The 2024 Annual Report of Hangcha Group Co. Ltd.Stock code: 603298 Company name: Hangcha Group
Hangcha Group Co. Ltd.2024 Annual Report
April 2025
1 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Important Notes
1. The Board of Directors and the Board of Supervisors of the Company and its directors
supervisors and senior management hereby warrant that the information contained in this
annual report is true accurate and complete without any fictitious records misleading
statements or material omissions and severally and jointly assume legal responsibility thereof.
2. All the directors of the Company attended the meeting of the Board of Directors.
3. Pan-China Certified Public Accountants LLP (Special General Partnership) has issued a
standard unqualified audit report for the Company.
4. Zhao Limin the person in charge of the Company Zhang Shutong the officer in charge of
accounting work and Yuan Guanghui the officer in charge of the accounting institution
(Accounting Officer) hereby declare and warrant that the financial statements in the annual
report are authentic accurate and complete.
5. The profit distribution plan or the plan for converting public reserve funds into additional
share capital for the reporting period after consideration by the Board of Directors
According to the Pan-China Audit [2025] No. 5468 issued by Pan-China Certified Public Accountants
LLP (Special General Partnership) the consolidated financial statements of the Company showed
operating revenue of RMB16485830318.58 as of December 31 2024 and net profit attributable to
shareholders of the listed company of RMB2022025698.99. In 2024 the company made a provision of
RMB95232251.25 for statutory surplus reserves and no provision was made for discretionary surplus
reserves. Of which the profit available for distribution by the parent company was
RMB5758885171.56. As resolved by the Board of Directors the profit distribution plan is as follows:
1. The Company intends to pay a cash dividend of RMB5 (tax inclusive) per 10 shares to all
shareholders. As of December 31 2024 based on the total share capital of 1309812049 shares of the
Company the total cash dividend amount to be distributed is RMB654906024.50 (tax inclusive). The
proportion of cash dividend is 32.39% of the net profit attributable to the parent company of the
Company for the year. The remaining undistributed profits of the parent company amounting to
RMB5103979147.06 are carried over to the following year.
2. No bonus shares will be issued nor will the capital reserve be converted into share capital this year.
If there is any change in the total share capital of the Company during the period from the date of
disclosure of this announcement to the record date of the equity distribution the distribution per share
will be remained unchanged with a corresponding adjustment to the total distribution amount.The profit distribution plan is yet to be submitted to the Company's 2024 Annual General Meeting for
consideration.
6. Risk statement regarding forward-looking statements
Applicable "□ Not applicable"
Prospective statements carried in this report such as future plans do not constitute any substantial
commitments of the Company to investors. Please be cautious to the investment risks.
7. Whether there is any non-operating capital occupation by the controlling shareholder and
any other related party
No
2 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
8. Whether there is any external guarantee provided in violation of the prescribed
decision-making procedures
No
9. Whether there are more than half of the directors who cannot guarantee the authenticity
accuracy and completeness of the annual report disclosed by the Company
No
10. Significant risk statement
The Report has described the significant risks that may adversely affect the future development of the
Company and the realization of its business objectives in detail in "Section III Management Discussionand Analysis”. Apart from this there are no other significant risks that the Company needs to disclose
separately.
11. Other
"□ Applicable" N/A
3 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Table of Contents
Chapter 1 Definitions ................................5
Chapter 2 Company Profile and Key Financial Indica... 9
Chapter 3 Management Discussion and Analysis ....... 14
Chapter 4 Corporate Governance ..................... 55
Chapter 5 Environment and Social Responsibility .... 83
Chapter 6 Important Matters .........................99
Chapter 7 Share Changes and Shareholder Informatio. 124
Chapter 8 Information Related to Preferred Shares . 131
Chapter 9 Bond-Related Information ................ 131
Chapter 10 Financial Reporting .....................132
Financial statements signed and sealed by the legal representative of the Company the
officer in charge of accounting work and the officer in charge of the accounting institution.Documents
II. Original Audit Report bearing the seal of the accounting firm and signatures of the CPAs
for Future
who have performed the audit.Reference
Originals of all company documents and announcements that are disclosed in the
newspapers designated by the CSRC during the Reporting Period.
4 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 1 Definitions
1. Definitions
Unless otherwise stated in the context the following words and terms in this report shall be construed as
follows:
Definition of frequently used words and terms
CSRC Securities Refers to China Securities Regulatory Commission
Regulatory
Commission
SSE Stock Exchange Refers to Shanghai Stock Exchange
Company Law Refers to Company Law of the People's Republic of China
Securities Law Refers to Securities Law of the People's Republic of China
The Articles of Refers to The Articles of Association of Hangcha Group Co. Ltd.Association
Hangcha Group the Refers to Hangcha Group Co. Ltd.Company Company
Hangcha Holding Refers to Zhejiang Hangcha Holding Co. Ltd. the controlling shareholder of the
Company
HIIG Refers to Hangzhou Industrial Investment Group Co. Ltd. the state-owned legal
person shareholder of the Company
Hangzhou Forklift & Refers to Hangzhou Forklift & Metal Working & Welding Co. Ltd. a subsidiary
Metal Working & of the Company
Welding
Hangzhou Forklift Refers to Hangzhou Forklift Frame Co. Ltd. a subsidiary of the Company
Frame
Hangcha Bridge Box Refers to Hangzhou Hangcha Bridge Box Co. Ltd. a subsidiary of the Company
KL Forklift Refers to Hangzhou Hangcha KL Forklift Components Co. Ltd. a subsidiary of
Components the Company
Hangcha Electric Refers to Hangzhou Hangcha Electric Appliance Co. Ltd. a subsidiary of the
Appliance Company
Hangcha Machinery Refers to Hangzhou Hangcha Machinery Processing Co. Ltd. a subsidiary of the
Company
Hangcha Casting Refers to Hangzhou Hangcha Casting Co. Ltd. a subsidiary of the Company
Hangcha Materials Refers to Hangzhou Hangcha Materials Trade Co. Ltd. a wholly owned
subsidiary of the Company
Hangcha Cab Refers to Hangzhou Hangcha Cab Co. Ltd. a subsidiary of the Company
Hangcha Aerial Refers to Hangzhou Hangcha Aerial Platform Equipment Co. Ltd. a subsidiary
Platform Equipment of the Company
Hangcha Machinery Refers to Hangzhou Hangcha Machinery Equipment Manufacturing Co. Ltd. a
Equipment subsidiary of the Company
Hangzhong Refers to Hangzhou Hangzhong Construction Machinery Co. Ltd. a subsidiary
Machinery of the Company
Hangcha Intelligent Refers to Zhejiang Hangcha Intelligent Technology Co. Ltd. a subsidiary of the
Company
Baoji Hangcha Refers to Baoji Hangcha Engineering Machinery Co. Ltd. a subsidiary of the
Company
Hanhe Intelligent Refers to Hefei Hanhe Intelligent Logistics Technology Co. Ltd. a subsidiary of
the Company
Hangcha Tianjin New Refers to Hangcha Group (Tianjin) New Energy Forklift Co. Ltd. a wholly
Energy owned subsidiary of the Company
Hangcha Okamura Refers to Zhejiang Hangcha Okamura Co. Ltd. a subsidiary of the Company
Hangcha Precision Refers to Hangzhou Hangcha Precision Manufacturing Co. Ltd. a subsidiary of
the Company
Hangcha Yunrui Refers to Hangzhou Hangcha Yunrui Technology Co. Ltd. a subsidiary of the
Company
5 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Zhejiang Hangbo Refers to Zhejiang Hangbo Electric Drive Co. Ltd. a subsidiary of the Company
Electric
Zhejiang Zhichujia Refers to Zhejiang Zhichujia Material Handling Equipment Co. Ltd. a
subsidiary of the Company
Shanghai Hangcha Refers to Shanghai Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Wuxi Hangcha Refers to Wuxi Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Suzhou Hangcha Refers to Suzhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Wuhan Hangcha Refers to Wuhan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Nantong Hangcha Refers to Nantong Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Kunshan Hangcha Refers to Kunshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Taizhou Hangcha Refers to Taizhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Xuzhou Hangcha Refers to Xuzhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Beijing Hangcha Refers to Beijing Hangcha Forklift Co. Ltd. a subsidiary of the Company
Yancheng Hangcha Refers to Yancheng Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Gansu Hangcha Refers to Gansu Hangcha Forklift Co. Ltd. a subsidiary of the Company
Fujian Hangcha Refers to Fujian Hangcha Forklift Co. Ltd. a subsidiary of the Company
Taixing Hangcha Refers to Taixing Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Yantai Hangcha Refers to Yantai Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Jinan Hangcha Refers to Jinan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Qingdao Hangcha Refers to Qingdao Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Changchun Hangcha Refers to Changchun Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Nanning Hangcha Refers to Nanning Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Guiyang Hangcha Refers to Guiyang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Tangshan Hangcha Refers to Tangshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Xiangyang Hangcha Refers to Xiangyang Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Company
Dongguan Hangcha Refers to Dongguan Hangcha Forklift Co. Ltd. a subsidiary of the Company
Henan Zhehang Refers to Henan Zhehang Forklift Sales Co. Ltd. a subsidiary of the Company
Heilongjiang Refers to Heilongjiang Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Hangcha Company
Xi'an Hangcha Refers to Xi'an Hangcha Forklift Co. Ltd. a subsidiary of the Company
Guangzhou Zhehang Refers to Guangzhou Zhehang Forklift Co. Ltd. a subsidiary of the Company
Shenzhen Hangcha Refers to Shenzhen Hangcha Forklift Co. Ltd. a subsidiary of the Company
Foshan Hangcha Refers to Foshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Huizhou Hangcha Refers to Huizhou Hangcha Forklift Co. Ltd. a subsidiary of the Company
Inner Mongolia Refers to Inner Mongolia Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Hangcha Company
Zhongshan Hangcha Refers to Zhongshan Hangcha Forklift Co. Ltd. a subsidiary of the Company
Yichang Hangcha Refers to Yichang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Zhanjiang Hangcha Refers to Zhanjiang Hangcha Forklift Co. Ltd. a subsidiary of the Company
Rizhao Hangcha Refers to Rizhao Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Qingyuan Hangcha Refers to Qingyuan Hangcha Forklift Co. Ltd. a subsidiary of the Company
Ningxia Hangcha Refers to Ningxia Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Lianyungang Refers to Lianyungang Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Hangcha Company
Zhangjiagang Refers to Zhangjiagang Hangcha Forklift Sales Co. Ltd. a subsidiary of the
Hangcha Company
Yiwu Hangcha Refers to Yiwu Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Anhui Hangcha Refers to Anhui Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Dalian Zhehang Refers to Dalian Zhehang Forklift Sales Co. Ltd. a subsidiary of the Company
6 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Guigang Hangcha Refers to Guigang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Wuhu Hangcha Refers to Wuhu Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Zibo Hangcha Refers to Zibo Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company
Zhumadian Hangcha Refers to Zhumadian Hangcha Forklift Co. Ltd. a subsidiary of the Company
Hangcha (Tianjin) Refers to Hangcha Group (Tianjin) Forklift Sales Co. Ltd. a subsidiary of the
Sales Company
Hangcha E-commerce Refers to Hangzhou Hangcha E-commerce Co. Ltd. a subsidiary of the
Company
Hangcha Leasing Refers to Hangcha Group Leasing Co. Ltd. a subsidiary of the Company
Zhejiang Hangcha Refers to Zhejiang Hangcha Accessories Sales Co. Ltd. a subsidiary of the
Accessories Company
Hangcha New Energy Refers to Hangcha New Energy Forklift (Wenzhou) Co. Ltd. a wholly owned
(Wenzhou) subsidiary of the Company
Hangcha Tianjin Refers to Hangcha Group (Tianjin) Financial Leasing Co. Ltd. a wholly owned
Financial Leasing subsidiary of the Company
Hangcha Property Refers to Hangzhou Hangcha Property Management Service Co. Ltd. a wholly
Management owned subsidiary of the Company
Hangcha Imp.&Exp. Refers to Zhejiang Hangcha Imp. &Exp. Co. Ltd. a subsidiary of the Company
Hangcha Thailand Refers to Hangcha (Thailand) Co. Ltd. a wholly owned subsidiary of the
Company
Hangcha Global Refers to Zhejiang Hangcha Global Service Co. Ltd.Service
Hangcha Brasil Refers to Hangcha Brasil Ltda. a wholly owned subsidiary of the Company
Hangcha Europe Refers to Hangcha Europe GmbH a wholly owned subsidiary of the Company
HC Forklift America Refers to HC Forklift America Corporation a wholly owned subsidiary of the
Company
Hangcha Forklift Refers to Hangcha Forklift Canada Inc. a wholly owned subsidiary of the
Canada Company
Hangcha Netherlands Refers to Hangcha Netherlands B.V a wholly owned subsidiary of the Company
HC Forklift Australia Refers to HC Forklift Australia Pty Ltd a wholly owned subsidiary of the
Company
Hangcha Indonesia Refers to PT. Hangcha Indonesia Forklift a wholly owned subsidiary of the
Company
Hangcha Japan Refers to Hangcha Japan Co. Ltd. a wholly owned subsidiary of the Company
Hangcha Malaysia Refers to Hangcha (Malaysia) Sdn. Bhd. a wholly owned subsidiary of theCompany
Hangcha Forklift Refers to Hangcha Forklift Vietnam Co. Ltd. a wholly owned subsidiary of theVietnam Company
Hangcha Middle East Refers to Hangcha Middle East General Trading Fze a wholly owned subsidiaryof the Company
Hangcha America Hangcha America Smart Group Logistics Solution Corporation a
Smart Group Refers to wholly owned subsidiary of the Company
Logistics
Hangcha Europe Refers to Hangcha Europe Rental & Sales a wholly owned subsidiary of the
Rental Company
Shanghai Hangcha Refers to Shanghai Hangcha Okamura Co. Ltd. a sub-subsidiary of the
Okamura Company
Liuzhou Hangcha Refers to Liuzhou Hangcha Forklift Sales Co. Ltd. a sub-subsidiary of the
Company
Guangzhou Hangcha Refers to Guangzhou Hangcha Leasing Co. Ltd. a sub-subsidiary of the
Leasing Company
Changzhou Hangcha Refers to Changzhou Hangcha Leasing Co. Ltd. a sub-subsidiary of the
Leasing Company
Hangcha (Shanghai) Refers to Hangcha (Shanghai) Forklift Co. Ltd. a sub-subsidiary of the
Company
Guozi Robotics Refers to Zhejiang Guozi Robotics Co. Ltd. a sub-subsidiary of the Company
7 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangcha México Refers to Montacargas Hangcha De Mexico a sub-subsidiary of the Company
Universal Refers to Universal Lithium-ion Battery Supply LLC a sub-subsidiary of the
Lithium-ion Battery Company
Nanjing Hangcha Refers to Nanjing Hangcha Logistics Equipment Co. Ltd. a company with
equity participation by the Company
Shijiazhuang Refers to Shijiazhuang Hangcha Forklift Sales Co. Ltd. a company with equity
Hangcha participation by the Company
Taiyuan Hangcha Refers to Taiyuan Hangcha Forklift Co. Ltd. a company with equity
participation by the Company
Nanchang Hangcha Refers to Nanchang Hangcha Forklift Co. Ltd. a company with equity
participation by the Company
Changsha Hangcha Refers to Changsha Hangcha Forklift Sales Co. Ltd. a company with equity
participation by the Company
Chongqing Hangcha Refers to Chongqing Hangcha Forklift Sales Co. Ltd. a company with equity
participation by the Company
Yunnan Hangcha Refers to Yunnan Hangcha Forklift Co. Ltd. a company with equity
participation by the Company
Shenyang Hangcha Refers to Shenyang Hangcha Forklift Sales Co. Ltd. a company with equity
participation by the Company
Huachang Hydraulic Refers to Zhejiang Huachang Hydraulic Machinery Co. Ltd. a company with
equity participation by the Company
Okamura Refers to Hangzhou Okamura Transmission Co. Ltd. a company with equity
Transmission participation by the Company
Zhongchuan Refers to Changsha Zhongchuan Transmission Co. Ltd. a company with equity
Transmission participation by the Company
Henan Jiachen Refers to Henan Jiachen Intelligent Control Co. Ltd. a company with equity
participation by the Company
Eneroc New Energy Refers to Eneroc New Energy Technology Co. Ltd. a company with equityparticipation by the Company
Zhongce Rubber Refers to Zhongce Rubber Group Co. Ltd. a company with indirect equityparticipation by the Company
Zhongce Haichao Refers to Hangzhou Zhongce Haichao Enterprise Management Co. Ltd. acompany with equity participation by the Company
Hangli Dingsheng Refers to Zhejiang Hangli Dingsheng Machinery Co. Ltd. a company withequity participation by the Company
Hangcha Southeast Refers to Hangcha Southeast Asia Co. Ltd. a company with equity participation
Asia by the Company
Okamura Furniture Refers to Hangzhou Okamura Furniture Co. Ltd. a company with equityparticipation by the Company
Yuan/Ten thousand Refers to The Chinese currency of Renminbi/Tens of thousands of Renminbi
yuan
reporting period Refers to January 1 2024–December 31 2024
Power-driven motor vehicles used for handling pushing pulling
Industrial vehicle Refers to lifting stacking or loading various goods which include forklifts tow
tractors stackers reach stackers etc.A variety of wheel loaders used for loading and unloading stacking
Forklift Refers to short-distance transport and heavy lifting of pallets of goods referredto as industrial vehicles in ISO/TC110 of the International Organization
for Standardization.Internal combustion Refers to Forklifts powered by engines that run on diesel gasoline or liquefiedforklift petroleum gas.Electric forklift Refers to Forklifts relying on batteries to power the motors that drive travel andthe hydraulic system to perform travel and handling operations.Counterbalance Forklifts with forks (or other replaceable devices) that can carry goods
forklift Refers to (with or without pallets). The load is cantilevered with respect to thefront wheels and is balanced by the mass of the vehicle.
8 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Industrial vehicles fitted with a traction linkage and specially designed
Tow tractor Refers to
for pulling other vehicles on the ground.Attachment Refers to Load-bearing devices added to or in place of the forks of a forklift
which are used to perform a variety of operations.Chapter 2 Company Profile and Key Financial Indicators
1. Company Profile
Name of the Company in Chinese Hangcha Group Co. Ltd.Short name of the Company in Chinese Hangcha Group
Company Name in English Hangcha Group Co. Ltd.Company Abbreviation in English None
Legal representative of the Company Zhao Limin
2. Contact Person and Contact Information
Sectary to the Board Securities Affairs Representative
Name Chen Saimin Huang Minghan
Address No. 666 Xiangfu Road Lin'an District No. 666 Xiangfu Road Lin'an District
Hangzhou Zhejiang Hangzhou Zhejiang
Tel 0571-88141328 0571-88926713
Fax 0571-88141328 0571-88926713
Email csm@zjhc.cn hmh@zjhc.cn
3. Brief Introduction to Company Profile
Registered address of the Company No. 666 Xiangfu Road Lin'an District
Hangzhou Zhejiang
Change history of registered address None
Office address of the Company No. 666 Xiangfu Road Lin'an District
Hangzhou Zhejiang
Postal code of office address 311305
Website www.zjhc.cn
Email hcjt@zjhc.cn
4. Information Disclosure and Place for Inspection
Names and websites of media outlets for disclosure of Securities Times
annual report of the Company
Website of the stock exchange where the company http://www.sse.com.cn
discloses its annual report
Location for inspection of annual report of the Securities and Legal Affairs Department Office
Company Building of Hangcha Group
5. Stock Profile
Stock Profile
Class of stock Stock Exchange Stock name Stock code Stock name before
change
A-share Shanghai Stock Hangcha Group 603298 None
Exchange
9 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
6. Other Relevant Information
Item Pan-China Certified Public Accountants LLP
(Special General Partnership)
Domestic accounting firm Block B China Resources Building No.1366
appointed by the Company Office address Qianjiang Road Hangzhou Zhejiang Province
Name of signing Xu Jinbo Tang Zheren
CPAs
7. Key Accounting Data and Financial Indicators for the Last Three Years
(1) Key accounting data
Unit: Currency: CNY
Key 2023 Increase/Decrea 2022
accounting 2024 se comparedAfter Before with previous After Before
data adjustment adjustment year (%) adjustment adjustment
Operating 16485830318. 16298640931. 16271834470. 1.15 14527313554. 14412416415.income 58 47 72 78 20
Net profit
attributable
to 2022025698.9 1715611831.5 1720313075.4
shareholder 9 9 7 17.86 986734874.91 987353336.07
s of the
listed
company
Net profit
after
deduction
of
non-recurri
ng gains 1988854674.0 1688027697.8 1687795537.6
and losses 17.82 964033484.79 964002943.490 8 9
attributable
to the
shareholder
s of the
listed
company
Net cash
flows from 1336825600.1 1632087180.3 1621860863.2
2 4 2 -18.09 601592603.90 625482631.76operating
activities
Increase/Decrea
End of 2023 se at the end of End of 2022
the current
End of 2024 reporting period
After Before compared with After Before
adjustment adjustment the end of the adjustment adjustment
previous year
(%)
Net assets
attributable 10163895056. 8619135437.2 8619865217 17.92 6283074842.2 6279103378.1
to 44 2 3 3
shareholder
10 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
s of the
listed
company
16362547960.13995079169.13894213061.11808039912.11693308152.
