that of national industrial policies macroeconomics and downstream
technology development.(IV) The Company’s Status in the Industry
As one of the most competitive enterprises in China’s clean room engineering field the Company
focuses on providing clean room system total solutions for high-tech industries. It is also one of China’s
few engineering service companies that are specialized in different industrial fields and have
accumulated the experience of project construction in different countries and regions at the same time.The Company has completed many projects in the industries such as semiconductors precision
manufacturing photoelectric panels biotechnology and medical care commercial buildings
government projects department stores and hospitals with high achievements in air conditioning
electromechanical engineering and clean rooms. It can provide clients with a series of professional
technical services for project consultation design construction and management as well as system
debugging operation management and warranty maintenance.Based on its strong financial strength
rapid response service system excellent engineering quality and technological innovation ability the
Company has successfully completed a number of benchmark projects in the industry. In the future on
14 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
the basis of intelligent construction and green low-carbon technology the Company will continue to
integrate industry chain resources in depth bring forth engineering solutions featuring more scientific
and technological content and sustainable value for global clients contribute to the upgrading of
high-tech industries provide high-standard infrastructures for "Intelligent Manufacturing in China"
continuously and create more world-class excellent engineering models in specialized fields.(V) Major Laws and Regulations Applicable to the Industry and the Impact of Industrial Policies
The current laws and regulations on the clean room system integration engineering services
provided by the Company mainly specify the industry qualification management industry business
standards and industry quality management. China has implemented strict qualification management for
the clean room industry and established a strict market access mechanism. The level of qualification is
directly related to enterprises’ capacity of undertaking businesses.The industrial policy support for the main downstream industries served by the Company is
conducive to the sustainable growth of the related industries thus driving the overall market demand for
clean room engineering. In recent years China has promulgated relevant policies one after another in
order to promote the development of industries such as semiconductors new displays life sciences and
food and pharmaceuticals thereby promoting the growth of the clean room industry demand. In addition
clean room engineering is part of the construction industry. Relevant national policies that have been
promulgated successively for promoting the greening and intelligent development of the construction
industry the application of BIM technology and other information technologies used in clean room
construction and the development of prefabricated buildings have also driven the development of clean
room engineering industry.The Company and its subsidiaries have paid close attention to all key and latest policies and laws
home and abroad continuously adjust the Company's business strategy based on the latest market trend
in order to effectively grasp the impact on the Company's financial business. In recent years and as of
the publication date of this Report the Company hadn’t received significant impact of the changes of
important policies and laws home and abroad on its financial business.III. The Company’s Business within the Reporting Period
(I) Overview of the Company’s Main Business
The Company’s main business is to provide such services as clean room engineering
electromechanical engineering etc. for the plant construction of the high-tech electronic industries such
as IC semiconductor optoelectronics as well as relevant fields including food pharmaceutical and cloud
computing centers. To be specific the business includes clean factory construction & planning design
suggestions equipment environment system integration engineering and maintenance services of clean
room.The Company has the qualifications of Grade I General Contractor of Electromechanical
Engineering Grade I Specialized Contractor of Building Electromechanical Installation Engineering
General Contractor of Building Project Construction Specialized Contractor of Electronic and
Intelligent Engineering Specialized Contractor of Building Decoration Specialized Contractor of
Firefighting Facilities Engineering Grade II Specialized Contractor of Environmental Protection and the
qualification for the installation repairing and transformation (industrial pipe installation GC2) of
pressure-bearing special equipment. Within the reporting period the Company acquired the Grade B
15 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
qualification of engineering design and building industry (building engineering) and Grade B
qualification of engineering design and building decoration projects. All these construction
qualifications best demonstrate the Company’s solid technical strengths and professional capacity.(II) Main Products and Their Uses
Different from other industries the technology and R&D of clean room system integration
engineering is aimed to tailor and provide the operating system and environment satisfying clients’
needs by improving its application efficiency through reorganizing construction methods and materials
and equipment and by integrating the specialized knowledge in different fields such as architecture
electromechanical engineering air conditioning fire protection instrument control distribution pipeline
and engineering management based on the specific owner’s needs.The clean room system integration-related projects include clean room system integration
engineering and hook-up works.* Clean room system integration engineering refers to clean room system-related design and
construction projects before the factory is put into use including systems directly related to clean rooms
(such as air handling systems water treatment systems airflow systems air molecular pollution control
systems static control systems etc.) and clean room support system engineering (such as piping systems
power systems fire safety systems etc.).* Hook-up works refer to the secondary clean room supporting projects (such as power systems
water treatment systems and airflow systems) for new equipment and production lines after the clean
room is put into operation on the premise of minimizing the impact on the cleanliness air molecular
pollution vibration temperature humidity pressure and static electricity of the original clean room area.The design and construction precision and fault tolerance of hook-up works are relatively low. Other
electromechanical installation projects refer to the electromechanical projects of non-clean room-related
factory and office buildings etc.(III) Business Model
The Company as the one-stop professional service provider of clean room system integration
engineering solutions for advanced manufacturing industries is capable of implementing a complete
industry chain of system integrating ranging from engineering design to procurement construction
operation and maintenance. While implementing projects the Company purchased the required
equipment and materials centrally based on the specific project conditions and subcontracted the clean
room system project construction. The Company was also responsible for organizing and coordinating
the contracting units of each system supervising and guiding them and coordinating the overall
progress of the project. The Company earned profits by providing clients with clean room project total
solutions.
1. Sales Mode
The Company mainly provides clean room engineering services for the large-scale enterprises in
semiconductor electronics and other industries. The Company’s marketing staff obtains client resources
by exploring new clients through searching market information serving existing clients continuously
and cooperating with new clients recommended by the existing ones etc. and makes contact with them
on business. The Company mainly approaches clients through clients’ bidding invitation for bidding
and commercial negotiation. The bidding mode of the Company is generally as follows: Obtaining
bidding information purchasing proposals passing tenderer’s qualification examinations paying
16 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
bidding deposit preparing bidding documents bidding for projects on sites opening bid on site
obtaining the notification of successful bid and signing the contract etc.
2. Procurement Mode
The Company procures construction materials in accordance with the contract signed with the
owner or contractor mainly including construction materials and equipment. The Company prepares the
procurement plan based on the project cost budget and the requirements of the project execution
schedule; prepares and executes the corresponding procurement plan based on the specific project. The
person in charge of the project prepares the procurement plan according to the project progress project
material input plan processing schedule of customized materials etc. and the procurement period of
each type of materials is clearly defined.
3. Engineering Contracting Mode
In accordance with the Construction Law of the People’s Republic of China Civil Code of the
People's Republic of China Labor Law of the People’s Republic of China Provisions on the
Administration of the Qualifications of Construction Enterprises and other relevant laws and regulations
as well as the project construction contract signed with the owner the Company subcontracts the clean
room construction projects according to the specific clean room projects during the implementation
stage. In case of any restrictive clauses or explicit provisions in the general contract the Company shall
obtain the consent of the owner before selecting the contracting manufacturer. The Company centrally
coordinates organizes supervises guides and uniformly manages the subcontractors of each system
during the construction process.The Company’s Procurement Department is responsible for maintaining the list of suppliers and
evaluating the subcontractors based on their qualifications financial strength engineering achievements
etc. In case of any subcontracting needs the person in charge of the project will initiate a requisition for
subcontracting and the Procurement Department will sign a contract with the subcontractor which is
selected after comparing all subcontractors’ experience technology price etc. with the approval of the
corresponding supervisor. Subsequently the Company organizes engineers and technicians to give
technical briefings to the subcontractors and conducts training supervision and management of the
subcontractors in accordance with the terms of the contract design documents and construction
specifications to ensure the normal progress of the construction.IV. Analysis of the Company’s Core Competitiveness within the Reporting Period
√ Applicable□ N/A
(I) Excellent Engineering Performance and Extensive Business Scope
Upholding the "multi-client multi-industry multi-job multi-region" development strategy and on
the basis of the Company’s excellent service quality efficient project execution ability and professional
talent team the Company has expanded its business to the central development cities of many countries
and regions worldwide. By working with hundreds of world-renowned enterprises the Company
undertakes projects in the industries such as semiconductors precision manufacturing photoelectric
panels biotechnology and medical care commercial buildings government projects department stores
and hospitals etc. It has accumulated rich engineering performance in such fields as air-conditioning
motor and clean room. As of the end of the reporting period the Company had implemented over 450
clean room-related projects including nearly 100 clean room projects of Class 100 and above. As one of
China’s few comprehensive contractors with cross-disciplinary and cross-border engineering service
capabilities the Company can provide clients with a series of specialized technical services ranging
from project consultation design construction management to system debugging operation
management warranty maintenance etc. The Company is superior to its rivals in terms of the capacity
of adapting to the cyclical fluctuations of business and effectively reducing operational risks.The Group’s global strategic layout continues to deepen and significant achievements have been
made to the coordinated development of domestic and overseas businesses. In terms of the domestic
business by taking Suzhou headquarters as the strategic center the Company has built a marketing
network system which influences three major economic belts in East China Central China and South
China and accurately covered the advanced manufacturing clusters through strategic distribution of
regional hub cities such as Hefei Zhengzhou Changsha Wuhan and Chongqing. Relying on the
geographical advantages the Company’s each regional center has built a dual-core driving mode of
"headquarters + region"; established a rapid response mechanism and a personal service system to
satisfy the technical needs of downstream high-end manufacturing clients fully.
17 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Company has good foresight for its layout in Southeast Asian market where it has built an
industry-leading multinational management system. Implemented the "Localization Strategy of
Southeast Asia" since 2007: Stage 1: Established Vietnam Subsidiary (in 2007) as a regional office;
Stage 2: Realized multi-point layout by establishing Malaysia Subsidiary (2011) and Indonesia
Subsidiary (2013); Stage 3: Deepened the regional network and established Thai Subsidiary (in 2019) to
form strategic support covering major ASEAN economies. Realized three core advantages through the
mechanism of "standardized output + localized transformation" based on the project management
experience system duly established by Suzhou Headquarters based on over 20 years of experience:
Firstly build a transnational capacity collaboration network apply the experience of "Intelligent
Manufacturing in China" and comply with the local industrial policies labor regulations and customs &
tax mechanisms; secondly cultivate a localized talent echelon establish a multilingual service team to
deeply integrate into the local business culture and realize smooth communication throughout the
project cycle; thirdly establish a risk pre-control mechanism effectively avoid trade barriers and ensure
the project delivery cycle by the dual-track strategy of domestic procurement and local supply chain
construction.(II) High Project Quality and Stable Customer Relationship.Quality and reputation are not only the Company’s extremely important intangible assets but also
guarantee the Company’s development of clients and business.Upholding the precise and profound positioning of "creating high-quality spaces" faithfully the
Company is committed to creating high-standard and high-quality clean room system integration
solutions for clients. Based on its excellent professional ability rigorous project management and
in-depth insight into client needs the Company has accumulated rich industry experience and good
market reputation and the "Acter" Brand takes prevalence in the field of clean room engineering
construction.The Company sticks to quality control in each link of clean room system integration. The Company
creates a safe efficient and reliable clean space for clients in the entire processing from careful planning
and design in early stage of project to the implementation of strict standards in the construction process
and considerate repairing and warranty services after project completion. Within the reporting period
the Company was awarded the honors of the "Best Supplier" the "Best Safety Management Team" the
"Excellent Safety Vendor" and the "Excellent Contractor" for many times and its engineering services
were well received by clients. The successful delivery of each project best demonstrates the Company's
brand value and every client's satisfactory feedback helps improve the reputation of the Company’s
brand.High-tech workshop in high-end electronics industry entails huge investment and high stability of
clean room. For the purpose of reducing investment risks and ensuring product yield owners are apt to
prefer leading well-experienced engineering service enterprises with outstanding performance. Under
the context of the rapid iteration and upgrading of high-tech industries such as semiconductor electronic
manufacturing and photoelectric display Acter as a system integration enterprise has always worked
with clients as closely as possible and witnessed each client’s growth in depth. The Company has made
transformations from technological breakthrough to capacity expansion and from process optimization
to intelligent transformation. Based on its professional technical team flexible solutions and efficient
service system the Company offers tailored system integration services complying with clients’
development strategies so as to help them stand out in the fierce competition.We feel blessed to establish a deep stable cooperative relationship with outstanding enterprises in
many industries during our development. Our clients cover the leading enterprises in various sub-sectors
and well-known enterprises in the upstream and downstream of the industry chain.Relying on the stable
customer group duly established through long-term efforts the Company has formed the core resource
advantages to ensure the sustainable development of its business.(III) High-quality Management Team and Specialized Engineering Technicians
The Company always sees the construction of talent echelon as its core strategy. After more than 20
years of painstaking efforts it has built an interdisciplinary management team capable of coping with all
issues in the industry. The core management members have the working experience over 15 years on
average with the experience of project construction for leading enterprises in strategic emerging
industries such as semiconductors and photoelectric displays for a long time; they have established
in-depth understanding of the whole life cycle of clean room engineering industry while serving clients
and have the ability of cross-industry technology integration and forward-looking layout. Relying on the
talent cultivation mechanism of "internal promotion + professional talent introduction" the Company
18 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
ranks among the top in the industry in terms of the stability of middle management team. It has nearly
100 employees with more than 10-year experience which ensures the continuity and iterative innovation
ability of engineering technical services. As of the end of reporting period the Company had 601
engineers and technicians including 216 with vocational skills certificates; 48 registered Level A and B
constructors specialized in architecture electromechanical engineering etc.; 76 with medium and senior
titles.In management practice the Company breaks down the corporate strategy into quantifiable
department and individual indicators through OKR target management system to realize the synergistic
value addition of organizational efficiency and employee value. By assigning well-experienced
"masters" for new employees the Company realizes accurate cultivation of core competencies such as
construction technology and client management through "passing on experience". The method above
also allows new employees to adapt to their post within a shorter period of time. In the "Reserve
Supervisor Training Camp" the Company invites teachers and experts from prestigious colleges and
universities and professional institutions to offer trainings on legal risk control cost actuarial green
construction etc. More than 100 reserve cadres have been cultivated through the camp to improve the
team management level and business management skills. In the Company’s Magic Academy the
Company offers E-Learning system and various offline trainings. Senior engineering personnel
summarize and analyze closed cases and offer offline courses for different specialized systems so that
the trainees could understand the strengths and weaknesses of other projects while strengthening their
own professional abilities thus better exerting personal initiative and boosting operational efficiency.The management wisdom derived from industrial practice enables the Company to grasp the “intelligentmodular and low-carbon” development trend of clean room engineering and to form differential
advantages in such fields as EPC general contracting intelligent O&M etc. thus bringing strong
supports for the Company’s sustainable development.(IV) Sound Financial Structure
Essentially speaking the engineering system service providers subcontract the projects that they
contract to a third party. On the basis of the nature of project contract some of the materials and
equipment required for construction are purchased by the subcontractors while the rest ones are
purchased in advance according to the procurement procedure in order to satisfy the construction
progress. Subcontractors must have sufficient capitals and need to pay capitals before undertaking large
system integration projects such as bid bond performance bond material & equipment price
outsourcing costs and warranty payment. Since its inception the Company has established a sound
financial structure and allocated sufficient operation funds to satisfy the needs of project operation. The
Company also enjoys sufficient financing amount at financial organizations. Furthermore the sound
financial structure could also improve owners’ trusts in the Company.V. Main Operations within the Reporting Period
(I) Fierce Market Competition Slow YoY increase of Operating Revenue
In 2024 China's domestic economy continued to recover moderately. However the growth speed
of investment on China’s manufacturing industry was affected generally by the fluctuation of the global
supply chain geopolitical conflicts and insufficient domestic demand. In terms of domestic market
some clients from downstream were less willing to make investment or postponed their expansion plans.In consideration of the influential factors such as the stagnant construction industry and fiercer price war
ascribed to the intensified homogenized competition the Company's operating revenue in 2024
decreased YoY and its gross profit rate dropped.Within the reporting period the Company’s operating revenue was RMB 2007.6973 million a
YoY decrease of 0.06%. The net profits belonging to the shareholders of listed company were RMB
RMB 114.4023 million with a YoY decrease of 17.45%. The gross profit rate of the Company’s main
businesses in 2024 was 12.51% with a YoY decrease of 0.82%.If the Company’s main operating revenue in 2024 is divided based on the industries of downstream
clients the operating revenue of IC semiconductor industry accounts for 59.54% with a YoY decrease of
11.31%; that of precise manufacturing industry accounts for 30.93% with a YoY increase of 28.99%
while that of photoelectricity and other industries accounts for 9.53% with a YoY increase of 6.56%. If
however the Company’s main operating revenue in 2024 is divided based on the specific contents of
engineering services the operating revenue of system integration engineering accounts for 48.50% with
a YoY decrease of 35.89%; that of hook-up works accounts for 14.38% with a YoY increase of 43.21%
19 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
that of other electromechanical installation engineer accounts for 35.41% with a YoY increase of
156.99% while that of equipment sales accounts for 1.71% with a YoY increase of 194.88%.
(II) Overseas market is gradually the key pillar of the Company's second growth curve
Under the context of global supply chain rebuilding and the vigorous development of the local
electronics manufacturing enterprises in Southeast Asia the Southeast Asian market ushered the robust
growth potential of clean room engineering income which is particularly significant in semiconductor
and electronics manufacturing fields.If the Company’s main operating revenue in 2024 is divided by region the domestic and overseas
main operating income was RMB 1328 million and RMB 670 million accounting for 66.22% and
33.78% of the total respectively. The overseas main operating revenue realized a YoY increase of
55.39% which implies the Company’s robust power and remarkable achievements in the exploration of
overseas market.Within the reporting period the Company actively promoted a total of 483 projects in process of
different kinds with a total amount of RMB 4992.0922 million. To be specific there were 309 domestic
projects the capital amount of which account for 64.70% and 174 overseas projects with a capital
amount accounting for 35.30%. The above indicates the depth and width of the Company’s overseas
market layout.Among all the overseas subsidiaries Acter (Vietnam) ranked among the top with 112 projects in
process. Thanks to its excellent project execution capacity and considerate services Acter (Vietnam)
won the trust of many famous clients such as Wistron InfoComm WNC ALPHA NETWORKS and
SIMPLO. The total number of Acter (Vietnam)’s projects in process was 17 with a total amount of
RMB 761 million and the main clients included UNIEQ.As of the end of the reporting period the balance of the Company’s orders in hand had been RMB
1735 million (excluding tax) with a growth of 31.47% compared with the same period of last year. To
be specific the balance of the Company’s overseas orders in hand had been RMB 897 million
accounting for 51.70% while that of the Company’s domestic orders in hand was RMB 838 million
accounting for 48.30%. For the very first time the proportion of balance of the Company’s overseas
orders in hand became higher than that of the domestic ones which implies that the Company has
improved its influence on the overseas market gradually.Southeast Asia has already become the Company’s key overseas region for business exploration.The Company’s subsidiaries in Malaysia Indonesia Thailand and Vietnam have realized efficient
supplementation and supply collaboration of raw materials technologies and manpower under the strong
support of the Company. The Company’s business in various Southeast Asian countries has formed a
dense network gradually through mutual linkage. All the local subsidiaries complemented with each
other and made progress collaboratively which contributes to a more flexible development space.
20 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(III) Build the Client-oriented New Matrix Organization Pattern by Focusing on Suitable
StrategiesWithin the reporting period the Company totally finished the construction of “grade and ranksystem” and made meticulous planning on the dual channels of employee management and specialty
development. By building the rank channel systematically and evaluating post value in depth the
Company has established the matching relationship of rank and remuneration accurately. The Company
also prepared specific standards for qualification and defined the post requirements and promotion
criteria of employees at different levels providing clear guidance for employees’ occupational
development and scientific bases for personnel selection. The Company finally aims to guide the
employees to become more competent in specialized fields and realize self-improvement and
development; and to help organizations allocate resources efficiently thus laying a solid foundation on
the Company’s sustainable development and growth.On the basis of ensuring the professionalism of functions the Company also set the “integrationservice group” horizontally to form the dual-track management framework of “vertical function +horizontal projects”. Employees can not only make exploration in the specialized fields but also further
improve their interdisciplinary capacity by working with other departments on projects. In this way the
Company could form an organic collaborative network consisting of technologies manpower capital
etc. based on the strategic priority; and improve the efficiency of seizing market opportunities in the
fast-changing industry cycle through shortening decision-making chain and intensifying
cross-department collaboration.(IV) Constant Increase of Specialized Technician Reserves and Patents
1. The steady growth of employees implies the Company’s favorable development momentum. As
of the end of the reporting period the Company had a total of 714 employees an increase of 11.56%
compared with the same period of last year. In particular the number of engineering technicians had
reached 601 from 525. The number of employees with vocational skills certificates was 216 while the
number of registered Level A and B constructors specialized in architecture electromechanical
engineering etc. was 48; the number of employees with medium and senior titles was 76. The Company
has built the 3D patent matrix of “skill certification + professional qualification + title echelon”
constantly which improves the Company’s core competitiveness for large project bidding and
technological innovation.
2. The Company implements the talent development strategy of “developing employees’ potentialspromoting their awareness of independent learning”. Within the reporting period the Company offered
internal and external courses and annual required courses for employees who through offline
face-to-face teaching were encouraged to discuss with lecturers in depth thus promoting the bilateral
knowledge transfer realizing benign interaction helping employees to improve their professional skills
comprehensively and facilitating individual growth and enterprise development at the same time. Within
the reporting period the Company organized trainings of 80 sessions by investing RMB 0.2421 million.With a total length of 9495.5 hours the trainings involved 456 employees with the per capita training
length of 20.8 hours and training coverage of 92%.
3. The Company deepens the construction of talent echelon continuously and focuses on the
construction of talent cultivation system for grassroots managers and core backbones. Within the
reporting period the Company successfully held the 5th “Reserve Director Training Camp”. Through the
systematic training with regard to such specialized fields as legal risk control cost actuarial green
construction etc. the Company built the interdisciplinary talent reserve system empowered from
different perspectives. The camp above has cultivated more than 200 reserved managers for the
Company thus improving team’ lean management level and project full-cycle control capacity
effectively injecting innovation power for the Company’s high-quality development and reinforcing the
industry’s core competitiveness constantly.
4. The Company improves the internal R&D system construction through different R&D modes
including independent R&D and industry-university-research cooperation in order to cultivate its core
competitiveness. To address the pain spots in the industry the Company provided clients with moreefficient stable eco-friendly and convenient clean room solutions on the “intelligent green andhigh-end” principle and through implementing the key R&D projects such as the research on efficient
air purification technology intelligent clean room management system research on the green building
materials of clean room research on the energy-saving technologies of clean room etc. As of the end of
the reporting period the Company had received 68 patents in total including 11 invention patents and
21 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
57 patents for utility models. The quantity of patents licensed annually increased. All these patents
safeguard the Company’s technologies.(I) Main Business Analysis
1. Analysis of changes in relevant items in the profit statement and cash flow statement
In RMB Yuan
Items Amount this period Amount in the sameperiod of last year Change (%)
Operating revenue 2007697317.98 2008924995.68 -0.06
Operating cost 1755007424.22 1738841241.47 0.93
Sales expenses 6781770.06 7954281.67 -14.74
Administrative expenses 62519012.85 59193009.85 5.62
Finance costs -10917383.30 -5530329.32 N/A
R&D expenses 33529705.96 25121209.62 33.47
Net cash flows from operating
activities -3708149.80 133522931.23 -102.78
Net cash flows from investing
activities -78315303.53 106839659.13 -173.3
Net cash flows from fund-raising
activities -57173481.03 -75002375.36 N/A
Taxes and surcharges 3455150.25 4370539.18 -20.94
Other gains 433289.18 3731552.00 -88.39
Investment income 814005.65 1661794.44 -51.02
Gain on change in fair value 25000.00 -119888.89 120.85
Credit impairment loss 2207755.91 -3860633.85 157.19
Impairment loss on assets -6812588.09 1148478.91 -693.18
Gain on disposal of assets 98152.04 116542.37 -15.78
Non-operating revenue 37943.24 14361.33 164.20
Non-operating expenses 365007.19 889948.63 -58.99
Income tax expense 36650409.77 40713458.90 -9.98
Minority interests 2707464.55 1473367.57 83.76
Changes in fair value of
investments in other equity -2052072.90 N/A
instruments
Translation differences on foreign
current statements -3756476.25 290286.73 -1394.06
Net of tax of other
comprehensive income
attributable to minority 40729.72 79151.41 -48.54
shareholders
Explanation for the changes in finance costs: The amount of finance costs was changed
22 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
substantially compared with that in the same period of last year which is caused by the interest income
and large amount of exchange gain in this period;
Explanation for the changes in R&D expenses: R&D expenses increased by 33.47% YoY which
was attributable to the increase in R&D investment in this period;
Explanation for the changes in net cash flow generated by operating activities: The net cash flow
generated by operating activities decreased by 102.78% YoY which is caused by completion progress of
the large engineering projects in this period which is earlier than settlement progress large number of
capitals paid in advance and collection speed lower than that of the same period last year;
Explanation for the changes in net cash flows from investing activities: The net cash flow
generated by investing activities decreased by 173.30% YoY which is caused by the reduction of
structural deposits redeemed in this period;
Explanation for the changes in other gains: Other gains decreased by 88.39% YoY which is caused
by the listing reward received in the last period;
Explanation for the changes in investment income: The investment income decreased by 51.02%
YoY which is caused by the reduction of structural financial amount redeemed in this period;
Explanation for the changes in gain on fair value changes: The gain on fair value changes changed
significantly on a YoY basis which is caused by the changes of fair value of structural deposits in this
period;
Explanation for the changes in credit impairment losses: The credit impairment losses changed
significantly on a YoY basis which is caused by the decrease of the accounts receivable in this period
compared with that at the end of last year switch-back of the bad debts accrued last year and the
collections from clients with aging received in this period;
Explanation for the changes in impairment losses on assets: The impairment losses on assets
decreased by 693.18% YoY which is caused by the high amount of Boyuan Construction’s quality
margin receivable as accrued in full in this period;
Explanation for the changes in non-operating revenue: The non-operating revenue increased by
164.20% YoY which is mainly caused by the income from vehicle sales in this period.
Explanation for the changes in non-operating revenue: The non-operating revenue decreased by
58.99% YoY which is caused by the high amercement outlay in last period;
Explanation for the changes in minority interests: The minority interests increased by 83.76% YoY
which is caused by the increase of net profits of Thailand and Indonesia joint venture subsidiaries and
the increase of minority interests in this period;
Explanation for the changes in fair value of investments in other equity instruments : The changes
in fair value of investments in other equity instruments changed significantly compared with those in last
period which is caused by the large loss generated by stock price change after the strategic investment
on Wafer Works in this period;
Explanation for the changes in translation differences of foreign currency statements: The
translation differences of foreign currency statements decreased by 1394.06% YoY which is mainly
caused by the large change of the translation differences of the Vietnam Subsidiary’s foreign currency
statements;
Explanation for the changes in the net of tax of other comprehensive income belonging to minority
shareholders: The net of tax of other comprehensive income belonging to minority shareholders
decreased by 48.54% YoY which is caused by the large change of translation differences of the
Indonesia Subsidiary’s statements in this period;
Detailed description of significant changes in the Company's business type profit composition or profit
sources in this period
□ Applicable √ N/A
2. Revenue and Cost Analysis
√ Applicable□ N/A
Within the reporting period the Company’s main operating revenue decreased by 0.06% YoY and
the cost increased by 0.89% YoY due to the influence of downstream clients’ lower investment scale
and fierce horizontal competition in the industry.
23 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(1). Information of Main Businesses by Industry Product Region and Distribution Mode
In RMB Yuan
Main business by industry
YoY
Gross change YoY YoY
By industry Operating Operating cost profit in
change change in
revenue rate operating in
(%) revenue operating
gross
cost (%) profit (%)(%)
IC semiconductor Decreased
industry 1193694566.59 1080909463.28 9.45 -11.31 -10.22 by 1.10%
Precision
manufacturing 620054067.90 524535271.19 15.40 28.99 33.57 Decreased
industry by 2.91%
Photoelectricity
industry 92449438.50 74271440.78 19.66 -8.82 -7.90
Decreased
by 0.80%
Other industries 98731863.10 74426688.64 24.62 26.54 21.08 Increasedby 3.41%
Total 2004929936.09 1754142863.89 12.51 -0.06 0.89 Decreasedby 0.82%
Main business by product
YoY
Gross change YoY YoY
By product Operating
change
revenue Operating cost
profit in change in
rate operating in gross
(%) revenue operatingcost (%) profit (%)(%)
Clean room
engineering 1260776524.50 1104372600.54 12.41 -26.62 -26.24
Decreased
by 0.45%
Including:
System 972508470.65 854536087.79 12.13 -35.89 -35.49 Decreased
Integration by 0.55%
Hook-up works 288268053.85 249836512.75 13.33 43.21 44.68 Decreasedby 0.88%
Other
electromechanical 709882661.90 621599056.88 12.44 156.99 167.82 Decreased
installation works by 3.54%
Equipment sales 34270749.69 28171206.47 17.80 194.88 200.83 Decreasedby 1.62%
Total 2004929936.09 1754142863.89 12.51 -0.06 0.89 Decreasedby 0.82%
Main business by region
YoY
Gross change YoY
Operating profit in change
YoY
By region Operating cost in change inrevenue rate operating
(%) revenue operating
gross
cost (%) profit (%)(%)
Domestic regions 1327689940.14 1181790467.84 10.99 -15.45 -14.85 Decreasedby 0.62%
Including: East
China 721061314.51 613217765.19 14.96 -10.02 -10.62
Increased
by 0.58%
Central China 145069491.73 137221432.37 5.41 -58.75 -57.93 Decreasedby 1.85%
South China 412866804.26 393539736.82 4.68 29.64 32.84 Decreasedby 2.30%
24 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Southwest
regions 35638066.18 26709916.90 25.05 -54.37 -56.61
Increased
by 3.87%
Other regions 13054263.46 11101616.56 14.96 -36.60 -37.97 Increasedby 1.87%
Overseas regions 677239995.95 572352396.05 15.49 55.39 63.16 Decreasedby 4.02%
Including:
Vietnam 360635331.49 289605361.98 19.70 19.67 21.25
Decreased
by 1.05%
Decreased
Indonesia 57012155.85 49219528.00 13.67 313.44 385.03 by
12.74%
Thailand 177252404.73 156293783.05 11.82 59.22 68.22 Decreasedby 4.72%
Other regions 82340103.88 77233723.02 6.20 780.41 769.17 Increasedby 1.21%
Total 2004929936.09 1754142863.89 12.51 -0.06 0.89 Decreasedby 0.82%
Explanation for main businesses by industry product region and distribution mode
The revenue and cost of the main business by industry product and region changed significantly in
this period. Influenced by such factors as the slow growth speed of macro economy downstream clients’
lower investment scale or their decision on investing on overseas regions such as the Southeast Asia
fierce horizontal competition in the industry etc. the domestic revenue and cost decreased in this period;
however the overseas revenue and cost increased significantly in this period due to the large amount of
overseas projects undertaken in this period and large proportion of other electromechanical project
installation works from clients in precision manufacturing industry in the total businesses.
(2). Analysis of production and sales volume
□ Applicable √ N/A
(3). Fulfilment of major purchase contracts and major sales contracts
□ Applicable √ N/A
(4). Cost analysis table
In RMB Yuan
By Industry
Proport
ion of
Proport change
ion in of the
Proporti the amount
By on in the total in this
ind Cost total cost Amount in the same costs period
ustr items Amount this period for the
Rem
current period of last year
for the compar
y same ed with
arks
period period the
(%) of last same
year period
(%) of last
year
(%)
Con Equipme
stru nt and 892624851.04 50.89 975046287.01 56.08 -8.45
ctio materials
25 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
n Labor
and subcontr 736309579.09 41.98 648595269.15 37.30 13.52
inst acting
alla Labor
tion cost 74915887.06 4.27 75883841.01 4.36 -1.28
ind Other
ustr expenses 50292546.70 2.86 39201537.58 2.26 28.29
y
Total 1754142863.89 100.00 1738726934.75 100.00 0.89
Explanation for other cost analysis
None
(5). Change of merger scope caused by the equity change of major subsidiaries within the
reporting period
□ Applicable √ N/A
(6). Major changes or adjustments of the Company’s business products or services within the
reporting period
□ Applicable √ N/A
(7). Major clients and major suppliers
A.The Company’s major clients
√ Applicable□ N/A
The sales volume of the Company’s top 5 clients amounted to RMB 765.109 million accounting
for 38.11% of the Company’s total annual sales volume. To be specific the sales volume of related party
in the volume above amounted to RMB 0 million accounting for 0.00% of the Company’s total annual
sales volume.No. Top 5 clients Project revenue Proportion in the operating
(RMB 10000) revenue (%)
1 Client 1 20374.05 10.15
2 Client 2 17793.33 8.86
3 Client 3 14793.10 7.37
4 Client 4 13735.90 6.84
5 Client 5 9814.52 4.89
Total 76510.90 38.11
The proportion of sales to a single client exceeding 50% of the total amount the existence of new clients
among the top 5 clients or heavy reliance on a small number of clients within the reporting period
□ Applicable √ N/A
B.The Company’s major suppliers
√ Applicable□ N/A
The procurement amount of the top 5 suppliers is RMB 214.4369 million accounting for 12.67% of
the total annual procurement amount; among them the procurement amount of related parties among the
top 5 suppliers is RMB 0 million accounting for 0% of the total annual procurement amount.No. Top 5 suppliers Procurement Proportion in the annual
amount (RMB procurement amount (%)
10000)
26 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
1 Supplier 1 9621.20 5.68
2 Supplier 2 3610.61 2.13
3 Supplier 3 2905.73 1.72
4 Supplier 4 2755.30 1.63
5 Supplier 5 2550.85 1.51
Total 21443.69 12.67
The proportion of procurement from a single supplier exceeding 50% of the total amount the existence
of new suppliers among the top 5 suppliers or heavy reliance on a small number of suppliers within the
reporting period
□ Applicable √ N/A
Other notes:
None
3. Fees
√ Applicable□ N/A
In RMB Yuan
2024 2023 Proportion of
change of the
Proportion Proportion amount in this
Items in in periodAmount operating Amount operating compared
revenue revenue with the same
(%) (%) period of last
year (%)
Sales expenses 6781770.06 0.34 7954281.67 0.40 -14.74
Administrative 62519012.85 3.11 59193009.85 2.95 5.62
expenses
R&D 33529705.96 1.67 25121209.62 1.25 33.47
expenses
Finance costs -10917383.30 -0.54 -5530329.32 -0.28 N/A
Total 91913105.57 4.58 86738171.82 4.32 5.97
4. R&D investment
(1).Table of R&D investment
√ Applicable□ N/A
In RMB Yuan
Expensed R&D investment in this period 33529705.96
Capitalized R&D investment in this
period 0
Total of R&D investment 33529705.96
Proportion of total R&D investment in the
operating revenue (%) 1.67
Proportion of capitalized R&D investment
(%)0
(2).Table of R&D personnel
√ Applicable□ N/A
Number of the Company’s R&D personnel 66
27 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Proportion of the R&D personnel in the total
number of the Company’s staff (%) 9.24
Educational structure of R&D personnel
Category of educational structure Educational structure and number of R&D personnel
Doctorate 0
Master’s degree 2
Bachelor ‘s degree 44
College degree 20
Senior high school and below 0
Age structure of R&D personnel
Category of age structure Number
Below 30 (excluding 30) 38
30-40 (including 30 but excluding 40) 20
40-50 (including 40 but excluding 50) 7
50-60 (including 50 but excluding 60) 1
60 and above 0
(3).Remarks
□Applicable √ N/A
(4).Reason for significant changes in the composition of R&D personnel and its impact on the
Company’s development
□Applicable √ N/A
5. Cash flow
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount in the same Change (%)
period of last year
Net cash flows from -3708149.80 133522931.23 -102.78
operating activities
Net cash flows from -78315303.53 106839659.13 -173.30
investing activities
Net cash flows from -57173481.03 -75002375.36 -23.77
fund-raising activities
Net increase in cash -135100740.92 167656624.74 -180.58
and cash equivalents
(II) Explanation for Significant Changes in Profit Due to Non-principal Business
□ Applicable √ N/A
(III) Analysis of Assets and Liabilities
√ Applicable□ N/A
1. Assets and liabilities
In RMB Yuan
Closing Proportion Proportion Proportion
Items balance of the of closing Closing balance of closing of change Remarks
current period balance of of last period balance of of amount
28 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
the last period at the end
current in the total of this
period in assets (%) period
the total over the
assets (%) last period
(%)
Monetary fund 575382706.17 29.47 722496330.38 37.94 -20.36
Trading
financial 50025000.00 2.56 N/A Note 1
assets
Bills
receivable 27398673.04 1.40 43157918.28 2.27 -36.52 Note 2
Accounts
receivable 362233577.57 18.55 396889272.26 20.84 -8.73
Receivables
financing 2499031.97 0.13 3572953.18 0.19 -30.06 Note 3
Prepayments 110647060.26 5.67 89024613.33 4.67 24.29
Other
receivables 9824375.86 0.50 13378598.48 0.70 -26.57
Inventory 3585610.06 0.18 N/A Note 4
Contract assets 565904050.40 28.98 424897205.60 22.31 33.19 Note 5
Other current
assets 121512159.50 6.22 97604166.69 5.13 24.49
Long-term
equity 2342859.23 0.12 2332022.40 0.12 0.46
investment
Investments in
other equity 12947918.04 0.66 N/A Note 6
instruments
Investment
properties 531707.64 0.03 598758.96 0.03 -11.20
Fixed assets 56924292.01 2.92 38895511.08 2.04 46.35 Note 7
Construction
in progress 2577156.79 0.13 13103863.94 0.69 -80.33 Note 8
Intangible
assets 7693073.36 0.39 7244475.94 0.38 6.19
Right-of-use
assets 4064612.80 0.21 3840232.40 0.20 5.84
Deferred
income tax 12755515.14 0.65 12482616.81 0.66 2.19
assets
Other
non-current 23661503.85 1.21 34843950.71 1.83 -32.09 Note 9
assets
Short-term
loan 23866103.44 1.22 N/A Note 10
Accounts
payable 598788193.06 30.67 629857317.33 33.07 -4.93
Payroll
payable 41972766.98 2.15 47459670.87 2.49 -11.56
Tax payable 15374255.49 0.79 7980749.03 0.42 92.64 Note 11
Other payables 24647083.82 1.26 25427208.65 1.34 -3.07
Contract
liabilities 88601839.41 4.54 73351891.04 3.85 20.79
Non-current
liabilities due 2421048.35 0.12 1748003.79 0.09 38.50 Note 12
29 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
within one
year
Lease
liabilities 1585929.64 0.08 2150631.55 0.11 -26.26
Anticipation
liabilities 11183840.39 0.57 11292847.91 0.59 -0.97
Long-term
payroll 65569.85 0.00 632325.46 0.03 -89.63 Note 13
payable
Deferred
income tax 17711782.30 0.91 14496782.15 0.76 22.18
liabilities
Capital stock 100000000.00 5.12 100000000.00 5.25 0.00
Capital
reserves 562632775.45 28.82 562632775.45 29.54 0.00
Other
comprehensive -2502891.67 -0.13 3318147.61 0.17 -175.43 Note 14
income
Special
reserves 44175259.38 2.26 44578849.52 2.34 -0.91
Earned surplus 45818775.40 2.35 39501301.38 2.07 15.99
Undistributed
profits 360311280.65 18.45 332226440.31 17.45 8.45
Minority
interest 15857271.75 0.81 7707548.39 0.40 105.74 Note 15
Other notes:
Note 1: The trading financial assets changed significantly compared with those of last period
which is caused by the purchase of structural deposit in this period;
Note 2: The bills receivable decreased by 36.52% YoY which is caused by the acceptance of trade
acceptance at the end of last period upon maturity in this period and the decrease of customers making
payment using trade acceptance in this period compared with the same period of last year;
Note: The financing of accounts receivable decreased by 30.06% YoY which is caused by the
acceptance of bank acceptance at the end of last period upon maturity in this period and the decrease
of customers making payment using bank acceptance in this period compared with the same period of
last year;
Note 4: The inventory changed significantly in this period compared with last period which is
caused by the incomplete acquisition of engineering materials purchased on domestic market in this
period;
Note 5: The contract assets increased by 33.19% YoY which is caused by the completion progress
of new projects in this period which is earlier than the settlement progress;
Note 6: The investment in other equity instruments changed significantly in this period compared
with the last period which is caused by the payment of strategic investment funds for Wafer Works and
the loss generated the change of its stock price;
Note 7: The fixed assets increased by 46.35% YoY which is caused by the transfer of completed
decoration of Wuhan Hefei and Chongqing subsidiaries into fixed assets in this period;
Note 8: The construction in process decreased by 80.33% YoY which is caused by the transfer of
completed offices of Wuhan and Hefei subsidiaries and renovation of the Company’s workshop into
fixed assets in this period;
Note 9: Other non-current assets decreased by 32.09% which is caused by the reduction of
immature quality margin above 1 year in this period;
Note 10: The short-term loan changed significantly compared with that of last period which is
caused by the borrowing by subsidiary from banks due to heavier overseas workload and tight capital
demands;
Note 11: The tax payable increased by 92.64% YoY which is mainly caused by the increase of
overseas profits and increase of enterprise income tax payable;
30 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Note 12: The non-current liabilities due within one year increased by 38.50% YoY which is caused
by the increase of the lease payable due within one year;
Note 13: The long-term payroll payable decreased by 89.63% YoY which is caused by the
reduction of overseas employee pension payable in this period;
Note 14: The other comprehensive income decreased by 175.43% YoY which is caused by the
large loss generated by the investment on Wafer Works and the translation difference of foreign
currency statements in this period;
Note 15: The minority interest increased by 105.74% YoY which is caused by the increase of net
profits of Thailand and Indonesia joint venture subsidiaries and the increase of minority interests in this
period;
2. Foreign assets
√ Applicable□ N/A
(1) Asset scale
Including: Overseas assets of 531547073.79 (in RMB Yuan) accounting for 27.22% of the total
assets.
(2) Explanation for the high proportion of overseas assets
□ Applicable √ N/A
3. Restrictions on major assets as of the end of the reporting period
√ Applicable□ N/A
In RMB Yuan
Items Balance at the end of the year Balance at thebeginning of the year
Margin 486724.06 12499607.35
Total 486724.06 12499607.35
4. Others
□ Applicable √ N/A
(IV) Analysis on the Industry Operating Information
√ Applicable□ N/A
For details please refer to “II. Situation of the Company’s Industry within the Reporting Period” in
“Section III Management Discussion and Analysis”.
31 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Analysis on the operating information of construction industry
1. Projects completed and accepted within the reporting period
√ Applicable□ N/A
In RMB 10000
Breakdown by House Infrastructures Specialized Architecturalindustry construction engineering decoration Others Total
Number of
projects 1 612 2 31 646
Total 1128.44 141265.57 1313.11 3921.16 147628.28
√ Applicable□ N/A
In RMB 10000
Project regions Number of projects Total
Domestic 446 97147.46
Overseas 200 50480.82
Including:
Vietnam 162 35694.15
Indonesia 21 4309.40
Thailand 17 10477.27
Total 646 147628.28
Other notes:
□ Applicable √ N/A
2. Projects in process within the reporting period
√ Applicable□ N/A
In RMB 10000
Breakdown House Specialized Architectural
by industry construction Infrastructures engineering decoration Others Total
Number of
projects 459 1 23 483
Total 493321.07 28.17 5859.98 499209.22
√ Applicable□ N/A
In RMB 10000
Project regions Number of projects Total
Domestic 309 322980.36
Overseas 174 176228.86
Including:
Vietnam 112 75450.44
Indonesia 38 12835.88
Thailand 17 76064.69
Others 7 11877.85
Total 483 499209.22
Other notes:
□ Applicable √ N/A
3. Major projects in process
√ Applicable□ N/A
In RMB 10000
Items Busines Items Constru Comple Income Income Amount Project Paymens Amount ction tion recogni recogni collecte progres t
32 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
mode (excludi period percent zed in zed d s in line progres
ng tax) age this cumulat cumulat with s in line
period ively ively as expecta with
of the tions or expecta
end of not tions or
this not
period
(includi
ng tax)
Project Construction 33174. 5801 16 days 84.00%
1892.327866.26846.
contract 7 18 60
Yes Yes
Project Construction 38713. 491 9814.5 35485. 29778.2 91 days 91.66% 2 95 64 Yes Yescontract
Project Construction 29415. 7163 39 days 69.26%
20374.20374.12872.
contract 05 05 20
Yes Yes
Project Construction 64970. 13 14747. 14747. 11905.4 88 months 22.70% 08 08 10 Yes Yescontract
Other notes:
√ Applicable□ N/A
1. The cost inputs in this period and cumulative cost inputs are not disclosed after considering the
Company’s commercial secrets and the sensitive information contained in the two items;
2. As the relevant transaction in Project 1 includes some confidential terms and for the
consideration of commercial secrets and strategic development the rivals’ specific project status is not
disclosed. For details of the relevant announcement please refer to the No. 2023-005 announcement
disclosed by the Company on the website of the Shanghai Stock Exchange on March 10 2023 and the
difference in the contract amount is for the additional works to be incurred in the subsequent period;
3. As the relevant transaction in Project 2 includes some confidential terms and for the
consideration of commercial secrets and strategic development the rivals’ specific project status is not
disclosed. For details of the relevant announcement please refer to the No. 2023-032 announcement
disclosed by the Company on the website of the Shanghai Stock Exchange on August 1 2023 and the
difference in the contract amount is for the additional works to be incurred in the subsequent period;
4. As the relevant transaction in Project 3 includes some confidential terms and for the
consideration of commercial secrets and strategic development the rivals’ specific project status is not
disclosed. For details of the relevant announcement please refer to the No. 2024-011 announcement
disclosed by the Company on the website of the Shanghai Stock Exchange on March 15 2024 and the
difference in the contract amount is for the additional works to be incurred in the subsequent period;
5. As the relevant transaction in Project 5 includes some confidential terms and for the
consideration of commercial secrets and strategic development the rivals’ specific project status is not
disclosed. For details of the relevant announcement please refer to the No. 2025-001 announcement
disclosed by the Company on the website of the Shanghai Stock Exchange on January 1 2025 and the
difference in the contract amount is for the additional works to be incurred in the subsequent period;
4. New projects signed accumulatively within the reporting period
√ Applicable□ N/A
A total of 742 new projects were signed accumulatively within the reporting period with a total amount
of RMB 2562.1443 million (including tax) and RMB 2394.345 million (excluding tax).
33 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
5. Orders in hand as of the end of the reporting period
√ Applicable□ N/A
The total amount of orders in hand as of the reporting period was RMB 1734.6494 million (excluding
tax). To be specific the amount of projects for which contracts had been signed but which hadn’t been
commenced was RMB 0 million while that of the uncompleted part of the projects in process was RMB
1734.6494 million.
Other notes:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
34 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(V) Analysis on Investment Status
Overall analysis on the external equity investments
√ Applicable□ N/A
The amount of the Company’s new external investments within the reporting period was RMB 55627347.35.
1. Significant equity investments
□ Applicable √ N/A
2. Significant non-equity investments
□ Applicable √ N/A
3. Financial assets measured at fair value
√ Applicable□ N/A
In RMB Yuan
Gain or loss on Accumulated fair
Asset category Opening fair value value changes
Impairment Amount of Amount Amount at the
balance changes in this recognized in provision in procurement in sold/redeemed in Other changes end of this
period equity this period this period this period period
Structured 25000.00
deposits 322000000.00 272000000.00
50025000.00
Investments in -2052072.90 14999990.94 12947918.04
other equity
instruments
Receivables 3572953.18 -1073921.21 2499031.97
financing
Total 3572953.18 25000.00 -2052072.90 336999990.94 272000000.00 -1073921.21 65471950.01
Investment in securities
√ Applicable□ N/A
In RMB Yuan
Securitie Securitie Securities Initial Capital Openin Gain Accumulate Amount of Amoun Investme Ending book Accountin
s variety s code abbreviatio investme source g book or loss d fair value procurement t sold nt gain or value g items
35 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
n nt cost value on fair changes in this period in this loss in
value recognized period this
change in equity period
s in
this
period
Stock 688584 Wafer Self-owne -2052072.9 14999990.9 12947918.0 Investment
Works d capital 0 4 4 s in other
equity
instrument
s
Total / / / -2052072.9 14999990.9 12947918.0 /
044
Explanation for investment in securities
□ Applicable √ N/A
Investment in private equity funds
□ Applicable √ N/A
Investment in derivatives
□ Applicable √ N/A
36 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
4. Specific progress of major asset reorganization and integration within the reporting period
□ Applicable √ N/A
(VI) Sales of major assets and equities
□ Applicable √ N/A
(VII) Analysis on major holding and participating companies
√ Applicable□ N/A
Companies Main Registere Shareholdin Total assets Net assets Net profitsbusiness d capital g ratio (%) (RMB Yuan) (RMB Yuan) (RMB Yuan)
Shenghuei
Engineerin Domestic
g clean room RMB
Technology engineerin 35.2967 100.00 62281345.37 49086774.22
-7274234.0
0
(Shenzhen) g million
Co. Ltd. businesses
Shenzhen Domestic
Dingmao equipment RMB 5 100.00 82738141.56 57944128.93 12060212.4Trading purchase million 0
Co. Ltd. and sales
Acter Overseas HKD
Internationa investment 25.32739 100.00 44429210.75 19053840.09 -4305548.8
l Limited platform 7 million 1
Acter
Technology Overseas SGD
Singapore investment 3.37585 100.00 16219435.15 16092229.42 -122601.82
Pte. Ltd. platform million
Sheng Huei
Engineerin
g USD 5.5 257605626.3 152834586.8 50514542.9
Technology million 100.00 6 9 5
Company
Limited
PT Acter IDR
Technology Overseas 10100 100.00 44473734.20 19974129.10 -728158.82Indonesia million
Acter clean room
Technology engineerin MYR
Malaysia g 11.319 100.00 31537341.60 16600589.62 3103044.22
Sdn. Bhd businesses million
Acter
Technology THB 30 88.38 107718602.1 44691851.37 16160473.6
Co. Ltd million 7 7
PT Acter
Integration IDR
Technology 50050 67.00 29563123.56 24506258.45 2512817.39
Indonesia million
Revenue and profits from main business of a single subsidiary and with net profits exerting 10% or
above impact on the Company’s total net profits:
In RMB Yuan
Companies Revenue from main Profit from main
37 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
business business
Shenzhen Dingmao Trading Co. Ltd. 77868668.69 17434590.91
Sheng Huei Engineering Technology Company 360627466.29 71137722.88
Limited
Acter Technology Co. Ltd 177154879.75 20861096.70
(VIII) Structured Entities Controlled by the Company
□ Applicable √ N/A
VI. Discussion and Analysis of the Company’s Future Development
(I) Industry Pattern and Trend
√ Applicable□ N/A
1. The demand from downstream industry provides broad market space for the clean room
industry
As highlighted in the 2025 Government Work Report of the State Council we should develop new
productive force according to the local conditions. Promote the safe and healthy development of
emerging industries such as commercial spaceflight and low-altitude economy; cultivate the future
industries actively including bio-manufacturing quantum science and technology embodied artificial
intelligence (AI) and 6G; speed up the digital transformation progress of manufacturing industry;
promote the development of the new generation of intelligent terminals such as intelligent connected
new energy vehicles (NEVs) AI mobile phone and computer smart robot etc. as well as intelligent
manufacturing equipment vigorously.Under the context of accelerated iteration of AI technologies worldwide the international
semiconductor giants and cloud service providers have paid more attention to the capital expenditure
layout constantly promoted the R&D of advanced manufacturing process from the strategic perspective
and driven the faster iteration of AI chip HBM storage chip and COWOS advanced package test
technology. Such round of technological innovation wave is driving the coordinated development of the
whole semiconductor industry chain——Demands have risen in all fields such as the manufacturing of
large silicon wafer and special semiconductor materials technical breakthrough of core manufacturing
equipment and advanced package tests and even SMT precise assembly in downstream. As reported by
SEMI the fields including smart phone consumer electronics and NEVs will usher their further
development. More specifically the semiconductor segment with the fastest growth speed and largest
proportion at present is server/data center/storage. The demands above are ascribed to AI application
such as large AI model and big data processing. Relevant data show that the operating revenue of this
part will rise to 34% in 2030 from 24% in 2024. The former industries have been upgraded constantly
along with the constant progress of science and technology which also contributes to workshop
upgrading and expansion in order to satisfy the production needs. The favorable situation above gives
the Company chances to receive more orders.Clean room engineering serves as the fundamental project of advanced manufacturing industry and
also an indispensable part for high-end manufacturing industries such as electronics industry. The
development of advanced manufacturing industry is largely related to the quality and level of clean room.The development of relevant industries will surely promote the scale growth of clean room engineering.The electronic information industry which is represented by IC semiconductor photoelectric panel and
precision manufacturing is the main field of clean room engineering at present. All the favorable polices
somewhat promote the development of clean room industry besides the industries such as integrated
circuit industry. With the scale growth of clean room industry enterprises in the industry will embrace
more opportunities and undertake more and larger projects which lays a solid foundation for the
industry’s future development. The market demands in clean room industry will be high.
2. Green manufacturing and smart factory make transformation at a faster speed and clean room
is developed by complying with the energy-saving and digital trend.The focus of clean technologies differs based on the specific application fields.Under the driving
effect of industry upgrading and green construction the enterprises specialized in clean room system
integration engineering have integrated the prefabricated construction technology and modular
38 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
engineering system in depth by leveraging the full chain technology integration capacity; by focusing on
standardized design industrial prefabrication and intelligent O&M they make fast deployment on the
clean environment and optimize energy efficiency providing sustainable solutions featuring high
efficiency low energy consumption and iteration for advanced and sophisticated fields such as
semiconductor biological medicine etc.In consideration of higher environmental protection awareness and introduction of emerging
technologies more attention will be paid to environmental protection in clean room production so as to
minimize environment contamination and realize production with a lower carbon emission standard.Through integration with other electromechanical equipment via the purification & air conditioning
system mainly the clean room can ensure the cleanliness grade is always within the production and
operation standard. Clean room is indeed a huge energy consumption system. The reduction of energy
consumption has always been a key indicator for assessing clean technology.In the face of higher
pressure on energy conservation and environmental protection to save costs the clean room should be
such designed to satisfy these traditional indicators such as temperature humidity and cleanliness etc. as
well as the new ones including energy conservation and efficiency increase green and environmental
protection etc. Therefore the clean room system integration total solution providers which are high in
professionalism and strong in comprehensive strengths will be more competitive in the market.More attention will be paid to the technological innovation in clean room service industry along
with the constant iteration and upgrading of technology. The emerging technologies such as modular
clean room and intelligent control system have improved the construction efficiency and use effect of
clean room.Traditional clean room projects which are completed at project sites are generally affected
by many factors such as site operation conditions construction cycle implementation and coordination
difficulties management difficulties safety hidden dangers and surrounding environment. The BIM
technology-based prefabricated “modular” design manufacturing and installation integration methods
could control the cleanliness effectively and finish clean room system integration quickly through
changing the traditional operation order effectively distributing and combining various trades and
working orders and assembling the modules prefabricated in processing plants on project sites. The
methods could improve operation efficiency significantly shorten construction period effectively
provide new development direction for the sustainability industrialization and informatization of clean
room and will become the new development trend of clean room industry.
3. Overseas market has become the new strategic highland for clean room system integration
engineering enterprises
The geopolitical tensions have reshaped the global economic pattern. To spread supply chain risks
explore the huge potential market and leverage the favorable policies on taxation etc. many
downstream clients have tried to explore the overseas market constantly to seek for the cooperation
opportunities. Benefited from such transformation the Southeast Asian countries have become a
paradise for electronics manufacturing and investment thanks to their strategic location skillful labor
force and strong infrastructures. At present Vietnam is focusing on SMT assembly industry which is in
the downstream of semiconductor industry Thailand on PCB industry which is in the upstream of the
industry chain while Malaysia on manufacturing and package test industry. The semiconductor industry
all over the world is shifting towards the Southeast Asian region where the semiconductor
manufacturers have posed higher demands on clean room engineering.The local clean room engineering construction enterprises in Southeast Asia emerge one after
another. However in consideration of the high requirements of semiconductor industry for clean room
stability and reliability higher requirements have been proposed for the technical and comprehensive
management level of the clean room engineering companies. In general owners prioritize the
engineering service providers with rich experience outstanding performance and a leading status in the
industry in order to minimize investment risks and costs and ensure product yield. With the transfer of
industry clients not a few domestic clean room engineering construction enterprises gradually switch
their attention to Southeast Asian regions according to the announcements released by relevant
companies in the industry. They start to explore and occupy the overseas market successively through
setting up subsidiaries and branches increasing investment etc. The Company has established its
subsidiaries in Singapore Malaysia Vietnam Indonesia Thailand etc. and supports them to establish
sound systems and technologies by imparting them experience. Thanks to the early involvement in the
Southeast Asian market these subsidiaries can obtain relative advantages easily and have achieved
certain advantages in the local market.
39 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) The Company’s Development Strategies
√ Applicable□ N/A
Along with the industry’s development promulgation of favorable national policies and the
Company’s business development planning and constant improvement of its corporate governance theCompany continues to uphold the development strategy of “multiple clients industries types of workand regions” faithfully imports ESG development concept and focuses on the clean room engineering
services. To satisfy clients’ needs the Company has cultivated the independent innovation and R&Dcapacity by leveraging technology and R&D and on the basis of environmental protection and “greenand energy-saving project” concept in order to serve high-tech industries. The 5-step development path
of “production” “sales” “people” “development” and “revenue” helps the Company become a world’s
leading enterprise specialized in the clean room system integration engineering services for high-tech
industries.(III) Operation Plan
√ Applicable□ N/A
1. Short-term business development plan
(1) Multi-dimensional layout market exploration
With the expansion of regional layout of clients and the driving effect of a new round of factory
expansion needs the Company will further exert its advantages of multi-regional market layout further
deepen market competition advantages cultivate differential niche and consolidate its key role in the
industry chain continuously. On the basis of the continuous and high needs in the Southeast Asian
regions the Company will further explore the overseas market with more efforts. While expanding the
business layout the Company also tries to explore the clients in such fields as those related to AI
upstream and downstream full semiconductor industry chain data center industry-university-research
base and labs of colleges and universities etc.
(2) Fostering of a famous brand setting off to a new journey
The Company will improve project management actively lay special emphasis on the raw material
supply chain and expansion of regional professional elite teams and endeavor to ensure the quality and
construction term of large and small projects under its diverse industries as well as the group’s operation
efficiency. By integrating and optimizing its existing marketing system the Company will establish
all-round one-stop marketing service systems intensify the coordination of pre-sales sales and
after-sales links improve service efficiency and quality give timely response to clients’ needs solve
their problems and enhance their loyalty.
(3) Energy conservation environmental protection and sustainable green development
The Company has introduced the ESG development concept combined the technical research on
green development emission reduction and intelligence with its daily operation and project
managements intensified modular and standard applications gradually and realized the low-carboninnovation of prefabricated buildings. By comprehensively integrating “green planning procurementand working methods” the Company reduces its operation costs improves the economic benefits
lowers environment impact and enhances its social corporate image and competitiveness by virtue of
green engineering technologies.
(4) Industry-university cooperation for talent cultivation
* Continuing education and qualification improvement: The Company encourages its employees to
participate in the continuing education and apply for the practicing qualifications of architecture
environment etc.; it has established incentive mechanisms increased the proportion of employees with
medium and high titles and supported the on-the-job learning of employees.* Construction of talent echeolon: The Company cultivates middle-level managers through such
ways as work shift change improvement of educational background external and internal training postagent etc.; cultivates grassroots managers and core backbones by mentoring and the “Reserve ManagerAcademy” etc. Upholding the idea of “selecting cultivating utilizing and retaining talents” the
Company gives pertinent evaluations cares and expectations for the employees and cultivates excellent
reserve managers and backbones to satisfy the business development needs.* Management and training of high-level talents: The Company offers specialized management
trainings for high-level talents to improve their strategic insight and leadership and to ensure the full
quantity of high quality talents.
40 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2. Long-term business development plan
(1) Implement corporate governance deepen corporate culture and realize sustainable development:
A favorable corporate governance structure and profound corporate culture play a basic role in ensuring
the Company’s stable development. The Company will not only further improve its corporate
governance mechanism optimize organizational structure and reinforce internal management but also
continue to deepen the construction of corporate culture carry forward the core values and cultivate
active working atmosphere in order to establish a united team and realize its sustainable development.
(2) The Company always focuses on the main business optimizes its engineering technical ability
continuously integrates diverse and multiple projects builds a comprehensive marketing service system
and tries to realize the goal of “carbon neutrality” and create a better future using core skills: To realize
long-term development the Company will focus on its main business continuously optimize and
improve its engineering technical capacity constantly and expand the business field and service scope
in order to realize diverse development and integrate different projects. The Company has also
established a comprehensive and efficient marketing system with a wide coverage and helped clients
realize the goal of “carbon neutrality” by leveraging its core skills and advantages working together for
creating a better future.
(3) The Company not only maintains the favorable cooperative relationship with the existing clients
in domestic and Southeast Asian markets continuously but also tries to develop new clients; implements
the multi-region strategy to improve the investment incomes and expand industry integration: On the
basis of consolidating and maintaining the favorable cooperative relationship with the clients in
domestic and Southeast Asian markets the Company develops new clients actively in order to expand
market shares. The Company also explores multi-regional operation mode and prepares differential
operation strategies based on the features and needs of local market in order to improve the investment
income. In addition through integrating industries and optimizing resource allocation the Company has
improved its comprehensive strength and competitiveness:
(4) Introduce talents and cultivate operation management teams actively: Talent diversificationdrives the enterprise’s innovation and further development. Upholding the talent concept of “opennessand inclusiveness” the Company welcomes elites with different backgrounds and fields to inject new
vitality and bring innovative thinking for the Company. At the same time the Company attaches great
importance to the cultivation and construction of operation management team improves team members’
comprehensive quality and management ability through internal trainings external learning and
exchanges etc. in order to create a high-quality operation management team with strategic insight
innovation awareness and executive force.
(5) Deepen the professional technical ability of green development energy conservation and
environmental protection and shoulder the responsibilities as a global citizen: In light of the tougher
global environment issues the Company takes the deepening of specialized technical abilities such as
green development energy conservation and environmental protection as one of its long-term
development directions. By inputting R&D resources continuously and strengthening technological
innovation and R&D ability the Company tries to make greater breakthroughs and progress in the green
development energy conservation and environmental protection field. The Company can provide
advanced green development energy conservation and environmental protection technologies and
solutions for clients to help them lower energy consumption and pollutant discharge thus contributing to
the protection of the earth and promotion of sustainable development and shouldering the
responsibilities and mission as a global citizen.(IV) Possible risks
√ Applicable□ N/A
1. Macro policy risk
The Company is mainly engaged in clean room engineering services for IC semiconductors
optoelectronics and other high-tech industries. The change of economic growth speed and
macroeconomic fluctuation will affect the downstream industry which is closely linked with the
macroeconomic cycle thus affecting the clean room engineering businesses. The Company faces the
challenges of business expansion and operation stability when the economic growth speed slows down
or macroeconomic situation is unstable.
2. Risk of competition at a low price
41 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The domestic clean room engineering industry is mature and in fierce competition. Among all
participants the large construction organizations occupy the market by using general contracting mode
which as a result intensifies competition. The Company’s status in the industry may drop if it cannot
take the lead in terms of technology management brand process etc. At the same time gross profit rate
is affected by many factors such as industry competition cost control technical level project
management ability and client group etc. If failing to improve its core competition in the future when
competition will become fiercer the Company will be exposed to the risks of gross profit rate
fluctuation.(V) Others
□ Applicable √ N/A
VII. Information and reasons for the Company’s failure to disclose information in accordance
with the Guidelines due to non-application of the Guidelines or for special reasons such as state or
commercial secrets
□ Applicable √ N/A
Section IVCorporate Governance
I. Explanation for Corporate Governance
√ Applicable□ N/A
Within the reporting period the Company continuously improved its corporate governance
structure internal management and internal control system and standardized its operation in accordance
with the requirements of the Company Law the Securities Law relevant laws and regulations of the
Shanghai Stock Exchange and based on its realities. The shareholders’ meeting the board of directors
and the board of supervisors of the Company have clear division of powers and responsibilities and each
of them performs its own duties and the decision-making is independent efficient and transparent. The
board of directors of the Company has set up specialized committees such as the Remuneration and
Appraisal Committee the Audit Committee the Nomination Committee and the Strategy and
Sustainable Development Committee to further improve the corporate governance structure of the
Company. Details of the corporate governance of the Company are as follows:
(I) The Company and its controlling shareholders: The controlling shareholders of the Company
exercise their rights and obligations in accordance with laws and effectively fulfill their obligations of
good faith to the Company and other shareholders. The Company and its controlling shareholders are
completely independent in five aspects namely business assets personnel organization and finance
and the Company has a complete business system and the ability to operate independently in the market.(II) The shareholders’ meeting is the Company’s highest authority. The Company strictly
standardizes the convening holding and deliberation procedures of the shareholders’ meeting as per the
provisions and requirements of the Articles of Association the Rules of Procedure for Shareholders’
Meetings and other regulations; invites lawyers to issue legal opinions on the legality of the
shareholders’ meeting ensures the equal status of all shareholders especially minority shareholders
fully exercises the legitimate rights and interests of shareholders and ensures shareholders' right to know
participate and vote on major corporate matters.(III) The board of directors strictly exercises its powers in accordance with the Company Law the
Articles of Association the Rules of Procedure for the Board of Directors etc. including organizing and
implementing the resolutions of the shareholders’ meeting deciding on the Company’s business plans
and investment plans formulating the Company’s annual financial budget final settlement and profit
distribution plans drafting major acquisition plans and appointing or dismissing the Company’s general
manager and other senior managers.All directors faithfully and diligently perform their duties actively
participate in the decision-making of the Company’s major matters and actively attend relevant
trainings. The specialized committees under the board of directors operate well convene meetings and
make resolutions as per relevant systems and could exert their roles normally.(IV) The board of supervisors exercises its powers and functions in strict accordance with the
Company Law the Articles of Association and the Rules of Procedure for the Board of Supervisors and
42 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
performs its supervisory functions diligently and conscientiously including the effective supervision of
the fulfillment of duties by directors and senior managers as well as the operation of the Company in
accordance with laws.(V) The Company strictly follows the requirements of the Information Disclosure Management
System and the Registration Management System for Insiders; by implementing measures such as insider
registration and external information reporting registration it strengthens the management of insiders
standardizes the review process for external information reporting clarifies the obligations and
responsibilities of relevant personnel to maintain the confidentiality of undisclosed information and
enhances the Company’s awareness of information disclosure which as a result effectively avoids the
occurrence of violations in information disclosure. Meanwhile the Company strengthens
communication and interaction with investors and pays attention to maintaining favorable relations with
them.Whether there is any material difference between the corporate governance and the laws
administrative regulations and CSRC’s regulations on the governance of listed companies; if yes state
why.□ Applicable √ N/A
II. Specific measures taken by the controlling shareholders and actual controllers of the
Company to ensure the independence of the Company in terms of assets personnel finances
organization and business as well as the solutions work progress and follow-up plans in case of
the Company’s independence being affected.□ Applicable √ N/A
Controlling shareholders actual controllers and other parties controlled by them engaged in
business that are same as or similar to the Company horizontal competition and impact of significant
changes in horizontal competition on the Company solutions adopted working progress and subsequent
solution plans
□ Applicable √ N/A
III. Shareholders’meeting
Index of searches
Session of the Date of on designated Date of
meeting meeting websites where publication of Resolutionsresolutions are resolutions
published
1. Proposal on the
Revision of the
The 1st interim
shareholders’ February 23 February 24 Association>
meeting in 2024 2024
www.sse.com.cn 2024 2. Proposal on the
Revision and
Formulation of Some
Governance Mechanisms
1. Proposal on the Work
Report of the Board of
Directors for the Year
Annual 2023
shareholders’ April 19 2024 www.sse.com.cn April 20 2024 2. Proposal on the Work
meeting in 2023 Report of the Board ofSupervisors for the Year
2023
3. Proposal on the Full
Text and Summary of the
43 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Annual Report for the
Year 2023
4. Proposal on the
Financial Settlement
Report for the Year 2023
5. Proposal on the
Financial Budget Report
for the Year 2024
6. Proposal on the
Reappointment of the
Accounting Firm
7. Proposal on the Total
Estimated Guarantee for
the Year 2024
8. Proposal on the
Application for
Comprehensive Credit
Limit from Financial
Institutions for the Year
2024
9. Proposal on the Profit
Distribution Plan for the
Year 2023
1. Proposal on the
The 2nd interim Change of Horizontal
shareholders’ September 12 www.sse.com.cn September 13 Competition
meeting in 2024 2024 2024 Commitment by theCompany’s Indirectly
Controlled Shareholders
Request of holding an interim shareholders’ meeting by the preferred shareholders whose voting
rights have been restored
□ Applicable √ N/A
Explanation for shareholders’ meeting
√ Applicable□ N/A
Within the reporting period the Company held 3 shareholders’ meeting and the above meetings
comply with the relevant laws and regulations and the Articles of Association in respect of the
convening method proceedings voting method and contents of resolutions.
44 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
IV. Directors Supervisors and Senior Managers
(I) Changes in Shareholdings and Remuneration of In-service and Outgoing Directors Supervisors and Senior Managers within the Reporting Period
√ Applicable□ N/A
In Share
Total pre-tax
remuneration
received Whether
Starting Expiration Shareholdings
Changes
Shareholdings of from the
remuneration
at the receivedName Post Gender Age date of date of at the end of shares Reasons Company from the
appointment appointment beginning of the year within for change within thethe year the year reporting
Company’s
period related
(RMB parties or not
10000)
Liang
Jinli Chairman Male 63 July 1 2019 July 1 2025 0 0 0 Unchanged 49.01 Yes
Chen Vice
Zhihao Chairman Male 59 July 1 2019 July 1 2025 0 0 0 Unchanged 95.63 No
Zhu aDnidrectoBroaanrdd
Qihua General Male 52 July 1 2019 July 1 2025 0 0 0 Unchanged 94.26 No
Su Manager
Yuzhou Director Male 49 July 1 2019 July 1 2025 0 0 0 Unchanged 46.58 No
Shi Kang Independent July 31Director Male 60 2020 July 1 2025 0 0 0 Unchanged 8.00 No
Wu Independent
Weihua Director Male 54 July 1 2019 July 1 2025 0 0 0 Unchanged 8.00 No
Gu Hailan IndependentDirector Female 53 July 1 2019 July 1 2025 0 0 0 Unchanged 8.00 No
Huang Chairwoman
Yaping of the board Female 49 July 1 2019 July 1 2025 0 0 0 Unchanged 37.92 No
of directors
45 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Liao
Chongyou Supervisor Male 48 July 1 2019 July 1 2025 0 0 0 Unchanged 61.38 No
Wang Yu Supervisor Female 44 July 1 2019 July 1 2025 0 0 0 Unchanged 29.60 No
Xiao Chief
Jingxia Financial Female 56 July 1 2019 July 1 2025 0 0 0 Unchanged 29.51 No
Office/r / / / / / /
Total 467.89
Name Main working experience
Born in October 1962 with Chinese nationality of Taiwan no permanent residence in foreign countries master’s degree of EMBA senior
engineer. He was the Engineering Manager of Gongshan Air Conditioning & Refrigeration Co. Ltd.; the Director and Chairman of the Board of
Directors of Sheng Huei Limited; Supervisor of Winmax (Shanghai); and Supervisor of Winmax (Suzhou); Chairman of the Board of Directors
of Hengji Construction Company Limited. Currently he is the CEO and Chairman of Acter (Taiwan); Chairman of HERSUO (Taiwan); Director
Liang Jinli of Acter (Shenzhen); Director of Acter (Hong Kong); Director of New Point (Seychelles); Director of Sheng Huei International; Chairman ofNOVA (Taiwan); Director of Acter (Singapore); Director of Acter (Malaysia); Director of Shenzhen Dingmao; Director and CEO of Enrich
(Taiwan); Chairman of Winmega (Taiwan); Director of Novatech (Singapore); Chairman of Winmax (Suzhou); Chairman of Winmax
(Shanghai); Managing Partner of Suzhou Songhuei; Director of Sheng Huei (Vietnam); Director of WASTE; Chairman of the Board of Directors
of Rayzher Industrial; Director of Acter (Thailand); Director of Indonesia Joint Venture; Director of Winmax Technology Malaysia Sdn.Bhd.; He
has been the Chairman of the Board of Directors of Acter Group since July 2019.Born in May 1966 with Chinese nationality of Taiwan no permanent residence in foreign countries bachelor’s degree senior engineer. He was
the Deputy General Manager of Wuhan Ronghuei Industry and Trade Co. Ltd; the Deputy General Manager of Guangzhou Danli International
Trade Co. Ltd; the Deputy General Manager of Zhongshan Acter Mechanical and Electrical Engineering Co. Ltd.; the Deputy General Manager
Chen Zhihao and General Manager of Acter (Shenzhen); General Manager and Director of ShengHuei Limited; Director and Board Secretary of Acter Group.Currently he isthe Director of Acter (Hong Kong); the Chairman of Acter (Shenzhen); the Chairman of Shenzhen Dingmao; the Director of
Lantia Innovation Co. Ltd.; the Director of Acter (Singapore); the Director of Sheng Huei (Vietnam); the Director of Space (Thailand); and the
Director of Indonesia Joint Venture; the Director of GREAT SERENE LIMITED; the President of Taiwan Compatriot Investment Enterprises
Association of Suzhou; he has been the Vice Chairman and Board Secretary of Acter Group since July 2020.Born in April 1973 with Chinese nationality of Taiwan no permanent residence in foreign countries master degree in EMBA mid-level
engineer. He was the Assistant Manager of the Engineering Department of Kuang I Engineering Co. Ltd.; the Director of Acter (Taiwan) the
Zhu Qihua Assistant Manager of the Engineering Department of Suzhou HongHuei Mechanical and Electrical Engineering Co. Ltd. and served as theAssistant Manager Manager Associate Manager Deputy General Manager General Manager and Director of Sheng Huei Limited. Currently he
is the Director and General Manager of Acter (Shenzhen); the Director and General Manager of Shenzhen Dingmao; the Supervisor of Sheng
Huei (Vietnam); the Director of Acter (Hong Kong); the Director of Acter (Malaysia); the Director of Acter (Thailand); the Supervisor of Acter
46 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(Indonesia); the Supervisor of Indonesia Joint Venture; he has been the Director and General Manager of Acter Group since July 2019.Born in May 1976 with Chinese nationality of Taiwan no permanent residence in foreign countries bachelor’s degree senior engineer. He was
Su Yuzhou anengineer of Acter (Taiwan) and the Manager of the Engineering Department of Sheng Huei Limited. Currently he is the Managing Partner ofSuzhouShengzhan; the Director of Space (Thailand); he has been the Manager of the Engineering Department and the Director of Acter Group
since July 2019.Born on August 15 1965 with Chinese nationality no permanent residence in foreign countries bachelor’s degree. He was the Secretary of the
Youth League Committee and President of the Youth League School of the School of Computer and Information Engineering of Jiangsu
University; President of the Youth League School of Jiangsu University Youth League Committee; the Lecturer of the Specialized Vehicle
Teaching and Research Department of the School of Automotive Engineering in Jiangsu University; the Assistant General Manager of Jiangsu
University Industrial Corporation; the Professional Lecturer of the Automobile Teaching Department of the School of Automobile Engineering in
Shi Kang Jiangsu University; the Director of Office of the School of Business Administration in Jiangsu University; the Deputy Secretary of the Party
Committee and Vice Dean of the College of Finance and Economics in Jiangsu University; the Vice President and Deputy Secretary of Jiangsu
University Press and Magazines; the Deputy Director of the Labor Union of Jiangsu University; the President General Manager and Executive
Director of Jiangsu University Press Co. Ltd.; and the Director of Jiangsu University Asset Management Co. Ltd. Currently he is a Grade 5
staff member of the Logistics Department (Logistics Group) of Jiangsu University; he has been an Independent Director of Acter Group since
July 2020.Born in November 1971 with Chinese nationality no permanent residence in foreign countries master’s degree holding the practicing
qualification of lawyer in China. He was a practicing lawyer of Suzhou Foreign Law Firm a practicing lawyer of H&Z Group Law Firm a
practicing lawyer of Suzhou Renhai Fangzhou Law Firm a Director of the Finance and Insurance Committee of Suzhou Lawyers Association a
Wu Weihua member of Suzhou Hi-Tech District Government Lawyers’ Advisory Group and a Standing Director of the Bankruptcy Law ResearchAssociation of Jiangsu Law Society. Currently he is a lecturer of Suzhou University of Science and Technology; a practicing lawyer of Jiangsu
Lantern Law Firm; the Deputy Secretary-General of Small and Medium-sized Enterprises Committee of Jiangsu Federation of Industry and
Commerce; the Vice President of Suzhou Bankruptcy Administrators’ Association; a Director of Suzhou Lawyers’ Association; and an
Independent Director of Acter Group from July 2019 to the present.Born in October 1972 with Chinese nationality no permanent residence in foreign countries master degree in MBA Chinese certified public
accountant. She was the Financial Manager of Kunshan Huaheng Welding Equipment Technology Co. Ltd; the Financial and Administrative
Manager of Hangzhou Zhixing Automobile Co. Ltd. and Hangzhou Dongxingxing Auto Repair Co. Ltd.; the Chief Financial Officer of Kunshan
Gu Hailan Huaheng Welding Equipment Co. Ltd.; Chief Financial Officer Deputy General Manager and Chief Financial Officer Deputy General Manager
and Board Secretary of Shanghai Qinsen Landscape Co. Ltd.; the Board Secretary and Chief Financial Officer of Origincell Technology Group
Ltd. Currently she is the Board Secretary and Chief Financial Officer of Jiaxing Hechang Elevator Control Technology Co. Ltd.; she has been
an Independent Director of Acter Group since July 2019.Born in February 1976 with Chinese nationality of Taiwan permanent residence in the United States master’s degree. She was the Accounts
Huang Receivable Specialist of McAllister the Finance Specialist of Texas Instruments Incorporated the Finance Manager of Acter (Shenzhen) and the
Yaping Manager of Administration Department of Sheng Huei Limited. Currently she is the Supervisor of Shenzhen Dingmao; the Supervisor of Acter
(Shenzhen); she has been the Chief Executive Officer and Chairman of the board of supervisors of Acter Group since July 2019.
47 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Born in May 1977 with Chinese nationality of Taiwan no permanent residence in foreign countries and college degree. He was an engineer of
Liao MingSheng Electromechanical Co. Ltd. the Head of Engineering Department of SILPORT Technologies Inc. the Manager of Engineering
Chongyou Department of Acter (Taiwan) and the Associate Manager of the Engineering Department of Sheng Huei Limited. He has been the Associate
Manager and Supervisor of the Engineering Department of Acter Group since July 2019.Born in June 1981 with Chinese nationality no permanent residence in foreign countries bachelor’s degree. She worked as a laborer in
Wang Yu Haoweinai Precision Technology (Suzhou) Co. Ltd; a staff member of the Management Department of Suzhou Honghuei Mechanical andElectrical Engineering Co. Ltd. and the Director of the Management Department of Sheng Huei Limited. She has been the Assistant Manager
Deputy Manager and Employee Representative Supervisor of the Management Integration Department of Acter Group since July 2019.Born in April 1969 with Chinese nationality no permanent residence in foreign countries and bachelor’s degree. She was the Team Leader of the
Audit Department of the First Joint Accounting Firm; the Assistant Manager of the Underwriting Department of Fubon Securities Co. Ltd.; the
Xiao Jingxia Financial Manager of Taiwan Green Point Enterprises Co. Ltd.; the Financial Director of Megaforce Compan Limited; the Accountant of Shen
Chuan Paper (Suzhou) Co. Ltd.; the Finance Manager of Sheng Huei Limited; and the Supervisor of Suzhou Yumanchang Food Technology Co.Ltd. She has been the Chief Financial Officer of Acter Group since July 2019.Other Information
□ Applicable √ N/A
48 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) Occupation of In-service and Outgoing Directors Supervisors and Senior Managers within
the Reporting Period
1. Post in shareholder’s site
√ Applicable□ N/A
Position held in
Name of the staff Name of shareholder the shareholder’s Starting date of Expiration date
site appointment of appointment
CEO and
Liang Jinli Acter (Taiwan) Chairman of the August 1993
Board
Liang Jinli Sheng HueiInternational Director May 2008
Liang Jinli Suzhou Songhuei Managing Partner April 2018
Su Yuzhou Suzhou Shengzhan Managing Partner April 2018
Explanation for
the post in None
shareholder’s site
2. Post in other organizations
√ Applicable□ N/A
Name of the staff Name of other Post held in other Starting date of Expiration dateorganizations organizations appointment of appointment
New Point (Seychelles) Director March 2008
Enrich (Taiwan) Director and CEO June 2014
HER SUO (Taiwan) Chairman April 1998
NOVA (Taiwan) Chairman March 2009
Winmega (Taiwan) Chairman July 2014
Novatech (Singapore) Director June 2016
Winmax (Shanghai) Chairman May 2023
Winmax (Suzhou) Chairman May 2023
Rayzher Industrial Chairman June 2021
WASTE Director October 2019
Acter (Singapore) Director November2009
Acter (Malaysia) Director DecemberLiang Jinli 2011
Acter (Shenzhen) Director June 2005
Shenzhen Dingmao Director October 2012
Acter (Thailand) Director September2019
Acter (Hong Kong) Director November2007
Acter (Vietnam) Director September2018
Hengji Construction August 12
Company Limited Chairman May 2023 2024
Indonesia Joint Venture Director April 2023
Winmax Technology November
Malaysia Sdn. Bhd. Director 2024
Acter (Shenzhen) Chairman October 2009
Shenzhen Dingmao Chairman October 2012
Chen Zhihao Acter (Hong Kong) Director November2007
Acter (Vietnam) Director July 2019
49 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Acter (Singapore) Director October 2018
Space (Thailand) Director October 2019
Lantia Innovation Co. Director SeptemberLtd. 2015
Indonesia Joint Venture Director April 2023
GREAT SERENE September
LIMITED Director 2024
Taiwan Compatriot
Investment Enterprises President September
Association of Suzhou 2024
Acter (Shenzhen) Director andGeneral Manager January 2018
Shenzhen Dingmao Director andGeneral Manager January 2018
Acter (Hong Kong) Director July 2019
Zhu Qihua Acter (Vietnam) Supervisor
December
2018
Acter (Malaysia) Director September2019
Acter (Thailand) Director September2019
Acter (Indonesia) Supervisor January 2023
Indonesia Joint Venture Supervisor April 2023
Su Yuzhou Space (Thailand) Director October 2019
Huang Yaping Acter (Shenzhen) Supervisor October 2018Shenzhen Dingmao Supervisor October 2018
Jiaxing Hechang Elevator Board Secretary
Gu Hailan Control Technology Co. and Chief November
Ltd. Financial Officer 2022
Logistics Department
Shi Kang (Logistics Group) of Grade 5 staff
Jiangsu University member
January 2024
Suzhou University of
Science and Technology Lecturer July 1993
Jiangsu Lantern Law Firm Practicing lawyer December2004
Small and Medium-sized
Enterprises Committee of Deputy
Wu Weihua Jiangsu Federation of Secretary-General October 2018
Industry and Commerce
Suzhou Bankruptcy
Administrators’ Vice President June 2019
Association
Suzhou Lawyers’
Association Director February 2016
Explanation for
the post in other None
organizations
(III) Remuneration of Directors Supervisors and Senior Managers
√ Applicable□ N/A
With reference to the remuneration level of the Company’s
Decision-making procedure for industry and the region and taking into account the Company’s
the remuneration of directors actual operating conditions and job responsibilities the
supervisors and senior managers Company shall draw up a plan and implement it after the
approval by the board of directors and shareholders’ meeting
50 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
through consideration. Among them the remuneration of
directors and supervisors shall be decided by the shareholders’
meeting and that of senior managers shall be decided by the
board of directors.Whether a director recuses
himself/herself from the
discussion on his/her own Yes
remuneration by the board of
directors or not
Details of the recommendations
made by the Remuneration and
Appraisal Committee or the On March 29 2024 the Remuneration and Appraisal Committee
special meeting of independent approved the Proposal on the Remuneration Plan for Senior
directors in respect of the Managers for the Year 2024 through consideration.remuneration of directors
supervisors and senior managers
Except for the allowance for the Company’s independent
directors the remuneration of directors supervisors and senior
Basis for determining the managers who are in receipt of remuneration from the Company
remuneration of directors shall be determined on the basis of the Company's overall
supervisors and senior managers remuneration policy salary standards the specific executivepositions held by them in the Company their work performance
as well as the actual circumstances of the fulfillment of the
Company’s annual business plan.Actual payment of remuneration The actual payment of the remuneration of directors supervisors
to directors supervisors and and senior managers was made on time in accordance with the
senior managers relevant provisions mentioned above and the remuneration dataare true and accurate.Total actual remuneration
received by all directors
supervisors and senior managers RMB 4.6789 million
as of the end of the reporting
period
(IV) Changes in the Company’s Directors Supervisors and Senior Managers
□ Applicable √ N/A
(V) Explanation for Penalties Imposed by Securities Regulators over the past three years
□ Applicable √ N/A
(VI) Others
□ Applicable √ N/A
V. Information on the Board Meeting Held within the Reporting Period
Session of the
meeting Date of meeting Resolutions
1. Proposal on the Revision of
Association> and Revision Formulation and Abolishment
of Some Corporate Systems
2. Proposal on the Revision of the
The 10th meeting of Manual>
the 2nd board of January 19 2024 3. Proposal on the Approval of the Company’s 2024
directors Internal Audit Work Plan
4. Proposal to Request the Board of Directors’
Confirmation of the Detailed Guarantees between the
Company and Its Subsidiaries Holding Over 50% of Shares
within the Scope of Consolidated Financial Statements
51 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The 11th meeting of 1. Proposal on Seeking the Board’s Approval for Relevant
the 2nd board of February 7 2024 Matters
directors 2. Proposal on Convening 2024 1
st Interim Shareholders’
Meeting
1. Proposal on the Work Report of the General Manager
for the Year 2023
2. Proposal on the Work Report of the Board of Directors
for the Year 2023
3. Proposal on the Performance Report of Independent
Directors for the Year 2023
4. Proposal on the Independence Evaluation of Independent
Directors in 2023
5. Proposal on the Report of the Company’s Post
Performance Evaluation on Accounting Firm in 2023
6. Proposal on the Report on the Performance of the Audit
Committee of the Board of Directors for the Year 2023
7. Proposal on the Internal Control Evaluation Report for
the Year 2023
8. Proposal on the Internal Control System Declaration for
the Year 2023
9. Proposal on the Company’s Environment Social and
Governance (ESG) Report in 2023
10. Proposal on the Remuneration Plan for Senior
Managers for the Year 2024
11. Proposal on the Full Text and Summary of the Annual
Report for the Year 2023
12. Proposal on the Financial Settlement Report for the
Year 2023
The 12th meeting of 13. Proposal on the Financial Budget Report for the Year
the 2nd board of March 29 2024 2024
directors 14. Proposal on the Reappointment of the Accounting Firm
15. Proposal on the Confirmation of Routine Related
Transactions for the Year 2023 and the Expected Routine
Related Transactions for the Year 2024
16. Proposal on the Total Estimated Guarantee for the Year
2024
17. Proposal to Request the Board of Directors’
Confirmation of the Detailed Guarantees between the
Company and Its Subsidiaries Holding Over 50% of Shares
within the Scope of Consolidated Financial Statements
18. Proposal on the Application for Comprehensive Credit
Limit from Financial Institutions for the Year 2024
19. Proposal on Providing Financial Support to the
Holding Subsidiary
20. Proposal on the Special Report on the Deposit and
Actual Use of Funds Raised by the Company in 2023
21. Proposal on Using Some Idle Own Funds for Cash
Management
22. Proposal on the Profit Distribution Plan for the Year
2023
23. Proposal on the Company’s 2024 R&D Plan
24. Proposal on Convening 2023 Annual Shareholders’
Meeting
25. Proposal on the Revision of
System>
The 13th meeting
of the 2nd board of April 29 2024 1. Proposal on the Q1 Report for 2024
52 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
directors
1. Proposal on the Full Text and Summary of the
Semi-Annual Report for the Year 2024
2. Proposal on the Special Semi-Annual Report on the
Deposit and Actual Use of Funds Raised by the Company in
The 14th meeting 2024
of the 2nd board of August 7 2024 3. Proposal on Providing Financial Support to the Holding
directors Subsidiary4. Proposal on Confirming that Overdue Accounts
Receivable Exceeding Normal Credit for 3 Months Are Not
Included in Fund Lending
5. Proposal on Seeking the Board’s Approval for Relevant
Matters
1. Proposal on the Change of Horizontal Competition
The 15th meeting of Commitment by the Company’s Indirectly Controlled
the 2nd board of August 27 2024 Shareholders
directors 2. Proposal on Convening 2024 2nd Interim Shareholders’
Meeting
1. Proposal on the Q3 Report for 2024
2. Proposal on Seeking the Board’s Approval for Relevant
The 16th meeting of Matters
the 2nd board of October 25 2024 3. Proposal on Using Some Idle Raised Funds for Cash
directors Management4. Proposal on Confirming that Overdue Accounts
Receivable Exceeding Normal Credit for 3 Months Are Not
Included in Fund Lending
1. Proposal on the Postponement of Some Raised
Investment Projects
2. Proposal on Name Change of the Strategy Committee of
the Board of Directors and Revision of the Corresponding
Work Rules
The 17th meeting of 3. Proposal on the Formulation of
the 2nd board of December 13 2024 Public Opinions>
directors 4. Proposal on the Company’s 2024 “Improvement ofQuality and Efficiency and Emphasis on Return” Action
Program
5. Proposal to Request the Board of Directors’
Confirmation of the Detailed Guarantees between the
Company and Its Subsidiaries Holding Over 50% of Shares
within the Scope of Consolidated Financial Statements
VI. Fulfillment of Duties by Directors
(I) Directors’Attending of Board Meeting and Shareholders’Meeting
Attending
of
Attending of board meeting shareholde
rs’
Indepen meeting
Director dent Requir Whether
s director ed Times Times of Times there
Number of
or not times of attending
of attendi attending by
of Absenc have
telecommunica attendi es been two
of
attendi ng in shareholde
ng the person tion
ng by Times consecuti
proxy ve rs’
board failures meeting
53 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
meetin to attend
g this in person
year
Liang No 8 8 8 0 0 No 3
Jinli
Chen No 8 8 0 0 0 No 3
Zhihao
Zhu No 8 8 0 0 0 No 3
Qihua
Su No 8 8 8 0 0 No 3
Yuzhou
Shi Yes 8 8 4 0 0 No 3
Kang
Wu Yes 8 8 5 0 0 No 3
Weihua
Gu Yes 8 8 5 0 0 No 3
Hailan
Explanation for two consecutive failures to attend in person
□ Applicable √ N/A
Times of board meeting during this year 8
Including: Times of on-site meetings 0
Times of meetings held via telecommunication 0
Times of meetings held on site and via 8
communication
(II) Objections Raised by Directors to Matters Relating to the Company
□ Applicable √ N/A
(III) Others
□ Applicable √ N/A
VII. Specialized Committees under the Board of Directors
√ Applicable□ N/A
(I) Membership of Specialized Committees under the Board of Directors
Category of specialized
committees Members
Audit Committee Liang Jinli Wu Weihua and Gu Hailan
Nomination Committee Liang Jinli Shi Kang and Wu Weihua
Remuneration and
Appraisal Committee Liang Jinli Shi Kang and Gu Hailan
Strategy and Sustainable
Development Committee Liang Jinli Chen Zhihao and Zhu Qihua
(II) The Audit Committee held 7 meetings within the reporting period
Important opinions Other
Date of meeting Contents of meetings and fulfillment of
recommendations duties
1. Proposal on the Approval of the
January 19 2024 Company’s 2024 Internal Audit Work Passed afterPlan consideration None
2. Proposal to Request the Board of
54 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Directors’ Confirmation of the
Detailed Guarantees between the
Company and Its Subsidiaries Holding
Over 50% of Shares within the Scope
of Consolidated Financial
Statements
February 7 2024 1. Proposal on Seeking the Board’s Passed afterApproval for Relevant Matters consideration None
1. Proposal on the Report of the
Company’s Post Performance
Evaluation on Accounting Firm in
2023
2. Proposal on the Report on the
Performance of the Audit Committee
of the Board of Directors for the Year
2023
3. Proposal on the Internal Control
Evaluation Report for the Year 2023
4. Proposal on the Internal Control
System Declaration for the Year 2023
5. Proposal on the Full Text and
Summary of the Annual Report for the
Year 2023
6. Proposal on the Financial
Settlement Report for the Year 2023
7. Proposal on the Financial Budget
Report for the Year 2024
8. Proposal on the Reappointment of
the Accounting Firm
9. Proposal on the Confirmation of
Routine Related Transactions for the
March 29 2024 Year 2023 and the Expected Routine Passed afterRelated Transactions for the Year consideration None
2024
10. Proposal on the Total Estimated
Guarantee for the Year 2024
11. Proposal to Request the Board of
Directors’ Confirmation of the
Detailed Guarantees between the
Company and Its Subsidiaries Holding
Over 50% of Shares within the Scope
of Consolidated Financial
Statements
12. Proposal on the Application for
Comprehensive Credit Limit from
Financial Institutions for the Year
2024
13. Proposal on Providing Financial
Support to the Holding Subsidiary
14. Proposal on the Special Report on
the Deposit and Actual Use of Funds
Raised by the Company in 2023
15. Proposal on Using Some Idle Own
Funds for Cash Management
16. Proposal on the Profit
Distribution Plan for the Year 2023
April 29 2024 1. Proposal on the Q1 Report for 2024 Passed after None
55 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
consideration
1. Proposal on the Full Text and
Summary of the Semi-Annual Report
for the Year 2024
2. Proposal on the Special
Semi-Annual Report on the Deposit
and Actual Use of Funds Raised by the
Company in 2024
August 7 2024 3. Proposal on Providing Financial Passed afterSupport to the Holding Subsidiary consideration None
4. Proposal on Confirming that
Overdue Accounts Receivable
Exceeding Normal Credit for 3
Months Are Not Included in Fund
Lending
5. Proposal on Seeking the Board’s
Approval for Relevant Matters
1. Proposal on the Q3 Report for 2024
2. Proposal on Seeking the Board’s
Approval for Relevant Matters
3. Proposal on Using Some Idle
October 25 2024 Raised Funds for Cash Management Passed after4. Proposal on Confirming that consideration None
Overdue Accounts Receivable
Exceeding Normal Credit for 3
Months Are Not Included in Fund
Lending
1. Proposal on the Postponement of
Some Raised Investment Projects
2. Proposal to Request the Board of
Directors’ Confirmation of the
Detailed Guarantees between the
December 13 2024 Company and Its Subsidiaries Holding Passed afterOver 50% of Shares within the Scope consideration None
of Consolidated Financial
Statements
3. Proposal on Approving the
Company’s 2025 Internal Audit Work
Plan
(III) The Remuneration and Appraisal Committee held 1 meeting within the reporting period
Important opinions Other
Date of meeting Contents of meetings and fulfillment of
recommendations duties
1. Proposal on the Remuneration Plan
March 29 2024 for Senior Managers for the Year Passed after None
2024 consideration
(IV) The Strategy and Sustainable Development Committee held 1 meeting within the reporting
period
Important opinions Other
Date of meeting Contents of meetings and fulfillment of
recommendations duties
December 13 2024 1. Proposal on Name Change of the Passed after None
56 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Strategy Committee of the Board of consideration
Directors and Revision of the
Corresponding Work Rules
(V) Details of Disagreements
□ Applicable √ N/A
VIII. Explanation for the Company’s Risks Discovered by the Board of Supervisors
□ Applicable √ N/A
The board of supervisors had no disagreement on the supervised matters within the reporting period.IX. Employees of the Parent Company and Major Subsidiaries within the Reporting Period
(I) Employees
Number of in-service employees of the parent 456
company
Number of in-service employees of major 258
subsidiaries
Total of in-service employees 714
Number of retired employees subject to expenses 1
of parent company and major subsidiaries
Specialty composition
Category of specialty composition Number of employees of specialty composition
Production staff 0
Sales staff 5
Technical staff 601
Financial staff 31
Administrative staff 77
Total 714
Educational background
Category of educational background Number (person)
Bachelor ‘s degree 406
College 249
Below 44
Master’s degree 15
Total 714
(II) Remuneration Policy
√ Applicable□ N/A
The Company always takes human resources as the core power for realizing sustainable
development. It endeavors to build a scientific and reasonable remuneration system with market
competitiveness in order to attract motivate and retain excellent talents thus promoting the realization
of strategic goals. Within the reporting period the Company determined the remuneration policy on the
principle of “performance-orientation long-term incentive and priority for shareholders’ interests” and
by fully considering the industry’s features market level and its operation status in order to ensure that
it is matched with the Company’s long-term value growth.The employee remuneration consists of fixed salary performance bonus and long-term incentive
salary. The fixed salary is determined based on the post value and market level and can safeguard
employees’ basic rights and interests; the performance bonus which is linked with the Company’s
overall performance and personal performance reflects the employees’ short-term contribution and
value creation; the long-term incentive salary is paid for the core management and key technicians with
a view to promoting the long-term consistency of employees’ and shareholders’ interests. The
Company’s Remuneration Committee assesses the effectiveness of the policies regularly and adjusts the
57 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
remuneration level by referring to the independent third party’s data to strike a balance between
competitiveness and cost control.(III) Training plan
√ Applicable□ N/A
Upholding the idea that “talents drive company development” the Company regards the
improvement of employees’ capacity as the core for strategy implementation. Within the reporting
period the Company built the hierarchical and systematic training system by following the idea of
“strategic adaptation ability progress and innovation leadership” and highlighted four fields including
digital transformation technical tackling improvement of management efficiency and sustainable
development in order to facilitate employee growth and improvement of organization efficiency.Reserve of strategic talents: As for the layout of emerging businesses (such as AI and green and
low-carbon field) the Company opened special technical research class built
industry-university-research training platform in partnership with colleges and universities and
industrial think tank and intensified the reserve of cutting-edge technologies;
Popularization of digitalization ability: Promote the application of digitalization and intelligence
technology intensify the involvement rate of technicians in digitalization skill trainings;
Leadership progress plan: Offer special trainings on strategy decision-making cross-cultural
collaboration and ESG governance for the medium and high-level managers to improve the organization
toughness;
Compliance and risk management: Deepen the education on compliance awareness of all staff
intensify the required courses such as industrial regulatory policies anti-spam mechanism and
information security and consolidate the risk control bottom line.(IV) Labor Outsourcing
√ Applicable□ N/A
Total working hours of labor outsourcing 18960 hours
Total of reward paid for labor outsourcing (RMB 39.12
10000)
X. Proposed Profit Distribution or Capitalization of Capital Reserves
(I) Formulation Implementation orAdjustment of Cash Dividend Policy
√ Applicable□ N/A
In accordance with the CSRC’s Notice on Further Implementation of Matters Relating to Cash
Dividends for Listed Companies the Supervisory Guideline for Listed Companies No. 3 - Cash
Dividends for Listed Companies etc. the Company has formulated the cash dividend policy; specified
the decision-making procedures and mechanisms relating to profit distribution matters clearly in the
Company’s Articles of Association. As approved at the 18th meeting of the Company’s 2nd board of
directors after consideration the Company proposes to distribute profits for the year 2024 by taking the
total capital stocks registered on the registration date of equity for equity distribution. In the profit
distribution this time the Company plans to distribute cash bonus of RMB 7.5 (including tax) for every
10 shares to all shareholders. As of December 31 2024 the Company’s total capital stocks had been
100000000 shares based on which the total cash bonus to be distributed amounted to RMB
75000000 (including tax). The proportion of the Company’s cash bonus this year was 65.56%. This
profit distribution scheme was implemented as per the Company’s Articles of Association and the
resolutions made in the shareholders’ meeting. This profit distribution scheme will be considered in the
2024 annual shareholders’ meeting.
Within the reporting period the Company did not adjust or change its profit distribution policy.(II) Special Explanation for Cash Dividend Policy
√ Applicable□ N/A
Compliance with the Company’s Articles of Association or the resolutions of the √ Yes □ No
shareholders’ meeting
Whether the criteria and proportion of dividend distribution are clear and √ Yes □ No
unambiguous
58 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Whether the relevant decision-making procedures and mechanisms are complete √ Yes □ No
Whether the independent directors have performed their duties and played their √ Yes □ No
due role
Whether the small and medium-sized shareholders have sufficient opportunities √ Yes □ No
to express their opinions and demands and whether their legitimate rights and
interests are adequately protected
(III) If the Company made profits and the parent company had positive profit available for
distribution to shareholders but has not put forward a proposal for a cash profit distribution
plan within the reporting period the Company shall disclose in detail the reasons as well as
the use of the undistributed profit and the plan for its utilization
□ Applicable √ N/A
(IV) Proposals for Profit Distribution and Capitalization of Capital Reserve for the Reporting
Period
√ Applicable□ N/A
In RMB Yuan
Number of bonus shares per 10 shares (share) 0.00
Dividend per 10 shares (RMB Yuan) (including
tax) 7.50
Dividend per 10 shares (share) 0.00
Cash dividend amount (including tax) 75000000.00
Net profit attributable to the listed company’s
common shareholders in the consolidated 114402314.36
statement
Proportion of cash bonus amount in the net profits
belonging to the listing company’s common 65.56
stockholders in the consolidated statements (%)
Amount of shares repurchased for cash included in
cash dividends 0.00
Total amount of dividends (including tax) 75000000.00
Ratio of total dividend amount to net profit
attributable to the listed company’s common 65.56
shareholders in the consolidated statement (%)
(V) Cash Bonus over the Past Three Accounting Years
√ Applicable□ N/A
In RMB Yuan
Cumulative amount of cash bonus over the past 3
accounting years (including tax) (1) 220000000.00
Amount cumulatively repurchased and cancelled over the
past 3 accounting years (2) 0.00
Amount of cash bonus and amount cumulatively
repurchased and cancelled over the past 3 accounting 220000000.00
years (3)=(1)+(2)
Annual average net profits over the past 3 accounting
years (4) 125286923.86
Proportion of cash bonus over the past 3 accounting
years (%) (5)=(3)/(4) 175.60
59 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Net profits belonging to listed company’s common
shareholders in the consolidated statements of the latest 114402314.36
accounting year
Undistributed profits at the end of the parent company’s
statement year in the latest accounting year 183059743.47
XI. Status of the Company’s Share Incentive Scheme Employee Shareholding Plan or Other
Employee Incentives and Their Impacts
(I) Where the relevant incentive matters have been disclosed in the interim announcement and
there is no progress or change in subsequent implementation
□ Applicable √ N/A
(II) Incentives Not Disclosed in the Interim Announcement or With Subsequent Progress
Equity incentives
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Employee Stock Ownership Plan
□ Applicable √ N/A
Other incentives
□ Applicable √ N/A
(III) Share Incentives Granted to Directors and Senior Managers within the Reporting Period
□ Applicable √ N/A
(IV) Evaluation Mechanism for Senior Managers and Establishment and Implementation of
Incentive Mechanism within The Reporting Period
√ Applicable□ N/A
The Company has established performance evaluation system for all staff. The employee
remuneration consists of fixed salary performance bonus and long-term incentive salary. The fixed
salary is determined based on the post value and market level and can safeguard employees’ basic rights
and interests; the performance bonus which is linked with the Company’s overall performance and
personal performance reflects the employees’ short-term contribution and value creation; the long-term
incentive salary is paid for the core management and key technicians with a view to promoting the
long-term consistency of employees’ and shareholders’ interests.XII. Construction and Implementation of Internal Control System within the Reporting Period
√ Applicable□ N/A
For the evaluation of the Company’s internal control please refer to the Internal Control
Evaluation Report for the Year 2024 disclosed by the Company on March 29 2025 on the website of
Shanghai Stock Exchange (www.sse.com.cn).Explanation for the existence of significant deficiencies in internal control within the reporting
period
□ Applicable √ N/A
60 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
XIII. Management Control over Subsidiaries within the Reporting Period
√ Applicable□ N/A
Within the reporting period the Company formulated the Management System for Subsidiaries in
accordance with the Company Law the Securities Law the Self-disciplinary Supervision Guidelines for
Listed Companies of Shanghai Stock Exchange No. 1 - Standardized Operation and other laws and
regulations as well as relevant provisions of the Company’s Articles of Association and by considering
the Company’s realities. The Company has strictly complied with the Subsidiary Management System
further strengthened the management of subsidiaries established an effective control mechanism and
carried out risk control over its organization resources assets investment and operation so as to
improve the overall operational efficiency and risk-resistant capability of the Company.The subsidiaries operate in compliance with the law within the framework of the Company’s
overall policies and objectives and report information on material matters to the Company in a timely
accurate truthful and complete manner in strict accordance with the Company’s Information Disclosure
Management System. There is no information on material matters that shall have been disclosed.XIV.Explanation for the Relevant Information of the Internal Control Audit Report
√ Applicable□ N/A
The Company has hired ShineWing Certified Public Accountants LLP for independently auditing
the internal control of the Company and issued a standard unqualified opinion. Details of the internal
control audit report can be found in the Internal Control Audit Report for the Year 2024 disclosed by the
Company on March 29 2025 on the website of Shanghai Stock Exchange (www.sse.com.cn).Whether to disclose the internal control audit report: Yes
Type of opinion of the internal control audit report: Standard unqualified opinion
XV. Self-Inspection and Rectification of Issues in the Special Action on the Governance of Listed
Companies
In 2024 the Company carried out the self-inspection activities of the special action for governance
of listed companies and there were no rectification matters after self-inspection of the Company.XVI. Others
□ Applicable √ N/A
Section V Environmental and Corporate Social Responsibility
I. Environmental Information
Whether to establish mechanisms related to Yes
environmental protection
Investment in environmental protection within the 18.32
reporting period (RMB 10000)
(I) Explanation for the environmental protection status of the Company and its major
subsidiaries which are key emission units announced by the environmental protection authorities
□ Applicable √ N/A
(II) Explanation for the Environmental Protection of Companies Other Than Key Emission Units
□ Applicable √ N/A
61 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(III) Information Related to the Protection of Ecology Prevention of Pollution And Fulfillment of
Environmental Responsibility
□ Applicable √ N/A
(IV) Measures for Reducing Carbon Emissions within the Reporting Period and Their Effects
Whether to take measures to reduce
carbon emissions Yes
Reduction of carbon dioxide equivalent
emissions (t) N/A
The Company implements pollution prevention for
environmental factors involved in the construction and
Type of carbon reduction measures (e.g. service process controls and treats them in accordance with
use of clean energy for power generation the regulations of relevant authorities controls sewage and
use of carbon reduction technologies in noise emissions reduces construction dust and construction
production processes R&D and waste saves energy and reduces consumption rationally
production of new products that utilizes resources and energy and prevents or reduces
contribute to carbon reduction etc.) pollution to the environment; it also cooperates withsuppliers and contractors to jointly prevent pollution and
protect the ecological environment; takes strong measures to
prevent pollution throughout the construction process.Details
√ Applicable□ N/A
The Company has introduced modern environmental management measures and formulated
environmental management systems such as the Quality Environment and Safety Management Manual
Safety and Civilized Construction Management Procedures and Energy Saving and Consumption
Reduction Control Procedures in strict accordance with GB/T24001-2016/ISO 14001:2015. The
environmental management involved in the construction of electromechanical installation works
fire-fighting works and architectural works within the scope of qualification was evaluated by an
external certification organization and the Company has obtained ISO14001 certification.II. Corporate Social Responsibility
(I) Whether to Disclose Social Responsibility Report Sustainable Development Report or ESG
Report Separately
√ Applicable□ N/A
For details please refer to the 2024 Environmental Social and Governance (ESG) Report of Acter
Technology Integration Group Co. Ltd. disclosed on the website of Shanghai Stock Exchange
(www.sse.com.cn) on March 29 2025 by the Company.(II) Details of corporate social responsibility work
√ Applicable□ N/A
External donations and public Number/content Remarks
welfare items
Total input (RMB 10000) 25.90
Including: Of which: Funds 25.90
(RMB 10000)
Material Discount (RMB - -
10000)
Number of persons benefited - -
(person)
Details
62 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
√ Applicable□ N/A
Within the reporting period the Company conscientiously fulfilled its corporate social
responsibilities actively promoted the harmonious development of the whole society extensively
participated in various social activities and supported public welfare undertakings. Internally the
Company established and improved various rules and regulations internally strengthened corporate
culture construction actively took various measures to protect the employees’ legitimate rights and
interests and improved their benefits. Externally the Company has stuck to sharing its development
achievements with society actively engaged in public welfare and charity undertakings called on
employees to join the volunteer team and input resources in multiple public welfare and charity areas
such as earthquake relief education assistance and assistance to vulnerable groups continuously
fulfilling its corporate social responsibilities and shaping the image of a responsible enterprise.Online public welfare delivers boundless love. Surrounded by the warm sunshine in June the Acter
Volunteer Group paid a visit to Suzhou Social Welfare General Hospital and had fun with the children
on "Curious June 1 Children Dreams Fly". Accompanied by warmth the volunteers joined hands sang
and danced with the little angels in the welfare home weaving a holiday memory full of love and
laughter in the public performance intertwined with colorful food and childlike interest and appreciating
the different warmth and touch of the childlike world.Caring for education warming the heart. The “Acter Scholarship” award which was established in
2021and donated by the Company is aimed to strengthen the exchange and cooperation between Wuhan
University of Science and Technology and the Company to promote the vigorous development of
education of Wuhan University of Science and Technology and to help outstanding students complete
their studies smoothly. The scholarship is established for full-time undergraduate students in their third
year of study who demonstrate outstanding overall performance in the following four majors: Safety
Engineering Environmental Engineering Building Environment and Energy Applications and Water
Supply and Drainage Science Engineering. The award is disbursed in the fourth year of university with
20 students selected annually each receiving a reward of RMB 3000.