Total assets 16.92
7219925215
(2) Key financial indicators
2023 Increase/Decrease 2022
Key financial indicators 2024 After Before compared with After Before
adjustment adjustment previous year (%) adjustment adjustment
Basic earnings per share 1.54 1.33 1.33 15.79 0.81 0.81
(RMB/share)
Diluted earnings per share 1.54 1.31 1.31 17.56 0.80 0.80
(RMB/share)
Basic earnings per share after
the deduction of non-recurring 1.52 1.31 1.31 16.03 0.78 0.78
gains and losses (RMB/Share)
Weighted average ROE % 21.64 22.17 22.17 Down by 0.53（ ） 16.70 16.70
percentage points
Weighted average ROE after
the deduction of non-recurring 21.29 21.81 21.81
Down by 0.52 16.30 16.30
percentage points
gains and losses (%)
Notes to the key accounting data and financial indicators of the Company for the last three years at the
end of the Reporting Period
"√ Applicable" "□ Not applicable"
1. In January 2024 Hangcha Intelligent a wholly owned subsidiary of the Company purchased 100% of
the shares of Zhejiang Guozi Robotics Co. Ltd. in cash. Therefore Zhejiang Guozi Robotics Co. Ltd.was included in the consolidation scope of the consolidated financial statements during the Reporting
Period. Since this was a business combination involving enterprises under common control retroactive
adjustments were made to the previous consolidated financial statements in accordance with the
requirements of accounting standards.
2. The aforementioned earnings per share are calculated based on the latest share capital of the Company
as of December 31 2024.
3. The differences in the trailing digits of the quotients totals and sums of the addends after division in
the above table and this Report are due to rounding.
8. Difference in Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences in net profit and net assets attributable to shareholders of the listed company in
financial reports disclosed in accordance with International Accounting Standards and China
Accounting Standards
"□ Applicable" "√ Not applicable"
(2) Differences in net profit and net asset attributable to shareholders of the listed company in
financial report disclosed in accordance with overseas accounting standards and China
Accounting Standards
"□ Applicable" "√ Not applicable"
11 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3) Explanation on the difference between the domestic and overseas accounting standards:
"□ Applicable" "√ Not applicable"
9. Key Financial Data for 2022 by Quarter
Unit: Yuan Currency: CNY
Quarter 1 Quarter 2 Quarter 3 Quarter 4
(January-March) (April-June) (July-September) (October-December)
Operating income 4171783078.92 4382287051.80 4178744209.70 3753015978.16
Net profit
attributable to
shareholders of the 378735768.17 627962096.57 566292626.53 449035207.72
listed company
Net profit after
deduction of
non-recurring gains
and losses 375889061.81 611133475.89 559041961.71 442790174.59
attributable to the
shareholders of the
listed company
Net cash flows from
operating activities 343175570.20 278566522.69 52110633.42 662972873.81
Explanation on the differences between the above quarterly data and what have been disclosed in past
periodic reports
"□ Applicable" "√ Not applicable"
10. Non-recurring Gains and Losses Items and Amounts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Non-recurring Gains and Losses Items Amount in Note (if Amount in Amount in
2024 applicable) 2023 2022
Gains or losses on disposal of
non-current assets (including write-off 989100.45 4545177.29 2700444.91
of provision for assets impairment)
Government grants included in profit or
loss (excluding those closely related to
operating activities of the Company and
granted constantly affecting the 45521493.77 40699621.98 41006894.93
Company's profits or losses in
accordance with certain standards based
on state policies)
Gains or losses from changes in fair
value of value and disposal of financial
assets and liabilities held by
non-financial enterprises excluding -799155.95 -13653244.56 -47530448.07
those arising from hedging business
related to the Company's normal
operating activities
12 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Fund occupancy fees collected from
non-financial enterprises and recognized 357568.72 1178458.95
in current gains or losses
Profit or loss on entrusted investment or 41881.97 2205647.70 10870814.33
management of assets
Reversal of impairment provision for
accounts receivable subject to separate 612384.24 2233814.00 1520876.56
impairment testing
Net profit or loss of subsidiaries from
the beginning of the period to the date
-1983591.63-5804004.79-763532.30
of consolidation arising from a business
combination under the same control
Other non-operating revenue or
1613499.241409267.51755407.64
expenditures
Less: Effect of income tax 7373343.17 4175472.28 802590.21
Non-controlling interest affected (after 5451243.93 234241.86 -13765063.38
tax)
Total Amount 33171024.99 27584133.71 22701390.12
For items of non-recurring gains and losses defined by the Company that are of a significant amount and
not listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Shares to the Public—Non-recurring Gains and Losses" as well as for items of recurring gains and
losses defined by the Company that are listed in the "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Shares to the Public—Non-recurring Gains and Losses" as
non-recurring gains and losses reasons shall be specified."□ Applicable" "√ Not applicable"
11. Items Measured at Fair Value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Change in the Effect on profit
Item Name Opening balance Closing balance
period of current period
Held-for-trading 80000333.33 80000333.33 41881.97
financial assets
Receivables financing 205590299.79 282597817.02 77007517.23
Other non-current 25591400.00 26325621.62 734221.62
financial assets
Derivative financial 3911.26 366815.63
liabilities 362904.37 -799155.95
Total Amount 231185611.05 389290587.60 158104976.55 -757273.98
12. Others
"□ Applicable" "√ Not applicable"
13 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 3 Management Discussion and Analysis
I. Discussion and Analysis on Operations
In 2024 the global economic structure has undergone profound adjustment and the complex changes in
the external development environment have brought many difficulties and challenges to China's
economic activities. However thanks to our country's solid economic foundation diversified
development advantages strong development resilience and huge development potential the
fundamentals for and the basic development trend of long-term economic development remain
unchanged. The year 2025 marks the final year of the "14th Five-Year Plan" and it is also a critical year
for China to accelerate the transformation and upgrading and promote high-quality development. With a
series of national policies gradually implemented to stabilize expectations stimulate vitality and
promote a sustained economic recovery China's economic outlook is worth looking forward to.In the face of cyclical fluctuations and structural contradictions in the global economy the Board of
Directors of the Company has stayed focused on the strategic direction adhering to the
innovation-driven strategy to lead all employees to emancipate their minds strive to forge ahead and
effectively respond to the complex challenges of "involution and external pressure" in the industrial
vehicle industry. As a result it has achieved success in the midst of difficulties and stabilized the sound
development momentum of the Company. Faced with the downward pressure in the industry the
Company has taken the initiative to stabilize the domestic market and make active deployments in the
overseas incremental market taking new energy products as the main driving force to introduce China's
industrial vehicle brand to the world and taking the technology and product innovation as the core
strategy for differentiation and competition. Based on a number of innovative initiatives such as product
mix optimization and adjustment and industrial transformation and upgrading the Company has
performed well in operation maintaining a benefit increase much greater than the sales increase
achieving an operating income of RMB 16.486 billion up 1.15% year-on-year and net profit
attributable to shareholders of the listed company of RMB 2.022 billion up 17.86% year-on-year. Over
the past year the Company has laid a more solid foundation and base for development further
strengthening the foundation for sustainable and steady growth in the future.
14 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
20232024202320242023202420232024
Operating income Net profit attributable to the Net profit attributable to the Sales volume
(RMB Hundred million) shareholders of the listed shareholders of the listed (Ten thousand units)
company (RMB) company after the deduction of
non-recurring gains and losses
(RMB Hundred million)
Key Business Data for 2024
During the Reporting Period the company won numerous awards in many fields thanks to its excellent
comprehensive strength and innovative development achievements demonstrating its strong industrial
competitiveness and social influence. It has been honored as one of the Top 100 Enterprises in China's
Machinery Industry a Large Key Backbone Enterprise in the Machinery Industry a Single Champion
Enterprise in the Manufacturing Industry and an Influential Enterprise in the Construction Machinery
Industry and has been included in the Top 100 Leading Enterprises for Zhejiang Private Enterprise
Social Responsibility the Top 50 Chinese Listed Companies with New Quality Productivity issued by
Securities Times the Top 500 Innovative High-Tech Enterprises in Zhejiang Province (ranked 59th) the
Top 100 Manufacturing Enterprises in Zhejiang Province the Top 100 Fastest Growing Enterprises in
Zhejiang Province and the List of Leading Private Economy Headquarters Enterprises in Zhejiang
Province. The Company's "HCQM (Hangcha Quality Management) Mode" project won the Silver Prize
in the Third National Machinery Industry Product Quality Innovation Competition. Meanwhile the
Company has achieved a series of fruitful results through continuous innovation in fields such as product
research and development market expansion intelligent manufacturing and digital transformation.These efforts not only promote the continuous upgrading of its products and services and the expansion
of its market coverage but also greatly improve its production efficiency and management effectiveness
helping to maintain the leading position of the Company in the global industrial vehicle industry.
15 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Honor and Awards
of Hangcha Group
Single Champion Enterprise Influential Enterprise in the Top 500 Chinese Machinery Large Key Backbone Enterprise
in the Manufacturing Construction Machinery Industry Manufacturers in 2024 in the Machinery Industry
Industry
Top 100 Manufacturing Enterprises
Zhejiang Private Enterprise Top 50 Chinese Listed in Zhejiang Province Top 100 Fastest Growing
Social Responsibility Companies with New Enterprises in Zhejiang
Top 100 Leading Enterprises Quality Productivity Province
1. Enhance innovation-driven development and strengthen technology empowerment
In the face of a new context of global competition the Company is committed to pursuing intelligent
green and global development of its products and makes every effort to cultivate new quality productive
forces. The Company's product research and development activities are closely aligned to market
demand which focus on market access and international benchmarks and actively practice thetechnological innovation concept of “competing with benchmarking enterprises surpassing thecompetitors and developing the world's best forklifts". In this way the Company has significantly
enhanced multiple aspects of its products including performance quality and service.During the Reporting Period based on the integration of global technological resources the Companytook new energy technologies such as battery electric drive and electric control as the core and “userdemand + technological innovation” as the major drive achieving 52 research and development projects
with products available for bulk sale as well as 25 technological research and development projects with
results applied in the industry. The Company has launched several new energy forklift series including
the XA and XE series which include products such as high-performance lithium-ion forklifts
permanent magnet lithium-ion forklifts small wheelbase lithium-ion forklifts man-up three-way
stackers and multi-directional electric side forklifts. In terms of technology research and development
and key components the Company has achieved a breakthrough in key components and a series of new
technologies including its electric vehicle brake assist and distribution system integrated control system
for heavy-duty vehicles moment limit control system for telescopic handlers hydrostatic drive
electro-hydraulic control system specialized drive axle for off-road forklifts handheld vehicle control
unit and cold storage lithium-ion batteries with technology reaching a country-leading and even a
world-leading level. The company's excellence in technological innovation is demonstrated by itsnumerous product and technology R&D achievements such as “Research and Application of KeyTechnology for Safe Operation of Unmanned Forklifts in Complex Application Scenarios” and
16 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
“Research and Application of Forklift Safety Monitoring and Inspection System” which have won the
Machinery Industry Science and Technology Award the Provincial Science and Technology Progress
Award and the BICES 2023 Construction Machinery Technology Innovation Product Golden Award.
2024 New Energy Products of Hangcha Group
Hangcha leading the way in the all-electric era
The Company has focused on developing core competitiveness in technology research and development
driven by invention patents and led by standards. During the reporting period the Company was granted
129 patents including 82 invention patents representing a year-on-year increase of over 60%. The
company has presided over and participated in the formulation and revision of one international standard
nine national standards four industry standards and two group/local standards and has taken the lead in
drafting the national standard "Quantification Method and Requirements for Product Carbon Footprint
of Greenhouse Gases—Industrial Vehicles" promoting technological progress in the industry while
consolidating and enhancing the Company's position and competitiveness in the industry.
2. Respond rapidly to the market and comprehensively advance marketing transformation
In line with the new economic trend the Company has given priority to increasing market share and has
promoted in-depth marketing transformation in the domestic market continuing to promote the
transformation and upgrading of the organizational structure business system and operation mechanism
and responding rapidly to the market demand with users as the center. In the process of transformation to
the new energy segment the Company has focused on the professional market. It has formulated and
implemented targeted action plans and planned and promoted new energy forklift brands such as Jinniu
and Tianma. The Company has also launched a series of innovative marketing incentive policies and
business development strategies such as quarterly promotions annual exclusive sales free of interest
and subleasing in order to ensure that the Company's sales growth in the domestic market exceeds that
of the entire industry. The Company promptly seized the opportunity presented by the prosperous
development of the leasing business by integrating and revitalizing the unified national market realizing
the sharing of leasing business resources joint construction and win-win results. During the Reporting
Period the Company while ensuring its stable development in the domestic market integrated its
advantageous resources and strengths to secure large projects and explore high-quality clients in the
17 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
automotive logistics airport port terminal retail and other industries which gradually increased the
penetration rate of the Company's high-value new energy products and continued to promote the
revitalization and development of the brand.Jinniu/Tianma New Energy Series Hangcha leading the way in the all-electric era
In the context of a traffic-driven economy the Company actively grasps the trend of marketing
transformation exploring new paths for product promotion and brand value enhancement and
continuously strengthening the output of high-quality content. The Company has established a domestic
and international new media operation and management team with the Marketing Departments of the
E-commerce Company and the Import and Export Company as the two main pillars and clarified the
overall objectives and key tasks of the new media marketing transformation. It has set up an information
communication mechanism and conducted in-depth analyses of brand traffic and conversion rates
actively exploring ways to efficiently utilize the traffic resources. Through in-depth cooperation with
leading Internet platforms such as Tencent ByteDance and Facebook the Company has made efforts to
cultivate a group of "influential live streamers" thereby improving its operational and service
capabilities targeting online customers and direct users. Thanks to advancements in Internet marketing
the Company's new products new technologies new policies and new development achievements can
quickly reach target customers. The transformation of the marketing model has not only enhanced the
Company's brand influence but also ensured added value for customers.
18 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Domestic Sales Business of
Hangcha Group
Hangcha held a national dealer conference Hangcha with innovative products at the first Construction
Machinery Industry Science and Technology Festival
Hangcha with numerous eye-catching products at Hangcha at NILTE a CeMAT ASIA event
CeMAT Asia 2024 in Shanghai
Lithium-ion products of Hangcha were ready Rental Forklifts of Hangcha were Lithium-ion forklifts of Hangcha were Products of Hangcha were delivered to a
for shipment assembled and ready for shipment delivered to a leading harbor enterprise large domestic railway bureau group in bulk
in bulk
3. Consolidate the traditional markets and deepen global market expansion
The Company has consistently advanced its international expansion strategy accelerating the
construction of a global operational system seizing opportunities in overseas markets strengthening the
allocation of overseas resources and continuing to expand and deepen the global market planning
through a series of initiatives such as the establishment of overseas subsidiaries the launch of new
energy products and the introduction of new energy models. Accordingly the Company has made
remarkable progress in operational capability development and channel construction. During the
Reporting Period the Company has established new companies in various regions and countries
including the United States France Japan Indonesia Malaysia Vietnam and the Middle East and has
successfully opened more than 10 overseas companies in important global markets achieving a
qualitative leap in its own marketing and service network by linking individual sites. While promoting
the orderly development of its marketing service system the Company took a key step with profound
influence in the strategic planning of globalization by investing in Thailand to set up a manufacturing
company of Hangcha Group. This landmark move signifies a pivotal shift in China's forklift industry
shifting the focus from marketing services to industrial manufacturing in overseas markets thereby
leading the industry's transformation and upgrading.In view of the unbalanced market demand in regional markets worldwide the Company adjusted its
product design and marketing strategy according to local conditions and increased marketing guarantees
and service support in major markets so as to further increase its overseas market share. During the
Reporting Period the sales volume of the Company's overseas products exceeded 100000 units
reaching a record high. While consolidating its advantages in traditional high-end markets such as
Europe and North America the Company increased its development efforts in emerging markets such as
Brazil Southeast Asia and the Middle East achieving a substantial year-on-year increase in product
sales and attracting many potent new clients willing to cooperate with the Company. The marketing
19 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
strategies targeting large clients port machinery and large-tonnage forklifts provide the Company with a
new opportunity to establish a comprehensive project management organization and set up professional
pre-sales and after-sales business teams which would ensure the service assurance required by large
clients and large projects while improving the pace of service response.Overseas Sales Business of
Hangcha Group
The first Hangcha Brazil Distributor The lithium-ion luggage tractors were officially launched in The grand opening of PT. Hangcha
Conference was successfully held Kuala Lumpur International Airport Malaysia Indonesia Forklift
50 units of tow tractor were shipped to the A batch of aerial equipment of Hangcha X series 25-ton internal combustion forklifts of
Southeast Asia market was shipped to Europe Hangcha are used in a steel plant in Peru
Hangcha Overseas Technical Training Program - Hangcha Forklift Canada held the fifth anniversary
Li-ion Battery - Hangcha México celebration and new warehouse opening ceremony
“Cooperation with Hangcha” Activity of
Hangcha Group
In terms of international cooperation the Company has assisted Manitou and other companies in
comprehensive transformation and upgrading concerning new energy products through technology
empowerment product empowerment and service empowerment setting up a model of cooperation and
mutual trust while exporting the entire industrial value chain overseas.