Boundless care and love. As our overseas business expands the Company has deeply integrated
into local communities organizing a donation campaign for a Vietnamese childcare center serving
children with intellectual disabilities. Silent yet boundless love transcends all distances.In the future the Company will continue to actively fulfill its corporate social responsibilities
express the original intention of the enterprise to convey warmth and give back to society with practical
actions; take the initiative to assume the social responsibilities bestowed upon enterprises in the new era
and achieve high-quality and sustainable development of the enterprise through hard work.III. Consolidate and Expand the Results of Poverty Alleviation Rural Revitalization etc.□ Applicable √ N/A
Details
□ Applicable √ N/A
63 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Section VI Milestone Events
I. Fulfillment of Commitments
(I) Commitments Made by the Company’s Actual Controllers Shareholders Connected Parties Acquirers and Other Parties Related to the Company’s
Commitments within the Reporting Period or Continuing into the Reporting Period
√ Applicable□ N/A
If not
Deadline If not fulfilled in
Background of Type of Committed by Commitment Date of for Commitment
Timely and fulfilled in time next
commitments commitment content commitment fulfillment period strict
set or not compliance
time please steps shall
state why be
indicated.Commitments Restriction
October 13
on Sale of Sheng Huei Internationalrelating to the IPO Acter (Taiwan) Note 1 June 22 2021 Yes
2022 to
Shares October 12
Yes N/A N/A
2025
Restriction October 13Commitments on Sale of Suzhou Songhuei Suzhourelating to the IPO Shengzhan Note 2 June 22 2021 Yes
2022 to
Shares October 12
Yes N/A N/A
2023
Liang Jinli Chen Zhihao
Restriction Zhu Qihua Su Yuzhou October 13Commitments
relating to the IPO on Sale of Huang Yaping Liao Note 3 June 22 2021 Yes
2022 to Yes N/A N/A
Shares Chongyou Wang Yu and October 12
Xiao Jingxia 2023
Resolution
Commitments of Sheng Huei International
relating to the IPO horizontal Acter (Taiwan) Note 4 June 22 2021 No Long-term Yes N/A N/A
competition
Acter Group Sheng Huei
Commitments Others International Acterrelating to the IPO (Taiwan) directors and Note 5 June 22 2021 No Long-term Yes N/A N/A
senior managers of the
64 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Company
Acter Group Sheng Huei
International Acter October 13
Commitments (Taiwan) directors 2022 to
relating to the IPO Others (excluding independent Note 6 June 22 2021 Yes October 12 Yes N/A N/A
directors) and senior 2025
managers
Acter Group Sheng Huei
International Acter
Commitments Others (Taiwan) directorsrelating to the IPO supervisors senior managers Note 7 June 22 2021 No Long-term Yes N/A N/A
Suzhou SongHuei Suzhou
ShengZhan
Note 1:
The direct controlling shareholder of the Company Sheng Huei International and the indirect controlling shareholder of the Company Acter (Taiwan) hereby
undertook that:
(1) Within 36 months from the date of listing of the company's shares the company will not transfer or entrust others to manage the shares issued before the
public offering of the company directly or indirectly held by the Company nor will the company repurchase such shares.
(2) Within 6 months after the listing of the company if the closing price of the company's shares is lower than the issue price for 20 consecutive trading days
or if the closing price of the company's shares is lower than the issue price at the end of the 6-month period after the listing (or if such day is not a trading day then
it shall be the first trading day thereafter) the lock-up period for the Company's shareholdings in the company shall be automatically extended for 6 months. During
the extended lock-up period the company shall not transfer or delegate the management of the shares directly or indirectly held by the company that were issued
prior to the public offering of the company nor shall the company repurchase such shares.
(3) Within two years after the expiration of the aforesaid lock-up period the Company shall reduce its shareholding in each year by not more than 25% of the
total number of shares held by the company directly and indirectly at a price not lower than the issue price. The said issue price refers to the issue price of the
company's IPO. In case of ex-rights and ex-dividends due to equity distribution capitalization of provident fund share allotment etc. the ex-rights and ex-dividends
shall be dealt with as per relevant provisions of the Shanghai Stock Exchange. The methods of share reduction include centralized bidding transactions block
trading transfer by agreement and other methods in compliance with the regulations of the CSRC and the Shanghai Stock Exchange.
(4) The Company reduces the corporate shares held as per the provisions of the Securities Law Certain Provisions on Reduction of Shareholdings by
Shareholders Directors and Supervisors of Listed Companies Implementing Rules for the Reduction of Shareholdings by Shareholders Directors Supervisors and
Senior Managers of Listed Companies of the Shanghai Stock Exchange Rules for Listing of Stocks of the Shanghai Stock Exchange and other relevant laws
regulations and standardized documents. If the CSRC and the Shanghai Stock Exchange issue other regulations before the company reduces its corporate shares held
the company undertakes to strictly comply with the regulations in force at the time of the reduction of the company's shareholding in the company to implement the
reduction.
65 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(5) In the event that the company violates the aforesaid undertakings the proceeds from the transfer of the company's shares in breach of the undertakings
("proceeds from the transfer in breach of the undertakings") shall belong to the company. If the company fails to hand over the gains arising out of the illegal
transfer above to the company the company shall have the right to freeze the remaining shares of the Company held by the company and may withhold the cash
dividends payable to the company for offsetting the gains from illegal transfer that the company shall hand over to the company until the gains from illegal transfer
that the company shall hand over are remedied.Note 2:
The shareholders of the Company Suzhou Songhuei and Suzhou Shengzhan hereby undertook that:
(1) Within 12 months from the date of listing of the company's shares the company will not transfer or delegate the management of the shares held directly or
indirectly by the company prior to the public offering of the company's shares nor will the company repurchase such shares.
(2) If the company reduces its holdings of the company's shares within two years after the expiration of the lock-up period for the company's shares the price
of such reduction shall not be less than the issue price of the company's IPO. The said issue price refers to the issue price of the company's IPO. In case of ex-rights
and ex-dividends due to equity distribution capitalization of provident fund share allotment etc. the ex-rights and ex-dividends shall be dealt with as per relevant
provisions of the Shanghai Stock Exchange.
(3) In addition to the aforesaid lock-up period in this period when the shareholders/partners of the company serve as directors/senior managers of the company
the shares of the company to be transferred by the company each year shall not exceed 25% of the total number of shares of the company directly or indirectly held
by the company; and the shareholders of the company shall not transfer the shares of the company directly or indirectly held by the company within half a year after
they have ceased to serve as directors/senior managers of the Company.
(4) The Company shall reduce the corporate shares held as per the Securities Law Certain Provisions on Reduction of Shareholdings by Shareholders
Directors and Supervisors of Listed Companies Implementing Rules for the Reduction of Shareholdings by Shareholders Directors Supervisors and Senior
Managers of Listed Companies of the Shanghai Stock Exchange Rules for the Listing of Stocks on the Shanghai Stock Exchange and other relevant laws regulations
and standardized documents. If the CSRC and the Shanghai Stock Exchange have any other regulations before the company reduces its shareholding in the company
the company undertakes to strictly comply with the regulations in force at the time of the reduction of the company's shareholding in the company to implement the
reduction.
(5) In the event that the company violates the aforesaid undertakings the proceeds of the violation shall belong to the company. If the enterprise fails to hand
over to the company the proceeds of the aforesaid violation of transfer the company shall have the right to freeze the remaining shares of the company held by the
enterprise and may withhold the cash dividends payable to the enterprise and apply them against the proceeds of the violation of transfer due to the company until it
makes up for the proceeds of the violation of transfer due to the enterprise.Note 3:
Directors supervisors and senior managers who indirectly hold shares of the Company Liang Jinli Chen Zhihao Zhu Qihua Su Yuzhou Huang Yaping Liao
Chongyou Wang Yu and Xiao Jingxia hereby undertook that:
(1) Within 12 months from the date of listing of the company's shares I will not transfer or delegate the management of the shares held by me directly or
indirectly that were issued before the company's public offering nor will the company repurchase such shares.
(2) Within 6 months after the listing of the company if the closing price of the company's shares is lower than the issue price for 20 consecutive trading days
or if the closing price of the company's shares is lower than the issue price at the end of the 6-month period after the listing (or if that day is not a trading day then it
66 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
is the first trading day thereafter) the lock-up period of the company's shares held by me shall be automatically extended for 6 months. During the extended lock-up
period I will not transfer or delegate the management of the shares held directly or indirectly by me that were issued prior to the public offering of the company nor
will the company repurchase such shares.
(3) If I reduce my holdings of the company's shares within two years after the expiration of the lock-up period the price of such reduction shall not be less than
the issue price of the company's IPO. The said issue price refers to the issue price of the company's IPO. In case of ex-rights and ex-dividends due to equity
distribution capitalization of provident fund share allotment etc. the ex-rights and ex-dividends shall be dealt with as per relevant provisions of the Shanghai Stock
Exchange.
(4) In addition to the foregoing lock-up period in this period in which I serve as a director supervisor and senior manager of the Company and if I leave office
before the expiration of my term of office during the term of office determined at the time of my assumption of office and within 6 months after the expiration of
the term of office: * The transfer of the shares shall not exceed 25% of the total number of the shares of the Company held directly or indirectly by me each year;
and * I shall not transfer the shares of the Company held directly or indirectly by me within 6 months of my leaving office.
(5) In case of reducing my shareholding in the Company I will strictly comply with the provisions of the Securities Law Certain Provisions on Reduction of
Shareholdings by Shareholders Directors and Supervisors of Listed Companies Implementing Rules for the Reduction of Shareholdings by Shareholders Directors
Supervisors and Senior Managers of Listed Companies on the Shanghai Stock Exchange Rules for Listing of Stocks on the Shanghai Stock Exchange and other
relevant laws regulations and standardized documents. If the CSRC and the Shanghai Stock Exchange have other regulations before I reduce my shareholding in the
Company I undertake to strictly comply with the regulations in force at the time I reduce my shareholding in the Company.
(6) I will not refuse to fulfill the above undertakings due to change of position or departure from office. If I violate the above undertaking the proceeds of the
violation of the transfer shall belong to the Company. If I fail to hand over to the Company the proceeds of the aforesaid illegal transfer the Company shall have the
right to freeze the remaining shares of the Company held by me and may withhold the cash dividends payable to me and apply them against the proceeds of the
illegal transfer due to the Company until it makes up for the proceeds of the illegal transfer due to me.Note 4:
(I) Sheng Huei International the direct controlling shareholder of the Company has issued the Commitment Letter on the Avoidance of Competition in the
Same Industry in respect of the avoidance of competition in the same industry with specific commitments as follows:
1. As of the date of this commitment letter except for the investment company the Company and the subsidiaries directly or indirectly controlled by the
Company have not engaged in any business which is or may be in the same line of competition with the Company and its subsidiaries in any manner directly or
indirectly within or outside the PRC.
2. The Company and the subsidiaries directly or indirectly controlled by the Company will not in the future engage in any form of business or activity that
constitutes or has the potential to constitute competition in the same line of business with the business operated by the Company and its subsidiaries and will not
directly or indirectly take a controlling interest in acquire or merge with any enterprise or other economic organization that competes or is likely to compete with
the business operated by the Company and its subsidiaries.
3. If the Company and its subsidiaries directly or indirectly controlled by the Company have any business opportunities to participate in or acquire shares in any
business which may compete or may compete with the business operated by the Company and its subsidiaries the Company will immediately notify the Company
and provide such business opportunities to the Company and its subsidiaries in an appropriate manner with priority and the Company and its subsidiaries will have
priority to acquire the assets or equity involved in the business under the same conditions. The Company will immediately notify the Company of such business
67 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
opportunities in an appropriate manner and the Company and its subsidiaries will have priority in acquiring the assets or equity interests involved in the relevant
business under the same conditions so as to avoid competing with the Company and its subsidiaries.
4. From the date of this Undertaking if the Company further expands its main products and main business scope the Company and other enterprises controlled
by the Company at that time guarantee that they will not compete with the Company's expanded main products or main business; in case of competition with the
Company's expanded main products or main business the Company and other enterprises controlled by the Company at that time guarantee to withdraw from the
competition with the Company in accordance with the following methods including but not limited to
(1) Cessation of production of products that compete or may compete with the Company's expanded principal products;
(2) Cessation of the operation of businesses that compete or may compete with the Company's expanded main business;
(3) Incorporate into the Company with the Company's consent businesses that compete with the Company's expanded principal business;
(4) Transferring the business competing with the Company's expanded main business to an unrelated third party.
5. This commitment letter shall be effective from the date of issuance and shall remain effective in this period in which the Company is the controlling
shareholder of Acter Group.
6. In case of any breach of the above undertakings the Company is willing to bear the corresponding compensation liability arising from the breach of the
above undertakings in accordance with laws.(II) Acter (Taiwan) the indirect controlling shareholder of the Company has issued the Commitment Letter on the Avoidance of Competition in the Same
Industry in respect of avoidance of competition in the same industry. On August 28 2024 Acter (Taiwan) changed the commitment on avoidance of competition in
the same industry with specific commitments as follows:
1. As of the date of this commitment letter except for the investment company the Company and the subsidiaries directly or indirectly controlled by the
Company have not engaged in any business in any manner directly or indirectly other than in the Taiwan region of the PRC that is in the same business
competition or potential same business competition with the Company and its subsidiaries.
2. Except for the situation described in Article 3 of this commitment letter the Company and the subsidiaries directly or indirectly controlled by the Company
will not in the future engage in any form of business or activities that compete or potentially compete with the business operated by the Company and its
subsidiaries in any manner directly or indirectly in other regions outside of the Taiwan region of China and will not directly or indirectly in other regions outside
of the Taiwan region of China take a controlling stake in acquire merge or amalgamate businesses that compete or potentially compete with the business operated
by the Company and its subsidiaries.
3. If the Company and its subsidiaries directly or indirectly controlled by the Company have any business opportunities in other regions outside of the Taiwan
region of China to participate in or acquire shares in any business that may compete or potentially compete with the business operated by the Company and its
subsidiaries the Company will immediately notify the Company and provide such business opportunities to the Company and its subsidiaries on a priority basis in
an appropriate manner so that the Company and its subsidiaries can acquire the business involved on a priority basis under the same terms and conditions. The
Company will immediately notify the Company to provide such business opportunities to the Company and its subsidiaries on a priority basis in an appropriate
manner and the Company and its subsidiaries will acquire the assets or equity involved in the relevant business on a priority basis under the same conditions so as
to avoid horizontal competition with the Company and its subsidiaries.If Acter Group determines that the aforementioned business opportunity/operation aligns with the development needs of Acter Group and its subsidiaries but
due to objective factors beyond its control - such as changes in laws regulations policies or force majeure events such opportunity/operation is unsuitable for
direct execution by Acter Group or its subsidiaries or if direct execution by Acter Group or its subsidiaries would adversely affect the protection of Acter Group’s
interests then in support of Acter Group’s growth the Company may after full consultation with Acter Group proceed with investment acquisition or interim
68 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
cultivation of such opportunity/operation through the Company or other entities under the Company’s control. The Company hereby commits that once the relevant
business or assets meet the conditions for transfer to Acter Group or its subsidiaries we shall prioritize the transfer of such business or assets to Acter Group or its
subsidiaries at a fair price provided that such transfer complies with applicable laws regulations regulatory requirements and the interests of Acter Group.
4. From the date of this commitment letter if Acter Group further expands its main products and main business scope the Company and other enterprises
controlled by the Company at that time guarantee that they will not compete with the Company's expanded main products or main business; in case of competition
with Acter Group's expanded main products or main business the Company and other enterprises controlled by the Company at that time guarantee that they will
withdraw from the competition in accordance with the following methods The Company and other enterprises controlled by the Company at that time undertake to
withdraw from competition with the Company in the following manner including but not limited to the following:
(1) Cessation of production of products that compete or may compete with the Company's expanded principal products;
(2) Cessation of the operation of businesses that compete or may compete with the Company's expanded main business;
(3) Incorporate into the Company with the Company's consent businesses that compete with the Company's expanded principal business;
(4) Transferring the business competing with the Company's expanded main business to an unrelated third party.
5. This commitment letter shall be effective from the date of issuance and shall continue to be effective in this period in which the Company is an indirect
controlling shareholder of the Company.Note 5:
(I) In order to ensure that the Company's measures to fill the immediate returns can be effectively fulfilled the Company's direct controlling shareholder Sheng
Huei International and its indirect controlling shareholder Acter (Taiwan) have made the following undertakings:
1. Do not intervene in the operation and management activities of the Company beyond their authority.
2. Do not encroach on the interests of the Company.
3. Do not harm the interests of the Company.
4. Do not effectively fulfill any commitments made by the Company in relation to the measures to fill in the returns. If the Company violates such
commitments and causes losses to the Company or the investors the Company is willing to bear the compensation liability to the Company or the investors in
accordance with laws.The Company as the responsible party for the above undertakings will be liable for compensation in accordance with laws if it violates the above undertakings
and causes losses to the Company or investors.(II) In order to guarantee that the Company's measures to fill in the immediate returns can be practically fulfilled the directors and senior managers of the
Company undertake that:
1. Do not transfer benefits to other units or individuals without compensation or on unfair terms nor to use other means to harm the interests of the Company;
2. Restrain my consumption behavior in office;
3. Do not use the Company's assets to engage in investment and consumption activities unrelated to the performance of their duties;
4. Fully support the remuneration system when it is formulated by the Board of Directors or the Remuneration and Appraisal Committee to link the
remuneration system with the implementation of the Company's measures to fill in the returns and to vote in favor of the relevant motions when they are being
considered (if I have the right to vote);
5. If the Company subsequently launches the equity incentive policy I undertake to fully support the proposals in the meeting of the board of directors and
shareholders’ meeting which are to be announced and about the exercise conditions of the Company's equity incentives and the implementation of the Company's
measures to fill in the returns; I will be willing to vote in favor of (if I have the right to vote) such motions;
69 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
6. After the date of this undertaking and before the completion of the implementation of the IPO and listing of the Company if the CSRC makes any other new
regulatory provisions on the measures and undertakings for filling the returns and if the above undertakings fail to satisfy such provisions of the CSRC I undertake
to issue supplementary undertakings in accordance with the latest provisions of the CSRC at that time;
7. I undertake to effectively fulfill the relevant measures formulated by the Company to fill in the returns and any commitments I have made in relation to the
measures to fill in the returns and I am willing to bear the responsibility of compensating the Company or investors in accordance with laws in the event of any
violation of such commitments by me and any loss caused to the Company or investors.
8. As one of the parties responsible for the measures to fill in the returns if I violate the above undertakings or refuse to fulfill the above undertakings I agree
to be punished or take relevant management measures in accordance with the relevant regulations and rules formulated or issued by the CSRC and the Shanghai
Stock Exchange and other securities regulatory authorities.(III) In order to protect the right to know and interests of the small and medium-sized investors the Company has conducted a careful analysis of the impact of
the IPO on the dilution of the immediate returns and has put forward specific measures and undertakings to cover the diluted immediate returns:
1. Comprehensively enhance the management level of the Company and improve the efficiency of capital utilization
To improve the Company's operational efficiency strengthen budget management control the Company's expenses improve the efficiency of capital
utilization comprehensively and effectively control the Company's operation and risk management and enhance operational efficiency and profitability. In addition
the Company will improve the remuneration and incentive mechanism introduce outstanding talents in the market fully exert employee’s working passion and
explore their creativity and potentials. Through the above measures the Company will comprehensively improve the operational efficiency reduce costs and
enhance the Company's operating results.
2. Strengthen the supervision of investment projects to ensure the reasonable and legal use of funds raised.
The Company has formulated the Proceeds Management System and other relevant systems in order to standardize the use and management of the Company's
issue proceeds and ensure that the issue proceeds are used in a standardized safe and efficient manner. The board of directors has passed a resolution on the
establishment of a special account for the use and management of the issue proceeds which will be deposited in the special account designated by the board of
directors and used for the specific purpose only. The Company will strictly manage the use of proceeds in accordance with relevant laws and regulations and the
requirements of the Proceeds Management System and will actively cooperate with the regulatory banks and sponsoring organizations in the inspection and
supervision of the use of proceeds so as to ensure that the proceeds are reasonably used in a normal manner and to reasonably guard against the risk of the use of
proceeds.
3. Accelerate the investment progress of the fund-raising projects and strive to realize the expected benefits of the projects as soon as possible.
The implementation of the fund-raising investment projects of the Offering is in line with the Company's development strategy which can effectively enhance
the Company's business capacity and profitability and is conducive to the Company's sustainable and rapid development. Prior to the availability of the proceeds
the Issuer intends to actively raise funds through a variety of channels to accelerate the investment progress of the fund-raising projects and strive to realize the
expected benefits of the projects as early as possible so as to enhance the shareholders' returns in the next few years and to reduce the risk of dilution of the current
returns caused by the Issue.
4. Further improve the profit distribution system and strengthen the investor return mechanism.
The Company has amended the Draft Articles of Association in accordance with relevant laws and regulations and established a sound and effective
shareholder return mechanism. Upon completion of the Offering the Company will in accordance with relevant laws and regulations and the Company’s Articles of
Association (Draft) actively promote the distribution of profits to shareholders where the conditions for profit distribution are met so as to effectively maintain and
increase the returns to shareholders.
70 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Note 6:
As per relevant provisions of the Opinions on Further Promoting the Reform of the New Issue System of New Shares issued by the CSRC the Proposal of
Stabilizing the Share Price of Acter Technology Integration Group Co. Ltd. was passed in the Company’s 2021 2nd interim shareholders’ meeting through
consideration in order to protect the interests of investors and further specify the measures to stabilize the share price of the Company when the share price of the
Company is lower than the net asset per share within three years after the listing of the Company.(I) Effective period of the Plan
The Plan shall be valid for three years from the date of listing of the Company's shares.(II) Conditions for activation and cessation of the share price stabilization plan
1. Conditions for activation
Within three years after the listing of the Company's shares if the closing price of the Company's shares for 20 consecutive trading days is lower than the
Company's audited net asset value per share as of the end of the most recent period (in the event that the closing price of the said shares is not comparable with the
Company's audited net asset value per share as of the end of the most recent period due to ex-rights and ex-dividend matters the said net asset value per share shall
be adjusted accordingly) and if the provisions of relevant laws regulations and standardized documents relating to the buyback and holding of additional shares are
also met the plan shall be triggered then the measures for stabilizing the Company’s stock price by the Company controlling shareholders directors (excluding
independent directors) and senior managers shall be taken.
2. Cessation Conditions
During the implementation period if any of the following circumstances occurs the implementation of the stock price stabilization measures and the
fulfillment of the commitments shall be deemed to be completed and the announced stock price stabilization plan shall cease to be implemented:
* The closing price of the Company's shares for 5 consecutive trading days is higher than the Company's unaudited net assets per share for the latest period (if
the closing price of the said shares is not comparable with the Company's audited net assets per share at the end of the latest period due to ex-rights and ex-dividend
matters the said net assets per share shall be adjusted accordingly);
* Continuing to repurchase or hold additional shares of the Company will result in the Company's shareholding distribution failing to meet the listing
conditions;
* Continuing to hold additional shares will result in the need to fulfill the obligation to make a tender offer and it has not planned to implement the tender
offer.
3. Specific measures of the share price stabilization plan
(1) Buyback by the Company
* The Company shall convene the board meeting within 10 trading days from the date of triggering the activation conditions of the share price stabilization
measures in accordance with laws regulations and the Articles of Association of the Company. The Board of Directors shall formulate a clear and specific buyback
plan the content of which shall include but not be limited to the types of shares to be repurchased by the Company the number of ranges the price ranges the
period of implementation etc. and submit it to the Shareholders’ Meeting of the Company for deliberation and approval; the buyback plan will become effective
upon consideration and approval by the General Meeting. The buyback plan shall become effective after it is considered and approved by the general meeting of the
Company. However the program will not be implemented any longer if the share price of the Company before or during the implementation of the share buyback
plan already fails to meet the conditions for initiating measures to stabilize the Company's share price.
71 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
* After the share buyback plan is approved by the shareholders' meeting the Company will notify creditors in accordance with laws and submit relevant
materials to the competent authorities such as the securities regulatory authorities and stock exchanges for approval or filing. The buyback price of the Company
shall not be higher than the Company's audited net asset value per share as of the end of the most recent period (if the closing price of the said shares is not
comparable to the Company's audited net asset value per share as of the end of the most recent period due to ex-rights and ex-dividend matters the said net asset
value per share shall be adjusted accordingly) and the method of buyback of shares shall be by way of centralized competitive bidding and trading by way of an
offer or by other methods approved by the securities regulatory authorities.* If the share price of the Company triggers the above conditions for price stabilization measures several times in a fiscal year the Company will continue to
implement the above share price stabilization plan as per the following principles: I. The amount of funds used for share buyback in a single buyback shall not be
higher than 10% of the audited net profit attributable to the shareholders of the parent company of the previous fiscal year; II. The total amount of buyback funds
used to stabilize the share price in a single fiscal year shall not exceed 30% of the audited net profit attributable to shareholders of the parent company in the
preceding fiscal year. If the above criteria are exceeded the relevant share price stabilization measures will not be continued in the current year. However in the
event that circumstances requiring the activation of share price stabilization measures continue to arise in the following year the Company will continue to
implement the share price stabilization plan in accordance with the above principles.
(2) Increase in shareholdings by controlling shareholders
* If the board of directors fails to formulate and announce a share buyback plan within 10 trading days after triggering the obligation or if the share buyback
plan is rejected by the shareholders' meeting or if the company fails to fulfill or is unable to fulfill the obligation to repurchase shares within 30 days after
announcing the specific implementation plan for the buyback or if the company fails to stabilize the closing price of its stock above the audited net asset value per
share for more than 5 consecutive trading days after reaching the upper limit of the buyback plan it will trigger the obligation for the controlling shareholder to
increase its shareholding.* On the premise of not affecting the company's listing conditions the company's controlling shareholders shall be triggered within 3 trading days from the
date of the obligation to increase the proposed plan to increase the company's shareholding (including the number of shares to be increased price range time etc.)
and in accordance with laws to carry out the necessary approvals and notify the company within 3 trading days of approval the company shall be in accordance
with the relevant provisions of the disclosure of the plan for the increase in the purchase of shares. The Company shall disclose the plan to increase its shareholding
in accordance with the relevant regulations. Three trading days after the Company discloses the plan to increase its shareholding in accordance with the plan the
Company shall commence the implementation of the plan to increase its shareholding in accordance with the plan.* The method for the controlling shareholder of the Company to increase its shareholding shall be by way of centralized bidding and trading offer or other
methods approved by the securities regulatory authorities and the price of the additional shareholding shall not exceed the audited net asset value per share as of the
end of the most recent period (in the event that the closing price of the aforesaid shares is not comparable with the audited net asset value per share as of the end of
the most recent period due to ex-rights and ex-dividend etc. the aforesaid net asset value per share shall be adjusted accordingly). However if the share price of the
Company no longer meets the conditions for activating the measures to stabilize the Company's share price prior to or in the course of the implementation of the
plan to increase the shareholding of the Company the plan may not be continued.If the Company's share price triggers the above conditions for the need to take share price stabilization measures several times within a fiscal year the
controlling shareholder will continue to implement the share price stabilization plan in accordance with the above but shall follow the following principles: I. The
amount of funds used to increase shareholdings on a single occasion shall not be less than 20% of the amount of after-tax cash dividends received by the controlling
shareholder from the Company on the most recent occasion; II. The amount of funds used to stabilize the share price to increase shareholdings in a single year shall
72 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
not exceed 50% of the amount of after-tax cash dividends received by the controlling shareholder from the Company on the most recent occasion. If the above
criteria are exceeded the relevant share price stabilization measures will not be continued in the current year. However in the event that circumstances requiring the
activation of share price stabilization measures continue to arise in the following year the Company will continue to implement the share price stabilization plan in
accordance with the above principles. In the event that the share price stabilization measures are triggered in the following year the amount of funds already used
for share price stabilization in previous years will no longer be counted as part of the cumulative cash dividends.
(3) Increase in shareholdings by directors (excluding independent directors) and senior managers
* If the controlling shareholder of the Company fails to propose a plan to increase the shareholding of the Company within 10 trading days from the date of
triggering the obligation to increase shareholding or fails to commence the implementation of the plan to increase shareholding within 30 days from the date of the
Company's announcement of the plan to increase shareholding or if after the controlling shareholder of the Company has reached the maximum limit of the plan to
increase shareholding the closing price of the Company's shares still fails to be stabilized at a level higher than the Company's audited net asset value per share as of
the end of the most recent period for a period of more than 5 trading days then the obligation of the Company's directors (excluding independent directors) and
senior manager will be triggered to increase their holdings of the Company's shares.* Without affecting the listing conditions of the company the company's directors (excluding independent directors) senior manager shall be triggered within
3 trading days from the date of the obligation to increase the proposed plan to increase the company's shares (including the number of shares to be increased the
price range time etc.) and comply with the law to carry out the necessary approval procedures and notify the company within 3 trading days of approval the
company shall disclose the plan to increase the acquisition of shares in accordance with the relevant provisions. Three trading days after the Company discloses the
plan to increase its shareholding in accordance with the plan the Company shall commence the implementation of the plan to increase its shareholding in
accordance with the plan.* The directors (excluding independent directors) and senior manager of the Company will purchase the Company's shares through competitive bidding
transactions to stabilize the Company's share price at a price not higher than the Company's audited net asset value per share as of the end of the most recent period
(in the event that the closing price of the aforesaid shares is not comparable to the audited net asset value per share as of the end of the most recent period due to
ex-rights and ex-dividend etc. the aforesaid net asset value per share shall be adjusted accordingly). However if the share price of the Company does not meet the
conditions for the activation of measures to stabilize the Company's share price within 3 trading days of the disclosure of the Company's purchase plan or in the
course of the implementation of the plan the Company may cease to implement the above plan to increase the Company's shareholding. If the share price of the
Company triggers the above conditions for price stabilization measures several times within a fiscal year the directors (excluding independent directors) and senior
manager of the Company will continue to implement the above share price stabilization plan but shall comply with the following principles: I. The amount of funds
used for the purchase of shares on a single occasion shall not be less than 20% of the after-tax remuneration that he/she received from the Company during the
previous fiscal year while he/she was serving as a director or a senior manager; II. The amount of funds used to stabilize the share price in a single year shall not
exceed 50% of the after-tax remuneration received from the Company in the previous fiscal year in this period in which he or she held the position of director or
senior executive. If the above criteria are exceeded the relevant share price stabilization measures will not be continued in the current year. However in the event
that circumstances requiring the activation of price stabilization measures continue to arise in the following year the share price stabilization plan will continue to be
implemented in accordance with the above principles.If the Company appoints new directors (excluding independent directors) and senior managers the Company will require the new directors and senior
managers to fulfill the corresponding commitments made by the directors and senior manager when the Company was listed.
4. Restrictive measures for failure to activate share price stabilization measures
73 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
If the Company controlling shareholders directors (excluding independent directors) and senior managers fail to take the specific measures above for
stabilizing the share price when the conditions for the activation of the price stabilization measures are met the Company undertakes to accept the following
restrictive measures:
(1) The Company controlling shareholders directors (excluding independent directors) and senior managers will publicly explain the reasons why the
measures above are not taken and apologize to the Company’s shareholders and public investors in the general meeting of the Company and in the disclosure media
designated by the CSRC.
(2) The controlling shareholder of the Company undertakes that: (2) If the controlling shareholder fails to take the specific measures above for stabilizing the
share price when the conditions for the initiation of the share price stabilization measures are met the Company shall have the right to withhold or deduct the cash
dividends payable to the unit in an amount equal to the amount used for the implementation of the Share Increase Plan.
(3) The directors (excluding independent directors) and senior managers of the Company undertake that: when the conditions for the activation of the share
price stabilization measures are met the Company shall have the right to withhold or reduce the remuneration and cash dividends payable to the Company if the
Company fails to take the specific measures above for stabilizing the share price.
5. Legal Procedures of the Proposal
In the event that the Company needs to adjust the proposal which is inconsistent with the relevant provisions due to revisions of laws and regulations or
changes in policies such adjustments shall be approved by more than two-thirds of the total number of voting shares held by shareholders present at the
shareholders’ meeting.Note 7:
(I) Restrictive measures by the Company regarding non-fulfillment of public commitments:
The Company will strictly fulfill all matters of public commitments made by the Company in connection with the IPO and listing of shares and actively accept
social supervision. Unless otherwise specifically constrained if the Company fails to fully and effectively fulfill the undertakings made in the course of its IPO and
listing the Company undertakes to take the following restrictive measures:
1. If the Company fails to fulfill its public commitments or if the fulfillment of the commitments is not conducive to the protection of the Company's rights and
interests due to reasons other than force majeure the Company shall propose to replace the original commitments with new commitments or propose to waive the
fulfillment of the obligations under the commitments. The above changes shall be submitted to the shareholders’ meeting for consideration and the Company will
provide shareholders with the means of internet voting and urge the shareholders involved in the commitment matters to abstain from voting. If new commitments
are proposed to replace the original ones the relevant commitments shall comply with the prevailing laws regulations and the Company’s Articles of Association;
and the Company undertakes to accept the following constraints until the fulfillment of the commitments or the implementation of the corresponding remedial
measures is completed:
(1) Publicly explain the specific reasons and apologize to the shareholders and public investors in the shareholders’ meeting and the disclosure media
designated by the CSRC;
(2) Reduction or suspension of the remuneration or allowances of directors supervisors and senior manager who are personally liable for the Company's failure
to fulfill the undertakings (if such persons are on the Company's payroll);
(3) Not to approve the application for voluntary departure of directors supervisors and senior managers who have failed to fulfill their undertakings but may
make changes in their positions;
(4) In case of losses caused to investors the Company will be liable to compensate investors in accordance with laws;
74 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(5) In accordance with laws regulations and the requirements of the relevant regulatory bodies to assume the corresponding responsibilities.
2. If the company fails to fulfill its public commitments or fails to fulfill its public commitments on schedule due to force majeure the Company shall propose
new commitments (the relevant commitments shall comply with the laws regulations articles of association and fulfill the relevant approval procedures) and shall
be subject to the following constraints until the commitments have been fulfilled or the corresponding remedial measures have been implemented:
(1) Publicly explain the specific reasons and apologize to the shareholders and public investors in the shareholders’ meeting and the disclosure media
designated by the CSRC;
(2) To expeditiously study solutions for minimizing the loss of investors' interests and submit it to the shareholders’ meeting for consideration so as to protect
the interests of the Company's investors as far as possible.(II) Controlling Shareholders' Restrictive Measures on Failure to Fulfill Public Undertakings
Unless otherwise specifically constrained if Sheng Huei International the direct controlling shareholder of the Company and Acter (Taiwan) the indirect
controlling shareholder of the Company fail to fully and effectively fulfill the undertakings they have made in the course of the IPO and listing of Acter Group they
undertake to take the following restrictive measures:
1. In the event that the Company fails to fully and effectively fulfill its obligations or responsibilities under the aforementioned undertakings the Company
undertakes to actively cooperate with the relevant regulatory authorities in their investigations and accept the corresponding penalties;
2. To compensate public investors with its own funds for direct losses suffered as a result of relying on the relevant undertakings to implement the transactions
with the amount of compensation to be determined on the basis of the amount negotiated between the Company and the investor or in the manner or in the amount
determined by the relevant regulatory authorities or judicial organs;
3. If income is obtained as a result of non-performance of the undertakings (i.e. such income cannot be obtained in the case of performance of the undertakings)
the income obtained shall belong to the Company which will pay the aforesaid income to the Company's designated account within 5 days of obtaining the income;
and if losses are incurred by the Company or other investors as a result of the non-performance of the undertakings the Company or other investors shall be held
liable for compensation according to laws.(III) Restrictive measures for directors supervisors and senior managers of the Company in respect of non-fulfillment of the undertakings:
The directors supervisors and senior manager of the Company undertake:
I have made relevant undertakings in the process of IPO and listing of shares of Acter Group and if I fail to fulfill them or if I am unable to fulfill them or if I
am unable to fulfill them on schedule (except for those due to relevant laws and regulations policy changes natural disasters and other force majeure and other
objective reasons beyond my control) or if the fulfillment of the relevant undertakings will be detrimental to the safeguarding of the rights and interests of the
Company and the investors I will take the following measures:
1. Disclose the specific reasons why I have failed to fulfill my commitments was unable to fulfill them or fulfill them on schedule in time through the
Company;
2. Submit to the Company and its investors an application for change of undertakings or exemption from fulfillment of undertakings and submit it to the
shareholders’ meeting for consideration in order to protect the rights and interests of the Company and its investors. I will recuse myself from voting at the
shareholders' meeting when the matter is considered (if I am a shareholder of the Company at that time);
3. Submit the proceeds from my breach of my undertaking to the Company.
If the Company or the investor suffers any loss by my failure in fulfilling undertaking or incapacity of fulfilling or fulfilling undertaking on time I will
compensate the Company or investors in accordance with laws and the following procedures:
75 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
1. I agree that the Company shall reduce or cease to pay my salary bonus allowance dividend (if any) etc. and use the reduced or ceased salary bonus
allowance dividend (if any) etc. to implement the unfulfilled commitments or to compensate for the losses caused to the Company and the investors as a result of
the unfulfilled commitments;
2. If I reduce my shareholding before the compensation is completed the funds obtained from the reduction will be supervised by the Board of Directors of the
Company and used exclusively for the fulfillment of the commitments or compensation until I have fulfilled my commitments or compensated for the losses
incurred by the Company and the investors (if I am a shareholder of the Company at that time).In the event that I fail to fulfill my commitments unable to fulfill them or to fulfill them on schedule due to objective reasons beyond my control such as the
changes of relevant laws regulations and policies natural disasters etc. I will make disclosure the reason in time via the Company and actively take measures to
change my commitments supplement my commitments and other means to safeguard the rights and interests of the Company and the investors.I will not refuse to fulfill the above commitments due to change of position dismission etc.(IV) Restrictive measures of Suzhou Songhuei and Suzhou Shengzhan against the failure to fulfill the commitments
The shareholders of the Company Suzhou Songhuei and Suzhou Shengzhan hereby undertook that:
As shareholders of the Company unless otherwise specified if the Company fails to fully and effectively fulfill the undertakings made in the course of the
Company's IPO and listing the Company undertakes to take the following restrictive measures:
1. If the Company fails to fully and effectively fulfill the obligations or responsibilities in the foregoing undertakings the Company undertakes to actively
cooperate with the relevant regulatory authorities in their investigations and accept the corresponding penalties;
2. Compensate public investors with its own funds for direct losses suffered as a result of relying on the relevant undertakings to implement the transactions
with the amount of compensation to be determined on the basis of the amount negotiated between the Company and the investor or in the manner or in the amount
determined by the relevant supervisory authorities or judicial organs;
3. If the Company obtains income from the failure in fulfilling the commitments (i.e. such income cannot be obtained in the case of fulfillment of the
commitments) the income obtained shall belong to the Company which shall pay the aforesaid income to the designated account of the Company within 5 days
upon obtaining the income; and if the non-fulfillment of the commitments causes losses to the Company or other investors the Company shall compensate for the
losses to the Company or other investors according to laws.
76 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) If there is a profit forecast for the Company's assets or projects and the reporting period is
still in the profit forecast period the Company shall make a statement on whether the assets or
projects have met the original profit forecast and the reasons thereof.□ Achieved □ Not achieved√ N/A
(III) Completion of Performance Commitments and Their Impact on the Impairment Test of
Goodwill
□ Applicable √ N/A
II. Non-operational Appropriation of Funds by Controlling Shareholders and Other Connected
Parties within the reporting period
□ Applicable √ N/A
III. Violation of Guarantees
□ Applicable √ N/A
IV. Explanation for the Board of Directors of the Company on the "Non-standard Opinion Audit
Report" of the Accounting Firm
□ Applicable √ N/A
V. Explanation for the Company's Analysis of the Reasons for and Impact of Changes in
Accounting Policies Accounting Estimates or Correction of Material Accounting Errors
(I) Explanation for the Company's Analysis of the Reasons for and Impact of Changes in
Accounting Policies and Accounting Estimates
□ Applicable √ N/A
(II) Explanation for the Company's Analysis of the Reasons for and Impact of the Correction of
Significant Accounting Errors
□ Applicable √ N/A
(III) Communication with the Former Accounting Firm
□ Applicable √ N/A
(IV) Approval Procedures and Other Notes
□ Applicable √ N/A
VI. Appointment and Dismissal of Accounting Firm
In RMB Yuan
Current Appointment
Name of domestic accounting firm ShineWing Certified Public Accountants LLP(special general partnership)
Remuneration of domestic accounting firm 849056.60
Years of audit experience of domestic accounting
firm 3
77 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Name of certified public accountants of the
domestic accounting firm Liu Yuehua Wang Ping
Cumulative years of audit service of the certified
public accountants of the domestic accounting 3
firms
Name of overseas accounting firm N/A
Remuneration of the overseas accounting firm N/A
Years of audit by overseas accounting firms N/A
Firm name Remuneration
Internal control audit ShineWing Certified Public
accounting firm Accountants LLP (special 188679.25general partnership)
Financial consultant N/A
Sponsor N/A
Appointment and dismissal of accounting firm
√ Applicable□ N/A
The Company passed the Resolution on the Re-appointment of Accounting Firm in the 12th meeting
of the 2nd board of directors on March 29 2024 and the 2023 annual shareholders’ meeting on April 19
2024 and agreed to re-appoint ShineWing Certified Public Accountants LLP as the auditing
organization of the Company's annual financial report and internal control for the year of 2024.Explanation for the reappointment of the accounting firm during the audit period
□ Applicable √ N/A
Explanation for the decrease of 20% or more in the audit fee as compared with that of the previous year
□ Applicable √ N/A
VII. Situations Facing the Risk of Delisting
(I) Reasons for Delisting Risk Warning
□ Applicable √ N/A
(II) Countermeasures to be Taken by the Company
□ Applicable √ N/A
(III) Circumstances and Reasons for Termination of Listing
□ Applicable √ N/A
VIII. Matters Relating to Bankruptcy and Reorganization
□ Applicable √ N/A
IX. Significant Litigation and Arbitration Matters
□ Major litigation and arbitration matters in the current year
√ No major litigation and arbitration matters in the current year
X. Punishment and Rectification on the Listed Company Its Directors Supervisors Senior
Managers Controlling Shareholders and Actual Controllers Due to Suspect of Law Violations.□ Applicable √ N/A
78 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
XI. Explanation for the Integrity Status of the Company Its Controlling Shareholders and Actual
Controllers within the reporting period
□ Applicable √ N/A
XII. Significant Related Transactions
(I) Related Party Transactions Related to Daily Operations
1. Matters disclosed in the interim announcement and with no progress or change in subsequent
implementation
□ Applicable √ N/A
2. Matters disclosed in the interim announcement but with progress or changes in subsequent
implementation
√ Applicable□ N/A
On March 29 2024 the Company held the 12th meeting of the 2nd board of directors and the 10th
meeting of the 2nd board of directors on which it approved the Proposal on the Confirmation of Routine
Related Transactions for the Year 2023 and the Expected Routine Related Transactions for the Year
2024 respectively through consideration. As of the end of the reporting period the daily related party
transactions between the Company and the proposed connected persons are as follows and have not
exceeded the projected amounts:
Category of related party Estimated amountRelated party for 2024 Actual amount in 2024transactions (RMB 10000) (RMB 10000)
Rental of buildings to
related parties Suzhou Winmax 400 343.14
Acceptance of rental Technology Corp. and its
housing from related subsidiaries 10 3.93
parties
Total 410.00 347.07
For details of the relevant matters please refer to the Proposal on the Confirmation of Routine
Related Transactions for the Year 2023 and the Expected Routine Related Transactions for the Year
2024 (Announcement No. 2024-014) disclosed by the Company on the website of the Shanghai Stock
Exchange (www.sse.com.cn) and the designated media on March 30 2024.
3. Matters not disclosed in the interim announcement
□ Applicable √ N/A
(II) Related Party Transactions Arising from the Acquisition or Disposal of Assets or Equity
Interests
1. Matters disclosed in the interim announcement and with no progress or change in subsequent
implementation
□ Applicable √ N/A
2. Matters Disclosed in the Interim Announcement but with Progress or Changes in Subsequent
Implementation
□ Applicable √ N/A
79 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
3. Matters not disclosed in the interim announcement
□ Applicable √ N/A
4. If performance agreement is involved the performance realization of the reporting period
shall be disclosed
□ Applicable √ N/A
(III) Significant related party transactions of joint foreign investment
1. Matters disclosed in the interim announcement and with no progress or change in subsequent
implementation
□ Applicable √ N/A
2. Matters disclosed in the interim announcement but with progress or changes in subsequent
implementation
□ Applicable √ N/A
3. Matters not disclosed in the interim announcement
□ Applicable √ N/A
(IV) Related debt transactions
1. Matters disclosed in the interim announcement and with no progress or change in subsequent
implementation
□ Applicable √ N/A
2. Matters disclosed in the interim announcement but with progress or changes in subsequent
implementation
□ Applicable √ N/A
3. Matters not disclosed in the interim announcement
□ Applicable √ N/A
(V) Financial business between the Company and finance companies with which it has a
connected relationship and between the Company's holding company and connected parties
□ Applicable √ N/A
(VI) Others
□ Applicable √ N/A
XIII. Significant Contracts and Their Fulfillment
(I) Trusteeship contracting and leasing matters
1. Trusteeship
□ Applicable √ N/A
80 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2. Contracting
□ Applicable √ N/A
3. Leasing
□ Applicable √ N/A
81 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) Guarantees
√ Applicable□ N/A
In RMB Yuan
External guarantees of the Company (excluding guarantees to subsidiaries)
Date
Relat of Whet
ions guara Guar her
Whet Guar
hip Amo ntee Guar antee the
her
Type Colla the Am antee Relatio
Guar with Guara unt (signa antee Guar guara for
antor the nteed of ture starti antee
of teral
guara (if ntee
guara ount Counter-g
ntee over uarantee relate
nship
Relatio
listed party guarantee date
ng expir ntee any) has is due d nship
comp of date ation been overd partie
any agree date fulfill ue s
ment) ed
Total amount of guarantees incurred
within the reporting period (excluding 0
guarantees to subsidiaries)
Total guarantee balance at the end of the
reporting period (A) (excluding guarantees 0
to subsidiaries)
Guarantees by the Company and its subsidiaries to subsidiaries
Total amount of guarantee incurred for
subsidiaries within the reporting period 327234985.72
Total balance of guarantees to subsidiaries
as of the end of the reporting period (B) 539404400.18
Status of total corporate guarantees (including guarantees to subsidiaries)
Total amount of guarantees (A+B) 539404400.18
Proportion of total guarantees in the
Company's net assets (%) 48.58
Including:
Amount of guarantees in favor of
shareholders actual controllers and their 0
related parties (C)
Amount of debt guarantees provided
directly or indirectly for guaranteed
objects with asset-liability ratio exceeding 0
70% (D)
Amount of the portion of total guarantees
exceeding 50% of net assets (E) 0
Total amount of the above three
guarantees (C+D+E) 0
Explanation for possible joint and several
liability for outstanding guarantees None
On the 12th meeting of the 2nd board of directors and the 10th
meeting of the 2nd board of directors on March 29 2024 and
the 2023 shareholders’ meeting on April 19 2024 the
Company passed the Proposal on the Total Estimated
Description of guarantees Guarantee for the Year 2024 through consideration.According to the proposal above the Company can provide
guarantees for its subsidiaries mutual guarantees between
subsidiaries and guarantees provided by subsidiaries for the
Company with the total amount not exceeding RMB 6000
82 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
million in 2024. For details please refer to
the Announcement on the Estimated Total Guarantee Quota
for 2024 (Announcement No. 2024-015) disclosed by the
Company on March 30 2024.(III) Entrusted Cash Asset Management
1. Entrusted financial management
(1) Overall entrusted wealth management
√ Applicable□ N/A
In RMB Yuan
Type Capital source Amount incurred Outstanding Overdue amount notbalance recovered
Bank financial Self-owned 60000000.00 50000000.00
products capital
Others
□ Applicable √ N/A
(2) Individual entrusted financial management
□ Applicable √ N/A
Others
□ Applicable √ N/A
(3) Provision for impairment of entrusted finance
□ Applicable √ N/A
2. Entrusted loans
(1) Overall situation of entrusted loans
□ Applicable √ N/A
Others
□ Applicable √ N/A
(2) Individual entrusted loans
□ Applicable √ N/A
Others
□ Applicable √ N/A
(3) Provision for impairment of entrusted loans
□ Applicable √ N/A
3. Others
□ Applicable √ N/A
83 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(IV) Other Significant Contracts
□ Applicable √ N/A
84 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
XIV.Explanation for the Progress of the Use of Proceeds
√ Applicable□ N/A
(I) Overall utilization of proceeds raised
√ Applicable□ N/A
In RMB Yuan
Includin
g: Cumulati Cumulati
Cumulati ve input ve input
Total Cumulative ve total progress
progress Percenta
total amount of of Total
Time of committed Amount amount of of proceeds over-rais
ge of amoun
Source of arrival of Total investment of proceeds over-rais as of the ed funds Amount
current t of
fund-raisi the amount of Net of proceeds over-rais invested as ed funds end of as of the invested
year's
input procee
ng fund-raisi fund-raising proceeds (1) (2) in ed funds of the end invested the end of during the amount ds
ng prospectus (3) = (1) the year (8) fromor offering – (2) of the as of the reporting (%)reporting end of period reporting (9)=(8)/( changecircular period (4) the (%) period 1) of use
reporting (6)=(4)/( (%)
period 1) (7)=(5)/(
(5)3)
Septemb
IPO er 29 545000000 485347160 485347160 0 469133737 0 96.66% 0 10919969.00 .34 .34 .18 .88 2.25% /2022
Total / 545000000 485347160 485347160 0 469133737 0 / / 10919969.00 .34 .34 .18 .88 /
Others
□ Applicable √ N/A
(II) Details of the fund-raising projects
√ Applicable□ N/A
1. Use of proceeds
85 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
√ Applicable□ N/A
In RMB 10000
Has
Cumula
tive Cumula Whet
there
tive her Speci been aCommi total
tted amount progres the fic Bene
signifi
investm of s of Date progr reaso
cant
Bene fits change
Source ent Related
Total Amo
amount unt proceed
inputs project ess of ns realiz
project to s as of reaches Clos inputs why
fits ed or in the Amo
of Items Project in changed of invest investe the end intende ed is in input
realiz R&D feasibil unt
fund-rai nature fund-rai ed in of the d or line s did ed result ity of of
sing prospec investm d as oftus or ent sing this the end reportin useable not with not
durin s of the savin
offerin plan (1) year of the g conditi the progr
g the the project gs
g reportin period on plann ess as
year proje and ifso
circular g (%) ed plann ct
period (3)=(2)/ sched ed
please
(2) (1) ule
provid
e
details
Supplem
ent al
Clean
Room Operatio
IPO Project n Yes No 43764. 43988. 100.51Supporti manage 42 0.00 47 % / Yes Yes / N/A N/A No /
ng ment
Working
Capital
Project
R&D
Center 2539.5 456.0 DecemIPO Construc R&D Yes No 0 1 686.65 27.04% ber No Yes / N/A N/A No /tion 2025
Project
IPO Marketi Operatio Yes No 2230.8 635.9 2238.2 100.33 Septem Yes Yes / N/A N/A No /
86 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
ng and n 0 9 5 % ber
Service manage 2024
Network ment
Construc
tion
Project
Total / / / / 48534. 1092 46913.72 .00 37 / / / / / / / /
2. Detailed use of over-raised funds
□ Applicable √ N/A
(III) Changes in or Termination of Fund-raising Investments within the Reporting Period
□ Applicable √ N/A
87 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(IV) Other use of proceeds within the reporting period
1. Prior investment and replacement of issue proceeds investment projects
□ Applicable √ N/A
2. Temporarily supplementing liquidity with idle proceeds
□ Applicable √ N/A
3. Cash management of idle issue proceeds and investment in related products
√ Applicable□ N/A
In RMB 10000
Whether
Effective Cash the
Consideration management maximumbalance
Considered by the Amount of balance at
Board of Directors Proceeds Starting Date Ending date the end of
for the
Used for the period
Cash reporting exceeds
Management period theauthorized
amount
October 27 2023 3000.00 October 27 2023 October 26 2024 / No
October 25 2024 2000.00 October 25 2024 October 24 2025 1800.00 No
Others
None
4. Others
□ Applicable √ N/A
XV. Explanation for other significant matters that have a significant impact on investors’ value
judgment and investment decisions
□ Applicable √ N/A
Section VII Changes in Shares and Information about Shareholders
I. Changes in Share Capital
(I) Table of changes in shares
1. Table of changes in shares
The total number of shares and share capital structure of the Company remained unchanged within
the reporting period.
2. Description of changes in shares
□ Applicable √ N/A
3. Impact of changes in shares on financial indicators such as earnings per share and net assets
per share for the last year and the last period (if any)
□ Applicable √ N/A
88 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
4. Other disclosures deemed necessary by the Company or required by securities regulatory
authorities
□ Applicable √ N/A
(II) Changes in restricted shares
□ Applicable √ N/A
II. Issuance and Listing of Securities
(I) Issuance of securities up to the reporting period
□ Applicable √ N/A
Explanation for securities issuance as of the reporting period (for bonds with different interest rates
during the subsistence period please explain separately)
□ Applicable √ N/A
(II) Changes in the total number of shares and shareholder structure of the Company and
changes in the Company's asset and liability structure
□ Applicable √ N/A
(III) Existing internal employee shares
□ Applicable √ N/A
III. Shareholders and actual controllers
(I) Total number of shareholders
Total number of common shareholders as of the 7736
end of the reporting period (shareholder)
Total number of common shareholders as of the 9998
end of the month prior to the date of the annual
report (shareholder)
Total number of preferred stockholders with N/A
voting rights restored as of the end of the reporting
period (shareholder)
Total number of preferred stockholders with N/A
voting rights restored at the end of the month
preceding the annual report disclosure date
(shareholder)
(II) Shareholdings of top 10 shareholders and top 10 outstanding shareholders (or shareholders
with unlimited rights to sell) as of the end of the reporting period)
Unit: Share
Shareholdings of the top 10 shareholders (excluding shares lent through transfer)
Name of Increase/decre Number Proporti Number Pledged marked oron (%) frozen Nature of
89 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
shareholders ase within the of shares of shares sharehold
(full name) reporting held at held ers
period the end under
of the limited Shareholdi Numb
period selling ng Status er
conditio
ns
SHENG HUEI Overseas
INTERNATIO 0 64997250 65.00
649972
NAL CO.LTD. 50
None 0 legal
person
Suzhou
Songhuei
Enterprise
Management 812250
Consulting 0 0 8.12 0 None 0 Others
Partnership
(Limited
Partnership)
Suzhou
Shengzhan
Enterprise
Management 188025
Consulting 0 0 1.88 0 None 0 Others
Partnership
(Limited
Partnership)
Domestic
Lin Xufeng 481525 481525 0.48 0 None 0 natural
person
Domestic
Lin Jiangwei 351300 351300 0.35 0 None 0 natural
person
Domestic
Li Wenzhi 348300 348300 0.35 0 None 0 natural
person
Domestic
Li Yuqin 77000 300000 0.30 0 None 0 natural
person
Domestic
Lin Songsheng 285300 285300 0.29 0 None 0 natural
person
Domestic
Zhan Shuifu 199350 253550 0.25 0 None 0 natural
person
Domestic
Qiang Fei 243100 243100 0.24 0 None 0 natural
person
Shareholdings of the top 10 shareholders with unlimited sales conditions (excluding shares lent through
transfer)
Number of shares held in Type and number of shares
Name of shareholders circulation with unlimited
selling conditions Type Number
Suzhou Songhuei Enterprise
Management Consulting 8122500 RMB ordinary 8122500
Partnership (Limited Partnership) shares
90 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Suzhou Shengzhan Enterprise
Management Consulting 1880250 RMB ordinary 1880250
Partnership (Limited Partnership) shares
Lin Xufeng 481525 RMB ordinaryshares 481525
Lin Jiangwei 351300 RMB ordinaryshares 351300
Li Wenzhi 348300 RMB ordinaryshares 348300
Li Yuqin 300000 RMB ordinaryshares 300000
Lin Songsheng 285300 RMB ordinaryshares 285300
Zhan Shuifu 253550 RMB ordinaryshares 253550
Qiang Fei 243100 RMB ordinaryshares 243100
Ma Ruiliang 242450 RMB ordinaryshares 242450
Description of buyback special
accounts among the top 10 None
shareholders
Explanation for the above
shareholders' proxy voting rights
entrusted voting rights and None
waiver of voting rights
Description of the above
shareholders' affiliation or None
concerted action
Description of preferred
stockholders whose voting rights
have been restored and the None
number of shares they hold
Note: Among the top 10 ordinary shareholders as of the end of the reporting period the 4th 5th 6th
8th and 10th shareholders were not listed in the Company's top 200 shareholder register at the beginning
of the reporting period. As the Company could not accurately obtain their shareholding data as of the
beginning of the reporting period (i.e. December 31 2023) their shareholding quantities at the
beginning of the reporting period have been calculated as zero for the purposes of this report.Participation of shareholders holding 5% or more top 10 shareholders and top 10 shareholders
with unlimited sales conditions in lending of shares in the transfer and financing business
□ Applicable √ N/A
Changes in the top 10 shareholders and top 10 shareholders with unlimited sales conditions in
lending/return of shares in the transfer and financing business compared with the previous period
□ Applicable √ N/A
Number of shares held by the top 10 shareholders with limited selling conditions and the conditions
of limited selling
√ Applicable□ N/A
Unit:Share
No. Name of restricted Number of Listing and trading of shares Restrictedshareholders subject to selling restrictions shares
91 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
shares subject Time of Number of new
to selling availability shares available
restrictions for listing for listing and
and trading trading
Lock-up of
SHENG HUEI shares for 36
1 INTERNATIONAL 64997250 October 13 0 months from
CO.LTD. 2025 the date of
listing
Description of the above
shareholders' affiliation or None
concerted action
(III) Strategic investors or general corporations becoming top 10 shareholders as a result of
placing of new shares
□ Applicable √ N/A
IV. Controlling shareholders and actual controllers
(I) Controlling shareholders
1. Legal person
√ Applicable□ N/A
Firm name SHENG HUEI INTERNATIONAL CO. LTD..Person in charge of the organization
or legal representative Liang Jinli
Date of Establishment July 15 2003
Main Businesses Equity investment
Equity interests in other domestic
and overseas listed companies held
and participated in within the None
reporting period
Other information None
2. Natural persons
□ Applicable √ N/A
3. Special Explanation for the absence of controlling shareholders of the Company
□ Applicable √ N/A
4. Explanation for the change of controlling shareholders within the reporting period
□ Applicable √ N/A
5. Block diagram of the ownership and control relationship between the Company and the
controlling shareholders
√ Applicable□ N/A
92 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(II) Situation of actual controllers
1. Legal person
□ Applicable √ N/A
2. Natural persons
□ Applicable √ N/A
3. Special explanation on the absence of actual controllers of the Company
□ Applicable √ N/A
4. Explanation for the change of control of the Company within the reporting period
□ Applicable √ N/A
5. Block diagram of the ownership and control relationship between the Company and the
actual controller
□ Applicable √ N/A
6. Control of the Company by the actual controller through trust or other asset management
methods
□ Applicable √ N/A
(III) Other information of controlling shareholders and actual controllers
□ Applicable √ N/A
93 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
V. The proportion of shares pledged by controlling shareholders or the largest shareholder and
persons acting in concert with them to the number of shares held by them reaches more than 80%.□ Applicable √ N/A
VI. Other legal shareholders holding more than 10% of the company's shares
□ Applicable √ N/A
VII. Explanation for the restriction on the reduction of shareholding
□ Applicable √ N/A
VIII. Specific implementation of share buyback within the reporting period
□ Applicable √ N/A
Section VIII Preferred Stock
□ Applicable √ N/A
Section IX Relevant Information of Bonds
I. Enterprise bonds (including corporate bonds) and debt financing instruments for
non-financial enterprises
□ Applicable √ N/A
II. Convertible corporate bonds
□ Applicable √ N/A
Section X Financial Statements
I. Audit Report
√ Applicable□ N/A
Audit Report
XYZH/2025SUAA1B0021
Acter Technology Integration Group Co. Ltd.To all shareholders of Acter Technology Integration Group Co. Ltd.I. Audit Opinion
We have audited the financial statements of Acter Technology Integration Group Co. Ltd.(hereinafter referred to as "Acter Group") which comprise the consolidated balance sheet and the
parent company’s balance sheet as of December 31 2024 the consolidated profit statement and the
parent company’s profit statement the consolidated cash flow statement and the parent company’s
cash flow statement and the consolidated change statement in shareholders’ equities and the parent
94 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
company’s change statement in shareholders’ equities for the year ended December 31 2024 and
the notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects
the consolidated and parent company financial position of Acter Group as of December 31 2024
and the consolidated and parent company results of operations and cash flows for the year ended
December 31 2024 in conformity with the Accounting Standards for Business Enterprises (ASBE).II. Basis of Audit Opinion
We have performed our audit in accordance with the provisions of the Standards on Auditing
for Chinese Certified Public Accountants. Our responsibilities under those standards are further
described in the "Responsibilities of Certified Public Accountants for the Audit of Financial
Statements" section of the audit report. In accordance with the Code of Ethics for Certified Public
Accountants of the People's Republic of China we are independent from Acter Group and have
fulfilled our other responsibilities with respect to professional ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are matters that in our professional judgment are of most significance to the
audit of the financial statements. These matters are dealt with 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 separately.
1. Revenue recognition for construction contracts
Please refer to the accounting policies described in "IV. Significant Accounting Policies and
Accounting Estimates" 32 in the notes to the financial statements and "VI. Notes to the
Financial Statements" 35 in the notes to the financial statements.Key Audit Matters Audit Response
Acter Group is mainly engaged The audit procedures related to the evaluation of
in the design and construction of revenue recognition of construction contracts mainly
MEP related to clean room projects include the following procedures:
and the revenue from construction (1) Understanding and evaluating the design and
contracts in FY2024 amounted to operating effectiveness of key internal controls over
RMB 1970659186.40 accounting financial reporting related to revenue recognition for
for 98.16% of the operating revenue construction contracts;
in the consolidated profit statement. (2) Selecting the construction contracts signed
Acter Group evaluated the terms of between Acter Group and its clients examining the
the contracts and business main terms of the contracts and evaluating whether
95 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
1. Revenue recognition for construction contracts
Please refer to the accounting policies described in "IV. Significant Accounting Policies and
Accounting Estimates" 32 in the notes to the financial statements and "VI. Notes to the
Financial Statements" 35 in the notes to the financial statements.Key Audit Matters Audit Response
arrangements and concluded that the accounting policies of Acter Group for revenue
construction contracts are recognition are in compliance with the requirements
performance obligations to be of the Accounting Standards for Business Enterprises
fulfilled within a certain period of (ASBE);
time and recognized revenue based (3) Selecting construction contracts and examining
on the progress of performance over the basis for the estimated total cost of the contracts
the period of time in which the and the related cost budget information. If there is
construction contracts are performed. any adjustment to the estimated total cost of the
The progress of performance is contract check whether the adjustment to the
determined based on the proportion estimated total cost has been approved and inquire
of actual contract costs incurred by the management about the reasons and basis for the
Acter Group to the estimated total adjustment to evaluate whether the estimation made
contract costs. by the management is reasonable and based on
The management of Acter sufficient information;
Group is required to make reasonable (4) Selecting contract costs actually incurred within
judgments regarding the progress of the reporting period and checking relevant supporting
completion or performance of documents such as procurement contracts purchase
construction contracts. During the orders material receipts requisition ratios invoices
course of execution of the contracts etc. to evaluate the authenticity and accuracy of the
Acter Group is required to actual construction costs;
continually evaluate and make (5) Contract costs incurred around the balance sheet
adjustments to the contract amounts date are selected and reconciled to the relevant
and estimated total contract costs supporting documents including purchase contracts
which involves the exercise of purchase orders material receipts requisition ratios
significant management judgments. invoices and other relevant supporting documents in
We identified revenue order to evaluate whether the relevant contract costs
recognition for construction contracts are recorded in the appropriate accounting period;
as a key audit matter because revenue (6) Selecting construction contracts that have not
is one of the key performance been completed at the end of the reporting period
indicators of Acter Group there is an reviewing the accuracy of the calculation of the
inherent risk that Acter Group may percentage of completion or progress of performance
manipulate revenue to meet certain and recalculating the cumulative revenue recognized
objectives or expectations and and the revenue to be recognized in this period and
96 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
1. Revenue recognition for construction contracts
Please refer to the accounting policies described in "IV. Significant Accounting Policies and
Accounting Estimates" 32 in the notes to the financial statements and "VI. Notes to the
Financial Statements" 35 in the notes to the financial statements.Key Audit Matters Audit Response
revenue recognition for construction reconciling them with the financial records;
contracts involves significant (7) Selecting clients and conducting correspondence
management judgment. regarding the amount of construction contracts and
receivables signed between Acter Group and them
within the reporting period.
(8) Selecting construction contracts checking the
total costing sheet of the approved contract budget
and the actual implementation of the budget within
the reporting period reviewing the difference
between the total budgeted cost and the actual cost of
completed contracts and evaluating whether there is
any indication of management bias;
(9) Evaluating whether the revenue from construction
contracts has been appropriately disclosed in the
financial statements.
(Continued)
2. Evaluation of bad debt provision for accounts receivable
Please refer to the accounting policies described in "IV. Significant Accounting Policies and
Accounting Estimates" 13 in the notes to the financial statements and "VI. Notes to the
Financial Statements" 4 in the notes to the financial statements.Key Audit Matters Audit Response
As of December 31 2024 the The audit procedures related to the evaluation of
original value of accounts receivable in the bad debt provision for accounts receivable
the consolidated balance sheet of Acter included the following procedures:
Group was RMB 393691970.05 and the (1) Understanding and evaluating the design and
provision for bad debts was RMB operating effectiveness of Acter Group’s key
31458392.48. Based on the expected internal controls over financial reporting related
credit loss rate of accounts receivable the to credit risk control collection and provisioning
management measured the bad debt for bad debts;
provision for accounts receivable at an (2) Evaluating whether the accounting policy for
amount equivalent to the expected credit bad debt provision of Acter Group for the
losses over the life of the accounts reporting period complies with the requirements
97 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2. Evaluation of bad debt provision for accounts receivable
Please refer to the accounting policies described in "IV. Significant Accounting Policies and
Accounting Estimates" 13 in the notes to the financial statements and "VI. Notes to the
Financial Statements" 4 in the notes to the financial statements.Key Audit Matters Audit Response
receivable. of enterprise accounting standards;
The expected credit loss rate takes (3) Evaluating the appropriateness of the aging
into account the age of the accounts of accounts receivable by selecting items from
receivable historical payment current the accounts receivable aging table reviewing
market conditions and forward-looking relevant supporting documents and taking into
information and this assessment involves account the information on the credit periods
significant management judgment and granted by Acter Group to its clients;
estimates. (4) Understanding the key parameters and
assumptions used in Acter Group’s expected
credit loss model including management’s
judgment on whether to group accounts
receivable based on clients’ credit risk
characteristics and the historical loss data
included in Acter Group’s expected loss ratio;
(5) Evaluating the appropriateness of Acter
Group’s estimate of expected credit losses by
examining the information used by Acter Group
to make the estimate including examining the
accuracy of the historical loss data and
evaluating whether management has adjusted the
historical loss rate by taking into account the
current market conditions and forward-looking
information in determining the expected credit
loss rate;
(6) Recalculation of bad debt allowance as of
December 31 2024 based on the expected credit
loss model of accounts receivable of Acter
Group.IV. Other Information
98 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The management of Acter Group (hereinafter referred to as "management") is responsible for
the other information. Other information includes the information covered in the 2024 annual report
of Acter Group but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion on the other information.In connection with our audit of the financial statements it is our responsibility to read the other
information and in doing so to consider whether the other information is materially inconsistent
with or appears to be materially misstated in relation to the financial statements or our knowledge
gained in the course of the audit.Based on the work we have performed if we determine that other information is materially
misstated we shall report that fact. We have no matters to report in this regard.V. Management’s and Governance’s Responsibility for the Financial Statements
The management is responsible for the preparation of financial statements that present fairly
in accordance with the provisions of the Ind AS and for designing implementing and maintaining
internal control necessary to enable the preparation of financial statements that are free from
material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing Acter Group's
ability to continue as a going concern disclosing as applicable matters related to going concern
and applying the going concern assumptions unless management plans to liquidate Acter Group
discontinue operations or has no realistic alternative.Governance is responsible for overseeing the financial reporting process of Acter Group.VI. CPA's Responsibility for the Audit of Financial Statements
Our objective is to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement whether due to fraud or error and to issue an audit
report containing an audit opinion. Reasonable assurance is a high level of assurance but it does not
guarantee that an audit performed in accordance with auditing standards will always detect a
material misstatement when it exists. Misstatements may result from fraud or error and are
generally considered to be material if it is reasonable to expect that the misstatements individually
or in the aggregate could affect the economic decisions of users of financial statements based on
the financial statements.
99 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
We use professional judgment and maintain professional skepticism in performing the audit in
accordance with auditing standards. We also perform the following tasks:
(1) Identifying and assessing the risks of material misstatement of the financial statements due
to fraud or error design and perform audit procedures to address those risks and obtaining
sufficient appropriate audit evidence as a basis for an audit opinion. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting a material misstatement
due to error because fraud may involve collusion forgery willful omission misrepresentation or
overriding internal controls.
(2) Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances expressing an opinion on the effectiveness of
internal control.
(3) Evaluating the appropriateness of accounting policies selected and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Expressing a conclusion on the appropriateness of management's use of the going concern
assumption. At the same time based on the audit evidence obtained we conclude whether there is a
material uncertainty regarding the matters or circumstances that may cast significant doubt on the
ability of Acter Group to continue as a going concern. If we conclude that a material uncertainty
exists auditing standards require that we draw the attention of users of the financial statements to
the relevant disclosures in our audit report; if the disclosures are not sufficient we shall express an
unqualified opinion. Our conclusions are based on information available at the date of the audit
report. However future events or circumstances may cause Acter Group to be unable to continue as
a going concern.
(5) Evaluating the overall presentation structure and content of the financial statements and
to evaluate whether the financial statements present fairly the related party transactions and events.
(6) Obtaining sufficient and appropriate audit evidence about the financial information of the
entities or business activities of Acter Group to express an opinion on the financial statements. We
are responsible for directing supervising and performing the audit of the Group and accept full
responsibility for the audit opinion.We communicate with governance on matters such as the scope timing and significant
findings of the planned audit including internal control deficiencies of concern identified in our
audit.
100 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
We also provide governance with a statement of compliance with ethical requirements related
to independence and communicate with governance all relationships and other matters that could
reasonably be perceived to affect our independence as well as related safeguards.From the matters communicated with governance we determined which matters were most
significant to the audit of the current financial statements and therefore constituted key audit
matters. We describe these matters in our audit report except where public disclosure of the matters
is prohibited by law or regulation or in rare circumstances we determine that a matter shall not be
communicated in the audit report if it is reasonably foreseeable that the adverse consequences of
communicating the matter would outweigh the benefits to the public interest.ShineWing Certified Public Accountants Chinese Certified Public
LLP Accountants:
(Project Partner)
Liu Yuehua
Chinese Certified Public
Accountants:
Wang Ping
Beijing China March 28 2025
II. Financial Statements
Consolidated Balance Sheet
December 31 2024
Prepared by: Acter Technology Integration Group Co. Ltd.In RMB Yuan
Item Notes December 31 2024 December 31 2023
Current assets:
Monetary fund 575382706.17 722496330.38
Provision for settlement fund
Funds lent
Trading financial assets 50025000.00
Derivative financial assets
Bills receivable 27398673.04 43157918.28
101 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Accounts receivable 362233577.57 396889272.26
Receivables financing 2499031.97 3572953.18
Prepayments 110647060.26 89024613.33
Bills receivable
Reinsurance receivables
Reserve for reinsurance
contracts receivable
Other receivables 9824375.86 13378598.48
Including: Interest receivable
Dividends receivable
Financial assets purchased for
resale
Inventory 3585610.06
Including: Data resource
Contract assets 565904050.40 424897205.60
Assets held for sale
Non-current assets due within
one year
Other current assets 121512159.50 97604166.69
Total current assets 1829012244.83 1791021058.20
Non-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 2342859.23 2332022.40
Investments in other equity
instruments 12947918.04
Other non-current financial
assets
Investment properties 531707.64 598758.96
Fixed assets 56924292.01 38895511.08
Construction in progress 2577156.79 13103863.94
Productive biological assets
Oil and gas assets
Right-of-use assets 4064612.80 3840232.40
Intangible assets 7693073.36 7244475.94
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term unamortized
expenses
Deferred income tax assets 12755515.14 12482616.81
Other non-current assets 23661503.85 34843950.71
Total non-current assets 123498638.86 113341432.24
Total assets 1952510883.69 1904362490.44
Current liabilities:
Short-term loan 23866103.44
Borrowing from the central
bank
Funds borrowed
Financial liabilities held for
trading
102 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Derivative financial liabilities
Notes payable
Accounts payable 598788193.06 629857317.33
Receipts in advance
Contract liabilities 88601839.41 73351891.04
Amounts for sale and buyback
of financial assets
Deposit-taking and interbank
deposits
Securities trading agency
Underwriting of securities
Payroll payable 41972766.98 47459670.87
Tax payable 15374255.49 7980749.03
Other payables 24647083.82 25427208.65
Including: Interest payable
Dividends payable
Fees and commissions payable
Sub-insurance payable
Liabilities held for sale
Non-current liabilities due
within one year 2421048.35 1748003.79
Other current liabilities
Total current liabilities 795671290.55 785824840.71
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities 1585929.64 2150631.55
Long-term accounts payable
Long-term payroll payable 65569.85 632325.46
Anticipation liabilities 11183840.39 11292847.91
Deferred income
Deferred income tax liabilities 17711782.30 14496782.15
Other non-current liabilities
Total non-current liabilities 30547122.18 28572587.07
Total liabilities 826218412.73 814397427.78
Owners' equity (or shareholders' equity)
Paid-in capital (or capital stock) 100000000.00 100000000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 562632775.45 562632775.45
Less: Treasury stock
Other comprehensive income -2502891.67 3318147.61
Special reserves 44175259.38 44578849.52
Earned surplus 45818775.40 39501301.38
Provision for general risks
Undistributed profits 360311280.65 332226440.31
Total owners' equity (or
shareholders' equity)
attributable to the parent 1110435199.21 1082257514.27
company
103 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Minority interest 15857271.75 7707548.39
Total owners' equity (or
shareholders' equity) 1126292470.96 1089965062.66
Total liabilities and owners'
equity (or shareholders' equity) 1952510883.69 1904362490.44
Director of the Company: Liang Jinli Person in charge of accounting: Chen Zhihao Director of
the accounting firm: Xiao Jingxia
Balance Sheet of the Parent Company
December 31 2024
Prepared by: Acter Technology Integration Group Co. Ltd.In RMB Yuan
Item Notes December 31 2024 December 31 2023
Current assets:
Monetary fund 380432761.39 562122045.11
Trading financial assets 50025000.00
Derivative financial assets
Bills receivable 22280273.04 41826722.94
Accounts receivable 253020398.64 315117444.36
Receivables financing 2499031.97 2161091.23
Prepayments 30799227.20 62282120.10
Other receivables 40526268.65 31069788.93
Including: Interest receivable
Dividends receivable
Inventory 3585610.06
Including: Data resource
Contract assets 434173370.14 316838756.89
Assets held for sale
Non-current assets due within
one year
Other current assets 47671752.21 45758769.25
Total current assets 1265013693.30 1377176738.81
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 129112645.74 88485289.33
Investments in other equity
instruments 12947918.04
Other non-current financial
assets
Investment properties 531707.64 598758.96
Fixed assets 54401188.46 36738851.20
Construction in progress 2577156.79 13103863.94
Productive biological assets
Oil and gas assets
Right-of-use assets 1568748.83 2451451.14
Intangible assets 7677609.57 7206780.52
Including: Data resource
Development expenditure
Including: Data resource
Goodwill
Long-term unamortized
104 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
expenses
Deferred income tax assets 7129206.99 9838099.85
Other non-current assets 18335783.47 29178404.91
Total non-current assets 234281965.53 187601499.85
Total assets 1499295658.83 1564778238.66
Current liabilities:
Short-term loan
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable
Accounts payable 497199486.43 521711872.40
Receipts in advance
Contract liabilities 30810177.25 46861981.30
Payroll payable 32084942.60 36511580.37
Tax payable 803928.13 810992.90
Other payables 2008316.98 1806759.40
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due
within one year 1348687.81 968648.33
Other current liabilities
Total current liabilities 564255539.20 608671834.70
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities 598144.48 1797832.84
Long-term accounts payable
Long-term payroll payable
Anticipation liabilities 6745749.68 7199017.54
Deferred income
Deferred income tax liabilities 235312.43 367717.70
Other non-current liabilities
Total non-current liabilities 7579206.59 9364568.08
Total liabilities 571834745.79 618036402.78
Owners' equity (or shareholders' equity)
Paid-in capital (or capital stock) 100000000.00 100000000.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves 564223330.95 564223330.95
Less: Treasury stock
Other comprehensive income -2052072.90
Special reserves 36411136.12 36814726.26
Earned surplus 45818775.40 39501301.38
Undistributed profits 183059743.47 206202477.29
Total owners' equity (or
shareholders' equity) 927460913.04 946741835.88
Total liabilities and owners'
equity (or shareholders' equity) 1499295658.83 1564778238.66
105 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Director of the Company: Liang Jinli Person in charge of accounting: Chen Zhihao Director of
accounting firm: Xiao Jingxia
Consolidated Income Statement
January-December 2024
In RMB Yuan
Item Notes 2024 2023
I. Total operating revenue 2007697317.98 2008924995.68
Including: Operating revenue 2007697317.98 2008924995.68
Interest income
Earned premiums
Fee and commission income
II. Total operating costs 1850375680.04 1829949952.47
Including: Operating cost 1755007424.22 1738841241.47
Interest expenses
Handling fee and commission
expenses
Surrender premiums
Net claims expenses
Net withdrawal of insurance
liability reserve
Policy dividend expense
Reinsurance expenses
Taxes and surcharges 3455150.25 4370539.18
Sales expenses 6781770.06 7954281.67
Administrative expenses 62519012.85 59193009.85
R&D expenses 33529705.96 25121209.62
Finance costs -10917383.30 -5530329.32
Including: Interest expense 1902046.69 1360920.96
Interest income 9191452.30 6309355.80
Add:Other gains 433289.18 3731552.00
Investment income (loss
denoted by "-") 814005.65 1661794.44
Including: Investment income
from associates and joint
Gain on derecognition of
financial assets measured at amortized
cost
Foreign exchange gains (loss
denoted by "-")
Gain on net open hedges (loss
denoted by "-")
Gain on change in fair value
(loss denoted by "-") 25000.00 -119888.89
Credit impairment loss (loss
denoted by "-") 2207755.91 -3860633.85
Impairment loss on assets (loss
denoted by "-") -6812588.09 1148478.91
Gain on disposal of assets (loss
denoted by "-") 98152.04 116542.37
III. Operating profit (loss denoted by
"-")154087252.63181652888.19
Add: Non-operating revenue 37943.24 14361.33
Less: Non-operating expenses 365007.19 889948.63
106 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
IV. Total profit (total loss denoted by "
-")153760188.68180777300.89
Less: Income tax expense 36650409.77 40713458.90
V. Net profit (net loss denoted by "-") 117109778.91 140063841.99
(I) Classification by continuity of operations
1. Net profit from continuing
operations (net loss denoted by "-") 117109778.91 140063841.99
2. Net profit from discontinued
operations (net loss denoted by "-")
(II) Classification by ownership attribution
1. Net profit attributable to
shareholders of the parent company 114402314.36 138590474.42
(net loss denoted by "-")
2. Gains and losses of minority
shareholders (net loss denoted by "-") 2707464.55 1473367.57
VI. Other comprehensive income net
of tax -5780309.56 369438.14
(I) other comprehensive income
attributable to owners of the parent -5821039.28 290286.73
company net of taxes
1. Other comprehensive income
that cannot be reclassified to profit or -2064563.03
loss
(1) Remeasurement of changes in
defined benefit plans -12490.13
(2) Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
(3) Changes in fair value of
investments in other equity -2052072.90
instruments
(4) Changes in fair value of own
credit risk
2. Other comprehensive income
to be reclassified to profit or loss -3756476.25 290286.73
(1) Other comprehensive income
available for reclassification to profit
or loss under the equity method
(2) Changes in fair value of other
debt instruments
(3) Reclassification of financial
assets to other comprehensive income
(4) Provision for credit impairment
of other debt investments
(5) Cash flow hedge reserve
(6) Translation difference of foreign -3756476.25
currency financial statements 290286.73
(7) Others
(II) Other comprehensive income
attributable to minority shareholders 40729.72 79151.41
net of taxes
VII. Total comprehensive income 111329469.35 140433280.13
(I) Total comprehensive income
attributable to owners of the parent 108581275.08 138880761.15
company
(II) Total comprehensive income 2748194.27 1552518.98
107 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share (RMB 1.14
Yuan/share) 1.39
(II) Diluted earnings per share 1.14
(RMB Yuan/share) 1.39
In the event of a business combination under the same control during the current period the net profit
realized by the party to be merged before the merger was RMB 0. The net profit realized by the party to
be merged in the previous period was RMB 0.Directors of the Company: Liang Jinli Chen Zhihao and Xiao Jingxia
Income Statement of the Parent Company
January-December 2024
In RMB Yuan
Item Notes 2024 2023
I. Operating Revenue 1262326181.62 1515434141.27
Less: Operating cost 1129673762.04 1338966817.43
Taxes and surcharges 3100212.09 4057620.88
Sales expenses 3028310.28 3076194.29
Administrative expenses 38586761.64 38930717.90
R&D expenses 33529705.96 25121209.62
Finance costs -6843699.37 -5338139.72
Including: Interest expense 122518.97 153118.72
Interest income 6782505.00 5636874.72
Add:Other gains 366259.15 3731552.00
Investment income (loss
denoted by "-") 9787838.84 18594851.65
Including: Investment income
from associates and joint
Gain on derecognition of
financial assets measured at amortized
cost
Gain on net open hedges (loss
denoted by "-")
Gain on change in fair value
(loss denoted by "-") 25000.00 -119888.89
Credit impairment loss (loss
denoted by "-") 6354192.97 -3623180.11
Impairment loss on assets (loss
denoted by "-") -5578254.36 521068.35
Gain on disposal of assets (loss
denoted by "-") 49525.62 115572.93
II. Operating profit (loss denoted by
"-")72255691.20129839696.80
Add: Non-operating revenue 7993.84 0.01
Less: Non-operating expenses 349457.90 612922.35
III. Total profit (total loss denoted by
"-")71914227.14129226774.46
Less: Income tax expense 8739486.94 18645738.73
IV. Net profit (net loss denoted by "-") 63174740.20 110581035.73
(I) Net profit from continuing
operations (net loss denoted by "-") 63174740.20 110581035.73
(II) Net profit from discontinued
operations (net loss denoted by "-")
108 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
V. Other comprehensive income net of
tax -2052072.90
(I) Other comprehensive income
that cannot be reclassified to profit or -2052072.90
loss
1. Remeasurement of changes in
defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of
investments in other equity -2052072.90
4. Change in fair value of own
credit risk
(II) Other comprehensive income to
be reclassified to profit or loss
1. Other comprehensive income
that can be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Reclassification of financial
assets to other comprehensive
4. Provision for credit impairment
of other debt investments
5. Cash flow hedge reserve
6. Translation differences on
foreign currency financial statements
7. Others
VI. Total comprehensive income 61122667.30 110581035.73
VII. Earnings per share:
(I) Basic earnings per share
(RMB Yuan/share)
(II) Diluted earnings per share
(RMB Yuan/share)
Directors of the Company: Liang Jinli Chen Zhihao and Xiao Jingxia
Consolidated Cash Flow Statement
January-December 2024
In RMB Yuan
Item Notes 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 2066354453.31 2167140386.68
Net increase in client deposits and
deposits from other banks
Net increase in borrowings from
the central bank
Net increase in borrowings from
other financial institutions
Cash received from premiums for
primary insurance contracts
109 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Net cash received from
reinsurance business
Net increase in policyholders'
deposits and investment funds
Cash received from interest fees
and commissions
Net increase in funds received
Net increase in buyback
transactions
Net cash received from securities
trading
Tax rebates received 24266329.55 4870426.57
Cash received from other
operating activities 28677150.09 18560464.10
Subtotal of cash inflow from
operating activities 2119297932.95 2190571277.35
Cash paid for goods and services 1889084764.24 1805795893.11
Net increase in loans and
advances to clients
Net increase in deposits with
central banks and interbanks
Cash paid for original insurance
contract claims
Net increase in funds withdrawn
Cash paid for interest fees and
commissions
Cash paid for policy dividends
Cash paid to and for employees 139290057.43 130630318.35
Taxes paid 52768919.68 76654922.21
Cash paid for other operating
activities 41862341.40 43967212.45
Subtotal of cash outflow from
operating activities 2123006082.75 2057048346.12
Net cash flows from operating
activities -3708149.80 133522931.23
II. Cash flows from investing activities:
Cash received from recovery of
investments 272000000.00 371000000.00
Cash received from investment
income 908884.79 1809868.77
Net cash received from the
disposal of fixed assets intangible 185947.08 28000.00
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
operating units
Cash received from other
investing activities
Subtotal of cash inflow from
investing activities 273094831.87 372837868.77
Cash paid for acquisition and
construction of fixed assets
intangible assets and other 14410135.46 16998209.64
long-term assets
Cash paid for investment 336999999.94 249000000.00
Net increase in pledged loans
110 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid for other investing
activities
Subtotal of cash outflow from
investing activities 351410135.40 265998209.64
Net cash flows from investing
activities -78315303.53 106839659.13
III. Cash flows from financing activities:
Cash received from investment
absorption 5401529.09 2114535.07
Including: Cash received by
subsidiaries from minority 5401529.09 2114535.07
investment
Cash received from loans 23530223.00 6388838.45
Cash received from other
financing activities 53586215.59 22605625.00
Subtotal of cash inflow from
financing activities 82517967.68 31108998.52
Cash paid for debt repayment 363860.00 37837088.45
Cash paid for distribution of
dividends profits or repayment of 80284876.55 66094012.34
interest
Including: Dividends and profits
paid to minority shareholders by
subsidiaries
Cash paid for other financing
activities 59042712.16 2180273.09
Subtotal of cash outflow from
financing activities 139691448.71 106111373.88
Net cash flows from fund-raising
activities -57173481.03 -75002375.36
IV. Impact of exchange rate
changes on cash and cash 4096193.44 2296409.74
equivalents
V. Net increase in cash and cash
equivalents -135100740.92 167656624.74
Add: Cash and cash equivalents
balance at beginning of period 709996723.03 542340098.29
VI. Cash and cash equivalents
at the end of the period 574895982.11 709996723.03
Directors of the Company: Liang Jinli Person in charge of accounting:Chen Zhihao Director of
accounting firm:Xiao Jingxia
Cash flow statement of the parent company
January-December 2024
In RMB Yuan
Item Notes 2024 2023
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 1314384391.28 1647517583.36
Tax rebates received 20949749.59 3748084.73
Cash received from other 14137521.18 14972801.49
111 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
operating activities
Subtotal of cash inflow from
operating activities 1349471662.05 1666238469.58
Cash paid for goods and services 1171316565.82 1406939420.43
Cash paid to and for employees 98868327.73 96230925.37
Taxes paid 22869036.91 60761461.48
Cash paid for other operating
activities 35203084.77 27542918.50
Subtotal of cash outflow from
operating activities 1328257015.23 1591474725.78
Net cash flows from operating
activities 21214646.82 74763743.80
II. Cash flows from investing activities:
Cash received from recovery of
investments 250000000.00 347000000.00
Cash received from investment
income 9823263.66 19008542.74
Net cash received from the
disposal of fixed assets intangible 106847.09 20000.00
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
operating units
Cash received from other
investing activities
Subtotal of cash inflow from
investing activities 259930110.75 366028542.74
Cash paid for acquisition and
construction of fixed assets
intangible assets and other 13075164.41 15334338.59
long-term assets
Cash paid for investment 314999999.94 225000000.00
Net cash paid for acquisition of
subsidiaries and other business 40627356.41 4242955.45
units
Cash paid for other investing
activities
Subtotal of cash outflow from
investing activities 368702520.76 244577294.04
Net cash flows from investing
activities -108772410.01 121451248.70
III. Cash flows from financing activities:
Cash received from investment
absorption
Cash received from loans
Cash received from other
financing activities 14808512.29 34906384.33
Subtotal of cash inflow from
financing activities 14808512.29 34906384.33
Cash paid for debt repayment
Cash paid for distribution of
dividends profits or repayment of 80000000.00 65000000.00
interest
Cash paid for other financing
activities 29250223.75 29198376.93
Subtotal of cash outflow from 109250223.75 94198376.93
112 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
financing activities
Net cash flows from fund-raising
activities -94441711.46 -59291992.60
IV. Impact of exchange rate
changes on cash and cash 310148.42 7753.07
equivalents
V. Net increase in cash and cash
equivalents -181689326.23 136930752.97
Add: Cash and cash equivalents
balance at beginning of period 562097728.55 425166975.58
VI. Cash and cash equivalents at
the end of the period 380408402.32 562097728.55
Director of the Company: Liang Jinli Person in charge of accounting: Chen Zhihao Director of
accounting firm: Xiao Jingxia
113 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Consolidated Statement of Changes in Owners' Equity
January-December 2024
In RMB Yuan
2024
Owner’s equities belonging to parent company
Items Other equity Minority Total ofPaid-in instruments Less: Other Provis owner’s
capital (or Capital Treas comprehe Special Earned ion for Undistribu Oth interest
Prefer Perpet Subtotal equitiescapital Oth reserves ury nsive reserves surplus genera ted profits ers
stock) red ual ers stock income l risks
stock bond
I. Closing
balance of 1000000 5626327 3318147. 4457884 3950130 3322264 10822575 7707548 10899650
the previous 00.00 75.45 61 9.52 1.38 40.31 14.27 .39 62.66
year
Add: Change
in accounting
policy
Correction of
prior-period
errors
Others
II. Opening
balance for 1000000 5626327 3318147. 4457884 3950130 3322264 10822575 7707548 1089965000.00 75.45 61 9.52 1.38 40.31 14.27 .39 62.66
the year
III.Increases/dec
reases in this
period -582103 -403590. 6317474 - 2808484 28177684. 8149723 36327408.
(Decrease 9.28 14 .02 0.34 94 .36 30
denoted by "
-")
(I) Total
comprehensi -582103 1144023 10858127 2748194 111329469.28 14.36 5.08 .27 9.35
ve income
(II) Owners' 5401529 5401529.0
114 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
inputs and .09 9
capital
reduction
1. Ordinary
shares 5401529 5401529.0
invested by .09 9
owners
2.
Contribution
of capital by
holders of
other equity
instruments
3.
Share-based
payments
recognized in
owners'
equity
4. Others
(III) Profit 6317474 -8631747 - -80000000 -80000000
distribution .02 4.02 .00 .00
1.
Withdrawal 6317474 -6317474
of surplus .02 .02
reserves
2. Provision
for general
risks
3.
Distribution -8000000 -80000000 -80000000
to owners (or 0.00 .00 .00
shareholders)
4. Others
(IV) Internal
transfer of
ownership
interest
115 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
1.
Capitalizatio
n of capital
surplus to
capital (or
capital stock)
2. Transfer of
surplus
reserves to
capital (or
capital stock)
3. Surplus
reserves to
cover losses
4. Amount of
changes in
defined
benefit plan
carried
forward to
retained
earnings
5. Other
comprehensi
ve income
Transfer of
other
comprehensi
ve income to
retained
earnings
6. Others
(V) Special -403590.
14 -403590.14 -403590.14reserves
1. Amount
withdrawn
this period
2. Amount 403590.1 403590.14 403590.14
used in this 4
116 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
period
(VI) Others
IV. Closing
balance of 1000000 5626327 -250289 4417525 4581877 3603112 11104351 1585727 1126292400.00 75.45 1.67 9.38 5.40 80.65 99.21 1.75 70.96
this period
2023
Owner’s equities belonging to parent company
Items Paid-in Other equity Less: Other Provis Minority Total ofowner’s
capital (or instruments Capital Treas comprehe Special Earned ion for Undistribu Oth interestSubtotal equities
capital Prefer Perpetred ual Oth reserves ury nsive reserves surplus genera ted profits ers
stock) stock bond ers stock income l risks
I. Closing
balance of 8000000 5826327 3027860. 4537265 2844319 2698717 10093482 404396 10133922
the previous 0.00 75.45 88 2.93 7.81 86.54 73.61 2.14 35.75
year
Add: Change
in accounting -177717.0 -177717.08 -3467.88 0 -181184.88
policy
Correction of
prior-period
errors
Others
II. Opening
balance for 8000000 5826327 3027860. 4537265 2844319 2696940 10091705 404049 101321100.00 75.45 88 2.93 7.81 69.46 56.53 4.34 50.87
the year
III.Increases/dec
reases in this
period 2000000 -2000000 290286.7 -793803. 1105810 6253237 73086957. 366705 76754011.
(Decrease 0.00 0.00 3 41 3.57 0.85 74 4.05 79
denoted by "
-")
(I) Total 290286.7 1385904 13888076 155251 14043328
117 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
comprehensi 3 74.42 1.15 8.98 0.13
ve income
(II) Owners'
inputs and 211453 2114535.0
capital 5.07 7
reduction
1. Ordinary
shares 211453 2114535.0
invested by 5.07 7
owners
2.
Contribution
of capital by
holders of
other equity
instruments
3.
Share-based
payments
recognized in
owners'
equity
4. Others
(III) Profit - - - - - - - - 1105810 - -7605810 - -650000003.57 3.57 .00 -
-65000000
distribution .00
1.
Withdrawal 1105810 -1105810
of surplus 3.57 3.57
reserves
2. Provision
for general
risks
3.
Distribution -6500000 -65000000 -65000000
to owners (or 0.00 .00 .00
shareholders)
4. Others
(IV) Internal 2000000 -2000000
118 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
transfer of 0.00 0.00
ownership
interest
1.
Capitalizatio
n of capital 2000000 -2000000
surplus to 0.00 0.00
capital (or
capital stock)
2. Transfer of
surplus
reserves to
capital (or
capital stock)
3. Surplus
reserves to
cover losses
4. Amount of
changes in
defined
benefit plan
carried
forward to
retained
earnings
5. Other
comprehensi
ve income
Transfer of
other
comprehensi
ve income to
retained
earnings
6. Others
(V) Special -793803.
41 -793803.41 -793803.41reserves
1. Amount
withdrawn
119 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
this period
2. Amount
used in this 793803.41 793803.41 793803.41
period
(VI) Others
IV. Closing
balance of 1000000 - - - 5626327 - 3318147. 4457884 3950130 - 3322264 - 10822575 770754 1089965000.00 75.45 61 9.52 1.38 40.31 14.27 8.39 62.66
this period
Director of the Company: Liang Jinli Person in charge of accounting: Chen Zhihao Director of accounting firm: Xiao Jingxia
Statement of changes in equity of the parent company
January-December 2024
In RMB Yuan
2024
Paid-in Other equity instruments Other
Items capital (or Capital Less: Total of
capital Preferred Perpetual Treasury
comprehen Special Earned Undistribu
sive owner’sOthers reserves stock reserves surplus ted profitsstock) stock bond income equities
I. Closing balance of the 10000000 56422333 36814726 3950130 2062024 94674183
previous year 0.00 0.95 .26 1.38 77.29 5.88
Add: Change in accounting
policy
Correction of prior-period
errors
Others
II. Opening balance for the 10000000 56422333 36814726 3950130 2062024 94674183
year 0.00 0.95 .26 1.38 77.29 5.88
III. Increases/decreases in this
period (Decrease denoted by " -2052072 -403590.1 6317474. -2314273 -1928092.90 4 02 3.82 2.84
-")
(I) Total comprehensive -2052072 6317474 61122667
income .90 0.20 .30
(II) Owners' inputs and capital
reduction
1. Ordinary shares invested by
120 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
owners
2. Contribution of capital by
holders of other equity
instruments
3. Share-based payments
recognized in owners' equity
4. Others
(III) Profit distribution 6317474. -8631747 -8000000
024.020.00
1. Withdrawal of surplus 6317474. -6317474
reserves 02 .02
2. Distribution to owners (or -8000000 -8000000
shareholders) 0.00 0.00
3. Others
(IV) Internal transfer of
ownership interest
1. Capitalization of capital
surplus to capital (or capital
stock)
2. Transfer of surplus reserves
to capital (or capital stock)
3. Surplus reserves to cover
losses
4. Amount of changes in
defined benefit plan carried
forward to retained earnings
5. Other comprehensive
income Transfer of other
comprehensive income to
retained earnings
6. Others
(V) Special reserves -403590.1 -403590.14 4
1. Amount withdrawn this
period
2. Amount used in this period 403590.14 403590.14
(VI) Others
121 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
IV. Closing balance of this 10000000 56422333 -2052072 36411136 4581877 1830597 92746091
period 0.00 0.95 .90 .12 5.40 43.47 3.04
2023
Paid-in Other equity instruments Less: OtherItems capital (or Capital Treasury comprehen Special Earned Undistribu
Total of
capital Preferred Perpetual owner’sOthers reserves sivestock reserves surplus ted profitsstock) stock bond income equities
I. Closing balance of the 80000000. 58422333 37608529 2844319 1716116 90188670
previous year 00 0.95 .67 7.81 42.97 1.40
Add: Change in accounting 67902.16 67902.16
policy
Correction of prior-period
errors
Others
II. Opening balance for the 80000000. 58422333 37608529 2844319 1716795 90195460
year 00 0.95 .67 7.81 45.13 3.56
III. Increases/decreases in this
period (Decrease denoted by 20000000. -2000000 -793803.4 1105810 3452293 4478723200 0.00 1 3.57 2.16 .32
"-")
(I) Total comprehensive 1105810 11058103
income 35.73 5.73
(II) Owners' inputs and
capital reduction
1. Ordinary shares invested
by owners
2. Contribution of capital by
holders of other equity
instruments
3. Share-based payments
recognized in owners' equity
4. Others
(III) Profit distribution 1105810 -7605810 -6500000
3.573.570.00
1. Withdrawal of surplus 1105810 -1105810
122 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
reserves 3.57 3.57
2. Distribution to owners (or -6500000 -6500000
shareholders) 0.00 0.00
3. Others -
(IV) Internal transfer of 20000000. -2000000
ownership interest 00 0.00
1. Capitalization of capital
surplus to capital (or capital 20000000. -200000000 0.00
stock)
2. Transfer of surplus
reserves to capital (or capital
stock)
3. Surplus reserves to cover
losses
4. Amount of changes in
defined benefit plan carried
forward to retained earnings
5. Other comprehensive
income Transfer of other
comprehensive income to
retained earnings
6. Others
(V) Special reserves -793803.4 -793803.41 1
1. Amount withdrawn this -
period
2. Amount used in this period 793803.41 793803.41
(VI) Others -
IV. Closing balance of this 10000000 56422333 36814726 3950130 2062024 94674183
period 0.00 0.95 .26 1.38 77.29 5.88
Director of the Company: Liang Jinli Person in charge of accounting: Chen Zhihao Director of accounting firm: Xiao Jingxia
123 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
III. III. Basic Information of the Company
1. Company profile
√ Applicable□ N/A
Acter Technology Integration Group Co. Ltd. (the “Company”) formerly known as Sheng Huei
(Suzhou) Engineering Co. Ltd. (“Sheng Huei Limited”) was established on September 3 2003 in
Suzhou City Jiangsu Province. At the time of its establishment the Company's initial registered capital
was USD 450000. After a series of capital increase as of December 31 2017 the registered capital of
Sheng Huei Limited had been USD 7980000 and the sole shareholder of Sheng Huei Limited is
SHENG HUEI INTERNATIONAL CO. Ltd.In January 2018 Sheng Huei International increased the capital of Sheng Huei Limited and the
registered capital was increased from USD 7980000 to USD 9030000. In May 2018 Acter Group
entered into an equity transfer agreement with Suzhou Songhuei Enterprise Management Consulting
Partnership (Limited Partnership) (“Suzhou Songhuei”) and Suzhou Shengzhan Management Consulting
Partnership (Limited Partnership) (“Suzhou Shengzhan”). Pursuant to the agreement Acter Group
agreed to transfer the corresponding registered capital of Sheng Huei Limited of USD 977918 and USD
226430 held by Sheng Huei Limited to Suzhou Songhuei and Suzhou Shengzhan at RMB
14282400.00 and RMB 3306600.00 respectively. After the completion of the above transactions the
registered capital of Sheng Huei Limited is USD 9030000 and the equity structure is as follows:
No. Shareholder Amount of investment Shareholding(USD 10000) ratio (%)
1 Sheng Huei International 782.5679 86.6630
2 Suzhou Songhuei 97.7918 10.8300
3 Suzhou Shengzhan 22.6403 2.5070
Total 903.0000 100.0000
In June 2019 all investors of Sheng Huei Limited entered into a promoter agreement agreeing tochange the whole of Sheng Huei Limited into a joint stock limited company and rename it as “ActerTechnology Integration Group Co. Ltd.”. All the investors converted the net assets of Sheng Huei
Limited as of April 30 2019 into 60000000.00 shares with par value of RMB 1 each. The shareholding
structure after the overall change is as follows:
No. Shareholder Capital stock (RMB ShareholdingYuan) ratio (%)
1 Sheng Huei International 51997800.00 86.6630
2 Suzhou Songhuei 6498000.00 10.8300
3 Suzhou Shengzhan 1504200.00 2.5070
Total 60000000.00 100.0000
On August 23 2022 the Company applied for the IPO of A shares of not more than 20000000.00
shares by CSRC (Official Reply to the Approval of the IPO of Acter Technology Integration Group Co.Ltd.) (Z.J.X.K. No. [2022] 1915) which was approved by the CSRC. As of December 31 2022 the
Company had received the monetary funds obtained through the public offering of A shares of which
the paid-in capital (share capital) amounted to RMB 20 million (SAY RMB TWENTY MILLION
Only).No. Shareholder Capital stock (RMB ShareholdingYuan) ratio (%)
1 Sheng Huei International 51997800.00 64.9973
2 RMB ordinary shares (A shares)shareholders 20000000.00 25.0000
3 Suzhou Songhuei 6498000.00 8.1225
124 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
No. Shareholder Capital stock (RMB ShareholdingYuan) ratio (%)
4 Suzhou Shengzhan 1504200.00 1.8803
Total 80000000.00 100.0000
Pursuant to the resolution of the 2022 annual shareholders’ meeting held on April 28 2023 the
Company paid a cash dividend of RMB 0.8125 per share (including tax) to all shareholders on the basis
of the total share capital of 80000000.00 shares as of June 14 2023 and transferred 0.25 shares to all
shareholders by way of capital reserve to increase the share capital by a total of 20000000.00 shares
with par value of RMB 1 per share increasing the share capital by RMB 20000000.00 in total.As of December 31 2024 the shareholding structure after the overall change was as follows:
No. Shareholder Capital stock Shareholding(RMB Yuan) ratio (%)
1 Sheng Huei International 64997250.00 64.9973
2 RMB ordinary shares (A shares)shareholders 25000000.00 25.0000
3 Suzhou Songhuei 8122500.00 8.1225
4 Suzhou Shengzhan 1880250.00 1.8803
Total 100000000.00 100.0000
The Company's parent company is Sheng Huei International and its ultimate holding company is
Acter Co. Ltd. (Acter (Taiwan)). The Company's business term is from September 3 2003 to an
indefinite period.Scope of Business: Engaged in system integration services; design and related equipment
installation of mechanical and electrical systems HVAC systems aseptic systems and building
equipment management systems: construction of air purification engineering fire engineering building
construction engineering interior and exterior decoration engineering municipal public works pipeline
engineering and provision of related technical consultation and after-sales service; R&D and
manufacturing of industrial switch power converters and components; wholesale import and export of
similar products produced by the company and building materials dust-free aseptic purification
equipment and related equipment and assembly parts (for products involving quotas and license
management applications shall be handled according to relevant national regulations). Category III
medical device business; Category II medical device sales; manufacturing of metal structures;
manufacturing of building decoration plumbing parts and other metal products for construction (the
project shall be carried out only after approval by relevant authorities in accordance with laws).Licensed Projects: Construction engineering design; intelligent building system design (the specific
business projects shall be subject to the approval results and only after approval by relevant authorities
in accordance with laws can the business activities be conducted).The financial statements were approved by the Board of Directors of the Group on March 28 2025
by resolution.IV. Basis of Preparation of the Financial Statements
1. Basis of preparation
The financial statements of the Company are prepared in accordance with the Accounting
Standards for Business Enterprises released by the Ministry of Finance (hereinafter collectively referred
to as the "ASBE") and its application guidance interpretations and other relevant regulations as well as
the disclosure requirements of the China Securities Regulatory Commission's (hereinafter collectively
referred to as the "CSRC")General Provisions of Financial Reports - No. 15 - Rules on the Information
Disclosure of Companies Issuing Securities (revised in 2023) based on the actual transactions and
events.