20 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Overseas Exhibitions of Hangcha
Group
MODEX (The United States) Canadian Concrete Expo
LogiMAT (Germany) Intermodal South America 2024 (Brazil)
The 135th Canton Fair National Heavy Equipment Show (Canada) CeMAT Australia 20242024 Monterrey Expo (Mexico)
LogiMAT SEA 2024 Platformers' Day (Germany) China (UAE) Trade Fair 2024
DTI-CX 2024 (Indonesia) Logis-Tech Tokyo 2024 (Japan)
4. Converge multidimensional resources and build the "Great Hangcha" industrial ecosystem
During the Reporting Period the Company followed the concept of a whole industry chain with the
main industry as the core and leveraged its strengths as the main factory in the chain which has a strong
capacity to promote the industry and a significant industrial cluster effect. It has continued to expand and
strengthen its diversified business segments mainly centering on intelligent logistics new energy
lithium-ion batteries and aerial equipment thereby injecting a strong impetus for the Company's
high-quality development. For the first time the contract value of the Company's intelligent logistics
solutions exceeded RMB 1 billion and the company achieved remarkable development in the overseas
market successfully winning project orders from top global companies in the fields of FMCG retail
automotive and tires. Regarding its aerial equipment segment the Company has formulated a
forward-looking plan to address overseas trade barriers accelerated the speed of new product
development extended the product chain and introduced a variety of forklifts with scissors and
telescopic handlers to the market throughout the year largely enriching its product matrix. Concerning
its new energy lithium-ion battery segment the Company has achieved over RMB 100 million in
revenue from exports of its lithium-ion battery products thanks to the efficiency advantages of its new
workshop's high-end automated production equipment the quality assurance capabilities and the scale
advantages of the industry providing strong support for the development of the Company. Relying on
the powerful lithium-ion battery industry and the strong brand influence of Hangcha the Company has
also performed well in business segments such as instrumentation wiring harnesses and electric drives
fully demonstrating the positive role that Hangcha's new energy product strategy plays in upgrading the
industrial chain and promoting the technological iteration of the key product components. Up to now
the "Great Hangcha" industrial ecosystem has formed with all business segments cooperating with and
promoting each other creating a solid industrial ecological foundation for the sustainable development
of the Company.Logistics World Summit & Expo (Mexico)The 2024 Annual Report of Hangcha Group Co. Ltd.Ecological Industry Chain of Hangcha
Group
Automation Aerial
Logistics Equipment
Equipment
Comprehensive Aftermark
Intelligent et
Logistics
Solution
New Energy Others in
Products investments
5. Strengthen industrial foundations and establish a high-end industrial chain system
As there is a crucial window of opportunity arising from the new round of international competition and
industrial revolution the Company has seized the historic opportunity when the country vigorously
promoted the development of new quality productive forces consolidating and enhancing the
comprehensive leading advantages of Hangcha Group in the fields of new energy products and
intelligent logistics. The company has taken technological transformation as the starting point
optimizing and adjusting the production planning of products focusing on core technology research and
quality improvement of core components and actively planning for industrial chain upgrading. During
the Reporting Period the construction of the Hangcha Intelligent Production Base Project with an annual
output of 10000 units of automation equipment was started in Hangcha Hengfan Science and
Technology Park Phase IV in which the Company invested hundreds of millions of RMB. The project
will powerfully promote the Company's products and solutions guiding them toward high-end
intelligent upgrades and green transformation. Meanwhile the project will continuously enhance the
development vitality and international competitiveness of the Company and continue to optimize its
one-stop intelligent logistics solutions that are independent controllable safe and highly efficient. The
Intelligent Transformation Project for High-end Large-Tonnage Forklifts and Ride-on Warehouse
Forklifts with an annual output of 3000 units was promoted steadily in which the Company invested a
total of RMB 160 million. Large high-end processing equipment such as the double-ended boring
machine and the gantry milling machine has been put into operation contributing to significant YoY
growth of the Company's high-end large-tonnage forklifts and ensuring that the sales of large-tonnage
forklifts rank the highest in the domestic industrial vehicle industry. Thanks to their excellent quality and
manufacturing capability the large-tonnage forklifts of Hangcha have not only won high recognition
from clients but also successfully secured support from ultra-long-term special treasury bonds for the
"two new" fields in 2024. The project has made initial achievements.
22 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Project Construction of Hangcha
Group
The construction project of the Science and Technology
Innovation Park in Shiqiao of Hangcha Group was open for
investment
The groundbreaking ceremony for the Hangcha Intelligent Production Base in Hangcha
Science and Technology Park Phase IV with an annual output of 10000 units of automation
equipment was held successfully
The groundbreaking ceremony for the Hangcha Manufacturing Plant in Thailand was held
In terms of industrial cooperation the Company has achieved a leap-forward development. It has further
refined its industrial planning of its core technology for new energy industrial vehicles and developed
Zhejiang Hangbo Electric Drive Co. Ltd. a joint venture specializing in permanent magnet motors for
industrial vehicles in cooperation with Zhuhai Enpower Electric Co. Ltd. Therefore the Company has
developed comprehensive technical innovation capabilities and solid industrial support in terms of core
technologies of battery electric drive and electric control for new energy industrial vehicles building a
completely independent and controllable high-end supply chain system. Currently Hangcha has
successfully built an intelligent distinctive gigafactory with two parks in Qingshan and Hengfan at the
core which features the synergistic development of multiple industries such as the industrial vehicle
machine industry the intelligent logistics industry the parts and components industry and the modern
service industry and the deep integration of the supply chain industrial chain and innovation chain. In
this way the Company has laid a solid industrial foundation for its long-term development.II. Introduction to the Industry where the Company Operates during the Reporting Period
As the core category of industrial vehicles forklifts are the key equipment for mechanized loading and
unloading intelligent stacking and efficient short-distance transport in the modern logistics system. Its
application scenarios cover logistics and warehousing manufacturing and processing transport hubs and
other key areas of the national economy and it plays an irreplaceable role in stations ports airports and
intelligent factories. As the global industrial vehicle industry continues to deepen its electrification
transformation and intelligent upgrades the demand of the new energy forklift market continues to
climb and the overall transformation and upgrading of the industry has achieved remarkable results
signifying that China's high-end equipment manufacturing field is accelerating toward green digitized
and intelligent practices. The sales volume of industrial motor vehicles exceeded 1.09 million units in
2021. Following that China maintained a sales volume of over one million units from 2022 to 2024 and
23 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
ranked as the world's largest forklift production and consumption market for several consecutive years.In 2024 the total sales volume of industrial motor vehicles reached 1285500 units up 9.52% compared
to 2023. Of those 800500 units were sold domestically up 4.77% compared to 2023 while 480500
units were exported up 18.53% compared to 2023. This marks new record highs in terms of the total
sales volume domestic sales and export volume. Considering the industry sales structure by model
electric forklifts have maintained good growth momentum. In contrast internal combustion forklifts
have seen a decrease of over 10% with a particularly significant decline of 13.16% in the domestic
market. The warehouse forklift has achieved the highest increase and the sales volume of electric
ride-on warehouse forklifts and electric walkie warehouse forklifts increased by over 20% respectively
with respective increases of 15% and 27% in the domestic and international markets.The forklift industry has seen continued progress driven mainly by the synergy of internal and external
cycles. In the domestic market there is a continuous and stable demand for material handling thanks to
China's economic and population advantages and the depth characteristics of its territorial space. With
the acceleration in population aging and the wave of industrial automation upgrading the staged trend of
"replacing human workers with robots" is transforming into an irreversible industrial revolution. In the
international market China's industrial vehicles have demonstrated great resilience in the face of a
complex global economic and trade environment. The 9.52% increase in exports demonstrates the
comprehensive competitive advantages of "Intelligent Manufacturing in China" in technological
innovation cost control and the synergy of the entire industry chain. The increasing demand in both the
domestic and overseas markets not only reflect the basic manufacturing industry's attribute of livelihood
protection but also highlights the high-quality development path of the equipment manufacturing field.
20112012201320142015201620172018201920202021202220232024
Trend of Annual Total Sales Volume of China's Industrial Vehicle Industry (Units)
In 2024 from a model structure perspective electric ride-on counterbalance forklifts (Class I vehicles)
achieved sales of 185900 units up 8.90% YoY; electric ride-on warehouse forklifts (Class II vehicles)
achieved sales of 29700 units up 24.03% YoY; electric walkie warehouse forklifts (Class III vehicles)
achieved sales of 730600 units up 21.39% YoY; and internal combustion counterbalance forklifts
(Class IV and V vehicles) achieved sales of 339300 units down 10.06% YoY. Lithium-ion forklifts
24 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
accounted for 47.43% of electric forklift sales with 448800 units sold. Lithium-ion counterbalance
forklifts accounted for 71.71% of electric counterbalance forklift sales. In 2024 the sales volume of
lithium-ion battery models in the three major electric forklift categories (Class I II and III) is as follows:
lithium-ion ride-on counterbalance forklifts of 133300 units lithium-ion ride-on warehouse forklifts of
10600 units and lithium-ion walkie warehouse forklifts of 304900 units. In terms of regional
distribution lithium-ion forklifts achieved domestic sales of 244000 units and export sales of 204800
units with the export sales accounting for 45.63% of the total.Class I Vehicles
14.46%
Class IV and Class V Vehicles Electric ride-on counterbalance forklift
26.39% Sales volume of 185900 unitsA YoY growth of 8.90%
Internal combustion counterbalance Class Ⅱ Vehicles
forklift 339300 units Class I 2.31%
A YoY decrease of 10.06%
Electric ride-on warehouse forklift
Sales volume of 29700 units
A YoY growth of 24.03%
Class IV Class
&Ⅱ
Class V
ClassⅢ
Class III Vehicles
56.84%
Electric walkie warehouse
forklift
Sales volume of 730600 units
A YoY growth of 21.39%
Industry Sales Structure by Model in 2024
According to the industry data analysis the competitiveness of the models represented by the electric
forklift and the new energy lithium-ion battery forklift has improved significantly achieving substantial
growth in their domestic and international market shares. The proportion of electric forklifts has reached
73.61% the proportion of electric counterbalance forklifts has exceeded 35.40% and the proportion of
lithium-ion battery forklifts among electric forklifts has grown significantly reaching 47.43%.Meanwhile the promotion and application of the domestic hydrogen fuel cell forklift is in full swing
and demonstration applications have been carried out. Under the guidance of the industrial policy of
accelerating the high-quality development of the manufacturing industry the industrial vehicle industry
is actively promoting a transformation from "quantitative expansion" to "qualitative leap" which
provides the industry with a new development idea and direction and gradually forms a new growth
momentum. In terms of product research and development we focus mainly on high-end
digital-intelligent and green development. In addition to the traditional complete machine enterprises
and original supporting industrial enterprises some potent parts and components suppliers from the new
energy automotive construction machinery and other fields are entering the industrial vehicle industry
providing new drivers for the innovation and iteration of new technologies and products and vigorously
promoting the industry's technological progress and product upgrading. Major existing enterprises are
also accelerating their strategic planning for the international market aiming to promote more balanced
25 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
and steady development of the domestic and international markets and further enhance the industry's
influence and competitiveness in the global market.(Note: The data comes from the Industrial Vehicle Branch of the China Construction Machinery
Association and has been rounded up to two decimal places)
III. Introduction to the Company’s Business during the Reporting Period
1. Major business of the Company
The Company focuses on the operation of the whole industry chain of industrial vehicles and related
products. Its major business includes the research and development manufacture and sales of industrial
vehicles including forklifts warehouse forklifts tow tractors automated guided vehicles (AGVs) and
intelligent handling robots and complete machines such as aerial work vehicles dynamic compactors
automation equipment and cleaning equipment along with their key components. Moreover it designs
implements and maintains comprehensive intelligent logistics systems and provides aftermarket
services including the sales of industrial vehicle accessories parts and kits vehicle repair and
modification industrial vehicle leasing and leasing manufacturing and remanufacturing of intelligent
handling robots.
26 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Forklift
Class
I
Vehicl Electric
es counterbalance
forklift
Class
Ⅱ Reach truck Order picker
Vehic
les
Class Ware
Ⅲ house
Vehi forkli
cles ft
Class Internal combustion
IV & counterbalance
Class forklift
V
Vehicl
es
Intelligent Logistics
Intelligent
Handling Robot
Intelligent
Warehousing
Other CompleteMachine
Port Other Vehicles
Machinery
Parts & Kits
Key components
Lithium-ion Charger
Battery
Conveyor
Line
Diversified Products of Hangcha Group
27 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. business model of the Company
The Company adopts a business model centering on R&D manufacturing marketing and services to
promote the coordinated development of the upstream and downstream of the industrial chain. The
company specializes in industrial vehicles and adheres to an innovation-driven strategy actively
cultivating the new quality productive forces that integrate high-tech high-efficiency and high-quality
features. Through years of endeavor the company has accumulated numerous capabilities including
strong technological innovation capabilities excellent quality assurance capabilities a safe and efficient
supply chain system and a perfect marketing and service network. Leveraging these strengths theCompany has transformed into a leading modern service enterprise that provides “manufacturing-relatedservices and solutions” in the industry. In terms of product sales the Company adopts a diversified
product sales model of “direct sales + distribution + e-commerce” developing directly affiliated sales
companies authorized and franchised dealers and e-commerce platforms at home and abroad and
building up a global marketing and service system so as to provide users worldwide with high-quality
industrial vehicles and customized logistics solutions.IV. Core Competencies Analysis for the Reporting Period
"√ Applicable" "□ Not applicable"
Guided by our mission of "Make material handling easier" we pursue diversified development centered
around our core industrial vehicle business. By focusing on digital empowerment refined management
innovation-driven development low-carbon transformation and integrated development we have
continuously driven the transformation and upgrading of the forklift industry cultivated new quality
productive forces within the industry taken the lead in the industry's high-quality development and
enhanced our core competencies. We closely track industry trends and market demand changes and
adhere to a market-oriented approach in adjusting our strategies optimizing our structure and
maintaining steady growth. This has led to further consolidation of our market share a significant
increase in our overall strength and the reinforcement of our leading position in the industry ultimately
achieving high-quality development.Our core competencies are primarily reflected in the following aspects:
1. R&D and Innovation-Driven Advantages
We keenly understand the development trends of industry transformation and upgrading. By adhering to
the philosophy of "targeting benchmarks surpassing competitors and developing the world's best
forklift products" we have built a technological innovation system characterized by "one core two
wings and comprehensive coordination." We leverage resources and teams from our provincial and
national-level technological innovation platforms including the National Enterprise Technology Center
the National Accredited Laboratory the National Industrial Design Center the National Postdoctoral
Research Workstation the Zhejiang Provincial Industrial Vehicle Engineering Technology Research
Center the Zhejiang Provincial Academician and Expert Workstation and the Zhejiang Provincial Key
Enterprise Research Institute. We focus on "green intelligent and service-oriented" technological
28 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
innovation integrate the in-depth applications of cutting-edge technologies such as artificial intelligence
new energy 5G and the Internet of Things and concentrate on technological areas such as green and
intelligent industrial vehicles comfortable and safe operation high efficiency and reliability intelligent
logistics and digital R&D. We continue to increase investment in the R&D of core technologies for
industrial vehicles. We have mastered key technologies including lithium-ion battery-specific
architectures for industrial vehicles high-efficiency high-torque permanent magnet synchronous motors
high-voltage platforms intelligent safety systems multi-sensor fusion active safety systems and cluster
collaborative scheduling algorithms. We continuously and efficiently develop and launch a wide array of
new energy products and intelligent industrial vehicles. Currently the Company has successfully built
the industry's most complete new energy product portfolio. Some products including the 48t
high-voltage lithium-ion forklift the 45t high-voltage lithium-ion container reach stacker the 48t
hydrogen fuel cell forklift and the high-voltage lithium-ion rough terrain forklift have achieved
industry-leading status. These products have frequently won national provincial and municipal science
and technology awards fully demonstrating the Company's outstanding R&D and innovation
capabilities.Technological achievements of
Hangcha Group
Second Prize of the Machinery Industry First Prize of the Zhejiang Provincial Science
Science and Technology Awards and Technology Progress Awards 2024 Gaogong Golden Globe Award for Innovation and Application Award in Forklift Category
Applications
(Gaogong Hydrogen & Electricity)
Hangcha successfully hosted the expert review meetings for Hangcha successfully hosted seminars for industry standards
industry standards (draft for review) (draft)
29 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangcha Group's R&D investment in
the past five years
Hundred million yuan Number of people
20202021202220232024
Capital investment Personnel input
(RMB 100 million) (people)
2. Leading Advantage in New Energy Products
As a leading enterprise in the forklift industry the Company has built a complete product range of new
energy industrial vehicles and established a proprietary and controllable key core component industrial
ecological chain through continuous engagement in the new energy field. To support a new energy
industrial vehicle product matrix centered on lithium-ion batteries hydrogen energy and hybrid power
we have engaged in strategic forward-looking planning in the key component supply chain ensuring the
stable supply and cost advantages of lithium batteries drive motors and vehicle electrical controls. In
manufacturing we have continuously increased investment in technological renovation and built and
successfully launched a "future factory" for new energy forklift components and complete machines.This has achieved a high degree of automation and intelligence in the production process. In R&D we
have developed a series of core technologies including lithium-ion battery-specific architecture
platforms permanent magnet synchronous drives and high-voltage platforms. We have launched a full
range of new energy products including the XC series lithium-ion special-purpose forklifts the XE
series lithium-ion battery special-purpose forklifts the XH series all-weather heavy-duty high-voltage
lithium-ion special-purpose forklifts and the XC series hydrogen fuel cell forklifts. We replace lead-acid
batteries with low-voltage lithium-ion batteries and our high-voltage lithium-ion batteries have
performance surpassing internal combustion engines. Our product line covers the range from 0.6t to 48t
offering superior performance safety efficiency reliability and high industry satisfaction. Our new
energy products have gained widespread recognition in both domestic and international markets and
have frequently won industry science and technology awards and recognitions for being the first of their
kind in China. With leading technology a complete product range a stable supply chain and high brand
recognition we have built comprehensive and multi-layered competitive advantages in the new energy
product field leading the industry towards an accelerated transition to the all-electric era.
30 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Stock name: Hangcha Group
Stock code: 603298
New Energy Product Profile of Hangcha Group in 2024
Hangcha leading the way in the all-electric
era
3. Advantages in Global Presence
We continue to expand our global presence by strengthening the overseas marketing and after-sales
service network. A three-tier service network has been formed consisting of "headquarters - overseas
companies - agents" including more than 70 wholly-owned sales companies more than 600 dealers and
more than 10 overseas companies covering more than 200 countries and territories. We have established
more than 10 overseas sales companies and parts service centers in major countries and regions such as
Europe North America South America Southeast Asia and Oceania. The expansion of our own
channels has achieved full coverage of our marketing and service network in major global industrial
vehicle markets including Europe North America South America Australia and Southeast Asia. Our
innovative marketing model comprehensively integrates the Company's human financial material and
information resources to carry out multi-channel sales including direct sales to large customers
cross-border e-commerce and new media marketing. It enables rapid resource allocation direct links
with customers for information improved response speed and enhanced customer loyalty. We actively
deployed overseas manufacturing bases during the reporting period to address the uncertainties in the
international trade environment. A wholly-owned manufacturing subsidiary was established in Thailand
with a design capacity of 10000 counterbalance forklifts and aerial work platforms per year and also
including lithium battery assembly. Such efforts not only enhance the localized supply capacity in the
Southeast Asian market but also effectively reduce tariff costs through the ASEAN Free Trade Area
improving our ability to cope with trade barrier risks. We have successively established sales companies
in Malaysia and a leasing company in Vietnam further improving the sales and service network in
Southeast Asia. Through the implementation of a three-in-one global strategy of "technology +
manufacturing + service" we have improved our ability to withstand market risks and steadily expanded
our market share. More importantly by leveraging our leading advantages in new energy and
intelligence we take the lead in industry transformation and development injecting impetus into the
Company's long-term sustainable growth.
31 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Domestic sales network Global sales
Headquarters
Headquarters Subsidiary
Subsidiary
Distributors
Distributors
Hangcha Group currently has more Hangcha Group currently has 18 foreign subsidiaries and more
than 60 domestic subsidiaries and than 300 overseas distributors in more than 200 countries and
more than 300 domestic distributors. territories.Foreign subsidiaries of
Hangcha Group
Hangcha
Hangcha Netherlands
Forklift Canada
Hangcha
Europe
Hangcha Europe Hangcha
HC Forklift JapanRental
America China
Hangcha Hangcha makes
HC Forklift America Middle products in Thailand Hangcha Forklift
Hangcha US supplies
Hangcha East Vietnamgeneral lithium batteries to
México Hangchaempower intelligent Thailand Hangcha
logistics Hangcha Malaysia
Southeast
Hangcha Asia
Brasil Hangcha
Indonesia
HC Forklift
Australia
4. Advantages from Empowerment by Intelligent Manufacturing
We have developed solid advantages in intelligent manufacturing through forward-looking and effective
innovative measures amidst the wave of intelligent transformation in the forklift industry. We work to
revolutionize production processes by actively introducing advanced technologies such as digital twins
5G applications and the Industrial Internet. In production processes data-driven systematic
reconstructing has comprehensively improved production efficiency and quality control capabilities. The
application of intelligent welding technology not only improves welding precision but also significantly
shortens production time. Automated painting processes ensure the consistency and durability of product
appearance. We are vigorously building intelligent super-factories to achieve the scale effect of
intelligent production. Currently the two intelligent production bases at the Qingshan Industrial Park
and the Hengfan Technology Park have attained a large scale possessing more than 600 intelligent
robots of various types more than 20 intelligent integrated production lines and more than 10 spray
painting lines among other advanced facilities. They constitute a highly automated and intelligent
production system achieving full-process intelligence from automated material feeding and precise
welding to fine painting efficient assembly and logistics. A strong product supply capacity has been
formed with an annual production capacity of 400000 industrial vehicles and other logistics equipment.