125 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2. Going concern
√ Applicable□ N/A
The Group evaluated its ability to continue as a going concern for the twelve months ended
December 31 2024 and found no matters or circumstances that cast significant doubt on its ability to
continue as a going concern. The financial statements are presented on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates
√ Applicable□ N/A
The preparation of financial statements requires the management of the Group to make estimates
and assumptions that affect the application of accounting policies and the amounts of assets liabilities
income and expenses. Actual results may differ from these estimates. The Group's management
continually evaluates its judgment regarding critical assumptions and uncertainties involved in making
estimates. The effects of changes in accounting estimates are recognized in the period in which the
estimate is changed and in future periods.The following accounting estimates and critical assumptions have a significant risk of causing a
material adjustment to the book value of assets and liabilities in future periods.
(1) Revenue recognition
Under the new revenue standard the Group recognizes revenue from construction contracts over a
period of time. The recognition of revenue and profit from construction depends on the Group's
estimation of the outcome of the contract and the progress of performance. If the actual amount of total
revenues and total costs incurred is higher or lower than management's estimates it will affect the
amount of revenue and profit recognized by the Group in future periods;
(2) Impairment of receivables and contract assets
The Group used the expected credit loss model to assess the impairment of financial instruments
since January 1 2019. The application of the expected credit loss model requires significant judgments
and estimates that take into account all reasonable and supportable information including
forward-looking information. In making such judgments and estimates the Group extrapolates the
expected changes in the credit risk of debtors based on historical repayment data and factors such as
economic policies macroeconomic indicators and industry risks. Therefore the amount of provision for
impairment of receivables and contract assets may change in accordance with the changes in the above
estimates and the adjustments to the provision for impairment of receivables and contract assets will
affect the profit or loss in the period in which the estimates are changed.Accounting estimates for provision for impairment of fixed assets and investment properties
The Group performs impairment tests on fixed assets such as buildings machinery and equipment
and investment properties at the balance sheet date if there is any indication of impairment. The
recoverable amount of property plant and equipment and investment properties is the higher of the
present value of estimated future cash flows and the fair value of the assets less costs of disposal which
requires the use of accounting estimates.If management revises the gross margins used in the calculation of future cash flows for asset
groups and portfolios of asset groups and the revised gross margins are lower than the currently used
gross margins the Group is required to increase the provision for impairment for property plant and
equipment and investment properties.If the pre-tax discount rate used for discounting cash flows is revised by the management and the
revised pre-tax discount rate is higher than the current rate the Group is required to make additional
provision for impairment of fixed assets and investment properties.If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's
estimate the Group cannot reverse the provision for impairment of fixed assets and investment
properties.
(4) Useful lives of fixed assets and investment properties
The Group reviews the estimated useful lives of fixed assets and investment properties at least
annually at the end of each year. The estimated useful lives are determined by the management based on
historical experience of similar assets reference to estimates generally used in the industry and expected
technological updates. Depreciation and amortization expenses for future periods are adjusted
accordingly when there is a significant change in the previous estimates.
(5) Income tax expense
126 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group recognizes current and deferred taxes in profit or loss except for those arising from
business combinations and transactions or events directly attributable to owners' equity (including other
comprehensive income).Current income tax is the expected income tax payable calculated on the basis of the taxable
income for the year at the rates specified in the tax law plus adjustments to prior years' income tax
payable. At the balance sheet date if the Group has a legal right to settle on a net basis and intends to
settle on a net basis or to acquire assets and settle liabilities simultaneously current income tax assets
and current income tax liabilities are shown net of tax. Deferred tax assets and deferred tax liabilities are
recognized for deductible temporary differences and taxable temporary differences respectively. A
temporary difference is the difference between the book value of an asset or liability and its tax basis
including deductible losses and tax credits that can be carried forward to future years. Deferred tax
assets are recognized to the extent that it is probable that taxable income will be available against which
the deductible temporary differences can be utilized. Deferred tax is not recognized for temporary
differences arising from transactions that are not part of a business combination and that at the time of
the transaction affect neither the accounting profit nor taxable income (or deductible losses). At the
balance sheet date the Group measures the book value of deferred tax assets and liabilities based on the
expected manner of recovering or settling those assets and liabilities in accordance with enacted tax
laws at the tax rates that are expected to apply to the period when the assets are recovered or the
liabilities are settled. The book value of deferred tax assets is reviewed at the balance sheet date. The
book value of deferred tax assets is written down to the extent that it is more likely than not that
sufficient taxable income will not be available to allow the benefit of the deferred tax assets to be
realized in future periods. When it is more likely than not that sufficient taxable income will be available
to offset the deferred tax assets the amount written down is reversed.On the balance sheet date deferred tax assets and liabilities are netted out when the following
conditions are met:
A taxable entity has a legal right to settle current income tax assets and current income tax
liabilities on a net basis;
Deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the same taxable entity or on different taxable entities provided that in each future period in
which significant deferred tax assets and liabilities reverse the taxable entity intends to settle the current
tax assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
1. Statement of Compliance with ASBE
The financial statements comply with the requirements of the ASBE and give a true accurate and
complete account of the Company's financial position as of December 31 2024 as well as its operating
results and cash flows of Year 2024.
2. Accounting period
The Company's fiscal year begins on January 1 and ends on December 31 of the Gregorian
calendar.
3. Business cycle
√ Applicable□ N/A
The Group uses 12 months as the business cycle and the criteria for classifying the liquidity of
assets and liabilities.
4. Recording currency
The Group and its Chinese subsidiaries use Renminbi ("RMB") as the local recording currency;
Acter International Limited ("Acter (Hong Kong)") uses United States dollars ("USD") as the local
recording currency; Acter Technology Singapore Pte. Ltd ("Acter (Singapore)") is denominated in
Singapore dollars (“SGD”); PT Acter Technology Indonesia ("Acter (Indonesia)") and PT Acter
Integration Technology Indonesia ("Indonesia Joint Venture") are denominated in Indonesian Rupiah
(“IDR”); Acter Technology Malaysia Sdn. Bhd ("Acter (Malaysia)") is denominated in MYR and Sheng
Huei Engineering Technology Company Limited ("Sheng Huei (Vietnam)") is denominated in VND;
Acter Technology Company Limited ("Acter (Thailand)") uses THB as its local currency. The Group
127 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
and its subsidiaries have selected the local recording currencies based on the currency of valuation and
settlement of major business receipts and expenditures. Some subsidiaries of the Group have adopted
currencies other than the Group's local currency as their local currency and the foreign currency
financial statements of these subsidiaries have been translated in accordance with this Section V.10 in
the preparation of these financial statements.
5. Method of determining materiality criteria and basis of selection
√ Applicable□ N/A
The Group prepares and publishes the financial statement based on materiality criteria. The
disclosure items in the notes to these financial statements involving the assessment of materiality criteria
as well as the determination methods and selection basis for such materiality standards are as follows:
Items Materiality Criteria
Significant accounts payable with an age of Individual amount exceeding RMB 3
more than one year million
Important prepaid accounts with an age of Individual amount exceeding RMB 1
more than one year million
6. Accounting treatment of business combinations under the same control and non-same control
√ Applicable□ N/A
(1) Business combination under the same control
Assets and liabilities acquired by the Group as a consolidated party in a business combination under
the same control are measured at the book value of the party being consolidated in the consolidated
statements of the party ultimately in control at the date of consolidation. The difference between the
book value of net assets acquired and the book value of the consideration paid for the merger is adjusted
to capital surplus; if the capital surplus is not sufficient to cover the difference it is adjusted to retained
earnings.
(2) Business combination not under common control
A business combination under non-identical control occurs when the parties involved in the
combination are not under the ultimate control of the same party or parties before and after the
combination. Identifiable assets liabilities and contingent liabilities of the acquiree acquired in a
business combination not under common control are measured at fair value at the acquisition date. The
cost of consolidation is the sum of the fair values of cash or non-cash assets paid liabilities issued or
assumed and equity securities issued by the Group at the date of acquisition for the purpose of obtaining
control over the acquiree as well as all directly related expenses incurred in the business combination
(for business combinations effected in stages through multiple transactions the cost of consolidation is
the sum of the costs of each individual transaction). If the cost of combination is greater than the fair
value of the acquiree's identifiable net assets goodwill is recognized. If the cost of combination is less
than the fair value of the acquiree's identifiable net assets the fair value of the identifiable assets
liabilities and contingent liabilities acquired in the combination as well as the fair value of the non-cash
assets or equity securities issued as consideration for the combination are first reviewed. If after the
review the cost of consolidation is still less than the fair value of the net identifiable assets of the
acquiree the difference is recognized as non-operating revenue in this period of consolidation.
7. Criteria for judging control and method of preparing consolidated financial statements
√ Applicable□ N/A
The scope of consolidation of the Group's consolidated financial statements is determined on the
basis of control which includes the Company and all subsidiaries controlled by the Company (including
enterprises divisible parts of invested entities and structured entities controlled by enterprises etc.). The
Group determines control on the basis of the Group's power over an investee the Group's ability to earn
variable returns from participating in the investee's activities and the Group's ability to exercise its
power over the investee to affect the amount of the investee's returns.In the preparation of consolidated financial statements if the subsidiaries adopt accounting policies
or accounting periods that are different from those of the Company the subsidiaries' financial statements
128 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
shall be adjusted as necessary in accordance with the Company's accounting policies or accounting
periods.The effects on the consolidated financial statements of internal transactions between the Company
and its subsidiaries and between subsidiaries are eliminated on consolidation. The share of ownership
interest of subsidiaries that is not attributable to the parent company and the share of net profit or loss
other comprehensive income and total comprehensive income that is attributable to minority interests are
presented in the consolidated financial statements under the headings of "Minority interests minority
interests in profit or loss other comprehensive income attributable to minorities and total comprehensive
income attributable to minorities" respectively.The results of operations and cash flows of subsidiaries acquired in a business combination under
the same control are included in the consolidated financial statements from the beginning of the period
in which the combination occurs. In preparing the comparative consolidated financial statements
adjustments are made to the relevant items in the prior year's financial statements and the consolidated
entity is deemed to have been in existence since the point in time when the ultimate controlling party
began to exercise control.For subsidiaries acquired in a business combination not under common control the results of
operations and cash flows are included in the consolidated financial statements from the date the Group
obtains control. In preparing the consolidated financial statements the financial statements of
subsidiaries are adjusted on the basis of the fair value of each identifiable asset liability and contingent
liability determined at the date of purchase.
8. Classification of joint arrangements and accounting treatment of joint operations
√ Applicable□ N/A
The Group's joint venture arrangements include joint operations and joint ventures. Joint operation
refers to a joint arrangement in which the parties to the arrangement are entitled to the assets and bear
the liabilities related to the arrangement. A joint venture is a joint arrangement in which the joint
venturers have rights only to the net assets of the arrangement.For joint ventures the Group recognizes assets held and liabilities assumed individually or in
proportion to the assets held and liabilities assumed by the Group as a joint venturer and recognizes
revenues and expenses individually or in proportion to the relevant agreements. When a joint venture
enters into a transaction for the purchase or sale of an asset that does not constitute part of the business
only the portion of the gain or loss arising from the transaction that is attributable to the other
participants in the joint venture is recognized.
9. Criteria for determining cash and cash equivalents
Cash equivalents are investments held by an enterprise that have a short maturity (generally
maturing within three months from the date of purchase) are highly liquid are readily convertible to
known amounts of cash and are subject to an insignificant risk of changes in value.
10. Foreign currency operations and translation of foreign currency statements
√ Applicable□ N/A
(1) Foreign currency transactions
The Group's foreign currency transactions are translated into RMB at the spot exchange rate on the
date of the transaction. At the balance sheet date foreign currency monetary items are translated into
RMB using the spot exchange rate at the balance sheet date and the resulting translation differences are
recognized directly in profit or loss for the current period except for exchange differences arising from
special loans in foreign currencies for the purpose of purchasing constructing or producing assets
eligible for capitalization which are dealt with in accordance with the principle of capitalization.Non-monetary items carried at fair value that are denominated in foreign currencies are translated using
spot exchange rates at the date when the fair value is determined and the difference between the
translated amount in the local currency of the account and the original amount in the local currency of
the account is treated as a change in fair value (including exchange rate changes) and recognized in
129 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
profit or loss for the period. Capital received from investors in foreign currencies is translated using the
spot exchange rate on the date when the transaction occurs and the difference in the translated amount
between the invested capital in foreign currencies and the corresponding local currency of the monetary
items does not result in a difference between the foreign-currency capital and the corresponding local
currency of the monetary items.
(2) Translation of foreign currency financial statements
Assets and liabilities in the foreign currency balance sheet are translated at the spot exchange rate at
the balance sheet date; owners' equity items except for "undistributed profits" are translated at the spot
exchange rate at the time of occurrence of the business; and income and expenses in the profit statement
are translated at the spot exchange rate at the date of occurrence of the transaction. Translation
differences arising from the above translations are recognized in other comprehensive income. Cash
flows in foreign currencies are translated using the spot exchange rate on the date of cash flows. The
effect of exchange rate changes on cash is shown separately in the statement of cash flows.
11. Financial instruments
√ Applicable□ N/A
The Group recognizes a financial asset or a financial liability when it becomes a party to a financial
instrument contract.The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating interest income or interest expense over the accounting period.The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the book balance of the financial asset or the
amortized cost of the financial liability. In determining the effective interest rate the expected cash
flows are estimated by taking into account all contractual terms of the financial assets or liabilities (e.g.early repayment rollover call option or other similar options etc.) but not the expected credit losses.The amortized cost of a financial asset or a financial liability is the initial recognized amount of the
financial asset or the financial liability less the principal repaid plus or minus the cumulative
amortization using the effective interest rate method to amortize the difference between the initial
recognized amount and the maturity amount and less the cumulative loss allowance (only applicable to
financial assets).
(1) Classification recognition and measurement of financial assets
The Group classifies financial assets into the following three categories based on the business
model of the financial assets under management and the contractual cash flow characteristics of the
financial assets:
1) Financial assets measured at amortized cost
2) Financial assets measured at fair value with the changes included in other comprehensive
income.
3) Financial assets measured at fair value with changes included in the current profit and loss.
Financial assets are measured at fair value on initial recognition except for accounts receivable or
bills receivable arising from the sale of goods or provision of services etc. which do not contain
significant financing components or do not take into account the financing components that are not more
than one year old which are measured initially at the transaction price.For financial assets measured at fair value with changes included in the current profit and loss
transaction costs are recognized directly in profit or loss while transaction costs related to other types of
financial assets are recognized in their initial recognition amounts.Subsequent measurement of financial assets depends on their classification. All affected financial
assets are reclassified when and only when the Group changes its business model for managing
financial assets.
1) Financial assets classified as of amortized cost
The Group classifies a financial asset as amortized cost if the contractual terms of the financial
asset stipulate that the only cash flows to be generated at a specific date will be payments of principal
and interest based on the amount of principal outstanding and the business model for managing the
financial asset is to collect the contractual cash flows. The Group recognizes interest income on these
financial assets using the effective interest method partially measured at amortized cost bills receivable
accounts receivable other receivables investments in debt securities and long-term receivables.
130 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group uses the effective interest rate method to recognize interest income on these financial
assets which are subsequently measured at amortized cost. Gains or losses arising from impairment or
derecognition or modification of such financial assets are recognized in profit or loss for the current
period. The Group determines interest income by multiplying the book balance of the financial assets by
the effective interest rate except in the following cases.a. For financial assets acquired or originated that are impaired the Group determines interest
income on the basis of the amortized cost of the financial assets and the effective interest rate adjusted
for creditworthiness from the initial recognition of the financial assets.b. For financial assets acquired or originated without credit impairment that become impaired in a
subsequent period the Group determines interest income in the subsequent period based on the
amortized cost of the financial assets and the effective interest rate. If in a subsequent period the credit
risk of a financial instrument has improved and the financial instrument is no longer impaired the Group
calculates interest income by multiplying the effective interest rate by the book value of the financial
asset.
2) Financial assets measured at fair value with the changes included in other comprehensive income
If the contractual terms of a financial asset stipulate that the cash flows to be generated at a specific
date will consist solely of payments of principal and interest based on the outstanding principal amount
and the business model for managing the financial asset is based on the objective of collecting the
contractual cash flows as well as the objective of selling the financial asset the Group classifies the
financial asset as the financial asset measured at fair value with the changes included in other
comprehensive income.The Group recognizes interest income on such financial assets using the effective interest method.Changes in fair value are recognized in other comprehensive income except for interest income
impairment losses and exchange differences which are recognized in profit or loss. When the financial
assets are derecognized the cumulative gain or loss previously recognized in other comprehensive
income is transferred from other comprehensive income and recognized in profit or loss.Bills receivable and accounts receivable measured at fair value with changes included in other
comprehensive income are presented as receivables financing and other financial assets are presented as
other creditor’s right investments of which. Other debt investments maturing within one year from the
balance sheet date are presented as non-current assets with maturity of less than one year and other debt
investments with original maturity of less than one year are presented as other current assets.
3) Financial assets designated as of fair value through other comprehensive income
On initial recognition the Group may irrevocably designate investments in non-trading equity
instruments as financial assets measured at fair value with the changes included in other comprehensive
income on an individual financial asset basis.Changes in the fair value of such financial assets are recognized in other comprehensive income
and no provision for impairment is required. Upon derecognition of the financial assets the cumulative
gain or loss previously recognized in other comprehensive income is transferred from other
comprehensive income to retained earnings.The Group recognizes dividend income and recognizes it in profit or loss when the Group's right to
receive dividends has been established it is probable that the economic benefits associated with the
dividends will flow to the Group and the amount of dividends can be measured reliably in this period in
which the Group holds the investment in the equity instrument. The Group reports such financial assets
under investments in other equity instruments.Investments in equity instruments are classified as financial assets measured at fair value with
changes included in the current profit and loss if they meet one of the following conditions: the financial
asset is acquired principally for the purpose of selling in the near future; it is part of a centrally managed
portfolio of identifiable financial assets at initial recognition and there is objective evidence that a
pattern of short-term profit-taking actually exists in the near future; and It is a derivative (except for
derivatives that meet the definition of a financial guarantee contract and are designated as effective
hedging instruments).
4) Financial assets classified as the financial assets measured at fair value with changes included in
the current profit and loss
Financial assets that do not meet the criteria for classification as financial assets at amortized cost
or at fair value through other comprehensive income and are not designated as of fair value through
other comprehensive income are classified as financial assets measured at fair value with changes
included in the current profit and loss.
131 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group uses fair value for subsequent measurement of these financial assets and recognizes
gains or losses arising from changes in fair value as well as dividend and interest income related to
these financial assets in profit or loss for the current period.The Group reports these financial assets under the items of trading financial assets and other
non-current financial assets according to their liquidity.
5) Financial assets designated as the financial assets measured at fair value with changes included
in the current profit and loss
At initial recognition the Group may irrevocably designate financial assets as financial assets
measured at fair value with changes included in the current profit and loss on an individual basis in order
to eliminate or significantly reduce accounting mismatches.If a hybrid contract contains one or more embedded derivatives and the host contract is not one of
the above financial assets the Group may designate the entire contract as a financial instrument at fair
value through profit or loss. However except for the following situations:
a. The embedded derivatives will not materially alter the cash flows of the hybrid contract.b. When determining for the first time whether a similar hybrid contract needs to be unbundled
little analysis is required to clarify that the embedded derivatives it contains shall not be unbundled. For
example if the embedded loan has an early repayment right that allows the holder to repay the loan early
at an amount close to amortized cost the early repayment right does not need to be spun off.The Group uses fair value for subsequent measurement of these financial assets and recognizes
gains or losses arising from changes in fair value as well as dividend and interest income related to
these financial assets in profit or loss for the current period.The Group reports these financial assets under the items of trading financial assets and other
non-current financial assets according to their liquidity.
(2) Classification recognition and measurement of financial liabilities
The Group classifies a financial instrument or its component parts as a financial liability or an
equity instrument upon initial recognition based on the contractual terms of the financial instrument
issued and the economic substance reflected therein rather than in legal form only taking into account
the definitions of financial liabilities and equity instruments. Financial liabilities are classified on initial
recognition as financial liabilities measured at fair value with changes included in the current profit and
loss other financial liabilities and derivatives designated as effective hedging instruments.Financial liabilities are measured at fair value on initial recognition. For financial liabilities
measured at fair value with changes included in the current profit and loss transaction costs are
recognized directly in profit or loss; for other types of financial liabilities transaction costs are
recognized in the initial recognition amount.The subsequent measurement of financial liabilities depends on their classification.
1) Financial liabilities measured at fair value with changes included in the current profit and loss
Financial liabilities measured at fair value with changes included in the current profit and loss
include financial liabilities held for trading (including derivatives that are financial liabilities) and
financial liabilities measured at fair value with changes included in the current profit and loss on initial
recognition.Financial liabilities are classified as the financial liabilities held for trading if they meet one of the
following conditions: they are assumed principally for the purpose of selling or repurchasing in the near
future; they are part of a centrally managed portfolio of identifiable financial instruments and there is
objective evidence that the enterprise has recently adopted a short-term profit-taking model; they are
derivatives except for those designated as effective hedging instruments and those subject to financial
guarantee contracts. Financial liabilities held for trading (including derivatives that are financial
liabilities) are subsequently measured at fair value with all changes in fair value recognized in profit or
loss except for those related to hedge accounting.At initial recognition in order to provide more relevant accounting information the Group
irrevocably designates financial liabilities as financial liabilities measured at fair value with changes
included in the current profit and loss if they meet one of the following conditions:
a. Eliminating or significantly reducing accounting mismatches.b. Managing and evaluating the performance of a portfolio of financial liabilities or a portfolio of
financial assets and financial liabilities on a fair value basis in accordance with an enterprise risk
management or investment strategy as set out in a formal written document and reporting to key
management personnel within the enterprise on this basis.
132 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group subsequently measures such financial liabilities at fair value with changes in fair value
recognized in profit or loss except for changes in fair value arising from changes in the Group's own
credit risk which are recognized in other comprehensive income. The Group recognizes all fair value
changes (including the effect of changes in the Group's own credit risk) in profit or loss unless the
recognition of fair value changes in other comprehensive income caused by changes in the Group's own
credit risk would result in an accounting mismatch in profit or loss or would magnify the accounting
mismatch in profit or loss.
(2) Other financial liabilities
Except for the following items the Company classifies its financial liabilities as financial liabilities
measured at amortized cost which are subsequently measured at amortized cost using the effective
interest method with gains or losses arising from derecognition or amortization recognized in profit or
loss for the current period.a. Financial liabilities measured at fair value with changes included in the current profit and loss.b. Financial liabilities resulting from transfers of financial assets that do not meet the conditions for
derecognition or from continuing involvement in the transferred financial assets.c. Financial guarantee contracts that do not fall into the first two categories of this article and loan
commitments to lend at below-market interest rates that do not fall into category 1) of this article.A financial guarantee contract is a contract that requires the issuer to pay a specified amount of
money to the holder of the contract who suffers a loss when a specified debtor fails to make payments
when due in accordance with the terms of the original or modified debt instrument. Financial guarantee
contracts that are not financial liabilities designated as of fair value through profit or loss are measured
at the higher of the amount of the allowance for losses and the amount initially recognized net of
accumulated amortization over the guarantee period after initial recognition.
(3) Derecognition of financial assets and financial liabilities
1) A financial asset is derecognized i.e. removed from the accounts and balance sheet when one
of the following conditions is met.a. The contractual right to receive cash flows from the financial asset is terminated.b. The financial asset is transferred and the transfer meets the requirements for derecognition of
financial assets.
2) Conditions for derecognition of financial liabilities
A financial liability (or a portion of a financial liability) is derecognized when the present
obligation of the financial liability (or the portion of the financial liability) has been discharged.If the Group enters into an agreement with the lender to replace the original financial liability by
assuming a new financial liability and the contractual terms of the new financial liability are
substantially different from those of the original financial liability or the contractual terms of the
original financial liability (or a portion thereof) are substantially modified the original financial liability
is derecognized and a new financial liability is recognized at the same time. The difference between the
book value and the consideration paid (including non-cash assets transferred or liabilities assumed) is
recognized in profit or loss.When the Group repurchases a portion of a financial liability the Group allocates the book value of
the financial liability as a whole according to the proportion that the fair value of the continuing portion
and the derecognized portion of the financial liability bears to the fair value of the financial liability as a
whole at the date of buyback. The difference between the book value allocated to the derecognized
portion and the consideration paid (including non-cash assets transferred or liabilities assumed) shall be
recognized in profit or loss.
(4) Basis of recognition and measurement of transfer of financial assets
The Group assesses the extent to which it retains the risks and rewards of ownership of a financial
asset when a transfer of a financial asset occurs and handles the transfer in each of the following
situations:
1) If substantially all the risks and rewards of ownership of a financial asset are transferred the
financial asset is derecognized and the rights and obligations arising from or retained in the transfer are
separately recognized as assets or liabilities.
2) If substantially all the risks and rewards of ownership of the financial asset are retained the
financial asset continues to be recognized.
3) If neither the transfer nor substantially all the risks and rewards of ownership of the financial
asset are retained (i.e. in cases other than those in 1) and 2)) the financial asset is recognized and
treated as follows depending on whether or not control over the financial asset is retained:
133 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
a. If control over the financial asset is not retained the financial asset is derecognized and the rights
and obligations arising from or retained in the transfer are recognized separately as assets or liabilities.b. If control over the financial asset is retained the financial asset continues to be recognized to the
extent of its continuing involvement in the transferred financial asset and the related liability is
recognized accordingly. The extent to which the Group continues to be involved in the transferred
financial asset is the extent to which it bears the risk or rewards of changes in the value of the transferred
financial asset.In determining whether a transfer of financial assets meets the above conditions for derecognition
of financial assets the principle of substance over form is applied.The Company distinguishes between transfers of financial assets as a whole and partial transfers of
financial assets:
1) If the transfer of financial assets as a whole meets the conditions for derecognition the
difference between the following two amounts is recognized in profit or loss:
a. The book value of the transferred financial asset at the date of derecognition.b. The sum of the consideration received for the transfer of the financial asset and the amount of the
derecognized portion of the cumulative change in the fair value of the transferred financial asset that is
recognized in other comprehensive income (the transferred financial asset is a financial asset at fair
value through other comprehensive income).
2) If part of a financial asset is transferred and the transferred part meets the conditions for
derecognition the book value of the financial asset as a whole before the transfer is apportioned between
the derecognized part and the derecognized part (in which case the retained service asset shall be
regarded as a part of the derecognized financial asset) in accordance with their respective relative fair
values at the date of transfer and the difference between the following amounts is recognized in the
profit or loss for the current period:
a. The book value of the derecognized portion at the date of derecognition.b. The sum of the consideration received for the derecognized portion and the amount
corresponding to the derecognized portion of the cumulative changes in fair value previously recognized
in other comprehensive income (involving transfers of financial assets measured at fair value with the
changes included in other comprehensive income).If the transfer of a financial asset does not meet the conditions for derecognition the financial asset
continues to be recognized and the consideration received is recognized as a financial liability.
(5) Methods of determining the fair value of financial assets and liabilities
The fair value of a financial asset or a financial liability for which there is an active market is
determined using quoted prices in an active market unless there is a period of restriction on the sale of
the financial asset. The fair value of a financial asset that is subject to a sales restriction on the asset
itself is determined based on quoted prices in an active market less the amount of compensation that a
market participant would require to assume the risk of not being able to sell the financial asset in the
open market within a specified period of time. Quoted prices in active markets include quoted prices for
the relevant assets or liabilities that are readily and regularly available from exchanges dealers brokers
industry groups pricing agencies or regulatory bodies etc. and that are representative of actual and
regularly occurring market transactions on an arm's length basis.The fair value of financial assets or liabilities that are initially acquired or derived from financial
assets or liabilities assumed is determined on the basis of quoted market prices.The fair value of financial assets or financial liabilities for which no active market exists is
determined using valuation techniques. In valuing financial assets or financial liabilities the Group uses
valuation techniques that are appropriate in the circumstances and supported by sufficient available data
and other information and selects inputs that are consistent with the characteristics of the assets or
liabilities that would be considered by a market participant in a transaction for the relevant assets or
liabilities giving priority to the use of relevant observable inputs where possible. Unobservable inputs
are used where relevant observable inputs are not available or practicable to obtain.
(6) Impairment of financial instruments
The Group applies impairment accounting for financial assets carried at amortized cost financial
assets classified as of fair value through other comprehensive income lease receivables contract assets
loan commitments that are not financial liabilities measured at fair value with changes included in the
current profit and loss financial liabilities that are not financial liabilities measured at fair value with
changes included in the current profit and loss and financial guarantee contracts that do not meet the
conditions for derecognition due to the transfer of financial assets or financial liabilities arising from
134 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
continued involvement in the transferred financial assets based on expected credit losses and recognizes
a loss provision.Expected credit losses are the weighted average of credit losses on financial instruments that are
weighted by the risk of default. Credit loss is the difference between all contractual cash flows
receivable and all cash flows expected to be received by the Group under the contract discounted at the
original effective interest rate i.e. the present value of all cash shortfalls. Financial assets purchased or
originated by the Group that are credit-impaired are discounted at the financial asset's credit-adjusted
effective interest rate.For receivables contract assets and lease receivables arising from transactions governed by the
Income Standards the Group applies a simplified measurement approach and measures the allowance
for losses as an amount equal to the expected credit losses over the life of the asset.For purchased or originated financial assets that are impaired only the cumulative change in
expected credit losses over the life of the asset since initial recognition is recognized as a loss allowance
at the balance sheet date. At each balance sheet date the amount of the change in expected credit losses
for the entire duration of the asset is recognized as an impairment loss or gain in profit or loss. Even if
the expected credit losses determined at that balance sheet date are less than the amount of expected
credit losses reflected in the estimated cash flows at the time of initial recognition the favorable change
in expected credit losses is recognized as an impairment gain.For financial assets other than the above simplified measurement method and purchased or
originated financial assets that have been impaired the Group assesses at each balance sheet date
whether the credit risk of the relevant financial instruments has increased significantly since the initial
recognition and measures the allowance for losses recognizes expected credit losses and the changes in
expected credit losses in accordance with the following scenarios:
1) If the credit risk of the financial instrument has not increased significantly since initial
recognition and is in the first stage the allowance for losses is measured at an amount equal to the
expected credit losses of the financial instrument in the next 12 months and interest income is calculated
on the basis of the book balance and the effective interest rate.
2) If the credit risk of the financial instrument has increased significantly since initial recognition
but credit impairment has not yet occurred in the second stage the Group measures the allowance for
losses at an amount equal to the expected credit losses for the entire duration of the financial instrument
and calculates interest income based on the book value and the effective interest rate.
3) If the financial instrument has been impaired since initial recognition in the third stage the
Group measures the allowance for credit losses at an amount equal to the expected credit losses over the
life of the financial instrument and calculates interest income at amortized cost and effective interest
rate.Any increase or reversal of the allowance for credit losses on financial instruments is recognized as
an impairment loss or gain in profit or loss. The allowance for credit losses is offset against the book
value of the financial asset except for financial assets classified as of fair value through other
comprehensive income. For financial assets classified as of fair value through other comprehensive
income the Group recognizes the allowance for credit losses in other comprehensive income which
does not reduce the book value of the financial assets in the balance sheet.If the Group has measured the allowance for losses in a previous accounting period at an amount
equal to the expected credit losses over the entire life of the financial instrument but at the current
balance sheet date the financial instrument no longer represents a significant increase in credit risk since
initial recognition the Group measures the allowance for losses for the financial instrument at an amount
equal to the expected credit losses over the next 12 months at the current balance sheet date. The
reversal of the resulting loss provision is recognized as an impairment loss.
1) Significant increase in credit risk
The Group uses available reasonable and reliable forward-looking information to determine
whether there has been a significant increase in the credit risk of a financial instrument since initial
recognition by comparing the risk of default at the balance sheet date with the risk of default at the date
of initial recognition. For financial guarantee contracts the Group applies the provisions for impairment
of financial instruments by considering the date on which the Group became a party to the irrevocable
commitment as the initial recognition date.The Group considers the following factors when assessing whether there has been a significant
increase in credit risk:
a. Whether there has been a significant change in the debtor's operating results actual or expected;
135 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
b. Whether there has been a significant adverse change in the regulatory economic or technological
environment in which the debtor operates;
c. Whether there has been a significant change in the value of the collateral pledged as security for
the debt or in the quality of guarantees or credit enhancements provided by third parties which is
expected to reduce the debtor's financial incentive to repay the debtor within the contractual timeframe
or affect the probability of default; and
d. Whether there has been a significant change in the debtor's expected performance and repayment
behavior;
e. Changes in the Group's approach to credit management of financial instruments.At the balance sheet date if the Group determines that a financial instrument has only low credit
risk the Group assumes that there has been no significant increase in the credit risk of the financial
instrument since initial recognition. A financial instrument is considered to have low credit risk if the
risk of default is low the borrower's ability to meet its contractual cash flow obligations in the short term
is high and the borrower's ability to meet its contractual cash flow obligations may not necessarily be
reduced by unfavorable changes in the economic situation and business environment in the long term.
2) Financial assets that have suffered credit impairment
A financial asset is impaired when one or more events that have an adverse effect on the expected
future cash flows of the financial asset occur. Evidence that a financial asset is impaired includes
observable information such as
a. Significant financial difficulty of the issuer or debtor; or
b. A breach of contract by the debtor such as a default or delinquency in interest or principal
payments; or
c. The creditor has made concessions to the debtor that the debtor would not have made otherwise
because of economic or contractual considerations related to the debtor's financial difficulties;
d. The debtor is likely to enter into bankruptcy or other financial reorganization;
e. The disappearance of an active market for the financial asset as a result of financial difficulties of
the issuer or the debtor; or
f. A financial asset is purchased or acquired at a significant discount that reflects the fact that a
credit loss has been incurred.The occurrence of a credit impairment of a financial asset may be the result of a combination of
events and not necessarily the result of separately identifiable events.
3) Determination of expected credit losses
The Group assesses expected credit losses on financial instruments on an individual and portfolio
basis. In assessing expected credit losses the Group takes into account reasonable and supportable
information about past events current conditions and forecasts of future economic conditions.The Group categorizes financial instruments into different portfolios based on common credit risk
characteristics. The common credit risk characteristics adopted by the Group include: ageing portfolio
construction bidding deposit receivables within the scope of consolidation etc. The individual
evaluation criteria and portfolio credit risk characteristics of related financial instruments are described
in the accounting policies of related financial instruments.The Group determines the expected credit losses of related financial instruments in accordance with
the following methods.a. For financial assets credit losses represent the present value of the difference between the
contractual cash flows to be received by the Group and the cash flows expected to be received.b. For lease receivables the credit loss is the present value of the difference between the contractual
cash flows to be received by the Group and the cash flows expected to be received.c. For financial guarantee contracts the credit loss is the present value of the difference between the
amount the Group expects to pay to the holder of the contract in respect of credit losses incurred by the
holder of the contract less the amount the Group expects to collect from the holder of the contract the
debtor or any other party.d. For financial assets that are impaired at the balance sheet date but not purchased or originated
the credit loss is the difference between the book balance of the financial asset and the present value of
the estimated future cash flows discounted at the original effective interest rate.The Group's method of measuring expected credit losses on financial instruments reflects factors
such as: an unbiased probability-weighted average amount determined by evaluating a range of possible
outcomes; the time value of money; and reasonable and substantiated information about past events
136 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
current conditions and projections of future economic conditions that is available at the balance sheet
date without undue additional cost or effort.
4) Write-down of financial assets
When the Group no longer has a reasonable expectation that the contractual cash flows of a
financial asset will be recovered in whole or in part the book value of the financial asset is written down
directly. Such write-downs constitute derecognition of the related financial assets.
(7) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not
offset. However if the following conditions are met they are presented in the balance sheet as net
amounts after offsetting:
1) The Group has a legal right to offset the recognized amounts and the legal right is currently
enforceable; and
2) The Group intends to settle the net amount or to realize the financial asset and settle the
financial liability at the same time.
12. Bills receivable
√ Applicable□ N/A
Categories of bad debt provision according to credit risk characteristics and the basis of
determination
√ Applicable□ N/A
When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at the
level of individual instruments the Group classifies bills receivable into certain portfolios based on
credit risk characteristics with reference to historical credit loss experience current conditions and
judgment of future economic conditions and calculates expected credit losses on a portfolio basis. The
basis for determining the portfolio is as follows:
Risk portfolio Basis of portfolio determination Method of calculation
The risk characteristics of
Commercial acceptances commercial acceptances are Expected credit losses are
(portfolio 1) substantially the same as those of accrued by reference to accountsaccounts receivable for similar receivable.contracts.The acceptors have high
credit ratings no historical Expected credit losses are
Bank acceptance bill portfolio defaults very low risk of credit measured based on historical
(portfolio 2) loss and strong ability to fulfill credit loss experience currenttheir obligations to pay conditions and expectations of
contractual cash flows in the short future economic conditions.term.Ageing method for recognizing a portfolio of credit risk characteristics based on the age of the
accounts.√ Applicable□ N/A
For commercial paper receivables the expected credit loss accrual method is based on the bad debt
policy for accounts receivable and the aging point of commercial paper receivables is retroactively
adjusted to the aging point of the corresponding accounts receivable.Judgmental criteria for individual provisioning according to individual provisioning for bad
debts
√ Applicable□ N/A
If there is objective evidence that an item is impaired the Group makes a provision for bad debts
and recognizes expected credit losses for that item.
13. Accounts receivable
√ Applicable□ N/A
137 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Categories of bad debt provision according to credit risk characteristics and the basis of
determination
√ Applicable□ N/A
The Group provides for expected credit losses on an individual basis for accounts receivable with
significantly different credit risks from those of the portfolio. The Group determines credit losses
separately for receivables for which sufficient evidence of expected credit losses can be assessed at a
reasonable cost at the level of individual instruments.When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost for an
individual instrument the Group divides accounts receivable into portfolios based on credit risk
characteristics by reference to historical credit loss experience current conditions and judgment of future
economic conditions and calculates expected credit losses on the basis of the portfolios. The basis for
determining the portfolio is as follows:
Risk portfolio Segmentation of portfolio by credit risk characteristicsbased on ageing of receivables
Portfolio of related party
transactions within the scope of The relationship between the receivable and the
consolidation counterparty is used to characterize the credit risk.Provisioning method for bad debt provisioning by portfolio
Risk portfolio (portfolio 1) Provision for bad debts by ageing analysis method
Portfolio of related party
transactions within the scope of Unless there is evidence of impairment no provision for
consolidation (portfolio 2) bad debts is generally made.Ageing method for recognizing a portfolio of credit risk characteristics based on the age of the
accounts.√ Applicable□ N/A
The Group combines accounts receivable classified as risky portfolios with similar credit risk
characteristics (aging) and estimates the accrual proportion of bad debt for such accounts receivable
based on all reasonable and supportable information including forward-looking information.The following is a table comparing the aging of the accounts receivable - credit risk characteristics
portfolio with the expected credit loss rate over the entire life of the portfolio:
Ageing Expected credit loss rate of accountsreceivable (%)
1-6 months (including 6 months) 3.00
7-12 months (including 12 months) 5.00
1-2 years (including 2 years) 10.00
2-3 years (including 3 years) 20.00
3-4 years (including 4 years) 50.00
4-5 years (including 5 years) 80.00
Above 5 years 100.00
Determination of bad debt provisioning according to individual items Individual item
provisioning judgment criteria
√ Applicable□ N/A
If there is objective evidence that a receivable is impaired the Group makes a separate provision
for bad debts and recognizes expected credit losses on that receivable.
14. Receivables financing
√ Applicable□ N/A
138 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Categories of bad debt provision according to credit risk characteristics and the basis of
determination
√ Applicable□ N/A
For details of the Group's method of determining expected credit losses on receivables financing
and accounting treatment please refer to this Section V.11. (6) Impairment of financial instruments.Ageing method for recognizing a portfolio of credit risk characteristics based on the age of the
accounts.√ Applicable□ N/A
For receivable financing classified as a portfolio the Group calculates the expected credit losses by
referring to the historical credit loss experience taking into account the current situation and the forecast
of the future economic situation through the default risk exposure and the expected credit loss rate for
the entire duration.Judgmental criteria for individual provisioning according to individual provisioning for bad
debts
□ Applicable √ N/A
15. Other receivables
√ Applicable□ N/A
Categories of bad debt provision according to credit risk characteristics and the basis of
determination
√ Applicable□ N/A
For other receivables the Group is unable to obtain sufficient evidence of significant increase in
credit risk at a reasonable cost at the level of individual instruments and it is feasible to assess whether
there is a significant increase in credit risk on a portfolio basis. Therefore the Group groups other
receivables according to the type of financial instruments credit risk ratings initial recognition dates
and remaining contractual maturities as the common risk characteristics and considers them on a
portfolio basis. The Group assesses whether there is a significant increase in credit risk.To measure expected credit losses on a portfolio basis the Group groups the expected credit loss
accrual proportion according to the corresponding ageing credit risk characteristics.Basis of portfolio determination
Risk portfolio The ageing of other receivables is used as the credit riskcharacteristic to classify the portfolio.Portfolio of related party
transactions within the scope of The credit risk characteristics of other receivables are based on
consolidation the relationship between the receivables and the counterparties.Portfolio of risk-free
receivables such as social The credit risk characteristics of other receivables are based on
security receivables the nature of the receivables.Provisioning method for bad debt provisioning by portfolio
Risk portfolio Provision for bad debts by ageing analysis method
Portfolio of risk-free
receivables such as social Unless there is evidence of impairment no provision for bad
security receivables debts is generally made.Portfolio of related party
transactions within the scope of Unless there is evidence of impairment no provision for bad
consolidation debts is generally made.Ageing method for recognizing a portfolio of credit risk characteristics based on the age of
the accounts.√ Applicable□ N/A
139 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group combines other receivables classified as risky portfolios with similar credit risk
characteristics (ageing) and estimates the accrual proportion of bad debt for such other receivables based
on all reasonable and supportable information including forward-looking information.A table comparing the aging of the other receivables - credit risk characteristics portfolio with the
expected credit loss rate over the entire duration is shown below:
Ageing Expected credit loss rate of other receivables (%)
Within 1 year (including 1 year) 5.00
1-2 years (including 2 years) 10.00
2-3 years (including 3 years) 30.00
3-4 years (including 4 years) 50.00
4-5 years (including 5 years) 80.00
Above 5 years 100.00
Judgmental criteria for individual provisioning according to individual provisioning for bad
debts
√ Applicable□ N/A
Other receivables arising from non-operating low-risk businesses are individually impaired
according to the nature of the business.For other receivables secured by mortgage the original value less the recoverable value of the
collateral is recognized as the risk exposure for credit losses.
16. Inventory
√ Applicable□ N/A
Categories of inventories issue valuation method inventory system amortization method of
low-value consumables and packages
√ Applicable□ N/A
The actual cost of inventories issued is measured using the individual valuation method.Recognition criteria and accrual method for provision for decline in value of inventories
√ Applicable□ N/A
Net realizable value is the estimated selling price of inventories in the ordinary course of business
less estimated costs to be incurred to completion estimated selling expenses and related taxes. The net
realizable value of inventories held for the purpose of executing sales or service contracts is calculated
on the basis of the contract price.Categories and basis for determining the provision for decline in value of inventories based on
portfolios and basis for determining the net realizable value of different categories of inventories
√ Applicable□ N/A
The net realizable value of inventories is determined on the basis of reliable evidence obtained
taking into account the purpose of holding the inventories the impact of events after the balance sheet
date and other factors.* The net realizable value of inventories held for sale such as finished goods merchandise and
materials for sale is determined as the estimated selling price of the inventories in the ordinary course of
production and operation less estimated selling expenses and related taxes. The net realizable value of
inventories held for the purpose of executing sales contracts or labor contracts is measured at the
contract price; if the quantity of inventories held exceeds the quantity ordered under the sales contract
the net realizable value of the excess quantity is measured at the normal selling price. The net realizable
value of materials for sale is measured at market price.* The net realizable value of inventories of materials requiring processing is determined in the
normal course of production and operation by the estimated selling price of finished goods produced
less estimated costs to be incurred until completion estimated selling expenses and related taxes. If the
net realizable value of finished goods produced from the materials is higher than the cost the materials
140 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
are measured at cost; if the decrease in the price of the materials indicates that the net realizable value of
the finished goods is lower than the cost the materials are measured at the net realizable value and a
provision for decline in value of inventories is made for the difference.* Provision for decline in value of inventories is generally made on the basis of individual
inventory items; for large quantities of inventories with low unit prices provision is made on the basis of
categories of inventories.* If the factors affecting the write-down of inventories have disappeared as of the balance sheet
date the amount of the write-down is restored and reversed to the extent of the provision for decline in
value of inventories and the amount of the reversal is recognized in profit or loss.Calculation method and basis for determining the net realizable value of each age group of
inventories for which the net realizable value of inventories is recognized based on the age of the
inventories
□ Applicable √ N/A
17. Contract assets
√ Applicable□ N/A
Methods and criteria for recognizing contract assets
√ Applicable□ N/A
A contract asset is a right to receive consideration for merchandise that the Group has transferred to
a client and which depends on factors other than the passage of time. If the Group sells two clearly
distinguishable commodities to a client and has the right to receive payment because one of the
commodities has been delivered but the receipt of such payment is also dependent on the delivery of the
other commodity the Group recognizes the right to receive payment as a contract asset.Categories of bad debt provision according to credit risk characteristics and the basis of
determination
√ Applicable□ N/A
The Group classifies contract assets into portfolios based on credit risk characteristics by reference
to historical credit loss experience current conditions and judgment of future economic conditions and
calculates expected credit losses on the basis of the portfolios. The basis for determining the portfolio is
as follows:
Risk portfolio Basis of portfolio determination Method of calculation
The risk characteristics of Provision for expected
Outstanding guarantee outstanding warranties are substantially credit losses is made by
deposits (portfolio 1) the same as those of accounts receivable reference to accounts
for similar contracts. receivable.Completed unsettled assets
resulting from construction contracts do
not result in true accounts receivable; Expected credit losses
Completed unsettled therefore the expected credit loss rate are measured by reference
assets arising from for completed unsettled assets is to historical credit loss
construction contracts generally no higher than the expected experience taking into
(portfolio 2) credit loss rate for accounts receivable account current conditions
within one year and 0.5% is used as the and expectations of future
expected credit loss rate for the economic conditions.contracted assets
Ageing method for recognizing a portfolio of credit risk characteristics based on the age of the
accounts.√ Applicable□ N/A
For details please refer to Section V.13. Accounts receivable
141 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Determination of bad debt provisioning according to individual items Individual item
provisioning judgment criteria
□ Applicable √ N/A
18. Non-current assets held for sale or disposal groups
□ Applicable √ N/A
Recognition criteria and accounting treatment for non-current assets or disposal groups
classified as held for sale
□ Applicable √ N/A
Recognition criteria and presentation of discontinued operations
√ Applicable□ N/A
Discontinued operation means a separately distinguishable component of the Group that has been
disposed of or classified as held for sale if one of the following conditions is met: (1) The component
represents a separate principal business or a separate principal operating region; (2) The component is
part of an associated plan to dispose of a separate principal business or a separate principal operating
region; and (3) The component is a subsidiary acquired exclusively for resale.In the profit statement the Group has added the items "Net profit from continuing operations" and"Net profit from discontinued operations" to the item "Net profit” reflecting the profit or loss from
continuing operations and the profit or loss from discontinued operations respectively on a net after-tax
basis. Gains and losses related to discontinued operations shall be reported as discontinued operations
and the discontinued operations gains and losses shall be reported for the entire reporting period not
only for the reporting period after it is recognized as discontinued operations.
19. Long-term equity investment
√ Applicable□ N/A
The Group's long-term equity investments are mainly investments in subsidiaries investments in
associates and investments in joint ventures.The Group judges joint control on the basis that all participants or a portfolio of participants
collectively control the arrangement and that the policies governing the activities of the arrangement
must be agreed upon by those participants who collectively control the arrangement.The Group is generally considered to have significant influence over an investee when it owns
directly or indirectly through subsidiaries more than 20% but less than 50% of the investee's voting
rights. If the Group owns less than 20% of the voting power of an investee it is necessary to consider the
facts and circumstances such as having representatives on the board of directors or similar authority of
the investee or participating in the process of formulating the financial and operating policies of the
investee or engaging in significant transactions with the investee or dispatching management personnel
to the investee or providing key technological information to the investee etc. and determine that the
Group has significant influence on the investee.The investee is a subsidiary of the Group if the investor exercises control over the investee.Long-term equity investments acquired through a business combination under the same control are
initially recognized at cost based on the share of the book value of the net assets of the party being
consolidated in the consolidated statements of the party ultimately in control at the date of consolidation.If the book value of the net assets of the party being consolidated is negative at the date of consolidation
the cost of long-term equity investment is determined as zero.Long-term equity investments acquired through a business combination not under common control
are recognized at the cost of the combination.Except for the long-term equity investments acquired through business combination mentioned
above the cost of long-term equity investments acquired by cash payment is based on the actual
purchase price paid; the cost of long-term equity investments acquired by issuance of equity securities is
based on the fair value of the equity securities issued; and the cost of long-term equity investments
invested by investors is based on the value agreed in the investment contract or agreement.The Group's investments in subsidiaries are accounted for using the cost method and investments
in joint ventures and associates are accounted for using the equity method.The book value of long-term equity investments accounted for under the cost method is increased
142 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
by the fair value of additional investment and related party transaction costs incurred when additional
investment is made. Cash dividends or profits declared by the investee are recognized as investment
income at the amount to which they are attributable.The book value of long-term equity investments accounted for under the equity method shall be
increased or decreased accordingly to the changes in the ownership interest of the investee. In
recognizing the share of net profit or loss of an investee the fair value of the identifiable assets of the
investee at the time of investment acquisition is used as the basis for recognizing the net profit of the
investee in accordance with the Group's accounting policies and accounting periods after offsetting the
portion of gains or losses on internal transactions with associates and joint ventures that are attributable
to the investor based on the Group's proportionate interest in the investor's net assets and liabilities.On disposal of long-term equity investments the difference between the book value and the actual
acquisition price is recognized as investment income. For long-term equity investments accounted for
under the equity method other comprehensive income accounted for under the equity method shall be
accounted for on the same basis as the direct disposal of the related assets or liabilities by the investee
upon termination of the equity method and any changes in the equity of the investee due to changes in
the equity of the investee other than net profit or loss other comprehensive income and profit
distribution shall be fully transferred to current investment income upon termination of the equity
method. The entire amount shall be transferred to investment income when the equity method of
accounting is discontinued.If an investee loses joint control or significant influence over the investee due to the disposal of a
portion of the equity investment the remaining equity interest after disposal shall be accounted for in
accordance with the relevant provisions of the Guidelines on the Recognition and Measurement of
Financial Instruments and the difference between the fair value of the remaining equity interest and its
book value at the date of the loss of joint control or significant influence shall be recognized as profit or
loss for the current period. Other comprehensive income recognized as a result of the adoption of the
equity method shall be accounted for on the same basis as the direct disposal of the related assets or
liabilities by the investee and carried forward on a pro rata basis upon the termination of the adoption of
the equity method and all other changes in equity recognized as a result of changes in the investee's
ownership interest other than net profit or loss other comprehensive income and distribution of profits
shall be transferred to investment income on a pro rata basis for the current period.If the investee loses control of a portion of the long-term equity investment due to disposal and the
remaining equity interest after disposal is capable of exercising joint control or significant influence over
the investee it shall be accounted for under the equity method instead and the difference between the
book value of the equity interest disposed of and the disposal consideration shall be recognized in
investment income and the remaining equity interest shall be adjusted as if it were equity-method
accounted for from the time of acquisition; if the remaining equity interest after disposal is not capable
of exercising joint control or significant influence over the investee it shall be accounted for under the
equity method instead. If the remaining equity interest after disposal cannot exercise joint control or
significant influence over the investee the accounting shall be conducted in accordance with the relevant
provisions of the Guidelines on Recognition and Measurement of Financial Instruments and the
difference between the book value of the equity interest disposed of and the consideration for disposal
shall be recognized as investment income while the difference between the fair value of the remaining
equity interest at the date of the loss of control and its book value shall be recognized as profit or loss for
the current period.
20. Investment properties
(1).If the cost measurement model is used:
Depreciation or amortization method
The Group classifies real estate held to earn rentals or for capital appreciation or both as
investment property. The Group uses the cost model to measure investment properties that is use the
cost to subtract the accumulated depreciation amortization and impairment provision and display them
in the balance sheet. The Group depreciates the cost of investment properties net of estimated net
salvage value and accumulated impairment allowances over their useful lives using the average
annualized method. For details of the impairment test method and the method of making provision for
143 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
impairment please refer to Section V.11. (6) Impairment of financial instruments. The useful lives
residual values and annual depreciation rates for each type of investment properties were as follows.Annual
No. Category Depreciable life Estimated(year) salvage value (%) depreciationrate (%)
1 House buildings 20 5-10 4.5-4.75
2 Land use rights 36.75 2.72
21. Fixed assets
(1).Recognition conditions
√ Applicable□ N/A
The Group's fixed assets are tangible assets with the following characteristics i.e. held for use in
the production of goods provision of services leasing or business management and with a useful life of
more than one year.Fixed assets are recognized when it is probable that the economic benefits associated with them
will flow to the Group and their costs can be measured reliably. The Group's fixed assets include
buildings transportation equipment office and electronic equipment.
(2).Depreciation method
√ Applicable□ N/A
Category Depreciation Depreciable life Residual value Annualmethod (year) rate depreciation rate
House Average life 10-20 5-10 4.50-9.50
buildings method
Transportation Average life 4 5 23.75
equipment method
Office and Average life 3 5 31.67
electronic method
equipment
The Group depreciates all fixed assets except for fully depreciated fixed assets that are still in use
and land that is separately accounted for. Average life method is used for depreciation.
22. Construction in progress
√ Applicable□ N/A
(1) Construction in progress is categorized and accounted for by standing items.
(2) Criteria and point in time for carrying forward construction in progress to fixed assets
Construction in progress is recognized as a fixed asset on the basis of all expenditures incurred
before the asset is constructed and brought to its intended state of use. This includes construction
costs the original cost of machinery and equipment other necessary expenses incurred to bring the
construction in progress to its intended state of use as well as borrowing costs incurred before the
asset reaches its intended state of use for borrowing specifically for the project and borrowing costs
incurred for general borrowing used for the project. The Group transfers construction in progress to
property plant and equipment when the project has been installed or constructed to its intended
state of use. Fixed assets that have reached the intended state of use but for which final accounts
have not yet been finalized are transferred to fixed assets from the date they reach the intended state
of use at their estimated value based on the project budget construction cost or actual cost of the
project and depreciation is provided for in accordance with the Group's policy on depreciation of
fixed assets and after final accounts have been finalized the original provisional value is adjusted
according to the actual cost but the amount of depreciation provided for is not adjusted. The
original provisional value will be adjusted according to the actual cost after the completion of the
final accounts without adjusting the depreciation originally provided.
144 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
23. Borrowing costs
√ Applicable□ N/A
(1) Recognition principles and capitalization period for capitalization of borrowing costs
Borrowing costs incurred by the Group for the acquisition construction or production of assets
directly attributable to the assets eligible for capitalization shall be capitalized to the cost of the relevant
assets when the following conditions are simultaneously met:
* Expenditures on assets have been incurred;
* Borrowing costs have been incurred;
* The construction or production activities necessary to bring the asset to its intended state of use
have begun.Other borrowing interests discounts or premiums and exchange differences are recognized in profit
or loss in the period in which they are incurred.The capitalization of borrowing costs is suspended when there is an abnormal interruption in the
construction or production of assets eligible for capitalization for more than three consecutive months.The capitalization of borrowing costs ceases when the assets eligible for capitalization have reached
their intended use or saleable condition; any subsequent borrowing costs are recognized as expenses in
the period in which they are incurred.
(2) Calculation of the capitalization rate and amount of capitalized borrowing costs
If a special loan is borrowed for the purpose of purchasing constructing or producing an asset
eligible for capitalization the capitalized amount of interest expense on the special loan shall be
determined by the actual interest expense incurred on the special loan in this period less the interest
income from depositing the unused borrowed funds in a bank or the investment income from making a
temporary investment.If general borrowings are used for the acquisition construction or production of assets eligible for
capitalization the amount of interest to be capitalized on general borrowings shall be calculated by
multiplying the weighted average amount of cumulative asset expenditures in excess of the portion of
special-purpose borrowings by the capitalization rate of the general borrowings used to calculate the
amount of interest to be capitalized on general borrowings. The capitalization rate is based on the
weighted average interest rate of general borrowings.
24. Biological assets
□ Applicable √ N/A
25. Oil and gas assets
□ Applicable √ N/A
26. Intangible assets
(1). Useful life basis for determining useful life estimation amortization method or review
procedure
√ Applicable□ N/A
Intangible assets including land use rights and software are measured at cost and amortized
equally over their estimated useful lives.
(1) Land use rights
Land use rights are amortized equally over their useful lives of 50 years. If it is difficult to allocate
the purchase price of land and buildings between land use rights and buildings all of them are
recognized as fixed assets.
145 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(2) Computer software
Acquired computer software is capitalized on the basis of the costs incurred to acquire and put into
use the specific software. The related costs are amortized on a straight-line basis over the estimated
useful lives of 2 to 10 years. Costs related to the maintenance of computer software programs are
recognized as expenses as they are incurred.
(3) Periodic review of useful lives and amortization methods
The estimated useful lives and amortization methods of intangible assets with finite useful lives are
reviewed and appropriately adjusted at the end of each year. The Group considers intangible assets for
which the duration of future economic benefits is not foreseeable as intangible assets with indefinite
useful lives and does not amortize such intangible assets. As of the end of the reporting period the
Group had no intangible assets with indefinite useful lives. Expenditures on the Group's internal R&D
projects are recognized in profit or loss as incurred.
(4) Impairment of intangible assets
When the recoverable amount of an intangible asset is less than its book value the book value is
written down to the recoverable amount.
(2). Scope of attribution of R&D expenditures and related accounting treatment
√ Applicable□ N/A
The specific criteria for distinguishing between the research phase and the development phase of
internal R&D projects are as follows:
* The Group classifies preparatory activities which are conducted for further development
including data and related aspects as the research phase. Expenditures incurred during the research
phase of intangible assets are recognized in profit or loss as incurred.* The Group classifies development activities which are commenced after the completion of
research phase as the development phase.Specific conditions for capitalizing development phase expenditures:
Only when the expenditures in the development stage meet the following conditions can they be
recognized as intangible assets:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. Having the intention to complete the intangible asset and use or sell it;
C. The ways in which intangible assets generate economic benefits including the ability to prove
that the products produced by using the intangible assets exist in the market or the intangible assets
themselves exist in the market and the intangible assets will be used internally which can prove their
usefulness;
D. Having sufficient technical financial and other resources to support the development of
intangible assets and having the ability to use or sell the intangible assets;
E. Expenditure attributable to the development stage of intangible assets can be measured reliably.
27. Impairment of long-term assets
√ Applicable□ N/A
The Group examines items such as long-term equity investments property and equipment
construction in progress right-of-use assets and intangible assets with finite useful lives at each balance
sheet date and performs impairment tests when there are indications of impairment. Goodwill and
intangible assets with indefinite useful lives are tested for impairment at the end of each year regardless
of whether there is any indication of impairment.The recoverable amount is determined as the higher of the asset's fair value less costs of disposal
and the present value of the asset's estimated future cash flows. The Group estimates the recoverable
amount of an asset on an individual basis; if it is difficult to estimate the recoverable amount of an
individual asset the recoverable amount of an asset group is determined on the basis of the asset group
to which the asset belongs. An asset group is identified on the basis of whether the major cash inflows
from the asset group are independent of those from other assets or groups of assets.When the recoverable amount of an asset or an asset group is less than its book value the Group
writes down its book value to its recoverable amount and the amount of the write-down is recognized in
profit or loss and a corresponding provision for asset impairment is made.
146 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
For the purpose of impairment testing of goodwill the book value of goodwill arising from a
business combination is allocated to the relevant asset group on a reasonable basis from the date of
purchase; if it is difficult to be allocated to the relevant asset group the book value is allocated to a
portfolio of the relevant asset groups. The relevant asset group or portfolio of asset groups is one that can
benefit from the synergies of the business combination and is not larger than the Group's reportable
segments.When testing for impairment of the relevant asset group or portfolio of asset groups containing
goodwill if there is any indication of impairment for the asset group or portfolio of asset groups related
to goodwill the asset group or portfolio of asset groups that does not contain goodwill is first tested for
impairment the recoverable amount is calculated and the corresponding impairment loss is recognized.Then carry out impairment test to the asset portfolio or asset portfolio group which contain goodwill
and compare the book value and recoverable amount. If the recoverable amount is lower than the book
value the amount of the impairment loss shall first be offset against the book value of the goodwill
allocated to the asset group or portfolio of assets and then against the book value of the other assets
proportionally according to the proportion of the book value of the other assets excluded from the asset
group or portfolio of assets.If the book value of an asset exceeds its recoverable amount after an impairment test the difference
is recognized as an impairment loss which is not reversed in subsequent periods.
28. Long-term unamortized expenses
√ Applicable□ N/A
Long-term amortized expenses are expenses incurred by the Group but shall be borne by the Group
in the current and future periods with an amortization period of more than one year. Long-term
amortization expenses These expenses are amortized equally over the period of benefit. If a long-term
amortized expense item does not benefit a future accounting period the amortized value of the item that
has not been amortized is transferred to profit or loss for the current period.
29. Contract liabilities
√ Applicable□ N/A
Contract liabilities reflect the Group's obligations to transfer goods to clients for consideration
received or receivable from clients. If the client has paid the contractual consideration or the Group has
obtained the unconditional right to receive the contractual consideration before the Group transfers the
goods to the client contract liabilities are recognized for the amount received or receivable at the earlier
of the actual payment made by the client and the amount due.
30. Employee remuneration
(1). Accounting treatment of short-term remuneration
√ Applicable□ N/A
The Group's employee remuneration includes short-term remuneration post-employment benefits
and termination benefits.Short-term remuneration mainly includes employees' salaries welfare fees and housing fund.Short-term remuneration actually incurred during the accounting period in which the employees render
services is recognized as a liability and charged to current profit or loss or the cost of the relevant assets
according to the beneficiary.
(2). Accounting treatment of post-employment benefits
√ Applicable□ N/A
Post-employment benefits mainly include basic pension insurance premiums unemployment
insurance etc. which are categorized as defined contribution plans in accordance with the risks and
obligations assumed by the Company. Contributions to a defined contribution plan are recognized as a
liability at the balance sheet date on the basis of contributions made to a separate entity in exchange for
services rendered by employees during the accounting period and are recognized in profit or loss or at
147 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
the cost of the related assets depending on the beneficiary.
(3). Accounting treatment of termination benefits
□ Applicable √ N/A
(4). Accounting treatment of other long-term employee benefits
□ Applicable √ N/A
31. Anticipation liabilities
√ Applicable□ N/A
The Group recognizes a projected liability when the obligation relating to the contingency is a
present obligation incurred by the Group it is probable that the performance of the obligation will result
in an outflow of economic benefits to the Group and the amount can be measured reliably. A projected
liability is initially measured at the best estimate of the expenditure required to settle the present
obligation. Where the effect of the time value of money is material the projected liability is determined
on the basis of the discounted amount of the expected future cash flows. In determining the best estimate
the Group considers a portfolio of factors such as the risks and uncertainties associated with the
contingency and the time value of money. Where there is a continuous range of required expenditures
and the likelihood of each outcome within that range is equal the best estimate is determined at the
midpoint of the range; in other cases the best estimate is treated as follows:
- Where the contingency relates to a single item it is determined on the basis of the most probable
amount to be incurred.- Where a contingency relates to more than one item it is determined on the basis of various
possible outcomes and related probabilities.The Group reviews the book value of the estimated liability at the balance sheet date and adjusts the
book value to the current best estimate.
32. Share-based payment
√ Applicable□ N/A
(1) Types of share-based payment and accounting treatment
Share-based payment is a transaction in which a company grants an equity instrument or assumes a
liability determined on the basis of an equity instrument in order to obtain services from employees.Share-based payment is categorized into equity-settled share-based payment and cash-settled
share-based payment.
1) Equity-settled share-based payment
Stock option plans are equity-settled share-based payments in exchange for services rendered by
employees and are measured at the fair value of the equity instruments granted to employees at the grant
date. Options may be exercised only upon completion of services or fulfillment of specified performance
conditions during the waiting period. During the waiting period based on the best estimate of the
number of equity instruments that can be exercised the services acquired in this period are recognized in
the related costs or expenses at the fair value of the equity instruments on the grant date and the capital
surplus is increased accordingly.
2) Cash-settled share-based payment
The stock appreciation rights plan is a cash-settled share-based payment which is measured at the
fair value of the liability assumed by the Company based on the number of shares of the Company. The
cash-settled share-based payment is subject to the completion of services or the fulfillment of
performance conditions during the waiting period. At each balance sheet date during the waiting period
based on the best estimate of the feasibility of the rights the services acquired in this period are
recognized as a cost or expense at the amount of the fair value of the liabilities assumed by the Company
and the liabilities are increased accordingly. The fair value of the liability is remeasured at each balance
sheet date until the liability is settled and at the date of settlement with the change recognized in profit
or loss.
(2) Method of determining the fair value of equity instruments
The fair value of shares granted to employees is measured at the market price of the Company's
shares adjusted to take into account the terms and conditions under which the shares were granted
(excluding the conditions for exercising the rights other than market conditions).
148 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
For stock options granted to employees the fair value of the options granted is estimated using an
option pricing model.
(3) Basis for recognizing the best estimate of feasible equity instruments
At each balance sheet date during the waiting period the number of equity instruments expected to
become exercisable is revised by making a best estimate based on the latest available subsequent
information such as changes in the number of employees with exercisable rights.
(4) Handling of modification and termination of the share-based payment plan
If the modification of a share-based payment plan increases the fair value of the equity instruments
granted the increase in services received shall be recognized accordingly to the increase in the fair value
of the equity instruments.If a modification of a share-based payment plan increases the number of equity instruments granted
the increase in the fair value of the equity instruments shall be recognized as an increase in services
received accordingly.If the conditions for exercising rights are modified in a way that is favorable to the employee such
as shortening the waiting period or changing or eliminating performance conditions (instead of market
conditions) the company takes the modified conditions into account when dealing with the conditions
for exercising rights.If the terms and conditions are modified in a manner that reduces the total fair value of the
share-based payment or is otherwise unfavorable to the employee the services received continue to be
accounted for as if the change had never occurred unless some or all of the equity instruments granted
are canceled.If the granted equity instruments are canceled during the waiting period the canceled equity
instruments are treated as accelerated exercise and the remaining amount to be recognized during the
waiting period is immediately recognized in profit or loss and capital surplus is recognized. If the
employees or other parties can choose to meet the non-optional conditions but fail to do so within the
waiting period the cancellation is treated as a cancellation of the granted equity instruments.
33. Preferred stock perpetual bonds and other financial instruments
□ Applicable √ N/A
34. Revenue
(1). Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business
√ Applicable□ N/A
The Group recognizes revenue when it has fulfilled its performance obligations under a contract i.e.when the client obtains control of the related goods or services.If a contract contains two or more performance obligations the Group allocates the transaction
price to each individual performance obligation on the basis of the relative proportion of the individual
selling price of the goods or services promised under each individual performance obligation at the
inception date of the contract and measures revenue on the basis of the transaction price allocated to
each individual performance obligation. For contracts with quality assurance clauses the Group analyzes
the nature of the warranty provided and treats the warranty as a separate performance obligation if the
warranty provides a separate service from guaranteeing to the client that the goods sold meet the
established standards. Otherwise the Group accounts for them in accordance with the provisions of
ASBE No. 13 -Contingencies.The transaction price is the amount of consideration that the Group expects to be entitled to receive
for the transfer of goods or services to the client excluding amounts received on behalf of third parties.The Group recognizes a transaction price that does not exceed the amount by which it is more likely than
not that a material reversal of the cumulative revenue recognized will not occur when the related
uncertainty is removed. Amounts expected to be returned to clients are recognized as a liability for
returns and are not included in the transaction price.The Group has a performance obligation at a point in time when one of the following conditions is
met; otherwise the Group has a performance obligation at a point in time:
149 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
- The client acquires and consumes the economic benefits arising from the Group's performance at
the same time as the Group's performance;
- The client is able to control the goods under construction in the course of the Group's performance;
- The goods produced in the course of the Group's performance have a non-substitutable use and the
Group is entitled to receive payment for the cumulative portion of performance completed to date
throughout the term of the contract.The Group recognizes revenue on the basis of the progress of performance over a period of time for
performance obligations that are to be fulfilled within that period. When the progress of performance is
not reasonably determinable the Group recognizes revenue on the basis of the amount of costs incurred
until the progress of performance is reasonably determinable provided that the costs incurred by the
Group are expected to be reimbursed.For performance obligations fulfilled at a certain point in time the Group recognizes revenue at the
point in time when the client obtains control of the related goods or services. In determining whether a
client has obtained control of goods or services the Group considers the following indications:
- The Group has a present right to receive payment for the good or service;
- The Group has physically transferred the good to the client;
- The Group has transferred legal title or the principal risks and rewards of ownership of the good to
the client;
- The client has accepted the goods or services etc.The Group accounts for changes in the scope or price of a contract that have been approved by the
parties to the contract separately under the following circumstances:
- If a contract change adds clearly distinguishable goods and contract prices and the new contract
price reflects the separate selling price of the new goods the changed part of the contract is accounted
for as a separate contract;
- If a contract change does not fall into the above category and if the goods transferred or services
provided are clearly distinguishable from those not transferred or provided at the date of the contract
change the original contract is deemed to be terminated and the unperformed portion of the original
contract and the changed portion of the contract are combined and accounted for as part of a new
contract;
- If a contract change does not fall under the above circumstances i.e. if there is no clear
distinction between goods transferred or services provided and goods not transferred or services not
provided at the date of the contract change the changed portion of the contract is accounted for as an
integral part of the original contract and the resulting impact on the recognized revenue is adjusted to
current revenue at the date of the contract change.The right to receive consideration for goods or services that the Group has transferred to a client
(and which is dependent on factors other than the passage of time) is recognized as a contract asset
which is impaired on the basis of expected credit losses. The Group's unconditional right to receive
consideration from clients which is dependent only on the passage of time is presented as receivables.The Group's obligations to transfer goods or services to clients for which the Group has received or shall
receive consideration from the clients are presented as contractual liabilities.The specific accounting policies related to the Group's major revenue-generating activities are
described as follows:
1) Revenue from sales of goods
Revenue is recognized when the Group transfers control of goods to the client upon delivery to the
purchaser and obtains a signed receipt or when the goods are shipped on board a vessel.
2) Revenue from construction
The client controls the merchandise during the construction of the project. Under this type of
contract the relevant goods are constructed in accordance with the client's specifications and if the
client terminates the contract the Group is entitled to receive an amount that compensates it for the costs
incurred and a reasonable profit for the portion of the performance that has been performed to date.Accordingly the Group recognizes revenues and costs associated with the construction of the works over
time. The Group determines the progress of performance based on the proportion of the cumulative
actual contract costs incurred to the estimated total contract costs and recognizes revenue in accordance
with the progress of performance. If revenue is recognized but not yet billed the Group recognizes it as
a contract asset.
150 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(2). The adoption of different operating models for the same type of business involves different
revenue recognition and measurement methods
□ Applicable √ N/A
35. Contract costs
□ Applicable √ N/A
36. Government subsidies
√ Applicable□ N/A
(1) Recognition of government grants
Government grants are recognized only when the following conditions are simultaneously met:
1) The Group is able to fulfill the conditions attached to the government grants;
2) The Group is able to receive government grants.
(2) Measurement of government grants
If government grants are monetary assets they are measured at the amount received or receivable.If the government grants are non-monetary assets they are measured at fair value; if the fair value
cannot be reliably obtained they are measured at a nominal amount of RMB 1.
(3) Accounting treatment of government grants
1) Asset-related government grants
Government grants obtained by the Company for the purpose of purchasing constructing or
otherwise forming long-term assets are classified as asset-related government grants. Asset-related
government grants are recognized as deferred income and recognized in profit or loss in a reasonable
and systematic manner over the useful lives of the related assets. Government grants that are measured
at nominal amounts are recognized directly in profit or loss. If an asset is sold transferred retired or
destroyed before the end of its useful life the unallocated balance of the deferred income is transferred
to profit or loss in the period in which the asset is disposed of.
2) Government grants related to income
Government grants other than those related to assets are classified as revenue-related government
grants. Government grants related to income are accounted for as follows:
Government grants used to compensate the Group for costs or losses incurred in future periods are
recognized as deferred income and recognized in profit or loss in the period in which the costs or losses
are recognized;
For the purpose of compensating the Group for the related costs or losses already incurred they are
recognized directly in profit or loss for the current period.Government grants that contain both asset-related and revenue-related components are accounted
for separately; if it is difficult to distinguish between the two they are categorized as revenue-related
government grants as a whole.Government grants related to the Group's daily activities are recognized in other income in
accordance with the substance of the economic operations. Government grants that are not related to the
Group's daily activities are recognized as non-operating revenue and expenses.
3) Policy-based preferential loan subsidies
If the finance disburses the subsidized interest rate funds to a lending bank and the lending bank
provides loans to the Group at a preferential interest rate the actual amount of the loan received shall be
regarded as the recorded value of the loan and the related borrowing costs shall be calculated on the
basis of the principal amount of the loan and the preferential interest rate of the policy.When the subsidized interest rate funds are directly allocated to the Group by the financial
authorities the Group will offset the corresponding subsidized interest rate against the relevant
borrowing costs.
4) Return of government grants
When recognized government grants are to be returned the book value of the assets shall be
adjusted if the book value of the assets is reduced upon initial recognition; if there is a balance of
deferred income the balance of deferred income shall be reduced and the excess shall be recognized in
profit or loss for the current period; otherwise the balance of deferred income shall be recognized in
profit or loss for the current period directly.
151 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
37. Deferred tax assets/deferred tax liabilities
√ Applicable□ N/A
The Group’s deferred income tax assets and deferred income tax liabilities are calculated and
recognized according to the difference between the tax basis and book values of assets and liabilities
and the difference (temporary difference) between the tax basis and book values of items that are not
recognized as assets and liabilities but whose tax basis can be determined according to the provisions of
tax law.The Group recognizes deferred income tax liabilities for all taxable temporary differences except
the following circumstances: (1) Temporary differences arising from the initial recognition of goodwill
or the initial recognition of assets or liabilities arising from non-business consolidation transactions that
neither affect accounting profits nor taxable income (or deductible losses); (2) For taxable temporary
differences related to investments of subsidiaries associated enterprises and joint ventures the Group
can control the time when the temporary differences have reversal and the temporary differences are
unlikely to have reversal in the foreseeable future.The Group recognizes deferred income tax assets for deductible temporary differences deductible
losses and tax deductions to the extent that it is likely to obtain future taxable income to offset
deductible temporary differences deductible losses and tax deductions: (1) Temporary differences
arising from the initial recognition of assets or liabilities generated by non-business consolidation
transactions that neither affect accounting profits nor taxable income (or deductible losses); (2) The
deductible temporary differences related to the investment of subsidiaries associated enterprises and
joint ventures cannot meet the following conditions at the same time: Temporary differences are likely to
have reversal in the foreseeable future and taxable income used to deduct deductible temporary
differences is likely to be obtained in the future.The Group recognizes deferred income tax assets for all the deductible losses that have not been
utilized to the extent that it is possible to have enough taxable income to offset the deductible losses. The
management estimates the time and amount of taxable income in the future by using a lot of judgments
and determines the amount of deferred income tax assets to be confirmed in combination with tax
planning strategies so there is uncertainty.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the periods when the assets are realized or the liabilities are settled.
38. Leases
√ Applicable□ N/A
At the inception date of a contract the Group assesses whether the contract is a lease or contains a
lease. A contract is a lease or contains a lease if one of the parties to the contract transfers the right to
control the use of one or more identified assets for a period of time in exchange for consideration.
(1) Separation of Lease Contracts
When a contract contains several individual leases the Group splits the contract and accounts for
each individual lease separately. When a contract contains both leases and non-leases the Group splits
the leases and non-leases and the leases are accounted for in accordance with the leasing standards
while the non-leases are accounted for in accordance with other applicable accounting standards.
(2) Consolidation of lease contracts
Two or more contracts containing leases entered into by the Group with the same counterparty or
its affiliates at the same or similar times shall be consolidated into one contract for accounting purposes
when one of the following conditions is met.a. The two or more contracts are entered into for an overall business purpose and constitute a
package transaction the overall business purpose of which cannot be understood unless considered as a
whole.b. The amount of consideration for one of the two or more contracts is dependent on the pricing or
performance of the other contracts.c. The right to use the asset granted by the two or more contracts together constitute a single lease.Basis of judgment and accounting treatment for simplified treatment of short-term leases and
leases of low-value assets as a lessee
152 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
√ Applicable□ N/A
Short-term leases are leases that do not include an option to purchase and have a lease term of less
than 12 months. Low-value asset leases are leases with a lower value when the individual leased asset is
a brand new asset.The Group does not recognize right-of-use assets and lease liabilities for the following short-term
leases and low-value asset leases and the related lease payments are charged to the cost of the related
assets or to current profit or loss on a straight-line basis over the lease term. The Group recognizes
right-of-use assets and lease liabilities for leases other than short-term leases and leases of low-value
assets.Lease classification criteria and accounting treatment as lessor
√ Applicable□ N/A
The Company classifies leases as finance leases and operating leases at the commencement date of
the lease. A finance lease is a lease that transfers substantially all the risks and rewards incidental to
ownership of the leased asset which may or may not ultimately be transferred. Operating leases refer to
leases other than finance leases.Within the reporting period the Company's leases were all operating leases and lease payments
under operating leases were recognized as rental income using the straight-line method or other
systematic and reasonable methods in each period of the lease term: Initial direct costs incurred in
connection with the operating leases were capitalized and apportioned over the lease term on the same
basis as the rental income and were charged to current profit or loss; and variable lease payments
relating to operating leases that were not included in the lease payments were charged to current profit or
loss when they were actually incurred. Variable lease payments relating to operating leases that are not
recognized as lease receipts are recognized in profit or loss when they are actually incurred.
39. Other significant accounting policies and accounting estimates
√ Applicable□ N/A
The preparation of financial statements requires the management of the Group to make estimates
and assumptions that affect the application of accounting policies and the amounts of assets liabilities
income and expenses. Actual results may differ from these estimates. The Group's management
continually evaluates its judgment regarding critical assumptions and uncertainties involved in making
estimates. The effects of changes in accounting estimates are recognized in the period in which the
estimate is changed and in future periods.The following accounting estimates and critical assumptions have a significant risk of causing a
material adjustment to the book value of assets and liabilities in future periods.
(1) Revenue recognition
Under the new revenue standard the Group recognizes revenue from construction contracts over a
period of time. The recognition of revenue and profit from construction depends on the Group's
estimation of the outcome of the contract and the progress of performance. If the actual amount of total
revenues and total costs incurred is higher or lower than management's estimates it will affect the
amount of revenue and profit recognized by the Group in future periods;
(2) Impairment of receivables and contract assets
The Group used the expected credit loss model to assess the impairment of financial instruments
since January 1 2019. The application of the expected credit loss model requires significant judgments
and estimates that take into account all reasonable and supportable information including
forward-looking information. In making such judgments and estimates the Group extrapolates the
expected changes in the credit risk of debtors based on historical repayment data and factors such as
economic policies macroeconomic indicators and industry risks. Therefore the amount of provision for
impairment of receivables and contract assets may change in accordance with the changes in the above
estimates and the adjustments to the provision for impairment of receivables and contract assets will
affect the profit or loss in the period in which the estimates are changed.Accounting estimates for provision for impairment of fixed assets and investment properties
The Group performs impairment tests on fixed assets such as buildings machinery and equipment
and investment properties at the balance sheet date if there is any indication of impairment. The
recoverable amount of property plant and equipment and investment properties is the higher of the
153 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
present value of estimated future cash flows and the fair value of the assets less costs of disposal which
requires the use of accounting estimates.If management revises the gross margins used in the calculation of future cash flows for asset
groups and portfolios of asset groups and the revised gross margins are lower than the currently used
gross margins the Group is required to increase the provision for impairment for property plant and
equipment and investment properties.If the pre-tax discount rate used for discounting cash flows is revised by the management and the
revised pre-tax discount rate is higher than the current rate the Group is required to make additional
provision for impairment of fixed assets and investment properties.If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's
estimate the Group cannot reverse the provision for impairment of fixed assets and investment
properties.
(4) Useful lives of fixed assets and investment properties
The Group reviews the estimated useful lives of fixed assets and investment properties at least
annually at the end of each year. The estimated useful lives are determined by the management based on
historical experience of similar assets reference to estimates generally used in the industry and expected
technological updates. Depreciation and amortization expenses for future periods are adjusted
accordingly when there is a significant change in the previous estimates.
(5) Income tax expense
The Group recognizes current and deferred taxes in profit or loss except for those arising from
business combinations and transactions or events directly attributable to owners' equity (including other
comprehensive income).Current income tax is the expected income tax payable calculated on the basis of the taxable
income for the year at the rates specified in the tax law plus adjustments to prior years' income tax
payable. At the balance sheet date if the Group has a legal right to settle on a net basis and intends to
settle on a net basis or to acquire assets and settle liabilities simultaneously current income tax assets
and current income tax liabilities are shown net of tax. Deferred tax assets and deferred tax liabilities are
recognized for deductible temporary differences and taxable temporary differences respectively. A
temporary difference is the difference between the book value of an asset or liability and its tax basis
including deductible losses and tax credits that can be carried forward to future years. Deferred tax
assets are recognized to the extent that it is probable that taxable income will be available against which
the deductible temporary differences can be utilized. Deferred tax is not recognized for temporary
differences arising from transactions that are not part of a business combination and that at the time of
the transaction affect neither the accounting profit nor taxable income (or deductible losses). At the
balance sheet date the Group measures the book value of deferred tax assets and liabilities based on the
expected manner of recovering or settling those assets and liabilities in accordance with enacted tax
laws at the tax rates that are expected to apply to the period when the assets are recovered or the
liabilities are settled. The book value of deferred tax assets is reviewed at the balance sheet date. The
book value of deferred tax assets is written down to the extent that it is more likely than not that
sufficient taxable income will not be available to allow the benefit of the deferred tax assets to be
realized in future periods. When it is more likely than not that sufficient taxable income will be available
to offset the deferred tax assets the amount written down is reversed.On the balance sheet date deferred tax assets and liabilities are netted out when the following
conditions are met:
-A taxable entity has a legal right to settle current income tax assets and current income tax
liabilities on a net basis;
-Deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax
authority on the same taxable entity or on different taxable entities provided that in each future period in
which significant deferred tax assets and liabilities reverse the taxable entity intends to settle the current
tax assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.
40. Changes in significant accounting policies and accounting estimates
(1).Changes in significant accounting policies
□ Applicable √ N/A
154 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(2).Changes in significant accounting estimates
□ Applicable √ N/A
(3).Adjustments to the financial statements as of the beginning of the year of first-time
implementation of new accounting standards or interpretations of accounting standards for
the first-time implementation of new accounting standards or interpretations of accounting
standards from 2024 onwards
□ Applicable √ N/A
41. Others
√ Applicable□ N/A
(1) Special reserves
The Administrative Measures for the Extraction and Use of Enterprise Safety Production Fees (CZ
No.136 [2022]) was released on and implemented as of November 21 2022 by the Ministry of Finance
and Ministry of Emergency Management. The Group extracted and used safety production fees
according to the provisions of CZ No.136 [2022].The Group's production safety fees when being extracted are recognized as the cost of the relevant
products or current profit or loss and at the same time are included in the “special reserves”.When the extracted safety production fees are used within the prescribed scope and belong to cost
expenditure the special reserves will be directly reduced. If the fixed assets are formed the expenditures
incurred through the subject of "construction in progress" will be recognized as fixed assets when the
project is completed and reaches the scheduled usable state; meanwhile the cost of forming the fixed
asset is deducted from the special reserves and accumulated depreciation of the same amount is
recognized. No depreciation will be accrued against the fixed assets in future periods.
(2) Discontinued operation
Discontinued operation means a separately distinguishable component of the Group that has been
disposed of or classified as held for sale if one of the following conditions is met: (1) The component
represents a separate principal business or a separate principal operating region; (2) The component is
part of an associated plan to dispose of a separate principal business or a separate principal operating
region; and (3) The component is a subsidiary acquired exclusively for resale.In the profit statement the Group has added the items "Net profit from continuing operations" and"Net profit from discontinued operations" to the item "Net profit” reflecting the profit or loss from
continuing operations and the profit or loss from discontinued operations respectively on a net after-tax
basis. Gains and losses related to discontinued operations shall be reported as discontinued operations
and the discontinued operations gains and losses shall be reported for the entire reporting period not
only for the reporting period after it is recognized as discontinued operations.
(3) Segment reporting
The Group determines its operating segments based on its internal organizational structure
management requirements and internal reporting system. Two or more operating segments may be
consolidated into one if they have similar economic characteristics and at the same time are identical or
similar in terms of the nature of the individual products the nature of the production process the types
of clients for the products the manner of selling the products and the impact of laws and administrative
regulations on the products produced. The Group determines its reportable segments on the basis of
operating segments and on the principle of materiality.In preparing segment reports the Group measures revenue from inter-segment transactions on the
basis of actual transaction prices. The accounting policies used in the preparation of segment reports are
consistent with those used in the preparation of the Group's financial statements.VI. Taxation
1. Major tax variety and tax rate
Major tax variety and tax rate
√ Applicable□ N/A
Tax variety Tax basis Tax rate
155 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Value-added tax Based on the provision of technical 3.00-13.00
(VAT) services sale of goods etc.Urban maintenance Levied on the taxable turnover amount 5.00 7.00
and construction tax
Education surcharge Levied on the taxable turnover amount 3.00 2.00
Enterprise income Levied on the taxable income amount Varies by taxing entity
tax
Property tax Property tax is calculated based on the 1.20 12.00
residual value of the property after
deducting 30% of the original value of the
property.Disclosure of taxable entities with different corporate income tax rates
√ Applicable□ N/A
Name of taxable entity Income tax rate(%)
The Company 15
Acter Engineering Technology (Shenzhen) Co. Ltd. (“Acter (Shenzhen)”) 25
Shenzhen Dingmao Trading Co. Ltd. (“Shenzhen Dingmao”) 25
Acter International Limited (“Acter (Hong Kong)”) 16.5
Acter Technology Singapore Pte. Ltd. (“Acter (Singapore)”) 17
PT. Acter Technology Indonesia (“Acter (Indonesia)”) 22
Construction
service income
is collected by
the owner at the
rate of 2.65%
PT Acter Integration Technology Indonesia (“Indonesia Joint Venture”) when invoicing;
non-construction
service income
is normally
subject to the
tax rate of 22%.Acter Technology Malaysia Sdn. Bhd. (“Acter (Malaysia)”) 24
Sheng Huei Engineering Technology Company Limited (“Acter (Vietnam)”) 20
Acter Technology Co. Ltd. (“Acter (Thailand)”) 20
2. Tax incentives
√ Applicable□ N/A
On November 6 2023 the Company obtained the Certificate of High-tech Technology Enterprise
(Certificate No. GR202332006213 valid for three years from 2023 to 2025) jointly issued by Jiangsu
Provincial Department of Science and Technology Jiangsu Provincial Department of Finance and
Jiangsu Provincial Taxation Bureau of the State Administration of Taxation. Within the reporting period
the Company enjoyed a preferential enterprise income tax rate of 15% for high-tech enterprises.
3. Others
□ Applicable √ N/A
4.
156 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
VII. Notes to the Consolidated Financial Statements
1. Monetary fund
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Cash on hand 12187.35 1054977.35
Bank deposits 574883794.76 708941745.68
Other monetary funds 486724.06 12499607.35
Total 575382706.17 722496330.38
Including: Total amount 112491458.54 75264850.68
deposited abroad
Including: Monetary 486724.06 12499607.35
fund with restricted use
Other notes:
Cash on hand does not include digital RMB.Including: Total amount deposited abroad
Items Balance at the end of the year Balance at the beginningof the year
Total amount deposited abroad 112491458.54 75264850.68
Total 112491458.54 75264850.68
Including: Monetary fund with restricted use
Items Balance at the end of the year Balance at the beginningof the year
Margin 486724.06 12499607.35
Total 486724.06 12499607.35
2. Trading financial assets
√ Applicable□ N/A
In RMB Yuan
Reasons and
Items Closing Openingbalance balance justifications fordesignation
Financial assets measured at fair
value with changes included in the 50025000.00 /
current profit and loss
Including:
Structured deposits 50025000.00 /
Refer to the financial assets
measured at fair value with changes
included in the current profit and loss
Including:
Total 50025000.00 /
Other notes:
□ Applicable √ N/A
3. Derivative financial assets
□ Applicable √ N/A
157 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
4. Bills receivable
(1). Classification of bills receivable
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Bank acceptance bill 524477.32 7877956.66
Financial acceptance bill 43500.00
Commercial acceptance 29202873.01 36371094.45
Less: Provision for bad debts 2372177.29 1091132.83
Total 27398673.04 43157918.28
(2). Bills receivable pledged by the Company at the end of the period
□ Applicable √ N/A
(3). Bills receivable endorsed or discounted by the Company at the end of the period and not yet
due at the balance sheet date
√ Applicable□ N/A
In RMB Yuan
Items Amount derecognized at the Amount not derecognized atend of the period the end of the period
Bank acceptance bill 1801557.00
Commercial acceptance 578043.00
Financial acceptance bill 43500.00
Total 1801557.00 621543.00
(4). Disclosure by bad debt accrual method
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Book balance Provision for Book balance Provision forbad debts bad debts
Categ Accru Accru
ory Propo al Book Book
Amount rtion Amoun propo value
Propo
Amount rtion Amoun
al
propo value
(%) t rtion (%) t rtion
(%)(%)
Indiv
idual
provi
sion
for
bad-d
ebt
reser
ves
Including:
158 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Provi
sion
for
bad 29770 100.0 23721 27398 44249 100.0 10911
debts 850.33 0 77.29 7.97 673.04 051.11 0 32.83 2.47
43157
918.28
by
portf
olio
Including:
Portf 29246 98.24 23721olio 1 373.01 77.29 8.11
26874363711091135279
195.72094.4582.2032.833.00961.62
Portf 524477 524477 78779
olio 2 .32 1.76 .32 56.66 17.80
78779
56.66
Total 29770 / 23721 / 27398 44249 10911 43157850.33 77.29 673.04 051.11 / 32.83 / 918.28
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Provision for bad debts by portfolio:
√ Applicable□ N/A
Combined accrual item:Commercial acceptance
In RMB Yuan
Closing balance
Firm name Bills receivable Provision for Accrualbad debts proportion (%)
Within 1 year 29246373.01 2372177.29 7.97
Total 29770850.33 2372177.29 7.97
Explanation for provision for bad debts by portfolio
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit
√ Applicable□ N/A
In RMB Yuan
Phase I Phase II Phase III
Expected credit Expected credit
Provision for bad debts Expected credit losses for the
losses for the
losses for the entire duration entire duration Total
next 12 months (no credit (credit
impairment) impairmentincurred)
Balance as of January 1
20241091132.831091132.83
Balance as of January 1
2024 in this period
--Reversed to Phase II
--Reversed to Phase III
--Reversed to Phase II
--Reversed to Phase I
Provision in this period 1281044.46 1281044.46
Reversal in this period
Write-offs in this period
Cancellations in this period
Other changes
Balance at December 31 2372177.29 2372177.29
159 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2024
The basis for the classification of each stage and the accrual proportion for bad debts
are shown in this section V.12. Bills receivable
Explanation for significant changes in the book balance of bills receivable for which changes in the
allowance for losses occurred in this period:
□ Applicable √ N/A
(5). Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Change in this period
Category Opening Recovery Write-offsbalance Provision or or Other
Closing
reversal cancellations changes
balance
Commercial 1091132.83 1281044.46 2372177.29
acceptance
Total 1091132.83 1281044.46 2372177.29
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6). Actual write-off of bills receivable in this period
□ Applicable √ N/A
Write-off bills receivable of which significant:
□ Applicable √ N/A
Description of bills receivable written off:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
5. Accounts receivable
(1). Disclosure by ageing
√ Applicable□ N/A
In RMB Yuan
Ageing Closing book balance Opening book balance
Within 1 year
Including: Subtotal within 1 year
1-6 months (including 6
months) 300616397.73 338478217.57
6 months - 1 year (including 1
year) 57748153.75 34754229.34
Subtotal within 1 year 358364551.48 373232446.91
1 - 2 years 8953269.95 13065254.41
2 - 3 years 1927008.04 21927201.89
3 - 4 years 11830381.06 14496556.70
160 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
4 - 5 years 3689666.54 8927092.98
Above 5 years 8927092.98 650753.62
Total 393691970.05 432299306.51
(2). Disclosure by bad debt accrual method
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Book balance Provision forbad debts Book balance
Provision for
bad debts
Cate Accr book Accrgory Prop book
Amount ortio Amoun
ual Value Prop ualprop Amount ortio Amoun prop Value
n (%) t ortio n (%) t ortio
n (%) n (%)
Indiv
idual
provi
sion
for 10343 2.63 10343 100.0 10994 2.54 10994 100.0
bad- 414.37 414.37 0 167.99 167.99 0
debt
reser
ves
Including:
Provi
sion
for
bad 383348 97.37 21114 5.51 362233 421305 97.46 24415 5.80 396889debts 555.68 978.11 577.57 138.52 866.26 272.26
by
portf
olio
Including:
Total 393691 / 31458 / 362233 432299 / 35410 396889970.05 392.48 577.57 306.51 034.25 / 272.26
Individual provision for bad-debt reserves:
√ Applicable□ N/A
In RMB Yuan
Closing balance
Firm name Book balance Provision for bad Accrual Reason fordebts proportion (%) provision
Qinghua Group 6570214.37 6570214.37 100.00 Debtor's financial
Xinjiang Coal difficulties
Chemical Industry
Co. Ltd.Suzhou Mingqiao 2158200.00 2158200.00 100.00 Debtor's financial
Municipal difficulties
Engineering Co. Ltd.Fujian Fuchen 1615000.00 1615000.00 100.00 Debtor's financial
Technology Co. Ltd. difficulties
Total 10343414.37 10343414.37 100.00 /
Explanation for bad debt provision by individual item:
√ Applicable□ N/A
161 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
None
Provision for bad debts by portfolio:
√ Applicable□ N/A
Combined accrual item:Ageing portfolio
In RMB Yuan
Firm name Closing balanceAccounts receivable Provision for bad debts Accrual proportion (%)
1-6 months (including 300616397.73 9018492.04 3.00
6 months)
6 months - 1 year 57748153.75 2887407.69 5.00
(including 1 year)
1-2 years (including 2 8953269.95 895327.00 10.00
years)
2-3 years (including 3 1927008.04 385401.61 20.00
years)
3-4 years (including 4 11830381.06 5915190.53 50.00
years)
4-5 years (including 5 1300929.54 1040743.63 80.00
years)
Above 5 years 972415.61 972415.61 100.00
Total 383348555.68 21114978.11
Explanation for provision for bad debts by portfolio:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit
√ Applicable□ N/A
In RMB Yuan
Phase I Phase II Phase III
Expected credit
Provision for Expected credit Expected credit
bad debts losses for the next losses for the
losses for the
entire duration (no entire duration
Total
12 months credit impairment) (credit impairmentincurred)
Balance as of
January 1 2024
Balance as of
January 1 2024 in 35410034.25 35410034.25
this period
--Reversed to
Phase II
--Reversed to
Phase III -650753.62 650753.62
--Reversed to
Phase II
--Reversed to
Phase I
Provision in this
period -3276789.11 -3276789.11
Reversal in this
period
Write-offs in this
period
Cancellations in
this period -650753.62 -650753.62
Other changes -24099.04 -24099.04
162 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Balance at
December 31 31458392.48 31458392.48
2024
The basis for the classification of each stage and the accrual proportion for bad debts
shown in this section V. 13. Accounts receivable
Explanation for significant changes in the book balance of accounts receivable for which changes in the
allowance for losses occurred in this period:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Change in this period
Category Opening Recovery or Write-offs Other Closingbalance Provision reversal or changes balancecancellations
Provision 35410034.25 -3276789.11 -650753.62 -24099.04 31458392.48
for bad
debts
Total 35410034.25 -3276789.11 -650753.62 -24099.04 31458392.48
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(4). Accounts receivable actually written off in this period
□ Applicable √ N/A
Significant accounts receivable written off among them
□ Applicable √ N/A
Description of accounts receivable written off:
□ Applicable √ N/A
(5). Accounts receivable and contract assets with top five closing balances summarized by party
owed to the Company
√ Applicable□ N/A
In RMB Yuan
Percentage of
Closing Closing combined Closing
Unit Name balance of
Closing balance of accounts
accounts balance of accounts receivable and
balance of
receivable contract assets receivable and contract assets
provision for
contract assets closing bad debts
balance (%)
Client 1 268514.26 88312974.05 88581488.31 9.13% 468416.30
Client 2 59020959.86 27513327.48 86534287.34 8.92% 2523320.98
Client 3 85283121.10 85283121.10 8.79% 426415.61
Client 4 42349446.98 25829331.99 68178778.97 7.03% 1399630.07
163 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Client 5 22191342.34 21086714.88 43278057.22 4.46% 1524614.53
Total 123830263.4 248025469.5 371855732.9
40438.33%6342397.49
Other notes:
None
Other notes:
□ Applicable √ N/A
6. Contract assets
(1). Status of contract assets
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Items Book Provision for Provision
balance bad debts Book value Book balance for bad Book valuedebts
Unexpire 17784023.33 997257.82 16786765.51
d 612914
warranty 70.74 7614564.88
53676905.
86
deposits
Complet 410161246.3 2050806.2 408110440.0
ed 2 3 9
unsettled
assets
arising 514801 2574005.81 512227144
from 150.35 .54
construct
ion
contracts
Total 576092 10188570.69 565904050 427945269.6 3048064.0 424897205.6621.09 .40 5 5 0
(2). Amounts and reasons for significant changes in book value within the reporting period
□ Applicable √ N/A
(3). Disclosure by bad debt accrual method
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Category ProvisionBook balance Provision for bad book Book for bad bookdebts Value balance debts Value
164 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
A
c
cr
u
Acc Pr alop pr
Propo rualpro Amou ort Amo oAmount rtion Amount port nt io p(%) untion n or
(%) (% ti) o
n
(
%
)
Individu
al
provision 3110867.1 100.0 3110867. 100
for 0 0 10 .00
bad-debt
reserves
Including:
Unexpire
d 3110867.1 100.0 3110867. 100
warranty 0 0 10 .00
deposits
Provisio
n for bad 572981753 7077703. 1.2 565904 42794 10 3048 0. 42489
debts by .99 99.46 59 4 050.40 5269. 0.0 064. 7 7205.portfolio 65 0 05 1 60
Including:
Unexpire
d 58180603. 17784 5. 16786
warranty 64 10.10
4503697.7.75367694.19972
78405.86023.33657.82
6765.5
deposits 1 1
Complet
ed
unsettled
assets
arising 514801150 89.36 2574005. 0.5 512227
4101620500.40811.35810144.541246.
95.