32 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Our exploration and practice in intelligent manufacturing have been widely recognized. During the
reporting period the Zhejiang provincial key R&D project we undertook "Research and Application of
Intelligent Factory Integration Technology for Industrial Vehicles to Accommodate Diverse Varieties
and Variable Batch Sizes" achieved remarkable results providing valuable experience and technical
support for the intelligent upgrading of production modes with diverse varieties and variable batch sizes
within the industry. Hangcha has been inscribed in honorable lists as a National Service-Oriented
Manufacturing Demonstration Enterprise National Green Supply Chain Management Enterprise
"Future Factory" in Zhejiang Province and China Benchmark Intelligent Factory for its outstanding
performance in intelligent manufacturing green development and service-oriented manufacturing. The
Company has become a model for intelligent manufacturing in the industry. We are able to effectively
control costs shorten delivery cycles and quickly respond to market demand through the continuous
optimization of our production and manufacturing system.Intelligent factories of
Hangcha Group
Intelligent factories
Annual capacity of
400000 units per year
Hangcha Qingshan Industrial Park Hangcha Hengfan Technology Park
Hangcha flexible assembly production line Hangcha intelligent automated storage and Hangcha lithium battery production line Hangcha integrated circuit packaging
retrieval system production line
5. Advantages in Integration of Intelligent Logistics Solutions
The market demand for intelligent logistics continues to grow in the context of intelligent transformation
and upgrading across various industries. We were among the first in the industry to deploy in the
emerging segments of intelligent logistics by developing a series of stacking omnidirectional
forward-moving and counterbalanced series of AGVs powered by navigation methods. We have
established three major business groups namely Hangcha Intelligent Hangao Intelligent and Hanhe
Intelligent. Through the integrated construction of the industrial chain. We offer a comprehensive range
of intelligent logistics solutions encompassing AGV products vertical storage and software integration
systems as well as customized and scenario-based product development and engineering services
adapted to customer needs. With extensive project experience our professional technical teams have
successfully implemented more than 1000 projects helping customers in industries such as
photovoltaics rubber lithium batteries 3C electronics food pharmaceuticals and ceramics to
33 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
overcome the challenges of intelligent logistics in diverse and complex scenarios. We have delivered a
number of benchmark projects including finished product factories for leading beverage companies and
intelligent logistics system integration projects for the metal products industry.Intelligent logistics business of
Hangcha Group
Handling equipment Storage equipment
Stocker
Pallet stacking system Box stacking system
Other supporting
equipment
Intelligent logistics
product series
Two-way RGV Four-way RGV Lift Overhead trolley
Robot arm Conveyor Sorting line Packaging machine
Intelligent business of
Hangcha Group
An AGV project site Hangcha in Customer acceptance of Hangcha Hangcha AGVs working in a site
the textile industry AGVs of the metal industry
An intelligent warehouse project undertaken by An intelligent warehouse project undertaken by Hangcha for the tire
Hangcha for the wine industry is put into use industry is put into use
Hangcha AGVs delivery to a customer in the Hangcha AGVs delivery to a customer in the Hangcha AGVs ready for shipping
ceramic industry beverage industry
During the reporting period Hangcha Intelligent a subsidiary of Hangcha received numerous industry
awards including the "2024 Top 100 High-Growth High-tech Enterprises of Zhejiang" designated by the
Department of Economy and Information Technology of Zhejiang Province the "Gaogong Golden
Globe Award for Enterprise's Industry Contribution in Past Five Years" from Gaogong Robotics and the
"Outstanding Contribution Award for Enterprise in Industry Standard Development" from the China
Mobile Robot & AGV/AMR Industry Alliance Association. Hangcha Intelligent has also established a
provincial-level R&D center for mobile robots continuously strengthening its technological R&D
34 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
capabilities laying a solid foundation for the Company's continued development in the intelligent
logistics field and further solidifying its competitive advantage and development potential in the
industry.
6. Advantages in Culture-Leading Development
Hangcha has forged a leading advantage with a unique and influential culture in the industrial vehicle
industry for more than 60 years of profound development and more than 20 years of bold reform and
innovation. "To be the best forklift truck manufacturer in the world" we take on the mission of "Make
material handling easier" while upholding our core values of "integrity responsibility and sharing." We
carry forward the Hangcha spirit of "progress pragmatism innovation and harmony" and promote our
"family" culture. These cultural concepts were further integrated into all aspects of the Company's
operations during the reporting period. In talent development and motivation we fully leverage the
advantages of flexible human resource management mechanisms and sound management regulations
and actively organize various training programs and skills competitions with diverse forms and rich
content providing employees with continuous learning opportunities and broad development space
respecting and stimulating their individuality and abilities. In promoting our corporate culture we make
the best of diversified channels such as online learning platforms and corporate cultural activities to
strengthen employees' strong identification with the Company's values and enhance their sense of
belonging and cohesion. In the face of intense market competition we continuously launch new products
and services that meet market demands satisfying the diverse and personalized needs of different
customer groups through efficient team collaboration and a spirit of innovation that dares to break
boundaries. Meanwhile we actively fulfill our social responsibilities and proactively participate in
public welfare activities giving back to society through concrete actions improving Hangcha's brand
image and social reputation and attracting the attention and favor of more high-quality talent and
partners further solidifying our stronghold in the industry. Through cultural guidance we have
cultivated a high degree of loyalty and identification among employees improved employee satisfaction
and enhanced the internal impetus for sustainable development. This lays a solid cultural foundation for
Hangcha's advancement toward becoming a world-class logistics equipment manufacturer.
35 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Corporate culture of Hangcha
Group
Hangcha Group participated in the Ministry of Education's 24/365
Hangcha quality month activities "Internet plus Employment Guidance" live classrooms
2024 "Hangcha Cup" Lin'an District Employee Skills Competition
2024 Hangcha Group Skill
Competition
2024 "Zhejiang Youth · Love Sports" Hangzhou 2024 Hangzhou Industrial Trade Unions Badminton 2024 Hangzhou Industrial Trade Unions Employees Men's Hangcha Employees' Home
Youth Basketball Game Competition 3x3 Basketball Tournament
V. Main Operating Results during the Reporting Period
For the reporting period the Company achieved an operating income of RMB 16486 million
representing a YoY increase of 1.15% net profit attributable to shareholders of the listed company of
RMB 2022 million a YoY increase of 17.86% and net profit after deduction of non-recurring gains and
losses attributable to the shareholders of the listed company of RMB 1989 million a YoY increase of
17.82%.
1. Main Operating Results
(1) Analysis of changes in related items of income statements and cash flow statements
Unit: Yuan Currency:CNY
Current period Preceding period
Item Change (%)
cumulative comparative
Operating income 16485830318.58 16298640931.47 1.15
Operating cost 12603220242.48 12915289176.66 -2.42
Selling expenses 728012409.97 597205662.69 21.90
Administrative expenses 406617549.36 345284671.71 17.76
Financial expenses -48510954.71 -83448333.12 N/A
R&D expenses 774177062.16 739836786.84 4.64
Net cash flows from operating
1336825600.121632087180.34-18.09
activities
Net cash flows from investing -527633144.34 -495592261.78 6.47
activities
Net cash flows from financing -522752549.34 -448367593.89 16.59
activities
Reason for change in operating income: N/A
Reason for change in operating cost: N/A
Reason for change in selling expenses: N/A
36 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Reason for change in administrative expenses: N/A
Reason for change in financial expenses: Mainly due to increase in interest income and changes in
foreign exchange rates.Reason for change in R&D expenses: N/A
Reason for change in net cash flows from operating activities: N/A
Reason for change in net cash flows from investing activities: N/A
Reason for change in net cash flows from financing activities: N/A
Details of significant changes in business types profit composition or profit sources of the Company in
the current period
"□ Applicable" "√ Not applicable"
2. Income and cost analysis
"√ Applicable" "□ Not applicable"
For the reporting period the Company recorded an operating income of RMB 16486 million a YoY
increase of 1.15% and an operating cost of RMB 12603 million a YoY decrease of 2.42%.
(1). Main operating results by industry product region and sales model
Unit: Ten thousand yuan Currency: CNY
Main operating results by product
Increase/decrease
Increase/decrease
Gross in operating Increase/decrease in
Operating Operating in operating cost
By product profit income over the gross profit over the
income cost over the previous
(%) previous year previous year (%)
year (%)
(%)
Forklift Increase by 3.03 pp
and spare 1623152.75 1236950.61 23.79 1.10 -2.76
parts
Main operating results by region
Increase/decrease
Increase/decrease
Gross in operating Increase/decrease in
Operating Operating in operating cost
By region profit income over the gross profit over the
income cost over the previous
(%) previous year previous year (%)
year (%)
(%)
Domestic 938545.24 762683.13 18.74 -1.40 -3.24 Increase by 1.54 pp
Overseas 684607.51 474267.48 30.72 4.75 -1.98 Increase by 4.76 pp
Notes for main operating results by industry product region and sales model
None
(2). Analysis of production and sales volumes
"√ Applicable" "□ Not applicable"
Main Uni Productio Sales Inventor Increase/decrea Increase/decrea Increase/decrea
product t n volume volum y se in production se in sales se in inventory
37 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
s e volume volume over volume over volume over
the previous the previous the previous
year (%) year (%) year (%)
Forklift Uni 279823 28001s etc. t 2 19054 12.81 14.06 -0.98
Notes for production and sales volumes
None
(3). Performance of significant purchase and sales contracts
"□ Applicable" "√ Not applicable"
(4). Cost analysis
Unit: Ten thousand yuan Currency: RMB
By product
Change
in
amount
Amount in the
Proportion Proportion
of total over the of total current
Amount for same period
By product Cost
cost in the cost in the
the current period of over Information
components current same Note
period period the period last the
(%) previous year (%) same
year period
last
year
(%)
Forklifts Raw 1162264.45
etc. and materials 1113029.40 92.97 93.40 -4.24
accessories
Forklifts Labor and 30383.23
etc. and wages 35852.78 2.99 2.44 18.00
accessories
Forklifts Depreciation 7626.22
etc. and 7714.61 0.64 0.62 1.16
accessories
Forklifts Energy 7527.84
etc. and 8485.60 0.71 0.60 12.72
accessories
Forklifts Other 36562.09
etc. and 32188.12 2.69 2.94 -11.96
accessories
Notes for other information in cost analysis
None
38 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(5). Changes in the scope of consolidation resulting from changes in equity interests in major
subsidiaries during the reporting period
"□ Applicable" "√ Not applicable"
(6). Details regarding significant changes or adjustments in the Company's business products
or services during the reporting period
"□ Applicable" "√ Not applicable"
(7). Key clients and suppliers
A. Key clients
"√ Applicable" "□ Not applicable"
The sales from the top five clients were RMB 113602.85Ten thousand yuan accounting for 6.89% of
the total annual sales; the related party sales in sales from the top five clients were RMB 0 accounting
for 0% of the total annual sales.During the reporting period the proportion of sales to a single customer exceeds 50% of the total or
there are new customers or a heavy reliance on a few customers among the top 5 customers
"□ Applicable" "√ Not applicable"
B. Key suppliers
"√ Applicable" "□ Not applicable"
The purchases from the top five suppliers were RMB 217734.35Ten thousand yuan accounting for
18.59% of the total annual purchases; the related party purchases in purchases from the top five
suppliers were RMB 116831.06Ten thousand yuan accounting for 9.97% of the total annual
purchases.During the reporting period the proportion of purchases from a single supplier exceeds 50% of the total
or there are new suppliers or heavy reliance on a few suppliers among the top 5 suppliers
"□ Applicable" "√ Not applicable"
Other notes:
None
3. Expenses
"√ Applicable" "□ Not applicable"
Unit: RMB 10000 Currency: RMB
Item Amount for Amount in Change (%) Reason for change
the current the previous
period period
Mainly due to decrease in interest
Financial
expenses -4851.10 -8344.83 N/A income and changes in foreign exchange
rates.
39 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
4. R&D investment
(1).R&D investment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: RMB
R&D investment as expenses in the current period 774177062.16
R&D investment as capital in the current period
Total R&D investment 774177062.16
Proportion of total R&D investment to Operating income 4.70
Proportion of R&D investment as capital
(2).R&D personnel
"√ Applicable" "□ Not applicable"
Number of R&D personnel 1151
Proportion of number of R&D personnel to total number of 17.85
employees (%)
Educational background of R&D personnel
Educational background category Personnel by educational background
Doctor 1
Master 91
Bachelor's degree 563
Junior college 309
Senior high school or below 187
Age composition of R&D personnel
Age composition category Personnel by age composition
Younger than 30 (excluding 30) 407
30 - 40 (including 30 excluding 40) 454
40 - 50 (including 40 excluding 50) 205
50 - 60 (including 50 excluding 60) 80
60 and elder 5
(3).Notes
"□ Applicable" "√ Not applicable"
(4).Reasons for material changes in the composition of R&D personnel and their impact on the
Company's future development
"□ Applicable" "√ Not applicable"
5. Cash flows
"√ Applicable" "□ Not applicable"
Unit: RMB 10000 Currency: RMB
Amount Amount
for the in the Change
Item Notes
current previous (%)
period period
40 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Cash receipts from Mainly due to decrease in cash recovered
withdrawal of 10220.56 -100.00 from wealth management in the current
investments period.Cash receipts from Mainly due to increase in dividends
2849.00 895.85 218.02 received from shareholding in companies
investment income
in the current period.Other cash receipts Mainly due to merger of businesses under
related to investing 99.68 855.00 -88.34
common control.activities
Cash payments for Mainly due to increase in scale of wealth
9289.41100.00
investments management in current period.Net cash payments for Mainly due to increase in acquisition of
the acquisition of
2986.00 727.26 310.58 businesses under common control in the
subsidiaries & other current period.business units
Other cash payments Mainly due to decrease in losses from
related to investing 176.22 3460.89 -94.91 derivative financial products in the current
activities period.Cash receipts from Mainly due to capital increase of
5001.20 3189.64 56.79 subsidiaries (by minority shareholders) in
absorbing investments
the current period.Other cash receipts
Mainly due to increase in notes discount
related to financing 23000.00 5479.02 319.78 proceeds received by the Company.activities
Cash payments for
Mainly due to increase in repayment of
repayment of 150148.63 103779.77 44.68 loans in the current period.borrowings
Other cash payments Mainly due to decrease in equity
related to financing 4670.31 16028.96 -70.86
repurchases in the current period.activities
IV. Effect of foreign
Mainly due to exchange rate fluctuations
exchange rate changes
1507.89 6807.66 -77.85 affecting foreign currencies held by the
on cash & cash Company.equivalents
2. Notes for Significant Changes in Profits due to Non-Operating Activities
"□ Applicable" "√ Not applicable"
3. Analysis of Assets and Liabilities
"√ Applicable" "□ Not applicable"
(1) Assets and liabilities
Unit: Ten thousand yuan Currency: RMB
41 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Proportion
of change
Proportion Proportion
of closing of closing in closing
Closing Closing balance of
balance of balance of balance of balance of the
Item Name the
the the the
current previous current Notes
current previous
period to period to period to
period period that of the
total total
assets (%) assets (%) previous
period
(%)
Mainly due to
Held-for-trading increase in wealth
8000.030.49100.00
financial assets management
products.Mainly due to
Accounts 246639.74 15.07 161923.25 11.57 52.32 increase in foreign
receivable payments
receivable.Mainly due to
increase in
unendorsed
Receivables
financing 28259.78 1.73 20559.03 1.47 37.46 bankers' acceptance
bills retained at the
end of the current
period.Mainly due to
decrease in
Advances paid 34348.61 2.10 49749.47 3.55 -30.96
prepayment for
materials.Mainly due to
Other increase in export
receivables 27483.49 1.68 15337.32 1.10 79.19 tax rebates
receivable.Mainly due to
Contract assets 10809.96 0.66 7905.83 0.56 36.73 increase in
warranty security
receivables.Mainly due to
increase in
Construction in investment in
58483.703.57042532.923.0437.50
progress construction in
progress in the
current period.Mainly due to
increase in housing
Right-of-use
assets 17462.65 1.070 10452.77 0.75 67.06 lease and lease
terms in the current
period.
42 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Mainly due to
Long-term increase in deferred
prepayments 2555.99 0.16 1645.87 0.12 55.30 decoration
expenses.Mainly due to
increase in
deductible
Deferred tax
assets 11690.98 0.71 8100.00 0.58 44.33 temporary
differences caused
by lease
transactions.Mainly due to
Other
non-current transfer of land3075.00 0.22 -100.00 payment to
assets
intangible assets.Mainly due to
Short-term decrease in
borrowings 33174.23 2.03 92784.24 6.63 -64.25 short-term bank
borrowings.Mainly due to
change in fair value
Derivative of forward foreign
exchange
financial 36.68 0.002 0.39 0.00003 9278.45
liabilities transactions caused
by fluctuations of
US dollar exchange
rates.Mainly due to
increase in bankers'
acceptance bills
Notes payable 88133.02 5.39 57529.24 4.11 53.20 issued for
settlement for
materials in the
current period.Mainly due to
Contractual decrease in
30771.56 1.88 59970.09 4.29 -48.69 advance collection
liabilities
of payment for
goods.Mainly due to
increase in
Non-current
reclassification of
liabilities due 62979.88 3.85 2591.34 0.19 2330.40
long-term
within one year
borrowings in the
current period.
43 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Mainly due to
increase in
Long-term
borrowings 5471.71 0.33 100.00 long-term bank
borrowings in the
current period.Mainly due to
increase in housing
Lease liabilities 14390.99 0.88 7446.00 0.53 93.27 lease and lease
terms in the current
period.Mainly due to
increase in
Deferred
9342.76 0.57 5416.17 0.39 72.50 government
income
subsidies in the
current period.Mainly due to
increase in taxable
Deferred tax 64.70 0.004 6.63 0.0005 876.33 temporary
liabilities differences caused
by lease
transactions.Mainly due to
conversion of
Share capital 130981.20 8.00 93558.00 6.69 40.00 capital reserves
into capital in the
current period.Mainly due to
changes in other
Other comprehensive
comprehensive -390.13 -0.02 -1052.97 -0.08 N/A income that can be
income reclassified to
profit or loss in
equity method.Other notes:
None
(2) Overseas assets
"√ Applicable" "□ Not applicable"
a. Size
Where: The overseas assets were 171638.72 (Unit: Ten thousand yuan Currency: CNY) accounting
for 10.49% of the total assets.b. Notes for the relatively high proportion of overseas assets
"□ Applicable" "√ Not applicable"
(3) Major asset restrictions as of the end of the reporting period
"√ Applicable" "□ Not applicable"
Unit: RMB Currency: RMB
44 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Book value at the
Item Reason for restriction
end of the period
Monetary 21351980.10 Letter of guarantee bond letter of credit bond bankers' acceptance bill
funds bond and performance bond
Monetary Restricted use due to incomplete bank account information of a newly
12041120.00
funds established company
Intangible Mortgage of borrowings
assets 31159743.70
(4) Other notes
"□ Applicable" "√ Not applicable"
4. Industry Operating Information Analysis
"√ Applicable" "□ Not applicable"
For details refer to the relevant information in "Section III Management Discussions and Analyses" of
the report.
45 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
5. Investment Analysis
General analysis of external equity investment
"√ Applicable" "□ Not applicable"
The Company continued to expand upstream and downstream around its main business and strengthened the capacity building of key business modules and the
service capacity building of aftermarket. The Company increased the capital of Hangcha Gaokong Hangcha Leasing and Tianjin Financing among others by RMB
276 million and invested RMB 37.7 million in newly established Hangcha Yunrui and Hangbo Electric. The actual investment in international market development
reached more than RMB 33 million. The total investment reached RMB 349 million in the whole year.
(1) Significant equity investments
"□ Applicable" "√ Not applicable"
(2) Significant non-equity investments
"□ Applicable" "√ Not applicable"
(3) Financial assets measured at fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Gains and
losses from Cumulative fair Impairment
value changes in the AmountAsset fair value Purchase amount in
Opening balance sold/redeemed in the
Other
category changes in recognised in current the current period changes
Closing balance
current period
the current equity period
period
Other 231181699.79 333.33 5826487334.82 5668745595.97 388923771.97
Total 231181699.79 333.33 5826487334.82 5668745595.97 388923771.97
Amount
Securities investment
46 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
Notes for securities investment
"□ Applicable" "√ Not applicable"
Investment in private equity funds
"□ Applicable" "√ Not applicable"
Investment in derivative
"√ Applicable" "□ Not applicable"
a. Investment in derivatives for hedging purpose during the reporting period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Proportion
of closing
Book Gains and book value
Initial value at losses from
Cumulative
fair value Purchase Sales amount in Book value to the
Type investment the fair value Company's
amount beginning changes in
changes amount in the the reporting at the end of
of the the current recognised reporting period period the period
net assets at
the end of
period period in equity the
reporting
period (%)
Forward contracts of foreign exchange -3911.26 -362926.37 242985500.00 199995500.00 -366815.63 -0.0003
Total Amount -3911.26 -362926.37 242985500.00 199995500.00 -366815.63 -0.0003
Significant changes in the accounting policies and
specific accounting principles of hedging business
during the reporting period compared to the same No significant changes
period in the previous year
Actual gains or losses during the reporting period During the reporting period the actual loss of derivatives transactions for hedging purposes was RMB -799200
Effect of hedging The Company mitigates risks in the foreign exchange market through foreign exchange hedging. Exchange rate fluctuationsduring the reporting period did not have a significant adverse impact on the Company
47 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Source of funds for investment in derivatives Self-owned funds
Position risk analysis and control measures for
derivatives during the reporting period (including
but not limited to market risk liquidity risk credit
risk operational risk legal risk etc.)
Changes in the market prices or the fair values of
the invested derivatives during the reporting
period the analysis of the fair values of
derivatives shall disclose the specific method used
and the setting of relevant assumptions and
parameters
Whether it is involved in litigation (if applicable)
Date of announcement of the Board Meeting to
approve investment in derivatives (if any)
Date of announcement of the Shareholders'
Meeting to approve investment in derivatives (if
any)
48 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
b. Investment in derivatives for speculative purposes during the reporting period
"□ Applicable" "√ Not applicable"
Other notes:
None
(4). Details on progress of major asset restructuring and integration during the reporting period
"□ Applicable" "√ Not applicable"
6. Significant Asset and Equity Sales
"□ Applicable" "√ Not applicable"
7. Analysis of Major Companies with Controlling or Minor Interests
"√ Applicable" "□ Not applicable"
Unit: RMB 10000 Currency: RMB
Company name Registered Equity held by the Total assets as of Net profit for
capital Company (%) the end of 2024 2024
Hangzhou
5040.0065.0065362.463103.54
Forklift Frame
Hangzhou
Forklift & Metal
4000.0071.3734086.092397.51
Working &
Welding
Hangcha Bridge 3000.00 62.33 21125.36 2088.58
Box
Jinan Hangcha 1275.00 35.00 3948.34 635.54
Guangzhou
Zhehang 1100.00 34.09 4452.31 298.02
Shanghai 1300.00 35.00 10882.18 696.69
Hangcha
Hangcha
2070.0051.07221927.322692.68
Imp.&Exp.Hangcha Casting 4500.00 77.78 10640.71 414.21
Hangcha Electric 2000.00 65.35 36311.96 2416.18
Appliance
Zhongce Haichao 350000.00 27.8571 4688575.40 317343.21
8. Structured Entities Controlled by the Company
"□ Applicable" "√ Not applicable"
VI. Discussions and Analyses of the Company's Future Development
1. Industry Landscape and Trends
"√ Applicable" "□ Not applicable"
a. Industry competition landscape
2024 witnessed dramatic changes in the global political and economic context. The world economy
slowed down amidst differentiation with intensifying pressures of a downward trajectory. Global market
demand declined. However the Chinese industrial vehicle industry once again demonstrated strong
49 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
resilience in withstanding market shocks and challenges. The industry's annual production and sales
volumes remained above one million units continuing to lead the global market. The industry forged
ahead with accelerating paces of high-end digital and green development. While experiencing rapid
development enterprises have yet to enhance their innovation awareness and technological level in the
industry. Their quality management and service awareness also needs further strengthening.Homogenization and low-price competition persist highlighting the increasing importance of
enterprises' comprehensive competitive advantages. Single-dimensional advantages are no longer
sufficient to support the long-term development of enterprises and the entire industry chain requires
improvement and collaboration. As a result under the current highly competitive forklift market
industry-leading enterprises with significant advantages in branding scale R&D technology channels
quality and service will gain greater competitive advantages. The economy of scale is becoming
increasingly apparent and industry concentration is rapidly intensifying with the market gradually
concentrating towards large-scale strong enterprises. With the rapid development of industry leaders
the global competitiveness of Chinese industrial vehicle enterprises continues to improve their global
market share gradually expands and their market influence continues to strengthen.b. Industry trends
A new round of technological and industrial revolutions is burgeoning globally. The deep integration of
digitalization new energy and intelligent manufacturing with industrial activities is injecting diverse
growth momentum into the industrial vehicle industry including new technologies models business
formats and platforms. Digitalization electrification and internationalization are becoming major trends
in the industrial vehicle industry while the application scenarios of industrial vehicles becoming
increasingly broad. Countries around the world are continuously strengthening environmental protection
requirements; China keeps implementing the national strategy for carbon peaking and neutralization and
supply-side structural reforms; industry emission standards are gradually being upgraded; the product
structure of industrial vehicles is continuously optimized; the sales volume of forklifts with traditional
internal combustion engines are expected to gradually decrease; the trend towards new energy
intelligence segmentation and scenario-specific products is becoming more pronounced; technological
innovation is leading the aggregation of production factors towards the high end; the ratio in forklifts
using fuels to those using electric power is also undergoing positive changes. In 2024 the sales volume
of electric industrial vehicles accounted for 73.61% and the proportion of electric industrial vehicles
will continue to increase in China. The expansion in the sales of new energy industrial vehicles
warehouse vehicles intelligent industrial vehicles and parts forklift leasing and after-sales markets such
as re-manufacturing have become new growth hotspots and directions for the industry's development.Enterprises with leading capabilities in technological system integration within the industry are
gradually transforming from product suppliers to overall solution providers against the backdrop of the
increasingly urgent need for comprehensive professional high-quality and efficient services in
intelligent manufacturing intelligent logistics and artificial intelligence. Artificial intelligence
technology is also widely applied to the production and manufacturing processes of industrial vehicles.
50 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Intelligent production management systems help realize precise control and optimization of production
processes reduce production costs and improve product quality and production efficiency.
2. Company Development Strategy
"√ Applicable" "□ Not applicable"
Upholding its mission of "Making material handling easier" we will focus on a development strategy
centered around "specialized production brand-oriented operation group operation and international
integration." Key initiatives include optimizing our product structure building innovative platforms
promoting digital and intelligent manufacturing improving organizational system governance and
forging a brand culture. We will closely track the trends of digitalization green development
intelligence high-end manufacturing and internationalization within the industrial vehicle industry. On
a new journey to build a world-class high-end equipment manufacturer we provide intelligent logistics
solutions to the global market in pursuing the vision of "To be the best forklift truck manufacturer in the
world."
3. Operational Plan
"√ Applicable" "□ Not applicable"
In 2025 under the leadership of the Board of Directors we will leverage our strengths in
forward-looking strategic decision-making and efficient strategic execution adhere to high-level
planning solidify the foundation for business development drive industrial innovation through
multi-faceted efforts accelerate the formation of new quality productive forces and promote
high-quality development of the Company. The Company will diligently carry out production and
operation tasks with the overall goals of "continuously increasing the intensity of technological
innovation steadily and rapidly advancing internationalization and vigorously developing strategic
emerging industries."
We will continue to explore the new energy and intelligent manufacturing fields deploy innovation
chains along the industrial chain keep technological renovation facilitate the construction of intelligent
manufacturing industrial bases for high-end large-tonnage forklifts and reach trucks enhance the core
competencies of the Group in differentiated production capabilities across the entire industrial chain and
apply technological innovations to industrial development. We will further integrate resources deeply
fuse industrial ecological advantages and innovative thinking and continuously transform them into
strong innovative drivers for industrial development. We will make all possible efforts to facilitate the
construction of intelligent logistics industry projects and forge new advantages in capabilities for
executing projects delivering thousands of units worth hundreds of millions of yuan. We will further
accelerate the transformation and upgrading of traditional advantageous industries to strategic emerging
industries such as intelligent logistics and new energy allowing strategic emerging industries to
continuously become new pillars as they develop and expand. We will actively embrace artificial
intelligence and precisely seize the window of AI technology development. By leveraging our rich
experience in 5G the Industrial Internet and big data we will go all out in the in-depth application of AI
51 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
technology to intelligent logistics actively investing in the R&D of humanoid intelligent logistics robots
creating comprehensive AI intelligent logistics solutions leading the transformation of the intelligent
logistics industry through innovation and seizing the commanding heights of industry development. We
will carefully prepare for the opening and running of the Shiqiao Science and Technology Park to
welcome global customers with a new posture and comprehensively enhance the Company's standing
and influence worldwide.In terms of market expansion we will adhere to a dual-drive strategy encompassing both domestic and
international markets. We will effectively address increasingly fierce market competition through strong
resource allocation capabilities and high operational efficiency. In the domestic market we will continue
to enhance our marketing team's strength and implement project targets and tasks with innovative
concepts and effective policies. We will conduct in-depth analyses and draw lessons from the business
development models of leading enterprises worldwide to achieve leapfrog development in the expansion
of aftermarkets of leasing spare parts and services. In the international market we will continue to
promote the worldwide launching of products technologies and leasing/spare parts after markets
focusing on brand potential product portfolio channel building efficiency improvement and supporting
policies and mechanisms. Our international business team will further widen their mindset clarify roles
gradually establish a global key account management model and build a dedicated software and
hardware platform for key account services. We will further strengthen communication and cooperation
between business teams and R&D teams fully support pre-launch promotion and competitor
comparisons and highlight extraction for new products. We will continue to facilitate the overseas
deployment of lithium batteries and entire vehicle leasing projects to achieve new breakthroughs in
business model transformation and upgrading.In terms of enterprise operation and management we will accelerate the transformation of marketing
with Internet thinking and reshape management and business models using digitalization. We will
deepen the development of digital platforms for overseas operations build digital twin mapping
mechanisms and create highly efficient management models based on digital systems. By managing
global markets with digital systems we will be able to directly address the real needs of global
customers and comprehensively improve the Company's capabilities in R&D innovation product
iteration delivery and risk management.
4. Possible Risks
"√ Applicable" "□ Not applicable"
a. Risks from the external operating environment
The current international environment is highly complex and uncertain with ongoing geopolitical
conflicts. The numerous challenges facing the global economy introduce uncertainty into the stability of
the global and regional markets. These adverse factors have led to a significant slowdown in domestic
and international market demand for logistics equipment. Potential changes in tariff policies and other
aspects of the international business environment could directly impact the Company's export business.
52 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The robust growth of the Company's business is closely related to changes in the domestic and
international political and economic environment particularly in important overseas markets such as
Europe and the Americas where long-term partnerships exist.Countermeasures: We will empower operations through multi-dimensional innovation in management
R&D marketing and production to build core competencies and enhance risk resistance. We are also
actively planning and optimizing the Company's overseas layout. Through equity investment
acquisitions and own operations we will rapidly build complete vehicle manufacturing bases globally
accelerate the Company's internationalization and localization flexibly and rationally avoid tariff
barriers in different regions and further expand our international market share.b. Risk of intensifying industry competition
The forklift market is experiencing intense competition against the backdrop of continuously rising
global economic uncertainty. Homogeneous products are a prominent problem in the industrial vehicle
sector and the influx of new engineering machinery brands has significantly increased the risk of
competition. The industry is undergoing profound changes inside. The market of traditional forklifts
with internal combustion engines is undergoing continuous shrinking while the electric forklift market
particularly the new energy forklift sector is showing strong growth momentum. Demand for automated
guided vehicles (AGVs) is surging and the proportion of electric vehicles and warehouse forklifts in
sales is steadily increasing becoming a new engine driving industry development. This change has not
only reshaped the market demand structure but has also intensified market competition.Countermeasures: To effectively address the complex volatile and increasingly competitive market
environment we pay special attention to deepening our core competencies concentrate on key areas
such as marketing services R&D innovation intelligent production and brand promotion continuously
consolidate and expand our advantages in technological leadership cost control channel expansion
product quality and after-sales service. In terms of R&D innovation we will closely follow our new
energy development strategy and continuously increase R&D investment and market promotion for new
energy forklifts intelligent logistics overall solutions and system integration products. We will
accelerate the transformation and upgrading of key products continuously broadening and deepening
our product line to meet diversified market demands. In terms of marketing services we will flexibly
adjust our business structure optimize operating strategies strengthen the after-sales service system and
actively promote internationalization. We work to enhance market competitiveness and brand value
through differentiated products and services. By deepening customer insights and improving support and
service levels for dealers we will more accurately grasp market dynamics effectively expand market
share further consolidate our leading position in the domestic market and gradually build a significant
competitive advantage in the international high-end market. These measures will help the Company
ensure its ability to continuously spearhead industry trends meet the ever-changing needs of customers
and achieve sustainable development.c. Risk of exchange rate fluctuations
53 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company's sales in overseas markets expand continuously as the Company's internationalization
process steadily progresses and deepens. The Company's international accounts will be subject to
exchange rate fluctuations to a greater extent. Given the ongoing escalation of geopolitical conflicts and
the complex and volatile international environment the trend of overseas markets and the Renminbi
exchange rate is haunted by extreme uncertainty which will have a significant impact on the Company's
earnings.Countermeasures: We will closely and actively monitor the dynamics of the global financial market and
changes to national exchange rate policies. We will strengthen risk prevention awareness and rationally
utilize financial instruments to actively manage exchange rate risk and diversify the impact of exchange
rate fluctuations. For regions where transactions can be settled in Renminbi we will stipulate Renminbi
payments in contracts to avoid exchange rate fluctuation risks. We will accelerate optimizing our
international marketing network establishing more subsidiaries and sales networks in key foreign
markets and building a multi-tiered parts supply and after-sales service system covering major markets.This will further enhance our product marketing and service capabilities and reduce the adverse impact
of potential exchange rate fluctuations.d Management risks associated with expansion
The Company's business scale has continued to grow directly resulting in a significant increase in the
Company's assets and personnel along with the Company's comprehensive expansion in both
international and domestic markets in recent years. As the scale continues to expand fine management is
increasingly critical in improving the Company's operational efficiency and effectiveness. Looking
ahead we will face greater management challenges in building efficient operating mechanisms
formulating forward-looking strategic plans optimizing organizational structure design strengthening
operational management levels refining capital allocation and improving the internal control system.We will face management risks associated with business expansion if we fail to adjust our management
concepts and methods in a timely and effective manner.Countermeasures: We will implement an excellent performance management model continuously
innovate management mechanisms and draw on and promote advanced management experiences
suitable for the Company's development. We will build a digital group governance system to achieve
real-time monitoring data analysis and intelligent decision-making for all aspects of the Company's
business improving the accuracy and timeliness of management. We will establish a modern scientific
management system that adapts to the Company's development needs to ensure standardized scientific
and efficient management through regulations and procedures. These efforts will ensure that we
maintain a stable and efficient operating momentum while continuing to expand achieving our
sustainable development goals.
5. Other
"□ Applicable" "√ Not applicable"
54 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
VII. Notes for non-disclosure according to the standards due to special reasons such as
non-applicability of the standards or state secrets and commercial secrets and reasons
"□ Applicable" "√ Not applicable"
Chapter 4 Corporate Governance
1. Statement on Corporate Governance Situation
"√ Applicable" "□ Not applicable"
During the reporting period the company strictly adhered to the Company Law Securities Law the
Code of Corporate Governance for Listed Companies and the relevant requirements of the China
Securities Regulatory Commission (CSRC) and Shanghai Stock Exchange. We continuously optimized
the standardized operational mechanism of the "three meetings and one level" (i.e. the Shareholders'
Meeting Board of Directors Board of Supervisors and the management level). Through the iterative
upgrades of our information platform we further strengthened the internal control system to ensure
scientific and efficient decision-making precise execution and comprehensive supervision. We
consistently enhanced the quality of information disclosure to ensure that the information is real
accurate and complete while also being expressed in a clear straightforward and easily understandable
manner. We actively expanded communication channels with investors to effectively protect the legal
rights of investors especially those of small and medium-sized investors. Our directors supervisors and
senior management strictly comply with laws and regulations as well as the company’s internal rules
faithfully fulfilling their responsibilities to promote the company’s legal compliance integrity and
steady development.
(1) Improvement of the System Framework: We revised and added governance systems to
enhance the company's standardization level. Based on the latest laws regulations and exchange
rules we revised four existing systems: the "Working Rules for Independent Directors" the "Working
Rules for the Audit Committee of the Board" the "Working Rules for the Nomination Committee of the
Board" and the "Working Rules for the Compensation and Assessment Committee of the Board." We
also added a new "Annual Selection System for Audit Accounting Firms" to ensure that our corporate
governance systems are up-to-date and aligned with regulatory requirements.
(2) Regulated and Effective Operations of the Shareholders' Meeting Board of Directors and
Board of Supervisors. Since being listed the company has established relevant governance systemsincluding the "Rules of Procedure for Shareholders' Meetings” "Rules of Procedure for Board
Meetings" and "Rules of Procedure for Supervisory Meetings." The responsibilities of the three
meetings are clearly defined reasonable rigorous and standardized and these responsibilities are
effectively implemented. The operating procedures of the three meetings comply with relevant laws
regulations and the provisions of the Articles of Association and the operation records are standardized
and complete. The archive management is organized categorized and orderly.a. Regarding Shareholders and the Shareholders' Meeting: During the reporting period the company
held one Shareholders' Meeting. The company strictly adhered to the requirements of the Company Law
55 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
the Shanghai Stock Exchange Listing Rules and the Rules of Procedure for Shareholders' Meetings in
convening and conducting the meeting. The preparation for the meeting the proposals the meeting
procedures the voting and resolutions as well as information disclosure all complied with regulatory
requirements. The company ensured that all shareholders exercised their legal rights through various
channels. A mechanism for separate voting for small and medium-sized investors was established for the
relevant resolutions reviewed at the Shareholders' Meeting which utilized a combination of on-site
voting and online voting for decision-making. A lawyer was present at the Shareholders' Meeting to
provide on-site verification and issue a legal opinion.b. Regarding Directors the Board of Directors and Specialized Committees: During the reporting period
the company held ten Board of Directors meetings. All directors attended the meetings with diligence
and integrity stayed informed about relevant laws and regulations and carefully reviewed proposals to
ensure the scientific and rational nature of major decisions. The independent directors maintained their
independence actively participated in their duties expressed independent opinions on relevant matters
played a supervisory role and safeguarded the interests of the company and medium to small
shareholders. The four specialized committees under the Board of Directors—namely the Strategy
Committee Audit Committee Nomination Committee and Compensation and Assessment
Committee—boasted reasonable member structures and strong professional expertise working
collaboratively to ensure the Board's efficient performance.c. Regarding Supervisors and the Board of Supervisors: During the reporting period the company held
four meetings of the Board of Supervisors effectively exercising its supervisory function. The Board of
Supervisors strictly implemented the relevant provisions of the Company Law the Articles of
Association and the Rules of Procedure for Supervisory Meetings diligently fulfilling its
responsibilities. The Board supervised and inspected the company's finances significant matters related
party transactions and the performance of directors and senior management and provided independent
opinions on the periodic reports effectively safeguarding the rights and interests of the company and its
shareholders.
(3) Standardization of the Behavior of Controlling Shareholders and Actual Controllers. The
company's controlling shareholder exercises rights and fulfills obligations in accordance with the law
strictly adhering to the principle of good faith without interfering in the company's decision-making and
operations beyond the authority of the Shareholders' Meeting. The company maintains independence
from the controlling shareholder in terms of personnel assets finances organizational structure and
business ensuring that the Board of Directors Board of Supervisors and internal management operate
independently. There are no actions taken by the controlling shareholder or actual controller that would
infringe on the company's funds or assets or harm the interests of the company and other shareholders
through related party transactions asset restructuring external investments guarantees profit
distributions etc. During the review of relevant proposals a strict conflict-of-interest avoidance system
is implemented.