84 806. 5 0440.from 32 23 0 09
construct
ion
contracts
Total 576092621 / 10188570 565904
42794304842489.09.69/050.405269./064./7205.650560
Individual provision for bad-debt reserves:
√ Applicable□ N/A
In RMB Yuan
Closing balance
Firm name Book balance Provision for bad Accrual Reason fordebts proportion (%) provision
Boyuan Construction 3110867.10 3110867.10 100.00 Debtor bankruptcy
165 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Group Co. Ltd. reorganization
Total 3110867.10 3110867.10 100.00 /
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
√ Applicable□ N/A
Combined accrual item: Combined provision
In RMB Yuan
Firm name Closing balanceContract assets Provision for bad debts Accrual proportion (%)
Unexpired warranty
deposits 61291470.74 7614564.88 12.42
Completed unsettled
assets arising from 514801150.35 2574005.81 0.50
construction contracts
Total 576092621.09 10188570.69
Explanation for provision for bad debts by portfolio
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit
√ Applicable□ N/A
In RMB Yuan
Phase I Phase II Phase III
Expected credit Expected creditlosses for the
Provision for bad debts Expected credit losses for thelosses for the entire duration entire duration Total
next 12 months (no credit (credit
impairment) impairmentincurred)
Balance as of January 1
20243048064.053048064.05
Balance as of January 1
2024 in this period
--Reversed to Phase II
--Reversed to Phase III
--Reversed to Phase II
--Reversed to Phase I
Provision in this period 7174598.08 7174598.08
Reversal in this period
Write-offs in this period
Cancellations in this period
Other changes -34091.44 -34091.44
Balance at December 31
202410188570.6910188570.69
The basis for the classification of each stage and the accrual proportion for bad debts
shown in this section V.17. Contract asset
Explanation for significant changes in the book balance of contract assets for which changes in the
provision for losses occurred in this period:
□ Applicable √ N/A
166 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(4). Provision for bad debts on contract assets in this period
√ Applicable□ N/A
In RMB Yuan
Change in this period
Recover Write-off/cancellat
Items Opening Provision ed or ion in this periodbalance in this reversed Other
Closing Reaso
changes balance nperiod in this
period
Provisi 3048064. 7174598. -34091. 10188570.on for 05 08 44 69
bad
debts
Total 3048064. 7174598. -34091. 10188570. /05 08 44 69
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(5). Contract assets actually written off in this period
□ Applicable √ N/A
Significant contract assets written off
□ Applicable √ N/A
Description of contract assets written off:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
7. Receivables financing
(1). Classification of receivables financing
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Bank acceptance bill 2499031.97 3572953.18
Total 2499031.97 3572953.18
(2). Receivable financing pledged by the Company at the end of the period
□ Applicable √ N/A
(3). Receivable financing endorsed or discounted by the Company at the end of the period and not
yet due at the balance sheet date
□ Applicable √ N/A
(4). Disclosure by bad debt accrual method
√ Applicable□ N/A
167 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
In RMB Yuan
Closing balance Opening balance
Book balance Provision for Book balance Provision for
Catego bad debts boo bad debts boo
ry Accrua k Accrua k
Amount Proport Amo l Val Proport Amo l Valion (%) unt proport ue Amount ion (%) unt proport ue
ion (%) ion (%)
Individ
ual
provisi
on for
bad-de
bt
reserve
s
Including:
Provisi
on for
bad
debts 249903 357295
by 1.97 3.18
portfoli
o
Including:
Portfol 249903 357295
io 2 1.97 3.18
Total 249903 / / 3572951.97 3.18 / /
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
√ Applicable□ N/A
Combined accrual item: Portfolio 2
In RMB Yuan
Closing balance
Firm name Receivable financing
funds Provision for bad debts Accrual proportion (%)
Portfolio 2 2499031.97
Total 2499031.97
Explanation for provision for bad debts by portfolio
√ Applicable□ N/A
Bad debt provisioning by portfolio 2: The Group measured the bad debt reserve of bank acceptance bills
according to the expected credit loss during the whole duration at the end of the reporting period. The
Group believes that there is no significant credit risk in the bank acceptance bills held by it and there
will be no significant loss due to the default of the bank or other drawer.The confirmation standards and explanation for bad debt provisioning by portfolio 2 are shown in this
section V.11.Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
168 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The basis for the classification of each stage and the accrual proportion for bad debts
None
Description of significant changes in the book balance of receivables financing for which changes in the
allowance for losses occurred in this period:
□ Applicable √ N/A
(5). Provision for bad debts
□ Applicable √ N/A
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6). Receivables financing actually written off in this period
□ Applicable √ N/A
Write-off of receivables financing of which significant amount
□ Applicable √ N/A
Description of write-offs:
□ Applicable √ N/A
(7). Increase/decrease and change in fair value of receivables financing in this period:
□ Applicable √ N/A
(8). Others
□ Applicable √ N/A
8. Prepayments
(1). Prepayments by ageing
√ Applicable□ N/A
In RMB Yuan
Ageing Closing balance Opening balanceAmount Proportion (%) Amount Proportion (%)
Within 1 year 104537849.88 94.48 88690301.43 99.62
1 - 2 years 6109210.38 5.52 334311.90 0.38
2 - 3 years
Above 3
years
Total 110647060.26 100 89024613.33 100
Explanation for the reasons for the delayed settlement of prepayments aged over 1 year and with
significant amount:
None
(2). Prepayments with the top five closing balances grouped by prepayment recipients
√ Applicable□ N/A
In RMB Yuan
169 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Suppliers Closing balance Percentage of total closingbalance of prepayments (%)
Supplier 1 32655650.60 29.51
Supplier 2 4590791.39 4.15
Supplier 3 4237000.00 3.83
Supplier 4 3696260.70 3.34
Supplier 5 3457949.10 3.13
Total 48637651.79 43.96
Other notes:
None
Other notes:
□ Applicable √ N/A
9. Other receivables
Item presentation
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 9824375.86 13378598.48
Total 9824375.86 13378598.48
Other Notes:
□ Applicable √ N/A
Interest receivable
(1).Classification of interest receivable
□ Applicable √ N/A
(2).Significant overdue interest
□ Applicable √ N/A
(3).Disclosure by bad debt accrual method
□ Applicable √ N/A
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
□ Applicable √ N/A
(4).Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
The basis for the classification of each stage and the accrual proportion for bad debts
170 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
shown in this Section V. 15. Other receivables
Explanation for significant changes in the book balance of interest receivables for which changes in the
allowance for losses occurred in this period:
□ Applicable √ N/A
(5).Provision for bad debts
□ Applicable √ N/A
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6).Actual write-off of interest receivable in this period
□ Applicable √ N/A
Write-off of significant interest receivables
□ Applicable √ N/A
Description of write-offs:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Dividends receivable
(1).Dividends receivable
□ Applicable √ N/A
(2).Significant dividends receivable with an age of more than 1 year
□ Applicable √ N/A
(3).Disclosure by bad debt accrual method
□ Applicable √ N/A
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
□ Applicable √ N/A
(4).Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
The basis for the classification of each stage and the accrual proportion for bad debts
shown in this Section V. 15. Other receivables
171 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Explanation for significant changes in the book balance of dividend receivables for which changes in the
allowance for losses occurred in this period:
□ Applicable √ N/A
(5).Provision for bad debts
□ Applicable √ N/A
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6).Dividends receivable actually written off in this period
□ Applicable √ N/A
Write-off of dividends receivable of which the significant ones are
□ Applicable √ N/A
Description of write-offs:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Other receivables
(1).Disclosure by ageing
√ Applicable□ N/A
In RMB Yuan
Ageing Closing book balance Opening book balance
Within 1 year
Including: Subtotal within 1 year
Within 1 year 7752514.41 5788181.03
Subtotal within 1 year 7752514.41 5788181.03
1 - 2 years 623650.36 3137206.61
2 - 3 years 1403853.42 4906449.40
3 - 4 years 529158.44 275070.44
4 - 5 years 117325.44 63105.92
Above 5 years 117748.56 157762.22
Total 10544250.63 14327775.62
(2).Breakdown by nature of payment
√ Applicable□ N/A
In RMB Yuan
Nature of payment Closing book balance Opening book balance
Margin and deposit 7876507.76 11538986.51
Reserve 1578992.76 1489165.57
Others 1088750.11 1299623.54
Subtotal 10544250.63 14327775.62
Provision for bad debts 719874.77 949177.14
Total 9824375.86 13378598.48
172 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(3).Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Phase I Phase II Phase III
Expected credit
Provision for bad Expected credit Expected credit
debts losses for the losses for the entire
losses for the entire Total
next 12 months duration (no credit
duration (credit
impairment) impairmentincurred)
Balance as of
January 1 2024
Balance as of
January 1 2024 in 949177.14 949177.14
this period
--Reversed to
Phase II
--Reversed to
Phase III -13721.29 13721.29
--Reversed to
Phase II
--Reversed to
Phase I
Provision in this
period -212011.26 -212011.26
Reversal in this
period
Write-offs in this
period
Cancellations in
this period 13721.29 13721.29
Other changes -3569.82 -3569.82
Balance at
December 31 719874.77 719874.77
2024
The basis for the classification of each stage and the accrual proportion for bad debts
shown in this Section V. 15. Other receivables
Explanation for significant changes in the book balance of other receivables for which changes in
provision for losses occurred in this period:
□ Applicable √ N/A
The amount of provision for bad debts for the current period and the basis adopted for assessing whether
there is a significant increase in the credit risk of financial instruments:
□ Applicable √ N/A
(4).Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Change in this period
Category Opening Write-offs Closingbalance Provision Recovery Otheror reversal or balancecancellations changes
Provision for
bad debts 949177.14 -212011.26 -13721.29 -3569.82 719874.77
173 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Total 949177.14 -212011.26 -13721.29 -3569.82 719874.77
Of which the amount of provision for bad debts reversed or recovered in this period is significant:
□ Applicable √ N/A
Other notes:
None
(5).Other receivables actually written off in this period
□ Applicable √ N/A
Significant other receivables written off in this period:
□ Applicable √ N/A
Description of other receivables written off:
□ Applicable √ N/A
(6).Other receivables with the top five closing balances grouped by party owed
□ Applicable □ N/A
In RMB Yuan
Percentage of
Unit Name Closing total closing Nature of
Provision for
balance balance of other amount Ageing bad debts
receivables (%) Closing balance
Unit 1 2084051.41 19.76 Margin Within 1year 104202.57
Unit 2 Less than 1
year 1-2
1490000.00 14.13 Margin years 2-3 74500.00
years 3-4
years
Unit 3 500000.00 4.74 Margin Within 1year 25000.00
Unit 4 500000.00 4.74 Margin Within 1year 25000.00
Unit 5 432000.00 4.10 Margin Within 1year 21630.00
Total 5006051.41 47.47 / / 250332.57
(7).Presented in other receivables due to centralized management of funds
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
10. Inventory
(1). Classification of inventories
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
174 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Provision for decline Provision for decline
Book in value of Book in value of
Boo
balance inventories/impairm Book value balanc inventories/impairm
k
ent of contractual e ent of contractual valu
performance costs performance costs e
Raw
materials
Products in
process
Inventory
goods
Turnover
materials
Expendabl
e
biological
assets
Contract
performanc
e costs
Constructio 3585610.0 3585610.0
n materials 6 6
Total 3585610.0 3585610.06 6
(2). Data resources recognized as inventory
□ Applicable √ N/A
(3). Provision for decline in value of inventories and provision for impairment of contract
performance costs
□ Applicable √ N/A
Reasons for reversal or write-off of provision for decline in value of inventories in this period
□ Applicable √ N/A
Provision for decline in value of inventories by portfolio
□ Applicable √ N/A
Provisioning criteria for provision for inventory valuation by portfolio
□ Applicable √ N/A
(4). Amount of borrowing costs capitalized in the closing balance of inventories and the criteria
and basis for calculating such capitalized costs
□ Applicable √ N/A
(5). Explanation for the amount of amortization of contract performance costs for the current
period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
175 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
11. Assets held for sale
□ Applicable √ N/A
12. Non-current assets due within one year
□ Applicable √ N/A
Debt investments due within one year
□ Applicable √ N/A
Other debt investments maturing within one year
□ Applicable √ N/A
Other non-current assets due within one year:
None
13. Other current assets
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Prepaid VAT and inputs to be
deducted 114659210.59 77101647.54
Other taxes paid in advance 4171524.94 16755843.81
Amortized expenses 2575062.52 2522667.65
Others 106361.45 1224007.69
Total 121512159.50 97604166.69
Other notes:
None
14. Debt Investments
(1). Debt investments
□ Applicable √ N/A
Changes in provision for impairment of debt investments in this period
□ Applicable √ N/A
(2). Significant debt investments at the end of the period
□ Applicable √ N/A
(3). Provision for impairment
□ Applicable √ N/A
The basis for classification of each stage and the accrual proportion for impairment:
None
Explanation for significant changes in the book balance of debt investments for which changes in
provision for losses occurred in this period:
□ Applicable √ N/A
176 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Amount of provision for impairment for the current period and the basis adopted for assessing whether
there is a significant increase in credit risk of financial instruments:
□ Applicable √ N/A
(4). Actual write-off of debt investments in this period
□ Applicable √ N/A
Write-off of significant debt investments
□ Applicable √ N/A
Description of write-off of debt investments:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
15. Other debt investments
(1). Other debt investments
□ Applicable √ N/A
Changes in provision for impairment of other debt investments in this period
□ Applicable √ N/A
(2). Significant other debt investments at the end of the period
□ Applicable √ N/A
(3). Provision for impairment
□ Applicable √ N/A
The basis for classification of each stage and the accrual proportion for impairment:
None
Explanation for significant changes in the book balance of other debt investments for which changes in
provision for losses occurred in this period:
□ Applicable √ N/A
Amount of provision for impairment for the current period and the basis adopted for assessing whether
there is a significant increase in credit risk of financial instruments:
□ Applicable √ N/A
(4). Other debt investments actually written off in this period
□ Applicable √ N/A
Write-off of significant other debt investments in this period
□ Applicable √ N/A
Write-off description of other debt investments:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
177 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
16. Long-term receivables
(1). Long-term receivables
□ Applicable √ N/A
(2). Disclosure by bad debt accrual method
□ Applicable √ N/A
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
□ Applicable √ N/A
(3). Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
The basis for the classification of each stage and the accrual proportion for bad debts
None
Explanation for significant changes in the book balance of long-term receivables for which changes in
the allowance for losses occurred in this period:
□ Applicable √ N/A
Amount of provision for bad debts for the current period and the basis adopted for assessing whether
there is a significant increase in the credit risk of financial instruments:
□ Applicable √ N/A
(4). Provision for bad debts
□ Applicable √ N/A
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(5). Long-term receivables actually written off in this period
□ Applicable √ N/A
Write-off of significant long-term receivables
□ Applicable √ N/A
Description of long-term receivables written off:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
178 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
17. Long-term equity investment
(1). Long-term equity investments
√ Applicable□ N/A
In RMB Yuan
Increase/decrease in this period
Gains
and
Begin De losses Other
Closi
ning Add cre on comp Declar
ng
balan
of the itio ase invest rehen ation Provis Closinns ments sive Chan of ion g ce ofInvestees perio to ind inv recog inco
ge in
equit cash for
Other
s balanc
provis
balan inve est nized me y divide impair e
ion
ce stm under adjus nds or ment
for
ents ments the tment profits
impai
equity s rment
metho
d
I. Joint ventures
Subtotal
II. Associated enterprises
Space 1408
Engineerin 194. -4288 4443
1409
g Co. Ltd. 25 3.05 7.92
749.1
2
Daejin
Road 4652 -6616 1293 4715
(Thailand) 02.45 .24 1.13 17.34
Co. Ltd.DJR
(Thailand) 4586 -9964 1293 4615
Co. Ltd. 25.70 .03 1.10 92.77
23322342
Subtotal 022. -5946 7030
403.320.15
859.2
3
2332
Total 022. -5946 7030
2342
3.320.15859.2403
(2).Impairment testing of long-term equity investments
□ Applicable √ N/A
Other notes:
None
179 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
18. Investments in other equity instruments
(1). Investments in other equity instruments
√ Applicable□ N/A
In RMB Yuan
Increase/decrease in this period The reason
of measuring
financial
Beginnin Gains Losses Dividend
Accumulated Accumulated assets
gains losses measured at
Items g of the
Decrease included in included in
Additions to in other other Other Closing
income included in included in fair value
period investments investmen comprehensi comprehensi s balance
recognize
d in this other other with thebalance ts ve income in ve income in period comprehensi comprehensi changes
this period this period. ve income ve income included inother
comprehensi
ve income
Strategic 14999990. 2052072.90 12947918. 2052072.90 Non-trading
placemen 94 04 equity
t project
of Wafer investment
Works non-short-ter
(Shangha m holding
i)
Total 14999990.94 2052072.90
12947918.
042052072.90
/
(2). Description of derecognition in this period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
180 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
19. Other non-current financial assets
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
20. Investment properties
Measurement model of investment properties
(1). Investment properties measured at cost
In RMB Yuan
Items House and Construction inbuildings Land use rights progress Total
I. Original book value
1. Opening balance 2100240.00 727500.00 2827740.00
2. Increase in this period
(1) Purchases
(2) Transfer from
inventories/fixed
assets/construction in progress
(3) Increase from business
combination
3. Decrease in this period
(1) Disposal
(2) Other transfers out
4. Closing balance 2100240.00 727500.00 2827740.00
II. Accumulated depreciation and accumulated amortization
1. Opening balance 1842960.60 386020.44 2228981.04
2. Increase in this period 47255.40 19795.92 67051.32
(1) Provision or amortization 47255.40 19795.92 67051.32
3. Decrease in this period
(1) Disposal
(2) Other transfers out
4. Closing balance 1890216.00 405816.36 2296032.36
III. Provision for impairment
1. Opening balance
2. Increase in this period
(1) Provision
3. Decrease in this period
(1) Disposal
(2) Other transfers out
4. Closing balance
IV. Book value
1. Closing book balance 210024.00 321683.64 531707.64
2. Opening book balance 257279.40 341479.56 598758.96
(2). Status of investment properties for which title certificates have not been completed
□ Applicable √ N/A
181 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(3). Impairment testing of investment properties using the cost measurement model
□ Applicable √ N/A
Other notes:
√ Applicable□ N/A
(1) The recoverable amount of investment properties was not lower than the book value on December 31
2024 so no provision for impairment was made.
(2) The Group has no investment properties of which the title certificate has not been completed.
(3) The investment properties was not used for mortgage guarantee or other ownership restrictions as of
December 31 2024
21. Fixed assets
Item presentation
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Fixed assets 56924292.01 38895511.08
Liquidation of fixed assets
Total 56924292.01 38895511.08
Other notes:
□ Applicable √ N/A
Fixed assets
(1).Fixed assets
√ Applicable□ N/A
In RMB Yuan
Houses and Office andItems buildings electronic
Transportation Total
equipment equipment
I. Original book value:
1. Opening
balance 50876413.22 4055110.93 5194289.27 60125813.42
2. Increase in
this period 18949955.48 3362027.00 941268.74 23253251.22
(1)
Acquisitions 3376751.85 793403.25 4170155.10
(2) Transfer
from construction 18951560.94 18951560.94
in progress
(3) Increase
from business
combination
(4) Transfer
from right-of-use 196362.55 196362.55
assets
(5) Effect
of exchange rate -1605.46 -14724.85 -48497.06 -64827.37
changes
182 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
3. Decrease in
this period 203524.81 599756.13 803280.94
(1)
Disposal or 203524.81 599756.13 803280.94
scrapping
4. Closing
balance 69826368.70 7213613.12 5535801.88 82575783.70
II. Accumulated depreciation
1. Opening
balance 16121534.60 2294928.26 2813839.48 21230302.34
2. Increase in
this period 3668140.88 684770.23 803635.19 5156546.30
(1)
Provision 3669235.50 692200.37 628165.97 4989601.84
(2) Transfer
from right-of-use 184965.45 184965.45
assets
(3) Effect
of exchange rate -1094.62 -7430.14 -9496.23 -18020.99
changes
3. Decrease in
this period 193396.82 541960.13 735356.95
(1)
Disposal or 193396.82 541960.13 735356.95
scrapping
4. Closing
balance 19789675.48 2786301.67 3075514.54 25651491.69
III. Provision for impairment
1. Opening
balance
2. Increase in
this period
(1)
Provision
3. Decrease in
this period
(1)
Disposal or
scrapping
4. Closing
balance
IV. Book value
1. Closing
book balance 50036693.22 4427311.45 2460287.34 56924292.01
2. Opening
book balance 34754878.62 1760182.67 2380449.79 38895511.08
(2).Temporarily idle fixed assets
□ Applicable √ N/A
(3).Fixed assets leased out under operating leases
□ Applicable √ N/A
183 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(4).Fixed assets for which title certificates have not been issued
□ Applicable √ N/A
(5).Impairment test of fixed assets
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Liquidation of fixed assets
□ Applicable √ N/A
22. Construction in progress
Item presentation
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Building renovation 2577156.79 13103863.94
Construction materials
Total 2577156.79 13103863.94
Other notes:
□ Applicable √ N/A
Construction in progress
(1).Construction in progress
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Provision Provision
Items Book for Book value Book balance for Book valuebalance
impairment impairment
Building 2577156.79 2577156.79 13103863.94 13103863.94
renovation
Total 2577156.79 2577156.79 13103863.94 13103863.94
(2).Changes in significant construction-in-progress items in this period
√ Applicable□ N/A
In RMB Yuan
184 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Inclu
Prop ding:
ortio Of
n of whic
Amou Oth cumu Accu h Curre
Bud Begin Increa nt er lative mulat Amo nt
gete ning se in transfe decr Closi inves
Progr
ess of ed unt intere
Ca
Item d of the this rred to ease ng tment const intere of st
pit
s alamo period fixed s in balan inbalanc perio assets this ce const ructio
st inter capita
unt d capita est lizatio
sou
e in this peri ructio n lizatio capit n rate rce
period od n in n alize (%)
budg d for
et the
(%) perio
d
Buil
ding 13103 8424 18951 2577
reno 863.9 853.7 560.9 156.7
vatio 4 9 4 9
n
Tota 13103 8424 18951 2577
l 863.9 853.7 560.9 156.7 / / / /4 9 4 9
(3).Provision for impairment of construction in progress for the current period
□ Applicable √ N/A
(4).Impairment test of construction in progress
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Construction materials
(1).Construction materials
□ Applicable √ N/A
23. Productive biological assets
(1). Productive biological assets measured at cost
□ Applicable √ N/A
(2). Impairment testing of producing biological assets measured at cost
□ Applicable √ N/A
(3). Adoption of the fair value measurement model for productive biological assets
□ Applicable √ N/A
185 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Other notes:
□ Applicable √ N/A
24. Oil and gas assets
(1) Oil and gas assets
□ Applicable √ N/A
(2) Impairment testing of oil and gas assets
□ Applicable √ N/A
Other notes:
None
25. Right-of-use assets
(1) Right-of-use assets
√ Applicable□ N/A
In RMB Yuan
Items Lease of buildings Means of transportation Total
I. Original book value
1. Opening balance 2701318.44 4267328.29 6968646.73
2. Increase in this period 2426196.43 223063.48 2649259.91
(1) Leased-in 2462397.41 223063.48 2685460.89
(2) Exchange rate -36200.98 -36200.98
changes
3. Decrease in this period 749270.58 234974.63 984245.21
(1) Disposal 749270.58 38611.88 787882.46
(2) Purchase upon
maturity and transfer to fixed 196362.75 196362.75
assets
4. Closing balance 4378244.29 4255417.14 8633661.43
II. Accumulated depreciation
1. Opening balance 1312537.34 1815876.99 3128414.33
2. Increase in this period 1319423.13 1094368.55 2413791.68
(1) Accrual 1335784.78 1094368.55 2430153.33
(2) Exchange rate
changes -16361.65 -16361.65
3. Decrease in this period 749580.15 223577.23 973157.38
(1) Disposal 749580.15 38611.88 788192.03
(2) Purchase upon
maturity and transfer to fixed 184965.35 184965.35
assets
4. Closing balance 1882380.32 2686668.31 4569048.63
III. Provision for impairment
1. Opening balance
2. Increase in this period
(1) Accrual
3. Decrease in this period
186 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book balance 2495863.97 1568748.83 4064612.80
2. Opening book balance 1388781.10 2451451.30 3840232.40
(2) Impairment test of right-of-use assets
□ Applicable √ N/A
Other notes:
None
26. Intangible assets
(1). Intangible assets
√ Applicable□ N/A
In RMB Yuan
Items Land userights Patents
Non-patented Computer
technology Software Total
I. Original book value
1. Opening 8240016.48 3107431.05 11347447.53
balance
2. Increase in 819967.25 819967.25
this period
(1)819967.25819967.25
Acquisition
(2) Internal
R&D
(3) Increase
in business
combination
3. Decrease in 40145.20 40145.20
this period
(1)
Disposal 38510.40 38510.40
(2) Effect
of exchange rate 1634.80 1634.80
changes
4. Closing 8240016.48 3887253.10 12127269.58
balance
II. Accumulated amortization
1. Opening 2142404.15 1960567.44 4102971.59
balance
2. Increase in 164800.32 205949.75 370750.07
this period
(1)164800.32205949.75370750.07
Provision
3. Decrease in 39525.44 39525.44
this period
(1)
Disposal 38510.40 38510.40
(2) Effect
of exchange rate 1015.04 1015.04
187 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
changes
4. Closing 2307204.47 2126991.75 4434196.22
balance
III. Provision for impairment
1. Opening
balance
2. Increase in
this period
(1)
Provision
3. Decrease in
this period
(1)
Disposal
4. Closing
balance
IV. Book value
1. Closing 5932812.01 1760261.35 7693073.36
book balance
2. Opening 6097612.33 1146863.61 7244475.94
book balance
The proportion of intangible assets formed through in-house R&D to the balance of intangible assets at
the end of the period was 0
(2). Data resources recognized as intangible assets
□ Applicable √ N/A
(3). Land use rights for which title certificates have not been issued
□ Applicable √ N/A
(4). Land use rights for which title certificates have not been issued
□ Applicable √ N/A
Other notes:
√ Applicable□ N/A
The recoverable amount of intangible assets was not lower than the book value as of December 31 2024
so no provision for impairment was made.
27. Goodwill
(1). Original book value of goodwill
□ Applicable √ N/A
(2). Provision for impairment of goodwill
□ Applicable √ N/A
(3). Information about the asset group or portfolio of asset groups in which goodwill is located
□ Applicable √ N/A
Changes in the asset group or portfolio of asset groups
188 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
(4). Specific method of determining recoverable amount
Recoverable amount is determined as the net fair value less disposal costs.□ Applicable √ N/A
The recoverable amount is determined by the present value of estimated future cash flows.□ Applicable √ N/A
Reasons for the differences between the aforementioned information and the information used in the
impairment test in previous years or external information that is obviously inconsistent
□ Applicable √ N/A
Reasons for differences between the information used in the Company's impairment tests in previous
years and the actual situation in the current year that are clearly inconsistent with each other
□ Applicable √ N/A
(5). Performance commitments and corresponding goodwill impairment
Performance commitments existed at the time of the formation of goodwill and the reporting period or
the previous period of the reporting period was within the performance commitment period.□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
28. Long-term unamortized expenses
□ Applicable √ N/A
29. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets not offset
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Items Deductible Deferred income tax Deductibletemporary temporary Deferred tax
differences assets differences assets
Impairment
of
inventories 10188570.69 1667797.92 3000261.88 496879.59
and contract
assets
Provision for
bad debts 35333599.67 6256466.91 34632148.22 5400864.80
Temporary
estimates 9111158.66 1545342.31 22714306.71 3609868.30
payable
Anticipation
liabilities 11183840.39 1994231.49 9958724.77 1684113.93
189 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Others 7774065.30 1291676.51 7837194.08 1290890.19
Total 73591234.71 12755515.14 78142635.66 12482616.81
(2). Deferred tax liabilities without offset
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Items Taxable temporary Deferred Taxable Deferred tax
differences income tax temporaryliabilities differences Liabilities
Withholding tax on
available-for-distribution
dividends from foreign 167424359.10 16742435.91 105783050.10 10578305.01
subsidiaries (10%)
Impact of right-of-use
assets 3962322.17 725687.41 3622303.82 601888.20
Others 1218294.89 243658.98 16582944.76 3316588.94
Total 172604976.16 17711782.30 125988298.68 14496782.15
(3). Deferred tax assets or liabilities presented at net amount after offsetting
□ Applicable √ N/A
(4). Details of unrecognized deferred tax assets
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Deductible loss 3069448.06 7336823.06
Provision for bad debts 3964844.58
Others 1471221.79
Total 3069448.06 12772889.43
(5). The deductible losses for which no deferred tax assets have been recognized will expire in the
following years
□ Applicable √ N/A
Other notes:
√ Applicable□ N/A
In RMB Yuan
Items Balance at the end of the year Balance at the beginning of the year
Impact of right-of-use assets 44373.87
Total 44373.87
30. Other non-current assets
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balanceBook balance Provision Book value Book balance Provision Book value
190 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
for for
impairmen impairment
t
Margin 24444658.9 783155.1 23661503.8 35990599.2 1146648.5receivable 8 3 9 8 34843950.7
s 5 1
Total 24444658.9 783155.1 23661503.8 35990599.2 1146648.5 34843950.78 3 5 9 8 1
Other notes:
None
31. Assets with restricted ownership or right to use
√ Applicable□ N/A
In RMB Yuan
The end of the period Beginning of the period
Items Book Book Type of Restrict Book Book value Type of Restrictbalance value restricti ed balance restricti ed
on on
Monetar 486724. 486724. Deposit Deposit
y fund 06 06 Others restricti 12499607. 12499607.on 35 35
Others restricti
on
Bills
receivab
le
Inventor
y
Includin
g: Data
resource
Fixed
assets
Intangib
le assets
Includin
g: Data
resource
Total 486724. 486724. / / 12499607. 12499607. / /
06063535
Other notes:
None
32. Short-term loan
(1). Classification of short-term loans
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Pledged loans
Mortgage loans
Guarantee
Credit loans 23866103.44
Total 23866103.44
191 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Note on classification of short-term borrowings:
1) As of December 31 2024 the credit borrowings were from the Group's subsidiary Acter
(Malaysia) which obtained a loan of RMB 5000000.00 from China Citic Bank with a term of October
10 2024 to October 9 2025 and an interest rate of 2.90%; the credit borrowings were from the Group's
subsidiary Acter (Thailand) which obtained a loan of THB 70000000.00 from Mega Bank with a
term of November 11 2024 to September 5 2025 and an interest rate of 4.20622%; from the Group’s
subsidiary Acter (Indonesia) which obtained a loan of USD 550000.00 from Shin Kong Bank with a
term of December 12 2024 to March 12 2025 with a borrowing rate of 4.8855%.
2) As of December 31 2024 there were no overdue short-term loans.
(2). Overdue short-term loans
□ Applicable √ N/A
Significant overdue short-term loans are summarized as follows:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
33. Financial liabilities held for trading
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
34. Derivative financial liabilities
□ Applicable √ N/A
35. Notes payable
(1). Presentation of notes payable
□ Applicable √ N/A
36. Accounts payable
(1). Presentation of accounts payable
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Project payment 316381855.58 363178797.70
Retention money 282406337.48 266678519.63
Total 598788193.06 629857317.33
(2). Significant accounts payable aged over 1 year or overdue
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
192 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
37. Receipts in advance
(1). Presentation of accounts receivable in advance
□ Applicable √ N/A
(2). Significant receipts in advance with an age of more than 1 year
□ Applicable √ N/A
(3). Amounts and reasons for significant changes in book value within the reporting period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
38. Contract liabilities
(1). Contract liabilities
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Settled uncompleted works 88601839.41 73351891.04
Total 88601839.41 73351891.04
(2). Significant contract liabilities aged over 1 year
□ Applicable √ N/A
(3). Amounts and reasons for significant changes in book value within the reporting period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
39. Payroll payable
(1). Presentation of remuneration payable to employees
√ Applicable□ N/A
In RMB Yuan
Items Opening Increase in this Decrease in thisbalance period period Closing balance
I. Short-term remuneration 47459670.87 124872602.62 130359506.51 41972766.98
II. Post-employment
benefits – defined 8875077.68 8875077.68
contribution plan
III. Severance benefits
IV. Other benefits due
within one year
Total 47459670.87 133747680.3 139234584.19 41972766.98
(2). Presentation of short-term remuneration
√ Applicable□ N/A
In RMB Yuan
193 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Items Opening Increase in this Decrease in thisbalance period period Closing balance
I. Salaries bonuses
allowances and subsidies 47263342.02 113261220.64 119499811.00 41024751.66
II. Employee benefit
expenses 2795995.42 2795995.42 -
III. Social insurance
premiums 3927608.19 3927608.19
Including: Medical
insurance premiums 3357798.42 3357798.42
Workers' remuneration
insurance premiums 242028.18 242028.18
Maternity insurance
premiums 327781.59 327781.59
IV. Housing provident fund 3829600.85 3829600.85
V. Labor Union Funds and
Employee Education Funds 196328.85 1058177.52 306491.05 948015.32
VI. Short-term compensated
absences
VII. Short-term
profit-sharing plan
Total 47459670.87 124872602.62 130359506.51 41972766.98
(3). Presentation of defined contribution plan
√ Applicable□ N/A
In RMB Yuan
Items Opening Increase in this Decrease in thisbalance period period Closing balance
1. Basic pension insurance 8560336.65 8560336.65
2. Unemployment
insurance premiums 314741.03 314741.03
3. Contributions to
enterprise annuities
Total 8875077.68 8875077.68
Other notes:
□ Applicable √ N/A
40. Tax payable
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Value-added tax (VAT) 33245.94 270840.93
Consumption tax
Business tax
Enterprise income tax 13516800.37 6389822.94
Individual income tax 600405.45 655878.76
Urban maintenance and
construction tax
Land use tax and property tax 280643.36 267327.15
Stamp duty 190004.61 228144.04
Others 753155.76 168735.21
Total 15374255.49 7980749.03
Other notes:
194 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
None
41. Other payables
Item presentation
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Interest payable
Dividends payable
Other payables 24647083.82 25427208.65
Total 24647083.82 25427208.65
Other notes:
□ Applicable √ N/A
(1). Interest payable
Presented by category
□ Applicable √ N/A
Significant overdue interest payable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
(2). Dividends payable
Presented by category
□ Applicable √ N/A
(3). Other payables
Other payables by nature
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Current account 21725638.07 22861444.25
Intermediary service fee 2083852.39 1958733.39
Provisions and guarantee
deposit 188907.61 48370.56
Others 648685.75 558660.45
Total 24647083.82 25427208.65
Significant other payables aged over 1 year or overdue
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
42. Liabilities held for sale
□ Applicable √ N/A
195 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
43. Non-current liabilities due within 1 year
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Long-term loans due within 1
year
Bonds payable due within 1
year
Long-term payables due within
1 year
Lease liabilities due within 1
year 2421048.35 1748003.79
Total 2421048.35 1748003.79
Other notes:
None
44. Other current liabilities
Other current liabilities
□ Applicable √ N/A
196 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Increase or decrease in short-term bonds payable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
197 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
45. Long-term borrowings
(1). Classification of long-term loans
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
46. Bonds payable
(1). Bonds payable
□ Applicable √ N/A
198 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(2). Details of bonds payable: (excluding other financial instruments such as preferred stock and perpetual bonds classified as financial liabilities)
□ Applicable √ N/A
(3). Description of convertible corporate bonds
□ Applicable √ N/A
Accounting treatment and judgmental basis for conversion
□ Applicable √ N/A
(4). Description of other financial instruments classified as financial liabilities
Basic information on other financial instruments such as preferred stock and perpetual bonds issued at the end of the period
□ Applicable √ N/A
Statement of changes in preferred stock perpetual bonds and other financial instruments issued and outstanding at the end of the period
□ Applicable √ N/A
Explanation for the basis for classifying other financial instruments as financial liabilities:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
199 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
47. Lease liabilities
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
Lease liabilities 1585929.64 2150631.55
Total 1585929.64 2150631.55
Other notes:
None
48. Long-term accounts payable
Item presentation
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Long-term accounts payable
(1).Presentation of long-term payables by nature of payment
□ Applicable √ N/A
Specialized payables
(1).Specialized payables by nature of payment
□ Applicable √ N/A
49. Long-term payroll payable
√ Applicable□ N/A
(1). Table of long-term employee remuneration payable
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
I. Post-employment benefits - net
liability for defined benefit plans 65569.85 632325.46
II. Termination benefits
III. Other long-term benefits
Total 65569.85 632325.46
(2).Changes in defined benefit plans
Present value of defined benefit plan obligations:
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
I. Opening balance 632325.46 610379.24
II. Defined benefit costs recognized in
profit or loss for the period 162295.88
1. Current service cost 162295.88
2. Past service costs
3. Settlement gain (loss expressed as
200 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
"-")
4. Net interest
III. Defined benefit cost charged to
other comprehensive income -716561.36
1. Actuarial gain (loss expressed as
"-")-716561.36
IV. Other changes -12490.13 21946.22
1.Consideration paid upon settlement
2.Benefits paid
3.Translation differences on foreign
currency statements -12490.13 21946.22
V. Closing balance 65569.85 632325.46
Plan assets:
□ Applicable √ N/A
Net liabilities (net assets) of defined benefit plans
□ Applicable √ N/A
Description of the content of the defined benefit plan and the risks associated with it the impact on the
company's future cash flows timing and uncertainty:
□ Applicable √ N/A
Description of significant actuarial assumptions and sensitivity analysis results for defined benefit plans
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
50. Anticipation liabilities
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance Reason
Guarantees provided to
external parties
Pending litigation
Product quality
guarantee 11061124.95 11090966.30
Restructuring
obligations
Loss-making contracts
pending execution 122715.44 201881.61
Returns payable
Others
Total 11183840.39 11292847.91 /
Other notes including notes on significant assumptions estimates related to significant projected
liabilities:
The estimated liabilities related to quality assurance are mainly related quality expenses accrued to deal
with possible quality problems during the warranty period of the project.
201 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
51. Deferred income
Deferred income
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
52. Other non-current liabilities
□ Applicable √ N/A
53. Capital stock
√ Applicable□ N/A
In RMB Yuan
Increase/decrease of the current change (+ -)
Opening Issue Accumulation Closing
balance of Sent fund balance
new shares Transfer Others Subtotal
shares shares
Total 100000000.00 100000000.00
number
of shares
Other notes:
None
54. Other equity instruments
(1). Basic information on other financial instruments such as preferred stock and perpetual bonds
issued at the end of the period
□ Applicable √ N/A
(2). Statement of changes in preferred stock perpetual bonds and other financial instruments
issued and outstanding at the end of the period
□ Applicable √ N/A
Changes in other equity instruments in this period explanation for the reasons for such changes and the
basis for related accounting treatment:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
55. Capital reserves
√ Applicable□ N/A
In RMB Yuan
Items Opening balance Increase in this Decrease in thisperiod period Closing balance
Capital premium
(equity premium) 530250969.12 530250969.12
Other capital
surplus 32381806.33 32381806.33
202 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Total 562632775.45 562632775.45
Other notes including the increase or decrease of changes in this period and the reasons for the changes:
None
56. Treasury stock
□ Applicable √ N/A
203 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
57. Other comprehensive income
√ Applicable□ N/A
In RMB Yuan
Amount this period
Less: Transfer Less: Prior
to profit or period charge
Beginning of loss for the to other Less:
Items the period Current income period from comprehensive Income Attributable to
Attributable
balance tax incurred before prior period to income current tax parent company
to minority Closing balance
shareholders
other period transfer expense after tax after tax
comprehensive to retained
income earning s
I. Other
comprehensive
income not -151009.79 -2064563.03 -2064563.03 -2215572.82
reclassifiable to
profit or loss
Including:
Remeasurement
of changes in -151009.79 -12490.13 -12490.13 -163499.92
defined benefit
plans
Other
comprehensive
income not
transferable to
profit or loss
under the equity
method
Changes in fair
value of
investments in -2052072.90 -2052072.90 -2052072.90
other equity
instruments
204 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Changes in fair
value of the
enterprise's own
credit risk
II. Other
comprehensive
income to be 3469157.40 -3756476.25 -3756476.25 -287318.85
reclassified to
profit or loss
Including: Other
comprehensive
income available
for transfer to
profit or loss
under the equity
method
Changes in fair
value of other
debt investments
Amounts
reclassified from
financial assets to
other
comprehensive
income
Provision for
credit impairment
of other debt
investments
Cash flow hedge
reserve
Difference in
translation of
foreign currency 3469157.40 -3756476.25 -3756476.25 -287318.85
financial
statements
205 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Other
comprehensive 3318147.61 -5821039.28 -5821039.28 -2502891.67
income
Other notes including adjustments to the effective portion of cash flow hedge gains and losses transferred to the initial recognized amount of the hedged item:
None
206 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
58. Special reserves
√ Applicable□ N/A
In RMB Yuan
Items Opening balance Increase in this Decrease in thisperiod period Closing balance
Safety
production fee 44578849.52 403590.14 44175259.38
Total 44578849.52 403590.14 44175259.38
Other notes including the increase or decrease of changes in this period and the reasons for the changes:
None
59. Earned surplus
√ Applicable□ N/A
In RMB Yuan
Items Opening balance Increase in this Decrease in this Closing balance
period period
Legal surplus
reserves 39501301.38 6317474.02 45818775.40
Discretionary
surplus reserves
Reserve Fund
Enterprise
Development
Fund
Others
Total 39501301.38 6317474.02 45818775.40
Explanation for surplus reserves including the increase or decrease in this period and the reasons for the
change:
None
60. Undistributed profits
√ Applicable□ N/A
In RMB Yuan
Items Current period Previous period
Undistributed profit at the end of the
previous period before adjustment 332226440.31 269871786.54
Total undistributed profits at the -177717.08
beginning of the period before
adjustment (increase + decrease -)
Undistributed profit at the beginning
of the period after adjustment 332226440.31 269694069.46
Add: Net profit attributable to owners
of the parent company for the period 114402314.36 138590474.42
Less: Withdrawal of legal surplus
reserves 6317474.02 11058103.57
Withdrawal of discretionary surplus
reserves
Provision for general risk
Dividends payable on ordinary shares 80000000.00 65000000.00
Dividends on ordinary shares
transferred to capital
207 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Undistributed profit at the end of the
period 360311280.65 332226440.31
Adjustment of the breakdown of undistributed profit at the beginning of the period:
1. Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its
related new regulations the impact on the undistributed profit at the beginning of the period was RMB
0.
2. Due to the change of accounting policy it affected the undistributed profit at the beginning of the
period by RMB 0.
3. Due to the correction of significant accounting errors the impact on the undistributed profit at the
beginning of the period was RMB 0.
4. Due to the change of the scope of consolidation caused by the same control the impact on the
undistributed profit at the beginning of the period is RMB 0.
5. Other adjustments affecting the undistributed profit at the beginning of the period by RMB 0.
61. Operating revenues and operating costs
(1). Operating revenue and operating costs
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last periodRevenue Cost Revenue Cost
Main business 2004929936.09 1754142863.89 2006059659.50 1738726934.75
Other
businesses 2767381.89 864560.33 2865336.18 114306.72
Total 2007697317.98 1755007424.22 2008924995.68 1738841241.47
208 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
(2). Breakdown information of operating revenues and operating costs
√ Applicable□ N/A
In RMB Yuan
Contract Amount in the current year Total
classification Operating revenue Operating cost Operating revenue Operating cost
Commodity Type 2007697317.98 1755007424.22 2007697317.98 1755007424.22
Including: Clean
room engineering 1260776524.50 1104372600.54 1260776524.50 1104372600.54
Other
electromechanical 709882661.90 621599056.88 709882661.90 621599056.88
installation works
Equipment sales 34270749.69 28171206.47 34270749.69 28171206.47
Other businesses 2767381.89 864560.33 2767381.89 864560.33
By region of
operation 2007697317.98 1755007424.22 2007697317.98 1755007424.22
Including:
Domestic 1330457322.03 1182655028.17 1330457322.03 1182655028.17
Overseas 677239995.95 572352396.05 677239995.95 572352396.05
Type of market or
client 2007697317.98 1755007424.22 2007697317.98 1755007424.22
Including: IC
semiconductor 1193694566.59 1080909463.28 1193694566.59 1080909463.28
industry
Precision
manufacturing 620054067.90 524535271.19 620054067.90 524535271.19
industry
Photoelectricity
industry 92449438.50 74271440.78 92449438.50 74271440.78
Other industries 98731863.10 74426688.64 98731863.10 74426688.64
Other businesses 2767381.89 864560.33 2767381.89 864560.33
Contract type 2007697317.98 1755007424.22 2007697317.98 1755007424.22
Including: Sale of
goods 34270749.69 28171206.47 34270749.69 28171206.47
Construction
contracts 1970659186.40 1725971657.42 1970659186.40 1725971657.42
Other businesses 2767381.89 864560.33 2767381.89 864560.33
Classification by
timing of
merchandise 2007697317.98 1755007424.22 2007697317.98 1755007424.22
transfers
Including:
Revenue
recognized at a 34270749.69 28171206.47 34270749.69 28171206.47
certain point in
time
Revenue
recognized at a
certain point in 1973426568.29 1726836217.75 1973426568.29 1726836217.75
time
By contract term
By sales channel
Total 2007697317.98 1755007424.22 2007697317.98 1755007424.22
Other notes:
209 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
□ Applicable √ N/A
(3). Explanation for performance obligations
□ Applicable √ N/A
(4). Description of apportionment to remaining performance obligations
□ Applicable √ N/A
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √ N/A
Other notes:
None
62. Taxes and surcharges
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Consumption tax
Business tax
Urban maintenance and
construction tax 1078030.43 1644807.62
Education surcharge 805328.95 1199761.07
Resource tax
Property tax 785910.01 659319.31
Land use tax 26888.68 26056.03
Vehicle and vessel use tax
Stamp duty 709504.34 816261.14
Others 49487.84 24334.01
Total 3455150.25 4370539.18
Other notes:
None
63. Sales expenses
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Employee remuneration 4838798.97 6176464.47
Business entertainment expenses 902957.22 784591.27
Depreciation and amortization 109499.95 77044.96
Others 930513.92 916180.97
Total 6781770.06 7954281.67
Other notes:
None
64. Administrative expenses
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Labor cost 36100990.73 36457080.17
210 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Depreciation and amortization 6388764.67 5913688.95
Professional service fees 5323269.09 4964367.06
Travel expenses 3206253.54 2753337.27
Socialization expenses 1753533.95 1567248.12
Rental expenses 672628.87 903690.44
Office expenses 597023.50 362790.44
Others 8476548.50 6270807.40
Total 62519012.85 59193009.85
Other notes:
None
65. R&D expenses
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Material costs 16349300.82 6423694.04
Labor cost 13547429.17 14071064.42
Rental expenses 338071.77 290827.94
Depreciation and amortization 133765.21 153397.80
Others 3161138.99 4182225.42
Total 33529705.96 25121209.62
Other notes:
None
66. Finance costs
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Interest expenses 1724156.19 1154128.08
Interest expense on lease liabilities 177890.50 206792.88
Less: Interest income 9191452.30 6309355.80
Add: Exchange loss (Less: gain) -4997814.43 -1151419.83
Handling fee 1369836.74 569525.35
Total -10917383.30 -5530329.32
Other notes:
None
67. Other gains
√ Applicable□ N/A
In RMB Yuan
Classification by nature Amount this period Amount last period
Government grants related to
income 433289.18 3731552.00
Total 433289.18 3731552.00
Other notes:
None
68. Investment income
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Income from long-term equity -59463.32 -334383.24
211 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
investments accounted for by the equity
method
Investment income from disposal of
long-term equity investments
Investment income during the holding
period of financial assets for trading
Dividend income from other equity
instruments during the holding period 197574.90
Interest income earned on debt
investments during the holding period
Interest income earned on other debt
investments during the holding period
Investment income from disposal of
financial assets held for trading 675894.07 1996177.68
Investment income from disposal of
other equity instruments
Investment income from disposal of
debt investments
Investment income from disposal of
other debt investments
Gain on debt restructuring
Total 814005.65 1661794.44
Other notes:
None
69. Net open hedge gains
□ Applicable √ N/A
70. Gain on change in fair value
√ Applicable□ N/A
In RMB Yuan
Sources of gains from changes in fair
value Amount this period Amount last period
Trading financial assets
Including: Gains from changes in fair
value of derivative financial
instruments
Financial liabilities held for trading
Investment properties at fair value
Financial assets measured at fair
value with changes included in the 25000.00 -119888.89
current profit and loss
Total 25000.00 -119888.89
Other notes:
None
71. Credit impairment loss
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Bad debt loss on bills receivable 1281044.46 1091132.83
212 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Bad debt loss on accounts receivable -3276789.11 2711649.69
Bad debt loss on other receivables -212011.26 57851.33
Impairment loss on debt investments
Impairment loss on other debt
investments
Bad debt loss on long-term receivables
Impairment losses related to financial
guarantees
Total -2207755.91 3860633.85
Other notes:
None
72. Impairment loss on assets
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
I. Impairment losses on contract
assets 7174598.08 -1705623.60
II. Impairment losses on other
non-current assets -362009.99 557144.69
Total 6812588.09 -1148478.91
Other notes:
None
73. Gain on disposal of assets
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Gain on disposal of assets 98152.04 116542.37
Total 98152.04 116542.37
Other notes:
None
74. Non-operating revenue
Non-operating revenue
√ Applicable□ N/A
In RMB Yuan
Amounts included in
Items Amount this period Amount last period non-recurring gains and
losses for the period
Total gain on disposal
of non-current assets 29786.66 29786.66
Including: Gain on
disposal of fixed 29786.66 29786.66
assets
Others 8156.58 14361.33 8156.58
Total 37943.24 14361.33 37943.24
Other notes:
□ Applicable √ N/A
213 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
75. Non-operating Expenses
√ Applicable□ N/A
In RMB Yuan
Amounts included in
Items Amount this period Amount last period non-recurring gains and
losses for the period
Total loss on
disposal of 9075.13 63978.14 9075.13
non-current assets
Including: Loss on
disposal of fixed 9075.13 63978.14 9075.13
assets
Loss on disposal of
intangible assets
Loss on exchange of
non-monetary assets
Foreign donations 259000.00 194000.00 259000.00
Fines 29000.00 447813.63 29000.00
Overdue fine 18211.87 67596.92 18211.87
Others 49720.19 116559.94 49720.19
Total 365007.19 889948.63 365007.19
Other notes:
None
76. Income tax expense
(1). Schedule of income tax expense
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Current income tax expense 33778120.07 28873073.81
Deferred tax expense 2872289.70 11840385.09
Total 36650409.77 40713458.90
(2). Process of adjusting accounting profit and income tax expense
√ Applicable□ N/A
In RMB Yuan
Items Amount this period
Total profit 153760188.68
Income tax expense at statutory/applicable rates 23064028.31
Effect of different tax rates applied by
subsidiaries 5338241.22
Effect of adjustments to prior periods' income
tax
Effect of non-taxable income
Effect of non-deductible costs expenses and
losses 12746993.93
Effect of deductible losses on utilization of
unrecognized deferred tax assets in prior period
Effect of deductible temporary differences or
deductible losses for which no deferred tax
assets were recognized in this period
Effect of tax rate differences on recognition of
214 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
deferred tax assets and liabilities
Effect of additional deduction for R&D expenses -4498853.69
Withholding tax on available-for-distribution
dividends of the Group's overseas subsidiaries
Income tax expense 36650409.77
Other notes:
□ Applicable √ N/A
77. Other comprehensive income
√ Applicable□ N/A
See note for details
78. Cash flow statement items
(1).Cash related to operating activities
Other cash received relating to operating activities
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Interest income on deposits 9191452.30 6309355.80
Recovery of monetary funds with
restricted use 12012883.29 5087379.03
Government subsidies 433289.18 3731552.00
Rental income 2767381.89 3058218.60
Margin and deposit 2267764.63 83586.99
Others 2004378.80 290371.68
Total 28677150.09 18560464.10
Description of other cash received related to operating activities:
None
Other cash paid relating to operating activities
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Transportation expenses travel
expenses rental expenses utilities 17316854.10 15159502.69
labor expenses etc. paid
Transfers to monetary funds with
restricted use 9691881.68
Material consumption 16349300.82 7262832.36
Intermediary expenses 5323269.09 5801003.15
Overdue fine fine remuneration 47211.87 515410.55
Others 2825705.52 5536582.02
Total 41862341.40 43967212.45
Description of other cash paid related to operating activities:
None
(2).Cash related to investing activities
Significant cash received related to investing activities
□ Applicable √ N/A
215 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Significant cash paid in connection with investing activities
□ Applicable √ N/A
Other cash received related to investing activities
□ Applicable √ N/A
Other cash paid in relation to investment activities
□ Applicable √ N/A
(3).Cash related to financing activities
Other cash received relating to financing activities
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Loan from Sheng Huei International 53586215.59 22605625.00
Total 53586215.59 22605625.00
Description of other cash received related to financing activities:
None
Other cash paid relating to financing activities
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Payment of lease rent for right-of-use
assets 2594805.13 2180273.09
Loan from Sheng Huei International 56447907.03
Total 59042712.16 2180273.09
Description of other cash paid related to financing activities:
None
Changes in liabilities arising from financing activities
√ Applicable□ N/A
In RMB Yuan
Increase in this period Decrease in this period
Items Opening Non-cash Closingbalance Cash Non-cashchange movements Cash change movement balances
Minority 7707548. 540152 2748194.27 15857271.75
interest 39 9.09
Short-term 235302 850123.68 363860.00 150383.24 23866103.44
loan 23.00
Interest 284876.55 284876.55
payable
Other 535862 1707068.52 56447907.03 21706821.33
payables – 15.59
loans from
related
parties
outside the
consolidati 2286144
on 4.25
Other 80000000.00 80000000.00
216 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
payables -
Dividend
distributio
n
Lease 3898635. 2703147.78 2594805.13 4006977.99
liabilities 34
Total 3446762 825179
7.9867.6888293410.80139691448.71150383.2465437174.51
(4).Notes to the presentation of cash flows on a net basis
□ Applicable √ N/A
(5).Significant activities and financial effects that do not involve current cash receipts and
disbursements but affect the enterprise's financial position or may affect the enterprise's cash
flows in the future
□ Applicable √ N/A
79. Supplementary information on cash flow statement
(1). Supplementary information on cash flow statement
√ Applicable□ N/A
In RMB Yuan
Supplementary information Amount this period Amoun in the prior period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 117109778.91 140063841.99
Add: Provision for impairment of
assets 6812588.09 -1148478.91
Credit impairment loss -2207755.91 3860633.85
Accumulated depreciation of
investment properties 67051.32 114306.72
Depreciation of fixed assets depletion
of oil and gas assets depreciation of 4989601.84 3830558.72
biological assets
Amortization of right-of-use assets 2430153.33 2159286.86
Amortization of intangible assets 370750.07 367137.71
Amortization of long-term amortized
expenses
Loss on disposal of property plant
and equipment intangible assets and -98152.04
other long-lived assets (Gain denoted -116542.37
by “-”)
Loss on retirement of fixed assets
(Gain denoted by “-”) 63978.14
Loss on change in fair value (Gain
denoted by “-”) -25000.00 119888.89
Finance costs (Gain denoted by “-”) -2917877.25 209501.12
Loss on investment (Gain denoted by
“-”)-814005.65-1661794.44
Decrease in deferred tax assets
(Increase is recognized by " - " sign) -272898.33 3231780.41
Increase in deferred tax liabilities
(Decrease is recognized by " - " sign) 3215000.15 8287496.24
217 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Decrease in inventories (Increase is
recognized by " - " sign) -3585610.06 66824.45
Decrease in operating receivables
(Increase is recognized by " - " sign) -118492078.51 -75532714.83
Increase in operating payables
(Decrease is recognized by " - " sign) -9886105.62 50401030.09
Increase in production safety expenses -403590.14 -793803.41
Net cash flows from operating
activities -3708149.80 133522931.23
2. Significant investing and financing activities not involving cash receipts and payments:
Conversion of debt to capital
Convertible corporate bonds due
within one year
Finance lease to fixed assets
3. Net change in cash and cash equivalents:
Closing balance of cash 574895982.11 709996723.03
Less: Opening balance of cash 709996723.03 542340098.29
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
equivalents -135100740.92 167656624.74
(2). Net cash paid for acquisition of subsidiaries in this period
□ Applicable √ N/A
(3). Net cash received from disposal of subsidiaries in this period
□ Applicable √ N/A
(4). Composition of cash and cash equivalents
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
I. Cash 574895982.11 709996723.03
Including: Cash on hand 12187.35 1054977.35
Bank deposits readily available
for payment 574883794.76 708941745.68
Other monetary funds available
for payment
Amounts on deposit with central
banks available for payment
Due from banks
Call loan to banks
II. Cash equivalents
Including: Investments in bonds due
within three months
III. Cash and cash equivalents at the
end of the period 574895982.11 709996723.03
Including: Restricted cash and cash 486724.06 12499607.35
218 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
equivalents used by the parent
company or subsidiaries within the
group
(5). Cash and cash equivalents with restricted scope of use but still presented as cash and cash
equivalents
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Reason
Monetary fund 486724.06 Deposit restriction
Total 486724.06 /
(6). Monetary funds not classified as cash and cash equivalents
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
80. Notes to the Statement of Changes in Owners' Equity
Items such as the name of the "Other" item and the amount of adjustments made to the closing balance
of the previous year are explained:
□ Applicable √ N/A
81. Monetary items in foreign currency
(1).Monetary items in foreign currency
√ Applicable□ N/A
Unit:RMB Yuan
Items Closing balance in foreigncurrency Exchange rate
Closing balance in RMB
balance
Monetary fund
Including:USD 6250142.81 7.1884 44928526.56
IDR 79441653919.56 0.000451 35828185.92
THB 17406438.94 0.212639 3701287.77
SGD 179699.95 5.3214 956255.31
MYR 407510.11 1.619905 660127.66
VND 176545706661.00 0.000282 49785889.28
Accounts receivable
Including:USD 4071.00 7.1884 29263.98
MYR 2292309.31 1.619905 3713323.31
VND 196105593936.17 0.000282 55301777.49
THB 18534478.76 0.212639 3941153.03
IDR 13238280221.73 0.000451 5970464.38
Other Receivables
Including:VND 2869472053.00 0.000282 809191.12
THB 1666315.81 0.212639 354323.73
IDR 949750704.00 0.000451 428337.57
MYR 99200.00 1.619905 160694.58
Accounts payable
Including:USD 3446718.89 7.1884 24776394.05
VND 79984398661.00 0.000282 22555600.42
219 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
THB 50325118.77 0.212639 10701082.93
IDR 9529147201.00 0.000451 4297645.39
MYR 4143203.32 1.619905 6711595.77
Other payables
Including:USD 3031016.37 7.1884 21788158.07
SGD 15412.00 5.3214 82013.42
MYR 105952.39 1.619905 171632.81
THB 745985.93 0.212639 158625.70
IDR 928858459.53 0.000451 418915.17
VND 626286232.00 0.000282 176612.72
Short-term loan
Including:USD 557701.87 7.1884 4008984.10
THB 70000000.00 0.212639 14884730.00
Other notes:
None
(2).Description of overseas operating entities including for significant overseas operating entities
disclosure of the principal place of business outside the country the local recording currency
and the basis of selection and disclosure of the reasons for changes in the local recording
currency
√ Applicable□ N/A
The Group and its domestic subsidiaries maintain their accounts in Chinese Yuan (RMB); Acter
International Limited is accounted for in United States dollars; Acter Technology Singapore Pte. Ltd is
denominated in Singapore dollars; PT. Acter Technology Indonesia and PT Acter Integration
Technology Indonesia (the "Indonesian Joint Venture") are denominated in Indonesian Rupiah; Acter
Technology Malaysia Sdn. Bhd is denominated in MYR; Sheng Huei Engineering Technology
Company Limited is denominated in VND; and Acter Technology Co. Ltd. maintains its accounts in
THB. The Group and its subsidiaries have selected the local recording currencies based on the currency
of valuation and settlement of major business receipts and expenditures. Some subsidiaries of the Group
have adopted currencies other than the Company's local currency as the local currency and the foreign
currency financial statements of these subsidiaries have been translated in accordance with "Section V. 9.Translation of Foreign Currency Operations and Foreign Currency Statements" of this section in the
preparation of these financial statements.Name of overseas Principal place Recording
operating entities of business currency Basis of selection of local currency
PT.Acter Technology Indonesian Businesses are mainly denominated
Indonesia Indonesia Rupiah and settled in this currency.PT Acter Integration Indonesia Indonesian Businesses are mainly denominatedTechnology Indonesia Rupiah and settled in this currency.Sheng Huei Engineering
Technology Company Vietnam VND Businesses are mainly denominated
Limited and settled in this currency.Acter Technology Co. Thailand THB Businesses are mainly denominatedLtd and settled in this currency.Acter International
Limited Hong Kong USD
Businesses are mainly denominated
and settled in this currency.Acter Technology Malaysia MYR Businesses are mainly denominatedMalaysia Sdn. Bhd. and settled in this currency.