56 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4) Strengthening Information Disclosure and Preventing Insider Trading. The company strictly
follows the requirements of relevant laws and regulations as well as its own "Information Disclosure
Management System" ensuring that company information is disclosed in a truthful accurate complete
and timely manner through the Shanghai Stock Exchange website and the Securities Times among
others. This guarantees that the company's information disclosure is public fair and just ensuring that
all investors can access company information equitably enhancing the target specificity and
effectiveness of the information disclosed and facilitating investors' value judgments and investment
decisions. The company also manages confidentiality prior to information disclosure and maintains a
registry of insiders related to major matters.The "Insider Information Registry Management System" is strictly implemented for registering insiders
continuously reinforcing insider information management adhering to a preventive principle prudently
handling various confidential matters and striving to minimize the scope of knowledge. The registration
of insiders is conducted during board meetings supervisory meetings and management team meetings
prior to the disclosure of periodic reports. The company strictly controls the external transmission of
undisclosed financial information.
(5) Actively Maintaining Investor Relations and Communication. The company has always
emphasized the balance between sustainable development and the return on investment for shareholders
successfully implementing the profit distribution plan for 2023 to create substantial economic returns for
investors. The company places high importance on investor relations led by the Board Secretary with a
dedicated person in the Board Office responsible for investor relations management. Various methods
such as telephone communication email exchanges online performance briefings investor strategy
meetings Shanghai Stock Exchange E-interaction on-site communications investor engagement
activities collective reception days roadshows and counter roadshows are used to comprehensively and
systematically convey the company's operating status to investors answer their questions and
understand their opinions and suggestions regarding corporate governance and development thereby
improving the bidirectional communication mechanism with investors.Is there a significant difference between company governance and the regulations of the China Securities
Regulatory Commission (CSRC) If there are significant differences the reasons should be explained."□ Applicable" "√ Not applicable"
2. Specific Measures Taken by the Company's Controlling Shareholders and Actual Controllers to
Ensure the Independence of Company Assets Personnel Finances Organizational Structure and
Business as well as Solutions Work Progress and Future Work Plans Related to Issues Affecting
Company Independence
"√ Applicable" "□ Not applicable"
Hangcha Holding as the actual controlling entity of the company strictly fulfills its relevant obligations
in accordance with the Company Law Securities Law and other legal regulations ensuring
57 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
independence in terms of personnel assets finances organizational structure and business. During the
reporting period the company made and implemented major decisions independently and there were no
instances of the actual controlling entity intervening in the company's decisions or operational activities
bypassing the Shareholders' Meeting.The Situation Regarding the Controlling Shareholder Actual Controllers and Their Controlled Entities
Engaging in Similar or Related Businesses the Impact of Significant Changes in Industry Competition
on the Company Measures Taken Progress of Solutions and Future Resolution Plans
"□ Applicable" "√ Not applicable"
3. Overview of the Shareholders' Meeting
Session Date of
Query Index for Date of
convening Resolutions Published on Resolution ResolutionDesignated Website: Disclosure:
2023 Annual See "Announcement of
General Resolutions of the 2023 Annual
Meeting of 05/10/2024 http://www.sse.com.cn 05/11/2024 Shareholders' Meeting of Hangcha
Shareholders Group Co. Ltd." (AnnouncementNo.: 2024-019)
Preferred shareholders whose voting rights have been restored request an extraordinary general meeting
of shareholders
"□ Applicable" "√ Not applicable"
Explanation of the Shareholders' Meeting
"√ Applicable" "□ Not applicable"
During the reporting period the company held one shareholders' meeting convened by the company's
Board of Directors. The meeting was chaired by Mr. Zhao Limin the company's Chairman. The
company's directors supervisors senior executives and legal advisors participated in the meeting. The
convening and procedures of the meeting complied with the laws regulations and the company's
Articles of Association. The qualifications of the convener and the attendees were legal and valid and
the voting procedures complied with the provisions of the Articles of Association making the voting
results legal and valid.
58 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
4. Directors Supervisors and Senior Management Situation:
(1) Changes in shareholdings and remuneration of current and departing directors supervisors and senior executives during the reporting period.
"√ Applicable" "□ Not applicable"
Unit: Share
Total Pre-Tax
Compensation Whether to
Change in Received receive
Commencement Termination Beginning of
End of Year Shareholding Reason for from the remuneration
Name Title Gender Age Date of the Date of the Year Shareholding Change
Term Term Shareholding During the Company from related
Year During the parties of the
Reporting Company
Period
Chairman Capital
Zhao and General Male 68 09/26/2019 09/08/2025 20440010 28616014 8176004 reserve 215 No
Limin
Manager conversion
Lu Vice
Female 49 09/07/2020 04/07/2025 0 0 0 Yes
Hongbo chairman
Qiu Director Male 63 09/26/2019 09/08/2025 0 0 0 Yes
Jianping
Xu Zheng Director Female 41 09/26/2019 09/08/2025 0 0 0 Yes
Director Capital
Xu
Zhengyu and Chief Male 55 09/26/2019 09/08/2025 2487461 3482445 994984 reserve 148.8 No
Engineer conversion
Zhao
Director Male 36 05/10/2023 09/08/2025 0 0 0 Yes
Yuchen
Independent
Zhu Yaer Female 61 09/09/2022 09/08/2025 0 0 0 10 No
Director
Shou Jian Independent Male 54 09/26/2019 09/08/2025 0 0 0 10 No
Director
59 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Cai Independent
Male 47 09/26/2019 09/08/2025 0 0 0 10 No
Yunfeng Director
Chairman
of the
Hong Yi Female 55 09/26/2019 09/08/2025 0 0 0 Yes
supervisory
board
Yan Hao Supervisor Male 36 05/10/2023 09/08/2025 0 0 0 Yes
Wang
Supervisor Male 43 09/26/2019 09/08/2025 0 0 0 Yes
Xiaoming
Fu Workers’
Kaihua Supervisor Male 54 09/26/2019 09/08/2025 0 0 0 31.1 No
Capital
Chen Workers’
Yuanyuan Supervisor Female 41 09/26/2019 09/08/2025 7000 9800 2800 reserve 21.7 No
conversion
Jin Deputy Capital
General Male 47 09/09/2022 09/08/2025 573028 802239 229211 reserve 143.6 No
Huashu
Manager conversion
Wang Deputy Capital
General Male 60 09/09/2022 09/08/2025 863885 1209439 345554 reserve 158.3 No
Guoqiang
Manager conversion
Assistant
General Capital
Chen
Saimin Manager Male 59 09/26/2019 09/08/2025 3050000 4270000 1220000
reserve 132.7 No
Secretary of conversion
the Board
Assistant Capital
Wu
Jianxin General Male 60 09/09/2022 09/08/2025 471460 660044 188584 reserve 158.3 No
Manager conversion
60 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Conversion
of capital
reserves
Jin Chief and
Zhihao Designer Male 61 09/26/2019 09/08/2025 3738758 5129161 1390403 137.8 Nopersonal
funding
needs
reduction
Chief
Zhang Accountant
Male 60 06/28/2020 09/08/2025 0 0 0 112 No
Shutong Financial
Officer
Ren Chief Capital
Male 46 09/26/2019 09/08/2025 433028 606239 173211 reserve 134.1 No
Haihua Economist
conversion
Deputy Capital
Li Chief Male 48 09/26/2019 09/08/2025 297414 416380 118966 reserve 121.6 No
Yuansong
Engineer conversion
Deputy Capital
Zhou
Suhua Chief Female 61 09/26/2019 09/08/2025 611917 856684 244767 reserve 121.6 No
Engineer conversion
Total / / / / / 32973961 46058445 13084484 / 1666.6 /
Amount
Name Main Work Experience
Born in October 1956 Chinese nationality member of the Communist Party of China Senior Economist. Served as Deputy Director of the Dispatch
Office Factory Director Head of the Manufacturing Department and Deputy General Manager at Hangzhou Forklift General Factory.Zhao
From April 2000 to May 2003 was the General Manager of Hangzhou Forklift Co. Ltd. From June 2003 to December 2008 served as the General
Limin
Manager of the company. Since December 2008 has held the position of Chairman and General Manager of the company and has been the Party
Secretary since May 2018. Currently serves as the Party Secretary Chairman and General Manager of the company.
61 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in October 1976 Chinese nationality member of the Communist Party of China holds a master's degree in science Senior Economist. From
August 1999 to March 2000 served as Administrative Assistant in the Administration and Human Resources Department of Shanghai Sanjing
Optoelectronics Medical Equipment Co. Ltd. From April 2000 to November 2005 served as Secretary to the General Manager and Youth League
Secretary at Shanghai Feile Co. Ltd. From December 2005 to August 2016 held various positions at Hangzhou City Investment Asset Management
Group Co. Ltd. including Deputy Manager of the Comprehensive Department Manager of the Comprehensive Department Deputy General
Lu Manager General Manager Party Branch Member and Deputy Secretary of the Party General Branch; concurrently served as Chairman of Hangzhou
Hongbo
City Scenery Industrial Co. Ltd. (formerly Hangzhou Hejing Real Estate Co. Ltd.) and Chairman of Hangzhou Chenglian Industrial Co. Ltd. From
September 2016 to June 2018 served as Deputy Secretary of the Party Committee and General Manager of Hangzhou Residential Development
Center Co. Ltd. Since September 2018 has served as Party Branch Secretary Chairman and General Manager of Hangshi Asset Management
(Hangzhou) Co. Ltd. Became a director of Zhongce Rubber Group Co. Ltd. in June 2020 and served as Deputy Chairman of the company from
September 2020 to April 2025.Born in January 1962 Chinese nationality holds a master's degree in engineering. Served as Chairman and President of Hangzhou GreatStar
Technology Co. Ltd. and Chairman of GreatStar Holding Group Co. Ltd. from July 2008 to March 2011. From March 2011 to October 2014 held
positions as Chairman and President of Hangzhou GreatStar Technology Co. Ltd. Chairman of GreatStar Holding Group Co. Ltd. Chairman of
Zhejiang Hangcha Holding Co. Ltd. and Director of Hangcha Group Co. Ltd. From October 2014 to October 2019 continued as Chairman and
President of Hangzhou GreatStar Technology Co. Ltd. Chairman of GreatStar Holding Group Co. Ltd. Chairman of Zhejiang Hangcha Holding
Qiu Co. Ltd. Director of Hangcha Group Co. Ltd. and Director of Zhejiang Guozi Robot Technology Co. Ltd.Jianping From October 2019 to December 2019 again held similar positions at Hangzhou GreatStar Technology Co. Ltd. GreatStar Holding Group Co. Ltd.Zhejiang Hangcha Holding Co. Ltd. Hangcha Group Co. Ltd. and was a Director of Zhejiang Guozi Robot Technology Co. Ltd. and Zhongce
Rubber Group Co. Ltd. Since December 2019 serves as Chairman of Hangzhou GreatStar Technology Co. Ltd. Chairman of GreatStar Holding
Group Co. Ltd. Chairman of Zhejiang Hangcha Holding Co. Ltd. Director of Hangcha Group Co. Ltd. Director of Zhejiang Guozi Robot
Technology Co. Ltd. Director of Zhongce Rubber Group Co. Ltd. and Director of Zhejiang Xinchai Co. Ltd. Has been a director of the company
since March 2011.
62 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in March 1984 Chinese nationality member of the Communist Party of China holds a bachelor's degree Senior Economist. From March 2011
to September 2017 served as Secretary to the Chairman of GreatStar Holding Group Co. Ltd. and as a Director of Hangzhou GreatStar Technology
Co. Ltd. and Hangcha Group Co. Ltd. From September 2017 to April 2018 continued as Secretary to the Chairman of GreatStar Holding Group Co.Ltd. and served as a Director of Hangzhou GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. and Zhejiang Guozi Robot Technology Co.Ltd. From April 2018 to October 2019 served as Director of the Chairman's Office of GreatStar Holding Group Co. Ltd. and as a Director of
Xu Zheng Hangzhou GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. and Zhejiang Guozi Robot Technology Co. Ltd. From October 2019 to May
2020 held the position of Director of the Chairman's Office of GreatStar Holding Group Co. Ltd. and was a Director of Hangzhou GreatStar
Technology Co. Ltd. Hangcha Group Co. Ltd. Zhejiang Guozi Robot Technology Co. Ltd. and Chairman of the Supervisory Board of Zhongce
Rubber Group Co. Ltd. Since May 2020 serves as Director of the Chairman's Office of GreatStar Holding Group Co. Ltd. a Director of Hangzhou
GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. and Chairman of the Supervisory Board of Zhongce Rubber Group Co. Ltd. Has been a
director of the company since March 2011.Born in October 1970 Chinese nationality member of the Communist Party of China committee member of the company's Party Committee holds a
bachelor's degree Senior Engineer enjoys special government allowances from the State Council. From July 1992 to February 2000 held various
Xu positions at Hangzhou Forklift General Factory including Technician Designer in the Research Institute and Deputy Chief Designer. From March
Zhengyu 2000 to May 2003 served as Chief Designer of the Research Institute at Hangzhou Forklift Co. Ltd. Since June 2003 has served in various roles
including Deputy Director Director Deputy Chief Engineer and Chief Engineer of the Research Institute; concurrently serves as a Director of Henan
Jiachen Intelligent Control Co. Ltd. Since September 2019 has also been serving as a Director and Chief Engineer of the company.Born in December 1989 Chinese nationality holds a master's degree. Since December 2016 has served as Assistant to the General Manager and
Deputy General Manager of Hangzhou West Lake Tiandi Development Co. Ltd.; concurrently held positions as a Director of Zhejiang Xinchai Co.Zhao Ltd. and Hangzhou Jinsong Younuo Electric Appliance Co. Ltd. as well as Executive Director of Hangzhou West Lake Tiandi Property Service Co.Yuchen Ltd. and Hangzhou Taifeng Management Co. Ltd. and Executive Director and General Manager of Hangzhou Liangya Building Material Co. Ltd.Currently serves as Deputy General Manager of Hangzhou West Lake Tiandi Development Co. Ltd. and Executive Director and General Manager of
Hangzhou Liangya Building Material Co. Ltd.Born in March 1964 holds a master’s degree Chinese nationality member of the Jiusan Society Associate Professor. Does not hold permanent
Zhu Yaer residency abroad. From 2000 to present serves as an Associate Professor at the Analytical Testing Center of Zhejiang University. Became an
Independent Director of the company in September 2022.
63 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in October 1971 Chinese nationality holds a bachelor's degree in law and a master's degree in Public Administration from Nottingham Trent
University UK; qualified lawyer since 1995 member of the Communist Party of China. Previously worked at the Hangzhou Public Security Bureau
holding positions such as Chief of the Legal Affairs Section and Police Station Chief. Since February 2012 served as the Director of the Integrity
Shou Jian
Department at Alibaba Group responsible for corporate discipline supervision and integrity culture development; currently serves as a Senior Director
in the Security Department of Alibaba Group focusing on major risk control. Has been an Independent Director of the company since September
2019.
Born in November 1978 Chinese nationality member of the China Democratic League holds a bachelor's degree. A Certified Public Accountant Tax
Advisor and Senior Accountant. From December 2002 to May 2013 served as Deputy Section Chief at Hangzhou Jiangnan Tax Consulting Firm.Cai
Yunfeng Since June 2013 has served as Deputy Section Chief and Section Chief at Hangzhou Zhongming Tax Consulting Firm. Since December 2018 also
holds the position of Chief Accountant at Hangzhou Zhongyin Accounting Firm. Has been an Independent Director of the company since September
2019.
Born in August 1970 Chinese nationality. Since May 2011 serves as Deputy General Manager of GreatStar Holding Group Co. Ltd. General
Hong Yi Manager of Hangzhou West Lake Tiandi Management Co. Ltd. and Deputy General Manager of Hangzhou West Lake Tiandi Development Co. Ltd.Since March 2013 has been the Chairman of the Supervisory Board of the company.Born in July 1989 Chinese nationality member of the Communist Party of China holds a master’s degree. Graduated from the Central University of
Finance and Economics with a master's degree in law. Previously served as a Project Manager for the Investment Banking Division at Bohai
Yan Hao Securities Co. Ltd. and as an Investment and Post-Investment Management Specialist in the Asset Management Department at Hangzhou Industrial
Investment Group Co. Ltd. Currently serves as Deputy Director of the Asset Management Department at Hangzhou Industrial Investment Group Co.Ltd.Born in September 1982 Chinese nationality holds a bachelor's degree Intermediate Accountant. From July 2006 to December 2018 worked as an
Wang
Xiaoming Accountant and Financial Manager at Hangzhou GreatStar Technology Co. Ltd. Since December 2018 serves as Financial Manager at Zhejiang
Guozi Robot Technology Co. Ltd. Has been a Supervisor of the company since March 2011.Born in March 1971 Chinese nationality member of the Communist Party of China Technician recipient of the Provincial May Day Labor Medal
and leader of the Provincial High-Skilled Talent (Model Worker) Innovation Studio. From July 1996 to September 2019 held various positions
including Assembly Fitter Special Group Leader Assistant to the Factory Manager of the Second Assembly Plant Deputy Factory Manager and
Fu Kaihua Factory Manager. From September 2019 to October 2020 served as Head of the Comprehensive Office. Since November 2020 serves as Head of the
Safety and Security Department and continues as Head of the Comprehensive Office. Currently serves as the Head of the Safety and Security
Department and a member of the Trade Union. Since September 2016 has been a representative Supervisor of the 5th and 6th Supervisory Boards of
the company.
64 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in January 1984 Chinese nationality member of the Communist Party of China holds a bachelor's degree Master of Engineering Senior
Economist. From July 2006 to May 2008 worked as a Logistics Administrator at Hangzhou Lianke Biotechnology Co. Ltd. Since June 2008 has
held various roles including Administrator in the Human Resources Department Head of the Youth League Committee Assistant to the Office of
Chen
Yuanyuan Party and Mass Work Party Organizer Member of the Discipline Inspection Commission and Deputy Minister of the Human Resources Department.Currently serves as a member of the Discipline Inspection Commission Deputy Minister of the Human Resources Department a member of the Trade
Union and Head of the Youth League Committee. Since September 2016 has been a representative Supervisor of the 5th and 6th Supervisory Boards
of the company.Born in December 1978 Chinese nationality member of the Communist Party of China committee member of the company's Party Committee holds
a bachelor's degree Master of Engineering Senior Economist. From August 2001 to May 2003 worked as a Technician and Planner in the
Jin Manufacturing Department of Hangzhou Forklift Co. Ltd. Since June 2003 has held various positions in the Manufacturing Department including
Huashu Technician Planner Assistant to the Department Head Deputy Department Head Department Head and Production Director. He also serves as
Chairman and Executive Director for subsidiaries such as Hangzhou Forklift Sheet Metal Co. Ltd. Currently serves as Deputy General Manager of
the company.Born in October 1965 Chinese nationality member of the Communist Party of China committee member of the company’s Party Committee Senior
Economist. From December 1983 to February 2000 held positions as a worker in the Assembly Workshop and Scheduler in the Dispatch Department
at Hangzhou Forklift Factory. From March 2000 to May 2003 served as a Scheduler in the Dispatch Department Deputy Director of the Marketing
Wang Department and Manager of the Guangzhou Branch of Hangzhou Forklift Co. Ltd. From June 2003 to November 2014 held various roles including
Guoqiang Manager of the Guangzhou Branch and Shenzhen Branch General Manager of Guangzhou Hangcha Forklift Co. Ltd. and General Manager of
Guangzhou Zhehang Forklift Co. Ltd. while also serving as Regional Manager for Guangdong. Since December 2014 served as Assistant General
Manager Marketing Director and Deputy General Manager of the company and also held the position of Executive Director in subsidiaries such as
Guangzhou Zhehang Forklift Co. Ltd. Currently serves as Deputy General Manager of the company.Born in June 1966 Chinese nationality member of the Communist Party of China committee member of the company’s Party Committee holds a
bachelor’s degree Senior Engineer and Senior Economist. From July 1987 to March 2000 held various roles including Salesperson in the Sales
Department R&D Designer Assistant Engineer and Sales Manager for Kangle Attachments at Hangzhou Forklift Factory. From October 2000 to
Chen
Saimin May 2003 served as Sales Manager General Manager and Executive Director for Kangli Attachments. Since June 2003 held multiple positions
including Executive Director and General Manager of Hangzhou Hangcha Kangli Forklift Attachments Co. Ltd. Assistant General Manager Chief
Engineer and Board Secretary while also serving as Executive Director and Board Member in subsidiaries such as Hangzhou Hangcha Kangli
Forklift Attachments Co. Ltd. Currently serves as Assistant General Manager and Board Secretary of the company.
65 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in February 1965 Chinese nationality member of the Communist Party of China holds a bachelor’s degree Senior Economist. From August
1985 to March 2000 worked as a Technician in the Technology Section Workshop Technician Workshop Deputy Director Technician in the
Wu Equipment Section and Planner in the Planning Office at Hangzhou Forklift Factory. From March 2000 to November 2005 served as a Planner in the
Jianxin Board Office of the Group Company and Deputy Director of the Import and Export Department. From November 2005 to November 2023 served as
Deputy General Manager and General Manager of Zhejiang Hangcha Import and Export Co. Ltd. and held the position of Executive Director in
Hangcha USA Co. Ltd. and Hangcha Canada Co. Ltd. Currently serves as Assistant General Manager of the company.Born in September 1964 Chinese nationality holds a bachelor’s degree Senior Engineer and recipient of the State Council Special Government
Allowance. From August 1985 to February 2000 held various positions including Designer Chief Designer and Deputy Director of the Research
Jin Zhihao Institute at Hangzhou Forklift Factory. From March 2000 to May 2003 served as Deputy Director of the Research Institute at Hangzhou Forklift Co.Ltd. Since June 2003 has held various positions including Deputy Director and Director of the Research Institute and Chief Designer of the company.Currently serves as Chief Designer of the company.Born in December 1965 Chinese nationality member of the Communist Party of China holds a university degree Senior Accountant. From August
1985 to April 1995 held positions in planning statistics accounting and as Chief of the Finance Section at Hangzhou Measuring Tool Factory. From
Zhang May 1995 to March 2000 served as an Accountant and Deputy Director of the Finance Department at Hangzhou Forklift Factory. From April 2000 to
Shutong October 2007 served as Deputy Director of the Finance Department of the company. From November 2007 to June 2020 acted as the Director of the
Finance Department. From June 2020 to September 2022 served as Deputy Chief Accountant and Financial Officer of the company. Currently serves
as Chief Accountant and Financial Officer of the company.Born in January 1979 Chinese nationality member of the Communist Party of China holds a bachelor's degree Master of Engineering Senior
Economist. From August 2002 to May 2003 worked as a Technician in the Quality Management Department at Hangzhou Forklift Co. Ltd. Since
Ren June 2003 has held various positions including Quality Management Technician Assistant to the Factory Manager Deputy Director and Director of
Haihua the Comprehensive Management Department and additionally held roles in the Information Management Office and Human Resources Department
while serving as Deputy Chief Economist and Chief Economist of the company. Currently serves as Chairman and General Manager of Zhejiang
Hangcha Intelligent Technology Co. Ltd. and Executive Director of Hefei Hanhe Intelligent Logistics Technology Co. Ltd.Currently serves as Chief Economist of the company.Born in October 1977 Chinese nationality member of the Communist Party of China holds a bachelor’s degree Master of Engineering Senior
Engineer. Since August 2000 has held various roles as a Designer in the company’s Research Institute Deputy Director of the Internal Combustion
Li
Yuansong Forklift Research Institute Director of the Heavy Duty Vehicles Research Institute Director of the Impact Machinery Research Institute and Head of
the North America R&D Center.Since September 2020 serves as Executive Director and General Manager of Hangcha Group (Tianjin) New Energy
Forklift Co. Ltd. Currently serves as Deputy Chief Engineer of the company.
66 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Born in May 1964 Chinese nationality holds a bachelor’s degree Senior Engineer. From August 1985 to March 2000 worked as a Technician and
Zhou Assistant to the Director of the Heat Treatment Workshop at Hangzhou Forklift Factory. From April 2000 to May 2003 served as the Factory
Manager of the Heat Treatment Branch of Hangzhou Forklift Co. Ltd. Since June 2003 has held various positions including Factory Manager of the
Suhua
Heat Treatment Branch Director of the Process Research Institute Director of the Product Inspection Department and Deputy Chief Engineer.Currently serves as Deputy Chief Engineer of the company.Additional Information
"□ Applicable" "√ Not applicable"
67 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Current and Resigned Directors Supervisors and Senior Management Personnel during the
Reporting Period
(1) Employment in corporate shareholders
"√ Applicable" "□ Not applicable"
Employee Corporate shareholder name Position Commencement Terminationname date of term date of term
Qiu Jianping Zhejiang Hangcha Holding Co. Chairman of January 2011
Ltd the Board
Xu Zheng Zhejiang Hangcha Holding Co. Supervisor January 2011
Ltd
Yan Hao Hangzhou Industrial Investment Supervisor December
Group Co. Ltd. 2017
Explanation of
employment in
corporate None
shareholders
(2) Employment in other organizations
"√ Applicable" "□ Not applicable"
Employ Commence Terminatio
Other Unit Name Position ment date of n date of
ee name
term term
Hangzhou Zhongce Haichao Enterprise
Director 02/24/2020
Management Co. Ltd.Zhongce Rubber Group Company Limited Director 10/25/2019
Baoji Hangcha Engineering Machinery Co. Ltd. Director 05/03/2018
Zhao Zhejiang Huachang Hydraulic Machinery Co.Director 04/27/2018
Limin Ltd.Hangzhou Forklift Mast Co. Ltd. Director 04/20/2018
Hangzhou Forklift Sheet Metal Welding Co. Ltd. Director 04/20/2018
Zhejiang Hangcha Import and Export Co. Ltd. Executive 08/01/2020
director
Zhongce Rubber Group Company Limited Director 07/01/2020
Lu Chairman and
Hongbo Hangshi Asset Management (Hangzhou) Co. Ltd. General 11/01/2018 03/20/2025
Manager
Shanghai Haichao Haoyun Enterprise Executive
04/17/2019
Management Partnership (Limited Partnership) Partner
Shanghai Jingze Equity Investment Fund
Partner 11/27/2013
Partnership (Limited Partnership)
Shanghai Haichao Wenxing Enterprise Executive 01/07/2021
Qiu Management Partnership (Limited Partnership) Partner
Jianpin
GreatStar Holding Group Co. Ltd. Chairman of 08/01/2009
g the Board
Hangzhou GreatStar Industrial Co. Ltd. Chairman of 08/01/2010
the Board
Zhejiang Xinchai Co. Ltd. Director 12/26/2019
Executive
Xinjiang Lianhe Investment Co. Ltd. 11/02/2001
Partner
68 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou Kunxia Investment Management Executive 01/01/2018
Partnership (Limited Partnership) Partner
Zhejiang Zhongtai GreatStar Real Estate Co. Ltd. Director 05/01/2005
Hangzhou Quanlin Investment Partnership
Partner 11/16/2015
(Limited Partnership)
Shanghai Jinguan Haoyun Enterprise Executive 01/07/2021
Management Partnership (Limited Partnership) Partner
Zhejiang United Investment Co. Ltd. Director 04/01/2015
Hangzhou Zhongce Haichao Enterprise Chairman of
Management Co. Ltd. the Board 04/01/2019
Zhongce Rubber Group Company Limited Director 10/01/2019
Zhejiang Equity Service Group Co. Ltd. Director 02/01/2018
Zhejiang Youbon Small Loan Co. Ltd. Director 12/01/2009
Hangzhou Xihu Tiandi Development Co. Ltd Director 11/20/2012 01/02/2025
Zhejiang Guozi Robotics Co. Ltd. Director 10/01/2014
Chairman of
Zhejiang Hangcha Holding Co.Ltd the Board 01/01/2011
Hangzhou Great Star Precision Machinery Co. Chairman of
12/01/2018
Ltd the Board
Hangzhou Ole-Systems Co. Ltd. Director 03/04/2016 08/16/2024
Changzhou Huada Kejie Opto-Electro Instrument
Director 08/17/2015
Co. Ltd.Dongguan Ouda Electronics Co. Ltd. Chairman of 03/17/2017
the Board
Executive
Hangzhou Lujing Culture and Creativity Co. Ltd. 11/01/2015
director
Executive
Director and
Hangzhou GreatStar Garden Tools Co. Ltd. 12/01/2022
General
Manager
Executive
Director and
Hangzhou GreatStar Energy Co. Ltd. 12/01/2022
General
Manager
Hangzhou Chaoyang Risheng Enterprise Executive 02/04/2021
Management Partnership (Limited Partnership) Partner
Hangzhou GreatStar Industrial Co. Ltd. Executive 12/24/2018
director
Hangzhou Jinsong Younuo Electrical Co. Ltd. Director 11/01/2021
Zhejiang Xinchai Co. Ltd. Director 12/01/2017
Hangzhou Taifeng Business Management Co. Executive 02/01/2023
Ltd. director
Zhao Hangzhou West Lake Tiandi Property Service Executive
Yuchen 02/01/2021Co. Ltd. director
Executive
Director and
Hangzhou Liangya Building Materials Co. Ltd. 02/01/2023
General
Manager
69 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou Xihu Tiandi Development Co. Ltd Director 01/02/2025
Hangzhou GreatStar Lianhe International Holding Manager
03/28/2025
Co. Ltd. Director
Hangzhou Zhongce Haichao Enterprise
Supervisor 04/01/2019
Management Co. Ltd.Hangzhou GreatStar Industrial Co. Ltd. Director 08/01/2010
Xu Chairman of
the
Zheng Zhongce Rubber Group Company Limited 10/01/2019
supervisory
board
GreatStar Holding Group Co. Ltd. Supervisor 02/01/2016
Zhejiang Hangcha Holding Co.Ltd Supervisor 01/01/2011
Xu
Zhengy Henan Jiachen Intelligent Control Co. Ltd. Director 04/19/2018
u
Hangzhou Zhouzhang Network Technology Co. Supervisor 08/01/2020
Ltd.Hangzhou Chengying Data Technology Co. Ltd. Director 10/01/2018
Executive
Director and
Shou Hangzhou Yuexin Network Technology Co. Ltd. 08/01/2020
General
Jian
Manager
Hangzhou Yunfu Network Technology Co. Ltd. Supervisor 09/01/2020
Independent
51credit Card Co. Ltd. Non-Executiv 05/13/2022
e Director
Executive
Director and
Hangzhou Zhongming Tax Firm Co. Ltd. 12/01/2014
General
Manager
Executive
Cai
Yunfen Director andHangzhou Zhongyin Accounting Firm Co. Ltd. 12/01/2018
g General
Manager
Executive
Hangzhou Zhongyin Technology Service Co. Director and
09/01/2019
Ltd. General
Manager
Zhejiang Guozi Robotics Co. Ltd. Supervisor 05/01/2020
Hangzhou Taifeng Business Management Co. General
Hong 02/01/2023
Yi Ltd. Manager
Hangzhou West Lake Tiandi Property Service Supervisor 02/01/2021
Co. Ltd.Hangzhou Industrial Enterprise Investment
Yan Director 08/01/2022Development Co. Ltd.Hao
Zhejiang Light Machinery Industry Co. Ltd. Director 06/01/2022 05/27/2024
Jin Hangzhou Jingsheng Enterprise Management Legal
representative 05/01/2023
Huashu Partnership (Limited Partnership)
:
70 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Baoji Hangcha Engineering Machinery Co. Ltd. Director 02/01/2023
Hangzhou Pengcheng New Energy Technology
Director 07/01/2018
Co. Ltd.Executive
Hangzhou Hangcha Materials Trading Co. Ltd. 04/23/2018
director
Hangzhou Forklift Mast Co. Ltd. Chairman of 05/01/2017
the Board
Hangzhou Gangcun Transmission Co. Ltd. Director 11/01/2022
Chairman of
Hangzhou Hangcha Foundry Co. Ltd. the Board 05/08/2018
Hangzhou Forklift Sheet Metal Welding Co. Ltd. Chairman of 05/01/2017
the Board
Chairman of
Hangzhou Hangcha Bridge Box Co. Ltd. 04/20/2018
the Board
Hangzhou Hangcha Aerial Equipment Co. Ltd. Executive 08/01/2020
director
Changsha Zhongchuan Transmission Co. Ltd. Director 08/01/2020
Hangzhou Hangcha Machinery Equipment Chairman of
05/01/2018
Manufacturing Co. Ltd. the Board
Hangzhou Hangcha Precision Manufacturing Co. Executive 02/01/2021
Ltd. director
Executive
Hangzhou Hangcha Electrical Co. Ltd. 04/23/2018
director
Executive
Hangzhou Hangcha Machining Co. Ltd. 04/20/2018
director
Hangzhou Zhiban Enterprise Management Executive 03/19/2024
Partnership (Limited Partnership) Partner
Chairman of
Zhejiang Hangbo Electrical Drive Co. Ltd. the Board 08/19/2024
Zhejiang Zhichu Jia Material Handling Equipment Chairman of 01/24/2025
Co. Ltd. the Board
Chairman of
Hangzhou Hangcha Yunrui Technology Co. Ltd. 06/26/2024
the Board
Executive
Hangcha Group Leasing Co. Ltd. 05/13/2015
director
Wang
Guoqia Zhejiang Hangcha Parts Sales Co. Ltd. Executive 05/01/2021
director
ng
Zhejiang Youbon Small Loan Co. Ltd. General 01/17/2023
Manager
Hangzhou Zhongce Haichao Enterprise Director 05/01/2019
Management Co. Ltd.Baoji Hangcha Engineering Machinery Co. Ltd. Director 05/03/2018
Hangzhou Hangcha Kangli Forklift Attachments Executive
Chen 01/01/2007Co. Ltd. director
Saimin
Hangzhou Hangcha Cab Co. Ltd. Executive 12/20/2012
director
Hangzhou Forklift Mast Co. Ltd. Director 05/23/2024
Hangzhou Forklift Sheet Metal Welding Co. Ltd. Director 05/08/2024
71 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Zhejiang Hangcha Siweis International Trade Co. Executive 05/05/2023
Wu Ltd. director
Jianxin General
Zhejiang Hangcha Import and Export Co. Ltd. 11/16/2021
Manager
Hangcha Group (Tianjin) Financing Leasing Co. Chairman of 08/01/2020
Ltd. the Board
Hangzhou Hangzhong Engineering Machinery Executive
09/01/2020
Co. Ltd. director
Zhejiang Huachang Hydraulic Machinery Co. Supervisor 08/01/2020
Ltd.Hangzhou Forklift Mast Co. Ltd. Director 08/01/2020
Hangzhou Gangcun Transmission Co. Ltd. Director 11/01/2022
Hangzhou Hangcha Foundry Co. Ltd. Director 10/01/2020
Zhang Hangzhou Forklift Sheet Metal Welding Co. Ltd. Director 08/01/2020
Shutong Hangzhou Hangcha Bridge Box Co. Ltd. Director 08/01/2020
Hangzhou Hangcha E-commerce Co. Ltd. Executive 10/01/2023
director
Hangcha New Energy Forklift (Wenzhou) Co. Executive
07/01/2023
Ltd. director
Hangzhou Hangcha Yunrui Technology Co. Ltd. Director 06/26/2024
Director
Hangzhou Hangcha Property Management Financial 01/24/2025
Service Co. Ltd. Responsible
Person
Zhejiang Hangcha Occam Intelligent Technology Chairman and
General 04/01/2022
Co. Ltd.Manager
Zhejiang Hangcha Intelligent Technology Co. Executive
Ltd. director 02/09/2018
Shanghai Hangcha Gangcun Intelligent Executive
Ren 08/01/2022Technology Co. Ltd. director
Haihua
Hefei Hanhe Intelligent Logistics Technology Executive
05/01/2020
Co. Ltd. director
Executive
Zhejiang Guozi Intelligent Equipment Co. Ltd. 01/01/2024
director
Hangzhou Kangqian Enterprise Management Executive 03/19/2024
Partnership (Limited Partnership) Partner
Zhejiang Hangcha Occam Intelligent Technology Director 04/01/2022
Co. Ltd.Li
Yuanso Executive
ng Hangcha Group (Tianjin) New Energy Forklift Director and 09/01/2020
Co. Ltd. General
Manager
Note on
position
s with
None
other
organiz
ations
72 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3) Changes in Remuneration of Directors Supervisors and Senior Managers
"√ Applicable" "□ Not applicable"
The compensation standards for independent directors are
reviewed and approved by the board of directors and the
shareholders' meeting. The compensation standards for employee
1. Decision-making processes of
remuneration for directors representative supervisors are based on their positions within the
company and no additional position allowances are provided for
supervisors and senior managers
other directors and supervisors; the compensation for senior
management is determined according to the standards reviewed
by the board of directors.Do Directors Abstain From Voting
on Their Own Compensation Yes
Matters
Specific Circumstances Regarding On April 17 2024 the seventh board of directors held a meeting
Recommendations on Compensation of the Remuneration and Appraisal Committee to review the
Matters by the Remuneration and compensation situation for directors supervisors and senior
Appraisal Committee or Independent management who hold management positions in the company for
Directors the fiscal year 2023.Basis for Determining the During the reporting period compensation was paid according to
the company's established standards for directors supervisors and
Compensation of Directors
Supervisors and Senior Management senior management in conjunction with the operational indicators
Personnel and performance assessments determined at the beginning of the
year.Actual Compensation Payment The total payable compensation received by the company's
Situation for Directors Supervisors directors supervisors and senior management for this fiscal year
and Senior Management Personnel is: 16.666 million yuan (before tax).Total Compensation Received by All The total payable compensation received by the company's
Directors Supervisors and Senior
directors supervisors and senior management for this fiscal year
Management Personnel at the End of
is: 16.666 million yuan (before tax).the Reporting Period
(4) Changes in directors supervisors and senior management personnel of the Company
"□ Applicable" "√ Not applicable"
(5) Statement on Penalties from Securities Regulatory Authorities in the Last Three Years
"□ Applicable" "√ Not applicable"
(6) Other
"□ Applicable" "√ Not applicable"
5. Information Regarding Board Meetings Held During the Reporting Period
Session Date of Resolution
convening
10th Meeting Resolutions Passed:
of the 7th General Manager’s Work Report for the Year 2023
04/17/2024
Board of Board of Directors’ Work Report for the Year 2023
Directors Annual Report and Summary for the Year 2023
73 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Financial Statement Report for the Year 2023
Internal Control Evaluation Report for the Year 2023
Proposal on Profit Distribution and Capital Reserve Transfer to Increase
Share Capital for the Year 2023
Proposal on Company's Anticipated Routine Related-party Transactions in
2024
Proposal on Expected External Guarantees for the Year 2024
Proposal on the Special Report Regarding the Placement and Actual
Usage of Raised Funds for the Year 2023
Proposal on the Conclusion of Part of the Fund Raising Project and
Permanent Replenishment of Working Capital with Surplus Raised Funds
Proposal on Cash Management Using Idle Self-Owned Funds
Proposal on Engaging in Forward Foreign Exchange Sales and Purchases
and Foreign Exchange Derivative Business
Proposal on Applying for Comprehensive Credit Facilities from Relevant
Banks
Proposal on Changes to Accounting Policies
Proposal on Reappointing the Audit Firm for the Year 2024
Evaluation Report on the Performance of Tianjian Accounting Firm
Report on the Audit Committee’s Performance for the Year 2023
Proposal on the Compensation Assessment for the General Manager and
Other Senior Executives for the Year 2023
Proposal on Changes to Registered Capital and Amendments to Certain
Articles of the Articles of Association
Proposal on Formulating or Amending Relevant Company Policies
Independent Directors’ Work Report for the Year 2023
Special Report on the Independent Directors’ Independence
Self-Assessment by the Seventh Board of Directors
Proposal on Holding the Company’s Annual General Meeting for the Year
2023
11th Meeting Resolutions Passed:
of the 7th "First Quarter Report of the Company for the Year 2024"
Board of 04/22/2024
Directors
12th Meeting Resolutions Passed:
Proposal on Investment to Establish Hangcha Indonesia Co. Ltd.of the 7th
06/11/2024 Proposal on Investment to Establish Hangcha Japan Co. Ltd.
Board of
Directors Proposal on Increasing Capital for Hangcha Group (Tianjin) Financial
Leasing Co. Ltd.
13th Meeting Resolutions Passed:
of the 7th Proposal on Investment to Establish Hangcha Europe Leasing Co. Ltd.