82. Leases
(1) As lessee
√ Applicable□ N/A
220 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ N/A
Lease expenses for short-term leases or low-value assets with simplified treatment
√ Applicable□ N/A
8688069.39 (In RMB Yuan)
Sale and leaseback transactions and basis of judgment
□ Applicable √ N/A
Total cash outflows related to leasing 11483797.64 (in RMB Yuan)
(2) As lessor
Operating leases as lessor
√ Applicable□ N/A
In RMB Yuan
Of which: Income related to
Items Lease income variable lease payments not
included in lease receipts
Lease of buildings 2767381.89
Total 2767381.89
Finance lease as lessor
□ Applicable √ N/A
Reconciliation of undiscounted lease receipts to net investment in leases
□ Applicable √ N/A
Undiscounted lease receipts for the next five years
□ Applicable √ N/A
(3) Recognition of gain or loss on sales under finance leases as a manufacturer or distributor
□ Applicable √ N/A
Other notes:
None
83. Data resource
□ Applicable √ N/A
84. Others
□ Applicable √ N/A
VIII. R&D expenditures
1. Presented by nature of expenses
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Material costs 16349300.82 6423694.04
221 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Labor cost 13547429.17 14071064.42
Rental expenses 338071.77 290827.94
Depreciation and amortization 133765.21 153397.80
Others 3161138.99 4182225.42
Total 33529705.96 25121209.62
Including: Expensed R&D expenditures 33529705.96 25121209.62
Capitalized R&D expenditures
Other notes:
None
2. Development expenditures on R&D projects eligible for capitalization
□ Applicable √ N/A
Significant capitalized R&D projects
□ Applicable √ N/A
Provision for impairment of development expenditure
□ Applicable √ N/A
Other notes:
None
3. Significant outsourced R&D projects
□ Applicable √ N/A
IX. Changes in the scope of consolidation
1. Business combination not under the same control
□ Applicable √ N/A
2. Business combination under the same control
□ Applicable √ N/A
3. Reverse buyback
□ Applicable √ N/A
222 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
4. Disposal of subsidiaries
Whether there is any transaction or matter of losing control of subsidiaries in this period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Disposal of investments in subsidiaries through multiple transactions and loss of control in this period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
5. Changes in the scope of consolidation due to other reasons
Description of changes in the scope of consolidation due to other reasons (e.g. establishment of new subsidiaries liquidation of subsidiaries etc.) and the related
circumstances:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
223 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
X. Interests in other entities
1. Interests in subsidiaries
(1). Composition of the enterprise group
√ Applicable□ N/A
Unit:In RMB 10000RMB
Subsidiary Principal Registere Place of
Shareholding
place of registratio Nature of ratio (%) AcquisitionFirm name business d capital n business Direct Indirec methodt
Shenghuei
Engineering
Technology Business
(Shenzhen) Shenzhe
Co. Ltd. n 3529.67 Shenzhen
Electromechanic 100.0 combination
al engineering 0 under the(“Acter same control(Shenzhen)”
)
Shenzhen
Dingmao
Trading Co. Shenzhe 500.00 Shenzhen Trade 100.0 EstablishmeLtd. n 0 nt(“ShenzhenDingmao”)
Acter
International Hong Hong BusinessLimited(“Acter Kong 2260.03 Kong Investment
100.0 combination
(Hong China China
0 under the
same controlKong)”)
Acter
Technology
Singapore Business
Pte. Ltd. Singapore 1726.31 Singapore Investment
100.0 combination(“Acter 0 under the(Singapore) same control
”)
PT. Acter
Technology Business
Indonesia Indonesi(“Acter a 527.73 IndonesiaElectromechanic combination
al engineering 100.00 under the(Indonesia)” same control
)
Acter
Technology
Malaysia Business
Sdn. Malaysia 1902.84 Malaysia Electromechanic 100.00 combination
Bhd. al engineering under the(“Acter same control(Malaysia)”)
Sheng Huei
Engineering Business
Technology Vietnam 3827.37 Vietnam Electromechanic 100.00 combination
Company al engineering under the
Limited same control
224 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.(“Acter(Vietnam)”)
Acter
Technology Business
Co. Ltd. Thailand 651.90 Thailand Electromechanical engineering 88.38
combination(“Acter not under the(Thailand)”) same control
PT Acter
Integration
Technology
Indonesia Indonesi Electromechanic Establishme(“Indonesia a
2306.90 Indonesia al engineering 67.00 nt
JointVenture”)
A statement that the percentage of shareholding in a subsidiary is different from the percentage of voting
rights:
None
Basis for holding half or less of the voting rights but still controlling the investee and holding more than
half of the voting rights but not controlling the investee:
None
For significant structured subjects included in the scope of consolidation the basis of control:
None
Basis for determining whether the company is an agent or principal:
None
Other notes:
None
(2). Significant non-wholly owned subsidiaries
□ Applicable √ N/A
(3). Key financial information of significant non-wholly owned subsidiaries
□ Applicable √ N/A
(4). Significant restrictions on the use of enterprise group assets and settlement of enterprise
group liabilities
□ Applicable √ N/A
(5). Financial or other support provided to structured subjects included in the scope of the
consolidated financial statements
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
225 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
2. Transactions in which the share of ownership interest in a subsidiary changes and the
subsidiary is still controlled
□ Applicable √ N/A
3. Interests in joint ventures or associates
□ Applicable √ N/A
4. Significant joint operations
□ Applicable √ N/A
5. Interests in structured entities not included in the scope of the consolidated financial
statements
Description of structured entities not included in the scope of the consolidated financial statements:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
XI. Government subsidies
1. Government grants recognized at the end of the reporting period based on receivable
amounts
□ Applicable √ N/A
Reasons for not receiving the estimated amount of government grants at the expected point in time
□ Applicable √ N/A
2. Liability items related to government grants
□ Applicable √ N/A
3. Government grants recognized as current profit or loss
√ Applicable□ N/A
In RMB Yuan
Type Amount this period Amount last period
Revenue-related 433289.18 3731552.00
Total 433289.18 3731552.00
Other notes:
Amount in Amount Revenue-related/a
Type the current Presentation items recognized in sset-related
year profit or loss
Refund of withholding
tax/personal tax refund 142178.07 Other gains 142178.07 Revenue-related
Subsidies for stabilizing
jobs 154511.11 Other gains 154511.11 Revenue-related
226 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Amount in Amount Revenue-related/a
Type the current Presentation items recognized in sset-related
year profit or loss
Special fund subsidy 132000.00 Other gains 132000.00 Revenue-related
Incentive for enterprise
R&D expenses 4600.00 Other gains 4600.00 Revenue-related
Total 433289.18 433289.18
XII. Risks Related to Financial Instruments
1. Risks of financial instruments
√ Applicable□ N/A
The Group's major financial instruments include bills receivable short-term loans receivables
and payables etc. For details of each financial instrument please refer to the relevant item in Note
7. The risks associated with these financial instruments and the risk management policies adopted
by the Group to minimize these risks are described below. The Group's management manages and
monitors these exposures to ensure that the above risks are controlled within limits.A. Risk management objectives and policies
The Group engages in risk management with the objective of striking an appropriate balance
between risk and return minimizing the negative impact of risks on the Group's operating results
and maximizing the interests of shareholders and other equity investors. Based on this risk
management objective the basic strategy of the Group's risk management is to identify and analyze
the various risks faced by the Group to establish an appropriate risk tolerance threshold and to
manage the risks and to monitor the various risks in a timely and reliable manner in order to control
the risks within a limited scope.
(1) Market risk
1) Exchange rate risk
The Group's exposure to exchange rate risk is mainly related to U.S. Dollars VND THB and
Indonesian Rupiah. Except for several subsidiaries of the Group that make purchases and sales in
U.S. Dollars the Group's other major business activities are denominated in RMB. As of December
31 2024 the Group's assets and liabilities were denominated in RMB except for the U.S. dollars
Vietnamese dong THB and Indonesian Rupiah in respect of the assets and liabilities described in
the table below. The exchange rate risk arising from these assets and liabilities in U.S. Dollars
Vietnamese dong THB and Indonesian Rupiah balances may have an impact on the Group's results
of operations.Items Closing balance
Currency Funds - USD 6250142.81
Currency Funds - IDR 79441653919.56
Currency Funds - THB 17406438.94
Currency Funds - SGD 179699.95
Accounts Receivable - VND 176545706661.00
Currency Funds - MYR 407510.11
Accounts Receivable - VND 196105593936.17
Accounts Receivable - THB 18534478.76
227 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Items Closing balance
Accounts Receivable - IDR 13238280221.73
Accounts Receivable - USD 4071.00
Accounts Receivable - MYR 2292309.31
Other Payables - VND 626286232.00
Other Payables - USD 3031016.37
Other Payables - SGD 15412.00
Other Payables - MYR 105952.39
Other Payables - THB 745985.93
Other Payables - IDR 928858459.53
Accounts Payable - USD 3446718.89
Accounts Payable - VND 79984398661.00
Accounts Payable - THB 50325118.77
Accounts Payable - IDR 9529147201.00
Accounts Payable - MYR 4143203.32
Other Receivables - VND 2869472053.00
Other Receivables - THB 1666315.81
Other Receivables - IDR 949750704.00
Other Receivables - MYR 99200.00
Short-term loan - USD 557701.87
Short-term loan - THB 70000000.00
2) Interest Rate Risk
The Group's interest rate risk arises from interest-bearing debts such as bank borrowings and
bonds payable. Financial liabilities with fixed interest rates expose the Group to fair value interest
rate risk. The Group determines the relative proportion of fixed interest rates based on the
prevailing market conditions. The Group's risk of changes in fair value of financial instruments due
to changes in interest rates is mainly related to fixed-rate bank borrowings. For fixed rate
borrowings the Group's objective is to maintain its floating interest rate. The Group is not highly
sensitive to interest rate fluctuations and has no significant interest rate risk.
(2) Credit risk
Credit risk is the risk that one party to a financial instrument will fail to fulfill its obligations
resulting in a financial loss to the other party. The Group's credit risk mainly arises from monetary
funds receivables and contract assets. The management continuously monitors these credit risk
exposures.The Group's monetary funds other than cash are mainly deposited with creditworthy financial
institutions which management believes do not have significant credit risk and are not expected to
incur losses to the Group as a result of default by the counterparties.The Group's maximum exposure to credit risk is the book value of each financial asset in the
balance sheet. The Group has not provided any other guarantees that may expose the Group to
228 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
credit risk.The Group's credit risk from accounts receivable and contract assets is primarily driven by the
characteristics of each individual client rather than the industry or country or region in which the
client is located. Consequently significant concentrations of credit risk arise mainly from the
existence of significant accounts receivable and contract assets of the Group in respect of individual
clients. As of December 31 2024 the accounts receivable and contract assets of the Group's top
five clients accounted for 38.33% (2023: 42.90%) of the Group's total accounts receivable and
contract assets.In respect of accounts receivable the Group has formulated a credit policy based on the actual
situation and conducts credit assessment on clients to determine the credit amount and credit period.The credit assessment is mainly based on the client's financial position external ratings and bank
credit history (where possible). The receivables are generally due within 30 to 120 days from the
date of billing. Under normal circumstances the Group does not require clients to provide
collateral.
(3) Liquidity risk
Liquidity risk is the risk of shortage of funds when the Group fulfills its obligations to settle by
delivery of cash or other financial assets. The Company and its subsidiaries are responsible for their
own cash management including the short-term investment of cash surpluses and the raising of
loans to meet anticipated cash requirements (subject to the approval of the Group's Board of
Directors if borrowings are in excess of certain pre-determined authorization limits). It is the
Group's policy to regularly monitor short-term and long-term liquidity requirements and compliance
with borrowing agreements to ensure that adequate cash reserves are maintained and that
commitments are obtained from major financial institutions to provide sufficient standby funds to
meet short-term and longer-term liquidity requirements.In order to control this risk the Group regularly monitors the short-term and long-term
liquidity requirements and compliance with the provisions of the borrowing agreements to ensure
that sufficient cash reserves are maintained and has obtained commitments from major financial
institutions to provide sufficient standby funds to meet short-term and longer-term liquidity
requirements.As of December 31 2024 the remaining contractual maturity of the Group's financial
liabilities as of the balance sheet date based on the undiscounted contractual cash flows including
interest at contractual interest rates (or at the prevailing interest rate as of the reporting date in the
case of floating interest rates) and the earliest date on which payments will be required are as
follows:
Over 3 years or
Items Within 1 year 1-3 years Total
no fixed period
Accounts payable 404520732.27 153765065.65 40502395.14 598788193.06
Other payables 2836869.60 21790981.22 19233.00 24647083.82
Non-current
liabilities due 2421048.35 2421048.35
within one year
Lease liabilities 1585929.64 1585929.64
229 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Over 3 years or
Items Within 1 year 1-3 years Total
no fixed period
Total 409778650.22 177141976.51 40521628.14 627442254.87
B. Sensitivity analysis
The Group employs sensitivity analysis techniques to analyze the impact that reasonable and
probable changes in risk variables may have on current profit or loss or shareholders' equity. Since
changes in any of the risk variables rarely occur in isolation and the correlation that exists between
the variables will play a significant role in the amount of the eventual impact of a change in one of
the risk variables the following has been performed assuming that the changes in each of the
variables are independent. The impact on total profit and shareholders' equity of the
appreciation/depreciation of RMB as a result of the changes in RMB against the US Dollar the
Vietnamese dong and Indonesian Rupiah as of December 31 2024 is presented in RMB at the spot
exchange rate at the balance sheet date. Since the impact on total profit and shareholders' equity of
financial instruments in other currencies in the event of exchange rate changes is not material the
related sensitivity analysis is omitted here. The Company believes that its exposure to exchange rate
risk is generally manageable.
2024
Exchange rate
Items
changes Impact onImpact on net profit
shareholders' equity
Depreciation of RMB Appreciation of 5%
-280787.28-280787.28
against USD against RMB
Appreciation of RMB Depreciation of 5%
280787.28280787.28
against USD against RMB
Depreciation of RMB Appreciation of 5%
-4158232.24-4158232.24
against VND against RMB
Appreciation of RMB Depreciation of 5%
4158232.244158232.24
against VND against RMB
Depreciation of RMB
Appreciation of 5%
against Indonesian -1875521.37 -1875521.37
against RMB
Rupiah
Appreciation of RMB
Depreciation of 5%
against Indonesian 1875521.37 1875521.37
against RMB
Rupiah
The above sensitivity analysis is based on the re-measurement of financial instruments held by
the Group that are exposed to exchange rate risk at the balance sheet date assuming that the
exchange rate at the balance sheet date has changed within the reporting period using the changed
exchange rate.C. Capital management
The main objectives of the Group's capital management are to ensure the Group's ability to
continue as a going concern and to maintain healthy capital ratios to support business development
and maximize shareholder value.
230 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
The Group manages its capital structure and adjusts it in accordance with changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the
capital structure the Group may adjust profit distribution to shareholders return capital to
shareholders or issue new shares. The Group is not subject to external mandatory capital
requirements. For the period January-December 2024 there have been no changes in capital
management objectives policies or procedures.The Group monitors its capital through the asset-liability ratio which is calculated as total
liabilities divided by total assets. The asset-liability ratios at December 31 2024 were as follows:
2. Hedging
(1) Hedging business for risk management
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
(2) The Company conducts eligible hedging operations and applies hedge accounting
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
(3) The Company conducts hedge operations for risk management and expects to achieve the risk
management objectives but does not apply hedge accounting.□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
3. Transfer of financial assets
(1) Classification of transfer methods
□ Applicable √ N/A
(2) Financial assets derecognized due to transfer
□ Applicable √ N/A
(3) Transferred financial assets that continue to be involved in the financial asset
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
XIII. Fair value disclosure
1. Closing fair value of assets and liabilities measured at fair value
√ Applicable□ N/A
In RMB Yuan
Items Fair value at the end of the period
231 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Level 2
Level 1 fair fair
value value Level 3 fair value
measurement measure measurements
Total
ments
I. Ongoing fair value
measurements
(I) Financial assets held
for trading
1. Financial assets
measured at fair value
with changes included in
the current profit and loss
(1) Investments in debt
instruments
(2) Investments in equity
instruments
(3) Derivative financial
assets
(4) Structural deposit 50025000.00 50025000.00
2. Refer to the financial
assets measured at fair
value with changes
included in the current
profit and loss
(1) Investments in debt
instruments
(2) Investments in equity
instruments
(II) Other debt
investments
(III) Investments in other
equity instruments 12947918.04 12947918.04
(IV) Investment
properties
1. Land use rights for
lease
2. Buildings for lease
3. Land use rights held
for transfer after
appreciation in value
(V) Biological assets
1. Expendable biological
assets
2. Productive biological
assets
(VI) Receivables
financing 2499031.97 2499031.97
Total assets measured
at fair value on an 12947918.04 52524031.97 65471950.01
ongoing basis
(VII) Financial liabilities
held for trading
1. Financial liabilities
measured at fair value
with changes included in
232 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
the current profit and loss
Including: Trading bonds
issued
Derivative financial
liabilities
Others
2. Financial liabilities
measured at fair value
with changes included in
the current profit and loss
Total liabilities at fair
value on an ongoing
basis
II. Discontinued fair
value measurements
(I) Assets held for sale
Total assets not
continuously measured
at fair value
Total liabilities not
continuously measured
at fair value
2. Basis for determining the market value of continuing and discontinued Level 1 fair value
measurements
√ Applicable□ N/A
The investment in other equity instruments with the Level 1 fair value measurement held by
the Group is a strategic placement project of Wafer Works (Shanghai) and the Company
determines its fair value at its stock market price.
3. Qualitative and quantitative information on the valuation techniques and significant
parameters used for the fair value measurement items in the continuous and discontinued
Level 2 fair value hierarchy
□ Applicable √ N/A
4. Continuing and discontinuing Level 3 fair value measurement items qualitative and
quantitative information on valuation techniques used and significant parameters
√ Applicable□ N/A
The Group uses valuation techniques to determine the fair value of the structured deposits with
Level 3 fair value measurement held by the Group. The valuation model used is mainly a discounted
cash flow model. The inputs to the valuation technique are mainly the contractual expected rate of
return.The Level 3 fair value receivable financing held by the Group is a bank acceptance bill receivable
which has a small credit risk and a short remaining period. The Company determines its fair value based
on its face balance.
5. Ongoing Level 3 fair value measurements reconciliation information between opening and
closing book balance and sensitivity analysis of unobservable parameters
□ Applicable √ N/A
233 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
6. Continuing fair value measurements if there was a transition between levels in this period
the reasons for the transition and the policy for determining the point of transition.□ Applicable √ N/A
7. Changes in valuation techniques in this period and the reasons for such changes
□ Applicable √ N/A
8. Fair value of financial assets and liabilities not measured at fair value
□ Applicable √ N/A
9. Others
□ Applicable √ N/A
XIV.Related parties and related party transactions
1. Parent company of the enterprise
√ Applicable□ N/A
Unit:In RMB 10000RMB
Parent Proportion of
Name of parent Place of Nature of Registered company's voting rights of
company registration business capital shareholding the parentproportion in the company in the
enterprise (%) enterprise (%)
Sheng Huei
International InvestmentCO. Ltd. Samoa holding USD3950000 64.9973 64.9973(“Acter companyInternational”)
Description of the enterprise's parent company
None
The ultimate controlling party of the enterprise is Acter (Taiwan)
Other notes:
None
2. Information on subsidiaries of the Enterprise
√ Applicable□ N/A
For details of the Group's subsidiaries please refer to "X.1. Interests in subsidiaries" in this section.
3. Joint ventures and associates of the Enterprise
Details of significant joint ventures or associates of the Company are set out in the notes.□ Applicable √ N/A
Other joint ventures or associates with which the Company has entered into related party transactions
during the current period or with which the Company has entered into related party transactions in prior
periods resulting in balances are as follows
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
4. Other related parties
√ Applicable□ N/A
234 / 2612024Annual Report of Acter Technology Integration Group Co. Ltd.
Name of other related parties Relationship between other related parties and the
enterpriseNOVA Technology Corp. (“Taiwan Enterprises controlled by the same ultimate controllingNOVA”) shareholderWinmax Technology Corp. (“Shanghai Enterprises controlled by the same ultimate controllingWinmax”) shareholder
Suzhou Winmax Technology Corp. Enterprises controlled by the same ultimate controlling
(“Suzhou Winmax” formerly known as shareholder
“Suzhou Guanbo”)
NOVA TECH ENGINEERING & Enterprises controlled by the same ultimate controllingCONSTRUCTION PTE. LTD. (“Singapore shareholderNOVA”)
Other notes:
None
5. Related party transactions
(1). Purchase and sale of goods provision and acceptance of labor related party transactions
Purchase of goods/acceptance of services
□ Applicable √ N/A
Sale of goods/provision of services
□ Applicable √ N/A
Purchase and sale of goods provision and acceptance of services
□ Applicable √ N/A
(2). Affiliated fiduciary management/contracting and entrusted management/contracting out
The Company's fiduciary management/contracting status table:
□ Applicable √ N/A
Explanation for Affiliated Fiduciary Management/Contracting
□ Applicable √ N/A
The Company's entrusted management/contracting
□ Applicable √ N/A
Management/contracting by affiliation
□ Applicable √ N/A
(3). Affiliated leasing
The Company acts as a lessor:
√ Applicable□ N/A
In RMB Yuan
Name of Lessee Type of leased asset Lease income recognized Lease income recognized inin this period the previous period
Winmax (Suzhou) Lease of buildings 2602527.60 2590579.03
235 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
The Company acted as the lessee:
√ Applicable□ N/A
In RMB Yuan
Rental costs for Variable lease
short-term leases and payments not included Interest expense on
leases of low-value in the measurement of Rental payments lease liabilities Increase in right-of-use
Name of Type of leased assets with simplified the lease liability (if assumed assets
lessor asset treatment (if applicable) applicable)
Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
this period last period this last this last this last this lastperiod period period period period period period period
Novatech Lease of
(Singapore) buildings 24035.48 24466.69 24466.69
Explanation for related leases
□ Applicable √ N/A
236 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(4). Related guarantees
The Company as a guarantor
□ Applicable √ N/A
The Company as a guaranteed party
□ Applicable √ N/A
Explanation for related guarantees
□ Applicable √ N/A
(5). Borrowing of funds from related parties
√ Applicable□ N/A
In RMB Yuan
Guarantee
Related party Borrowing amount starting date expiration Remarks
date
Borrowing
Sheng Huei
17820267.272023-11-232024-11-22
International
Sheng Huei
5041176.982023-10-242024-05-24
International
Sheng Huei
20117234.702024-06-202024-08-15
International
Sheng Huei
21706821.332024-11-152025-11-14
International
Sheng Huei
10405528.012024-05-082024-12-12
International
(6). Transfer of assets and debt restructuring by related parties
□ Applicable √ N/A
(7). Remuneration of key management personnel
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Remuneration of key
4678862.355101745.67
management personnel
237 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(8). Other related party transactions
□ Applicable √ N/A
6. Unsettled receivables and payables from related parties
(1). Items receivable
□ Applicable √ N/A
(2). Items payable
√ Applicable□ N/A
In RMB Yuan
Items Related party Closing book Opening book balance
balance
Novatech
Other payables 42632.40 42684.21
(Singapore)
Sheng Huei
Other payables 21706821.33 22861444.25
International
(3). Other items
□ Applicable √ N/A
7. Related party commitments
□ Applicable √ N/A
8. Others
√ Applicable□ N/A
（1） Payments on behalf of related parties
In RMB Yuan
Content of related party Amount in the Amount in the
Related party
transactions current year prior year
Payment of utilities by
Winmax (Suzhou) Suzhou Acter on behalf of 828837.80 710302.15
Winmax (Suzhou)
Total 828837.80 710302.15
（2） Acceptance of payment on behalf of related parties
In RMB Yuan
Content of related party Amount in the Amount in the
Related party
transactions current year prior year
Payment of utility bills on
Novatech (Singapore) 15222.47 14169.08
behalf of Sheng Huei
238 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(Singapore) by Novatech
(Singapore)
Total 15222.47 14169.08
XV. Share-based payment
1. Equity instruments
□ Applicable √ N/A
Stock options or other equity instruments issued and outstanding at the end of the period
□ Applicable √ N/A
2. Equity-settled share-based payments
√ Applicable□ N/A
In RMB Yuan
Determined on the basis of the appraised
value or on the basis of the fair value
Method of determining the fair value of equity
calculated by taking into account the
instruments at the date of grant
Company's own circumstances and the
price-earnings ratio of the same industry
Important parameters of the fair value of equity
instruments at the date of grant
At each balance sheet date during the waiting
period the Company makes its best estimate
Basis for determining the number of available
of the number of vested equity latest available
equity instruments
subsequent information such as changes in
the number of vested employees.Reasons for significant differences between this
period's estimate and the previous period's
estimate
Cumulative amount of equity-settled share-based
32368025.42
payments recognized in capital surplus
Other notes:
None
3. Cash-settled share-based payments
□ Applicable √ N/A
239 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
4. Share-based payment expenses for the period
□ Applicable √ N/A
5. Modification and termination of share-based payment
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
XVI. Commitments and contingencies
1. Important commitments
□ Applicable √ N/A
2. Contingencies
(1). Important contingencies existing at the balance sheet date
√ Applicable□ N/A
Guarantee Guarantee
Name of Guarantee Currenc
starting date expiration
guaranteed entity Matters y
Amount date
Contractual joint
Acter (Vietnam) and several RMB 125897195.25 2020-09-23 2024-07-10
guarantee
Contractual joint
Acter (Vietnam) and several RMB 71345119.56 2020-12-07 2026-03-31
guarantee
Contractual joint
Acter (Vietnam) and several RMB 4473565.17 2021-05-07 2025-09-01
guarantee
Contractual joint
Acter (Vietnam) and several RMB 5430176.59 2021-05-07 2026-03-31
guarantee
Contractual joint
Acter (Vietnam) and several RMB 21076153.89 2022-03-01 2025-06-30
guarantee
Contractual joint
Acter (Vietnam) RMB 17168854.83 2022-03-10 2025-06-30
and several
240 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Guarantee Guarantee
Name of Guarantee Currenc
starting date expiration
guaranteed entity Matters y
Amount date
guarantee
Acter (Shenzhen) Bank financing RMB 40000000.00 2022-09-05 2024-03-31
Shenzhen Dingmao Bank financing RMB 45000000.00 2022-09-05 2024-03-31
Shenzhen Dingmao Bank financing RMB 20000000.00 2023-01-16 2024-01-04
Contractual joint
Acter (Vietnam) and several RMB 14285182.90 2023-01-10 2025-07-31
guarantee
Contractual joint
Acter (Vietnam) and several RMB 99925200.63 2023-07-07 2026-03-31
guarantee
Contractual joint
Acter (Vietnam) and several RMB 159724393.29 2023-10-12 2026-07-07
guarantee
Contractual joint
Acter (Vietnam) and several RMB 721558.28 2023-11-13 2026-03-31
guarantee
Contractual joint
Acter (Vietnam) and several RMB 1532643.25 2023-11-27 2026-03-31
guarantee
Shenzhen Dingmao Bank financing RMB 20000000.00 2024-01-04 2024-11-27
Acter (Indonesia) Bank financing RMB 20257434.78 2024-01-16 2024-10-31
Acter (Shenzhen) Bank financing RMB 30000000.00 2024-02-28 2026-12-31
Shenzhen Dingmao Bank financing RMB 45000000.00 2024-02-28 2026-12-31
Indonesia Joint
Bank financing RMB 3268861.15 2024-04-23 2024-10-31
Venture
Contractual joint
Acter (Vietnam) and several RMB 77052381.68 2024-04-28 2026-10-23
guarantee
Sheng Huei
Bank financing RMB 50000000.00 2024-09-04 2028-08-15
(Malaysia)
Contractual joint
Acter (Vietnam) and several RMB 5419120.43 2024-09-18 2026-10-23
guarantee
Contractual joint
Acter (Vietnam) and several RMB 42847381.09 2024-11-22 2028-05-30
guarantee
Contractual joint
Acter (Vietnam) and several RMB 13389806.59 2024-11-22 2028-05-30
guarantee
241 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Guarantee Guarantee
Name of Guarantee Currenc
starting date expiration
guaranteed entity Matters y
Amount date
Shenzhen Dingmao Bank financing RMB 20000000.00 2024-11-27 2027-11-06
(2). The Company has no material contingencies that need to be disclosed which shall
also be stated:
□ Applicable √ N/A
3. Others
□ Applicable √ N/A
XVII. Events after the balance sheet date
1. Important non-adjusting events
□ Applicable √ N/A
2. Profit distribution
√ Applicable□ N/A
In RMB Yuan
Profit or dividend to be distributed 75000000.00
Profits or dividends declared after 75000000.00
consideration and approval
Pursuant to the resolution of the Eighteenth Meeting of the Second Session of the Board of
Directors held on March 28 2025 the Group's plan for profit distribution for the year 2024 is as
follows:
Based on the total share capital of 100000000 shares as of the record date for dividend
distribution the Company will distribute a cash dividend of RMB 7.50 (including tax) for every
10 shares totaling RMB 75000000 (including tax);
The profit distribution plan has yet to be approved by the shareholders’ meeting.
3. Sales return
□ Applicable √ N/A
4. Description of other post-balance sheet events
□ Applicable √ N/A
242 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
XVIII. Other Important Matters
1. Correction of prior period accounting errors
(1). Retrospective restatement
□ Applicable √ N/A
(2). Future application method
□ Applicable √ N/A
2. Significant debt restructuring
□ Applicable √ N/A
3. Asset replacement
(1). Non-monetary asset exchange
□ Applicable √ N/A
(2). Other asset replacement
□ Applicable √ N/A
4. Annuity plan
□ Applicable √ N/A
5. Discontinued operations
□ Applicable √ N/A
6. Segment Information
(1). Basis for determining reportable segments and accounting policies
√ Applicable□ N/A
The Group operates as a whole and has a unified internal organizational structure
management evaluation system and internal reporting system. The management conducts resource
allocation and performance evaluation by regularly reviewing financial information at the
corporate level. The Group did not have any separately managed operating segment within the
reporting period and therefore the Group
(1) Geographical information
243 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Information on the Group's revenue from external transactions by region is set out in the
table below. Revenue from external transactions is classified according to the location of the
clients who constructed the projects or purchased the products.Location of clients Amount in the current year Amount in the prior year
Chinese mainland 1330457322.03 1573087402.75
Southeast Asia 677239995.95 435837592.93
Total 2007697317.98 2008924995.68
The Group's non-current assets (excluding deferred tax assets) are mainly located in
Mainland China based on the physical location of the assets (for fixed assets) and the
location of the related operations (for intangible assets).
(2). Financial information of reportable segments
□ Applicable √ N/A
(3). If the Company does not have any reportable segments or cannot disclose the total
assets and total liabilities of each reportable segment the reasons shall be explained
□ Applicable √ N/A
(4). Others
□ Applicable √ N/A
7. Other important transactions and matters affecting investors' decisions
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XIX. Notes to the Parent Company's Financial Statements
1. Accounts receivable
(1). Disclosure by ageing
√ Applicable□ N/A
In RMBYuan
Ageing Closing book balance Opening book balance
Within 1 year
Including: Subtotal within 1 year
244 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
1-6 months (including 6
207469115.94275587971.19
months)
6 months - 1 year (including 1
43187817.4522218436.60
year)
Subtotal within 1 year 250656933.39 297806407.79
1 - 2 years 8717269.95 12215831.57
2 - 3 years 1559930.27 11833238.76
3 - 4 years 2786513.25 14226750.24
4 - 5 years 3459129.54 7542629.98
Above 5 years 7542629.98 650753.62
Total 274722406.38 344275611.96
(2). Disclosure by bad debt accrual method
√ Applicable□ N/A
In RMB Yuan
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
bad debts bad debts
Accr Accr
Cate
Prop ual book Prop ual book
gory
Amoun ortio Amou prop Value Amoun ortio Amou prop Value
t n nt ortio t n nt ortio
(%) n (%) n
(%)(%)
Indi
vidu
al
prov
ision 87284 8728 100. 93791 9379 100.
3.182.72
for 14.37 414.37 00 67.99 167.99 00
bad-
debt
reser
ves
Including:
Prov
ision
for
265991297325302334891977831511
bad 96.8 97.2
3992.0593.34.880398.66443.9999.65.917444.3
debt 2 8
174716
s by
portf
olio
245 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Including:
274722170225302344272915831511
Tota
2406.3/007.7/0398.65611.9/167.6/7444.3
l
844606
Individual provision for bad-debt reserves:
√ Applicable□ N/A
In RMB Yuan
Closing balance
Firm name Provision for Accrual Reason for
Book balance
bad debts proportion (%) provision
Suzhou Mingqiao 2158200.00 2158200.00 100.00 Debtor's financial
Municipal difficulties
Engineering Co.Ltd.Qinghua Group 6570214.37 6570214.37 100.00 Debtor's financial
Xinjiang Coal difficulties
Chemical Industry
Co. Ltd.Total 8728414.37 8728414.37 100.00 /
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
√ Applicable□ N/A
Combined accrual item:Ageing portfolio
In RMB Yuan
Closing balance
Firm name Accrual proportion
Accounts receivable Provision for bad debts
(%)
1-6 months 207469115.94 6224073.58 3.00
(including 6
months)
6 months - 1 year 43187817.45 2159390.87 5.00
(including 1 year)
1-2 years (including 8717269.95 871727.00 10.00
2 years)
2-3 years (including 1559930.27 311986.05 20.00
3 years)
3-4 years (including 2786513.25 1393256.63 50.00
4 years)
4-5 years (including 1300929.54 1040743.63 80.00
5 years)
246 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Above 5 years 972415.61 972415.61 100.00
Total 265993992.01 12973593.37
Explanation for provision for bad debts by portfolio:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
The basis for the classification of each stage and the accrual proportion for bad debts
None
Explanation for significant changes in the book balance of accounts receivable for which changes
in the allowance for losses occurred in this period:
□ Applicable √ N/A
(3). Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Change in this period
Openin
Categor Other Closing
g Recovery or Write-offs or
y Provision chang balance
balance reversal cancellations
es
Provisio
29158
n for bad -6805406.24 -650753.62 21702007.74
167.60
debts
29158
Total -6805406.24 -650753.62 21702007.74
167.60
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(4). Accounts receivable actually written off in this period
√ Applicable□ N/A
In RMB Yuan
Items Write-off amount
Accounts receivable actually written off 650753.62
Significant accounts receivable written off among them
□ Applicable √ N/A
247 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Description of accounts receivable written off:
□ Applicable √ N/A
(5). Accounts receivable and contract assets with top five closing balances summarized by
party owed to the Company
√ Applicable□ N/A
In RMB Yuan
Percenta
ge of
combine
d
Closing balance accounts Closing
Closing balance
Unit Closing balance of accounts receivab balance of
of accounts
Name of contract assets receivable and le and provision for
receivable
contract assets contract bad debts
assets
closing
balance
(%)
Client
268514.2688312974.0588581488.3112.36%468416.30
Client
59020959.8627513327.4886534287.3412.07%2523320.99
Client
85283121.1085283121.1011.90%426415.61
Client
42349446.9825829331.9968178778.979.51%1399630.07
Client
1230944.2434948141.1936179085.435.05%268324.03
Total 102869865.34 261886895.81 364756761.15 50.89% 5086107.00
Other notes:
None
Other notes:
□ Applicable √ N/A
2. Other receivables
Item presentation
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
248 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Interest receivable
Dividends receivable
Other receivables 40526268.65 31069788.93
Total 40526268.65 31069788.93
Other notes:
□ Applicable √ N/A
Interest receivable
(1).Classification of interest receivable
□ Applicable √ N/A
(2).Significant overdue interest
□ Applicable √ N/A
(3).Disclosure by bad debt accrual method
□ Applicable √ N/A
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
□ Applicable √ N/A
(4).Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
The basis for the classification of each stage and the accrual proportion for bad debts
None
Explanation for significant changes in the book balance of interest receivables for which changes
in the allowance for losses occurred in this period:
□ Applicable √ N/A
(5).Provision for bad debts
□ Applicable √ N/A
249 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6).Actual write-off of interest receivable in this period
□ Applicable √ N/A
Write-off of significant interest receivables
□ Applicable √ N/A
Description of write-offs:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Dividends receivable
(1).Dividends receivable
□ Applicable √ N/A
(2).Significant dividends receivable with an age of more than 1 year
□ Applicable √ N/A
(3).Disclosure by bad debt accrual method
□ Applicable √ N/A
Individual provision for bad-debt reserves:
□ Applicable √ N/A
Explanation for bad debt provision by individual item:
□ Applicable √ N/A
Provision for bad debts by portfolio:
□ Applicable √ N/A
(4).Provision for bad debts based on the general model of expected credit
□ Applicable √ N/A
250 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
The basis for the classification of each stage and the accrual proportion for bad debts
None
Explanation for significant changes in the book balance of dividend receivables for which changes
in the allowance for losses occurred in this period:
□ Applicable √ N/A
(5).Provision for bad debts
□ Applicable √ N/A
Of which the amount of bad debt provision recovered or reversed in this period is significant:
□ Applicable √ N/A
Other notes:
None
(6).Dividends receivable actually written off in this period
□ Applicable √ N/A
Write-off of dividends receivable of which the significant ones are
□ Applicable √ N/A
Description of write-offs:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Other receivables
(1).Disclosure by ageing
√ Applicable□ N/A
In RMB Yuan
Ageing Closing book balance Opening book balance
Within 1 year
Including: Subtotal within 1 year
Within 1 year (including 1 39233900.27 23934949.61
year)
Subtotal within 1 year 39233900.27 23934949.61
1 - 2 years 464220.00 2909712.70
2 - 3 years 831800.00 4814209.43
Above 3 years
251 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
3 - 4 years 483700.00 126600.00
4 - 5 years 4000.00 10900.00
Above 5 years 28000.00 59000.00
Total 41045620.27 31855371.74
(2).Breakdown by nature of payment
√ Applicable□ N/A
In RMB Yuan
Nature of payment Closing book balance Opening book balance
Current account 32472837.56 18635795.92
Margin and deposit 6851051.41 11137720.63
Reserve 824467.00 1034400.00
Others 897264.30 1047455.19
Subtotal 41045620.27 31855371.74
Provision for bad debts 519351.62 785582.81
Total 40526268.65 31069788.93
(3).Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Phase I Phase II Phase III
Expected credit
Expected Expected credit
Provision for bad losses for the entire
credit losses losses for the entire Total
debts duration (credit
for the next 12 duration (no credit
impairment
months impairment)
incurred)
Balance as of
785582.81785582.81
January 1 2024
Balance as of
January 1 2024
in this period
--Reversed to
Phase II
--Reversed to
Phase III
--Reversed to
Phase II
--Reversed to
Phase I
Provision in this
-266231.19-266231.19
period
Reversal in this
252 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
period
Write-offs in this
period
Cancellations in
this period
Other changes
Balance at
December 31 519351.62 519351.62
2024
The basis for the classification of each stage and the accrual proportion for bad debts
None
Explanation for significant changes in the book balance of other receivables for which changes in
provision for losses occurred in this period:
□ Applicable √ N/A
The amount of provision for bad debts for the current period and the basis adopted for assessing
whether there is a significant increase in the credit risk of financial instruments:
□ Applicable √ N/A
(4).Provision for bad debts
√ Applicable□ N/A
In RMB Yuan
Change in this period
Opening Recovery Write-offs Closing
Category Other
balance Provision or or balance
changes
reversal cancellations
Provision 785582.81 -266231.19 519351.63
for bad
debts
Total 785582.81 -266231.19 519351.63
Of which the amount of provision for bad debts reversed or recovered in this period is significant:
□ Applicable √ N/A
Other notes:
None
(5).Other receivables actually written off in this period
□ Applicable √ N/A
Significant other receivables written off in this period:
253 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
□ Applicable √ N/A
Description of other receivables written off:
□ Applicable √ N/A
(6).Other receivables with the top five closing balances grouped by party owed
√ Applicable□ N/A
In RMB Yuan
Percentag
e of total Closing
closing balance of
Unit Nature of
Closing balance balance of Ageing provision for
Name amount
other bad debts
receivable
s (%)
Unit 1 Borrowing and Within 1
28091210.9668.44
lending year
Unit 2 Within 1
2084051.41 5.08 Margin 109202.57
year
Unit 3 Salaries of Within 1
2007178.624.89250895.47
expatriate staff year
Unit 4 Less than 1
year 1-2
1490000.00 3.63 Margin years 2-3 74500.00
years 3-4
years
Unit 5 Salaries of Within 1
1419022.493.46
expatriate staff year
Total 35091463.48 85.50 / / 434598.04
(7).Presented in other receivables due to centralized management of funds
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
3. Long-term equity investment
√ Applicable□ N/A
In RMB Yuan
Items Closing balance Opening balance
254 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Provision Provision
for Book for
Book balance Book value Book value
impairme balance impairme
nt nt
Investmen
ts in 129112645. 129112645. 88485289. 88485289.subsidiari 74 74 33 33
es
Investmen
ts in
associates
and joint
ventures
129112645.129112645.88485289.88485289.
Total
74743333
(1). Investments in subsidiaries
√ Applicable□ N/A
In RMB Yuan
Openin Increase/decrease in this period Closing
g balance
Opening Closing
balance Additions Decreas Provisi of
Investee balance balance
of to e in on for Oth provisio
s (book (book
impair investmen investm impair ers n for
value) value)
ment ts ents ment impair
reserve ment
Acter 3752779
3752779
(Shenzh 8.95
8.95
en)
Shenzh 5000000.en 5000000 00
Dingma .00
o
Acter 2865112
2865112
(Hong 0.44
0.44
Kong)
Acter 1336341
1336341
(Singap 4.49
4.49
ore)
Acter 1451675 1451675
(Vietna 0.00 0.00
m)
Acter 1428780 1428780
255 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(Malays 0.00 0.00
ia)
Indones 1182280 1576576
3942955
ia Joint 6.41 1.86.45
Venture
884852840627351291126
Total
9.336.4145.74
(2). Investments in associates and joint ventures
□ Applicable √ N/A
(3).Impairment testing of long-term equity investments
□ Applicable √ N/A
Other notes:
None
4. Operating revenues and operating costs
(1). Operating revenue and operating costs
√ Applicable□ N/A
In RMB Yuan
Amount this period Amount last period
Items
Revenue Cost Revenue Cost
Main business 1255177173.13 1124427575.11 1511362826.53 1337646532.15
Other businesses 7149008.49 5246186.93 4071314.74 1320285.28
Total 1262326181.62 1129673762.04 1515434141.27 1338966817.43
(2). Breakdown information of operating revenues and operating costs
√ Applicable□ N/A
In RMB Yuan
Parent Company Total
Contract
Operating Operating
classification Operating cost Operating cost
revenue revenue
Commodity Type 1262326181.62 1129673762.04 1262326181.62 1129673762.04
Clean room
953032794.81841478768.48953032794.81841478768.48
engineering
Other
302144378.32282948806.63302144378.32282948806.63
electromechanical
256 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
installation works
Equipment sales
Other businesses 7149008.49 5246186.93 7149008.49 5246186.93
By region of
1262326181.621129673762.041262326181.621129673762.04
operation
Domestic regions 1262326181.62 1129673762.04 1262326181.62 1129673762.04
Type of market or
1262326181.621129673762.041262326181.621129673762.04
client
Including: IC
semiconductor 1064775062.88 970108328.86 1064775062.88 970108328.86
industry
Precision
manufacturing 123789809.85 115240852.66 123789809.85 115240852.66
industry
Photoelectricity
50353141.5235504369.5950353141.5235504369.59
industry
Other industries 16259158.88 3574024.00 16259158.88 3574024.00
Other businesses 7149008.49 5246186.93 7149008.49 5246186.93
Contract type 1262326181.62 1129673762.04 1262326181.62 1129673762.04
Sale of goods
Construction
1255177173.131124427575.111255177173.131124427575.11
contracts
Other businesses 7149008.49 5246186.93 7149008.49 5246186.93
Classification by
timing of
1262326181.621129673762.041262326181.621129673762.04
merchandise
transfers
Revenue
recognized at a
certain point in
time
Revenue
recognized at a
1262326181.621129673762.041262326181.621129673762.04
certain point in
time
By contract term
By sales channel
Total 1262326181.62 1129673762.04 1262326181.62 1129673762.04
Other notes:
□ Applicable √ N/A
257 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
(3). Explanation for performance obligations
□ Applicable √ N/A
(4). Description of apportionment to remaining performance obligations
□ Applicable √ N/A
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √ N/A
Other notes:
None
5. Investment income
√ Applicable□ N/A
In RMB Yuan
Items Amount this period Amount last period
Income from long-term equity
investments accounted for under the
cost method
Income from long-term equity
investments accounted for by the
equity method
Investment income from disposal of
-300000.00
long-term equity investments
Investment income during the holding
period of financial assets for trading
Dividend income from other equity
197574.90
instruments during the holding period
Interest income earned on debt
investments during the holding period
Interest income earned on other debt
investments during the holding period
Investment income from disposal of
590263.941894851.65
financial assets held for trading
Investment income from disposal of
other equity instruments
Investment income from disposal of
debt investments
Investment income from disposal of
other debt investments
258 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
Gain on debt restructuring
Dividend payment 9000000.00 17000000.00
Total 9787838.84 18594851.65
Other notes:
None
6. Others
□ Applicable √ N/A
XX. Supplementary information
1. Details of non-recurring gains and losses for the period
□ Applicable □ N/A
In RMB Yuan
Items Amount Remarks
Profits or losses on disposal of non-current
assets including elimination of provision for -8175.93
asset impairment
Government grants recognized in profit or loss
for the current period except for those
government grants that are closely related to
the Company’s normal business operations in 433289.18
line with national policies and in accordance
with defined criteria and have a continuing
impact on the Company’s profit or loss
Profits or losses from changes in fair value of
financial assets and liabilities held by
non-financial enterprises and profits or losses
from the disposal of financial assets and
liabilities except for effective hedging
business related to the Company’s normal
business operations
Occupancy fees charged to non-financial
enterprises recognized in profit or loss for the
period
Profits or losses on entrusted investment or
asset management
Profits or losses on entrusted external loans
Losses on assets due to force majeure such as
natural disasters
Reversal of provision for impairment of
receivables individually tested for impairment
Gain arising from the difference between the
259 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
cost of investment in subsidiaries associates
and joint ventures and the fair value of net
identifiable assets of the investee at the time of
investment acquisition
Subsidiaries arising from a business
combination under the same control Net gain
or loss for the period from the beginning of the
period to the date of the combination
Gain or loss on exchange of non-monetary
assets
Profits or losses on debt restructuring
One-time costs incurred by the enterprise due
to discontinuation of relevant business
activities such as employee relocation
expenses
One-time impact on profit or loss due to
adjustments in tax accounting and other laws
and regulations.One-time share-based payment expenses
recognized due to cancellation or modification
of the share incentive plan
Gains or losses arising from changes in the fair
value of employee remuneration payable after
the feasible date for cash-settled share-based
payments
Gains or losses from changes in fair value of
investment properties subsequently measured
using the fair value model
Profits or losses from transactions with an
apparent unfair price
Gains or losses arising from contingencies
unrelated to the Company’s normal business
operations
Custodian fee income from entrusted
operations
Non-operating revenue and expenses other
-317988.82
than those mentioned above
Other profits or losses that meet the definition
of non-recurring profits or losses
Less:Income tax effect 24156.20
Effect of minority interests (after tax)
Total 82968.23
260 / 2612024 Annual Report of Acter Technology Integration Group Co. Ltd.
The Company shall state why if it recognizes the items not listed in the Interpretative
Announcement for Information Disclosure of Companies Issuing Public Securities No. 1 -
Non-Recurring Profit and Loss as non-recurring profit and loss items and that the amount of such
items is large or if it defines the non-recurring profit and loss items listed in the Interpretative
Announcement for Information Disclosure of Companies Issuing Public Securities No. 1 -
Non-Recurring Profit and Loss as recurring profit and loss.□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
2. Return on net assets and earnings per share
□ Applicable □ N/A
Weighted Earnings per share
Profit for the reporting period average return on Basic earnings per Diluted earnings per
net assets (%) share share
Net profit attributable to
ordinary shareholders of the 10.56 1.14 1.14
Company
Net profit attributable to
ordinary shareholders of the
10.551.141.14
Company after extraordinary
gains and losses
3. Differences in Accounting Data under Domestic and Overseas Accounting
Standards
□ Applicable √ N/A
4. Others
□ Applicable √ N/A
Chairman: Liang Jinli
Date of approval for filing by the board of directors: March 28 2025
Revised information
□ Applicable √ N/A
沪公网安备31011802005267号