07/04/2024
Board of
Directors
14th Meeting Resolutions Passed:
of the 7th "Half-Year Report and Summary of the Company for the Year 2024"
08/19/2024
Board of "Special Report on the Placement and Actual Usage of Raised Funds for
Directors the First Half of 2024"
15th Meeting 09/18/2024 Resolutions Passed:
of the 7th Proposal on Investment to Establish Hangcha Malaysia Co. Ltd.
74 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Board of Proposal on Investment to Establish Hangcha Group Thailand
Directors Manufacturing Co. Ltd.
16th Meeting Resolutions Passed:
of the 7th Proposal on Investment to Establish Hangcha Vietnam Leasing Co. Ltd.Board of 10/14/2024
Directors
Resolutions Passed:
"Third Quarter Report of the Company for the Year 2024"
17th Meeting Proposal on New and Adjusted Estimated Daily Related Transactions for
the Company in 2024.of the 7th
10/21/2024 Proposal on Revising the "Management System for Company Directors
Board of
Supervisors and Senior Management Personnel Buying and Selling
Directors Company Stocks."
Proposal on Formulating the "Company Public Opinion Management
System."
18th Meeting Resolutions Passed:
of the 7th Proposal on Investment to Establish Hangcha Middle East Co. Ltd.
11/18/2024
Board of
Directors
19th Meeting Resolutions Passed:
of the 7th Proposal on Investment to Establish Hangcha USA Intelligent Logistics
12/23/2024
Board of Co. Ltd.Directors
6. Directors' Performance of Duties and Attendance
(1) Attendance of Directors at Board Meetings and Shareholders' Meetings
Attendanc
e at
Attendance at Board Meetings Sharehold
ers'
Meetings
Direct Is Has the
Independ
or Total Director Number
ent
Name Requir Number Number of Numbe Missed of
Director Numbered of Attentions r of Two Attendanc
of Proxy
Board Personal via Attendan Absenc Consecuti es at
Meetin Attendan Communica es ve Sharehold
ces
gs This ces tion Personal ers'
Year Attendanc Meetings
es
Zhao
No 10 10 No 1
Limin
Lu
Hongb No 10 10 No 1
o
Qiu
Jianpi No 10 10 No 1
ng
75 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Zhao
Yuche No 10 10 No 1
n
Xu
Zheng No 10 10 No 1
Xu
Zheng No 10 10 No 1
yu
Zhu Yes 10 10 No 1
Yaer
Shou Yes 10 10 No 1
Jian
Cai
Yunfe Yes 10 10 No 1
ng
Explanation for Consecutive Absences from Board Meetings:
"□ Applicable" "√ Not applicable"
Number of Board Meetings Held in the Year: 10
Among these: Number of in-person meetings: 10
Number of meetings held via communication: 0
Number of meetings held using both in-person and 10
communication methods:
(2) Objections Raised by Directors on Matters Related to the Company
"□ Applicable" "√ Not applicable"
(3) Other
"□ Applicable" "√ Not applicable"
7. Situation of Specialized Committees under the Board of Directors
"√ Applicable" "□ Not applicable"
(1) Members of Specialized Committees
Specialized Committee Category Member Names
Audit Committee Cai Yunfeng Shou Jian Lu Hongbo
Nomination Committee Shou Jian Zhu Yaer Xu Zhengyu
Remuneration and Evaluation Zhu Yaer Cai Yunfeng Zhao Yuchen
Committee
Strategy Committee Zhao Limin Qiu Jianping Zhu Yaer
(2) The Audit Committee held 5 meetings during the reporting period.
Important
Other
Date of Agenda Opinions Performance
convening and
of Duties
Suggestions
Audit Committee members communicated with the
03/28/2024
company’s annual report auditing institution regarding
76 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
matters related to the annual report.Resolutions Passed: "Company 2023 Audit Report" "Report
on the Company's 2023 Annual Financial Settlement"
"2023 Annual Internal Control Evaluation Report" "Report
on the Performance of the Audit Committee for 2023"
"Special Report on the Storage and Actual Use of Raised
Funds for the Year 2023" "Proposal on Changes in
04/17/2024
Accounting Policies" "Proposal on Anticipated Daily
Related Party Transactions for 2024" "Proposal on the
Renewal of the Company's Audit Institution for 2024"
"Internal Audit Work Report" "Audit Committee Report on
the Supervision of Tianjian Accounting Firm" "Evaluation
Report on the Performance of Tianjian Accounting Firm."
04/22/2024 Resolutions Passed: "Company 2024 First Quarter Report"
Resolutions Passed: "Company 2024 Half-Year Report and
Summary"
08/19/2024
"Special Report on the Storage and Actual Use of Raised
Funds for the First Half of 2024"
10/21/2024 Resolutions Passed: "Company 2024 Third Quarter Report"
(3) The Compensation and Assessment Committee held 1 meeting during the reporting period.
Important
Other
Date of Opinions
Agenda Performanceconvening and of Duties
Suggestions
Resolutions Passed: "Opinions on the Compensation
04/17/2024
Assessment of the Company’s Senior Executives for 2023"
(4) The Strategy Committee held 1 meeting during the reporting period.
Important Other
Date of Opinions
convening Agenda Performanceand of Duties
Suggestions
The meeting discussed topics such as the company's 14th
Five-Year Technology Transformation Project renewable
energy development strategy international layout mergers
04/17/2024
and acquisitions in domestic and foreign industries and the
Hengfan Phase IV Logistics Project planning for the
achievement of the company's high-quality development.
(5) Specifics of Disputed Matters:
"□ Applicable" "√ Not applicable"
8. Description of Risks Identified by the Supervisory Board
"□ Applicable" "√ Not applicable"
The Board of Supervisors raised no objection to the supervisory matters during the reporting period.
77 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
9. Employee Situation at the End of the Reporting Period for the Parent Company and Major
Subsidiaries
(1) Employee Situation
Number of employees in the parent company 1888
Number of employees in major subsidiaries 4559
Total number of employees 6447
Number of retired employees whose expenses are borne
by the parent company and main subsidiaries
Specialty composition
Specialty category Number of Specialty Personnel
Production personnel 2955
Sales personnel 1806
Technical personnel 1351
Financial personnel 212
Administrative personnel 123
Total Amount 6447
Education level
Education level category Employees (person)
Bachelor's degree and above 1390
Associate degree 1484
Senior high school or below 3573
Total Amount 6447
(2) Compensation Policy
"√ Applicable" "□ Not applicable"
The company strictly manages employee compensation in accordance with the national Labor Contract
Law and other relevant policies establishing a comprehensive compensation management system. The
compensation is determined based on job positions and guided by labor market prices providing
employees with a highly competitive external and fair internal compensation policy. The company offers
various incentive measures including position allowances and professional qualification subsidies.
(3) Training Plan
"√ Applicable" "□ Not applicable"
The training plan is closely aligned with the company’s production and operational development
strategy combined with the annual education and training plan to effectively promote talent
development. Through various forms of online and offline training such as collaborations with
universities internal training external training and lectures the company strives to foster a
learning-oriented corporate culture to provide talent support for sustainable development.
(4) Labor Outsourcing Situation
"□ Applicable" "√ Not applicable"
78 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
10. Profit Distribution or Capital Reserve Increase Plan
(1) Cash Dividend Policy Development Execution or Adjustment Status
"√ Applicable" "□ Not applicable"
The company's Articles of Association clearly specify the principles and forms of profit distribution
especially detailing the conditions and proportions for cash dividends. When proposing a dividend plan
the Board of Directors strictly adheres to the regulations on cash dividends issued by the China
Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE). The
decision-making procedures on profit distribution by the Board of Directors and the shareholders'
meeting are relatively standardized. During the reporting period the company's profit distribution policy
has consistently complied with the aforementioned profit distribution plans and review procedures of the
CSRC the "Guidelines for the Regulatory of Listed Companies No. 3—Cash Dividends for Listed
Companies" (2023 revision) the SSE’s "Guidelines for Cash Dividends for Listed Companies" as well
as related provisions and procedural requirements in the Articles of Association ensuring the protection
of the legitimate rights and interests of minority investors with no adjustments made to the cash
dividend policy.
(2) Special note of the cash dividend policy
"√ Applicable" "□ Not applicable"
Conforming to the provisions of the Company's Articles of Association or the "√ Yes"
requirements of the General Meeting of Shareholders resolutions: "□ No"
The distribution standards and ratios were clear and unambiguous: "√ Yes"
"□ No"
The relevant decision-making procedures and mechanisms were complete: "√ Yes"
"□ No"
The independent directors performed their duties diligently and played their due role: "√ Yes"
"□ No"
Minority shareholders had sufficient opportunities to express their opinions and "√ Yes"
appeals and their legitimate rights and interests were fully protected: "□ No"
(3) If the company is profitable during the reporting period and the parent company's
distributable profits for shareholders are positive but no cash dividend distribution plan has been
proposed the company should disclose the reasons in detail and the intended use and plans for the
undistributed profits."□ Applicable" "√ Not applicable"
(4) Profit Distribution and Capital Reserve Increase Plan for This Reporting Period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Number of bonus shares distributed for every 10
shares (shares) 0
Cash dividends distributed for every 10 shares (RMB)
(including tax) 5
Bonus shares added for every 10 shares 0
79 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Total cash dividend amount (inclusive of tax) 654906024.50
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial 2022025698.99
statements
Cash dividend amount as a percentage of net profit
attributable to ordinary shareholders of the listed 32.39
company in the consolidated financial statements (%):
Amount spent on repurchasing shares counted as cash
dividends 0
Total dividend amount (inclusive of tax) 654906024.50
Total dividend amount as a percentage of net profit
attributable to ordinary shareholders of the listed 32.39
company in the consolidated financial statements (%):
(5) Cash Dividend Situation for the Last Three Accounting Years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Cumulative cash dividend amount for the last three
accounting years (inclusive of tax) (1) 1496928056.00
Cumulative amount repurchased and canceled in the
last three accounting years (2)
Cumulative amount of cash dividends and
repurchased and canceled shares in the last three 1496928056.00
accounting years (3) = (1) + (2)
Annual average net profit for the last three accounting
years (4) 1574790801.83
Cash dividend ratio for the last three accounting years
(%)(5)=(3)/(4)95.06
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial 2022025698.99
statements for the most recent accounting year
Undistributed profits at the end of the most recent
accounting year in the parent company's financial 5758885171.56
statements
11.Status of the company's equity incentive plan employee stock ownership plan or other
employee incentive measures and their impact
(1) Related incentive matters have been disclosed in a temporary announcement and there has
been no progress or change in subsequent implementation."□ Applicable" "√ Not applicable"
(2) Status of incentive matters not disclosed in the temporary announcement or with subsequent
progress
Equity incentive status
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Employee stock ownership plan status
"□ Applicable" "√ Not applicable"
80 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other incentive measures
"□ Applicable" "√ Not applicable"
(3) Equity Incentive Status Granted to Directors and Senior Management During the Reporting
Period
"□ Applicable" "√ Not applicable"
(4) Evaluation Mechanism for Senior Management During the Reporting Period and the
Establishment and Implementation of the Incentive Mechanism
"□ Applicable" "√ Not applicable"
12. Development and Implementation of Internal Control Systems During the Reporting Period
"√ Applicable" "□ Not applicable"
Please refer to the "2024 Annual Internal Control Evaluation Report" disclosed by the company on April
18 2025 on the Shanghai Stock Exchange website (www.sse.com.cn).
Explanation of Significant Deficiencies in Internal Control During the Reporting Period
"□ Applicable" "√ Not applicable"
13. Management Control Over Subsidiaries During the Reporting Period
"√ Applicable" "□ Not applicable"
The company has established operational strategies and risk management strategies for its holding
subsidiaries through documents such as the "Enterprise Internal Control Manual" "Subsidiary
Management Regulations" and "Regulations on the Management of Overseas Institutions of Hangcha
Group Co. Ltd." It supervises holding subsidiaries to develop relevant business operation plans risk
management procedures and internal control systems based on these frameworks. The company also
formulates performance evaluation and incentive systems for holding subsidiaries and establishes
internal reporting systems for significant matters and for the disclosure of major issues. The company
can regularly obtain and analyze monthly or quarterly reports from each holding subsidiary while the
internal audit department and relevant business management departments conduct timely inspections of
holding subsidiaries to standardize various operational behaviors. According to relevant regulations the
company commissions accounting firms to audit the financial reports of holding subsidiaries and is able
to evaluate the implementation and supervision of internal control systems of holding subsidiaries.
14. Description of the Internal Control Audit Report Related Circumstances
"√ Applicable" "□ Not applicable"
In accordance with the "Guidelines for Internal Control Audits" and relevant requirements of Chinese
CPA professional standards Tianjian Accounting Firm (Special General Partnership) audited the
effectiveness of the internal control of the company's financial report as of December 31 2024 and
issued a report stating that "Hangcha Group Co. Ltd. maintained effective internal control over financial
reporting as of December 31 2024 in all material respects in accordance with the 'Basic Norms for
Enterprise Internal Control' and related regulations."
81 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Is the Internal Control Audit Report Disclosed
Type of Internal Control Audit Report Opinion:
15. Self-Inspection Issue Rectification Status for Listed Company Governance Special Action
None
16. Others
"□ Applicable" "√ Not applicable"
82 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 5 Environment and Social Responsibility
1. Environmental Information Situation
Has a mechanism related to environmental protection been established Yes
Investment in Environmental Protection Funds During the Reporting Period (unit: 2130.76
RMB):
(1) Environmental Protection Situation of Companies Designated as Key Polluting Units by the Environmental Protection Department and Their Main
Subsidiaries:
"√ Applicable" "□ Not applicable"
a. Pollution Discharge Information
"√ Applicable" "□ Not applicable"
Number
and
Unit Name of Control Distribution Concentration and Total Volume of
Actual Exceeding
name Pollutant Level Mode of Discharge of Major Pollutants Discharged
Emission Standards Executed Discharge Discharge
Amount Standards
Discharge
Outlets
After being collected by the
sewage network and Main water pollutants include COD
pre-treated at the factory's (Chemical Oxygen Demand) andProvincial
and wastewater treatment ammonia nitrogen. The COD "Standards for Discharge of Main
Hangcha Municipal station it is discharged into discharge concentration is 12.8 mg/L Water Pollutants from Urban 32723 Not
Group Wastewater Key the municipal sewage 1 with a total discharge of 0.42 Wastewater Treatment Plants" tons Applicable
Co. Ltd. network and then treated tons/year; the ammonia nitrogen
Polluting discharge concentration is 0.1067 DB 33/2169—2018
Units before being released by
Hangzhou Qingshanhu mg/L with a total discharge of 0.0035
Science and Technology tons/year.City Drainage Co. Ltd.
83 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Discharged in an organized manner
after treatment. Main pollutants: Dust:
Provincial "Comprehensive Emission5.845 tons/year maximum allowable Standards for Air Pollutants"
and concentration: ≤20 mg/m3; Benzene (GB16297-1996) Grade II
Waste Gas Municipal Discharged in an organized 34 series substances actual discharge standard DB33/2146-2018 / Not
Key manner after treatment. amount: 0.00694 tons/year maximum "Emission Standards for Air Applicable
Polluting allowable concentration: ≤20 mg/m3;
Units Pollutants from IndustrialNon-methane total hydrocarbons: Coating Processes"
3.706 tons/year maximum allowable
concentration: ≤60 mg/m3."Noise Standards at Industrial Not
Noise / / / / Enterprises' Boundary" Class III /
Applicable
related standards
"Soil Pollution Risk Control
Provincial Standards for Construction Land
Soil Key Meets relevant discharge / / Quality (Trial)" (GB36600-2018) / Not
Controlled standards. and "Groundwater Quality Applicable
Units Standards" (GB/T14848-2017)
Class III
Hazardous waste is "Pollution Control Standards for
Municipal contracted for disposal with Storage and Disposal of General
qualified companies and a
Hazardous Key / / Industrial Solid Waste" 951.06 Not
Waste Polluting hazardous waste (GB18599-2001) and "Pollution tons Applicable
Units management ledger and Control Standards for Hazardous
electronic transfer slip have Waste Storage" (GB18597-2001).been established.
84 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
After being collected by the
sewage network and Main water pollutants include COD
pre-treated at the factory's (Chemical Oxygen Demand) and
wastewater treatment ammonia nitrogen. The COD "Standards for Discharge of Main
station it is discharged into discharge concentration is 12.8 mg/L Water Pollutants from Urban 13547 Not
Wastewater / the municipal sewage 1 with a total discharge of 0.1734 Wastewater Treatment Plants" tons Applicable
network and then treated tons/year; the ammonia nitrogen
before being released by discharge concentration is 0.1067
DB 33/2169—2018
Hangzhou Qingshanhu mg/L with a total discharge of
Science and Technology 0.001445 tons/year.City Drainage Co. Ltd.Discharged in an organized manner
after treatment. Main Pollutants: Dust:
3.224 tons/year maximum allowable "Comprehensive Emission
concentration: ≤120 mg/m3 Standards for Air Pollutants"
Non-methane Total Hydrocarbons: (GB16297-1996) "Air Pollutant
Hangzhou Waste Gas / Discharged in an organized 26 0.365 tons/year maximum allowable Emission Standards for Boilers" / Not
Forklift manner after treatment. concentration: ≤60 mg/m3 ; Nitrogen (GB13271-2014) Applicable
Mast Co. Oxides: 2.589 tons/year maximum DB33/2146-2018 "Emission
Ltd. allowable emission concentration: Standards for Air Pollutants from
≤150 mg/m3; Sulfur Dioxide: 0.33 Industrial Coating Processes"
tons/year maximum allowable
emission concentration: ≤50 mg/m3
Hazardous waste is "Pollution Control Standards for
Municipal contracted for disposal with Storage and Disposal of General
Hazardous Key qualified companies and a Industrial Solid Waste" Not
Waste Polluting hazardous waste / / (GB18599-2001) and "Pollution 81.75 tons Applicable
Units management ledger and Control Standards for Hazardous
electronic transfer slip have
Waste Storage" (GB18597-2001)
been established."Soil Pollution Risk Control
Provincial Standards for Construction Land
Soil Key Meets relevant discharge / / Quality (Trial)" (GB36600-2018) / Not
Controlled standards. and "Groundwater Quality Applicable
Units Standards" (GB/T14848-2017)
Class III
85 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"Noise Standards at Industrial
Noise / / / / NotEnterprises' Boundary" Class III / Applicable
related standards
After being collected by the
sewage network and Main water pollutants include COD
pre-treated at the factory's (Chemical Oxygen Demand) and
Provincial
Hangzhou and wastewater treatment
ammonia nitrogen. The COD
discharge concentration is 12.8 mg/L "Standards for Discharge of Main
Hangcha Municipal station it is discharged into Water Pollutants from Urban 15401 Not
Foundry Wastewater Key the municipal sewage 1 with a total discharge of 0.19713 Wastewater Treatment Plants" tons Applicable
Co. Ltd. Polluting network and then treated tons/year; the ammonia nitrogen DB 33/2169—2018
Units before being released by discharge concentration is 0.1067
Hangzhou Qingshanhu mg/L with a total discharge of
Science and Technology 0.0016432 tons/year.City Drainage Co. Ltd.
86 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
b. Construction and Operation of Pollution Prevention and Control Facilities
"√ Applicable" "□ Not applicable"
In recent years the company and its subsidiaries have continuously increased their investment in
environmental protection equipment and facilities ensuring that the configuration of environmental
protection equipment and facilities matches production capacity. By establishing a wastewater treatment
station and installing dust removal facilities such as filtration water cyclones and adsorption the
company achieves compliant discharge of wastewater and exhaust gas. During the reporting period the
environmental protection facilities operated normally.
1) Water Pollutants
The company’s production and domestic water are both supplied by the municipal water supply system.Production water is primarily used for producing pure water defatting silane processing spray painting
and workshop cleaning. Domestic water is mainly used for employees' daily living and dining hall needs.The generated wastewater mainly includes spray painting wastewater defatting silane wastewater
workshop cleaning wastewater concentrated wastewater dining hall sewage and domestic sewage. The
main pollutants include: pH COD (Chemical Oxygen Demand) SS (Suspended Solids) petroleum
substances ammonia nitrogen total phosphorus and total nitrogen.The company’s drainage system is constructed based on the requirements for separating rainwater and
wastewater. Strict implementation of rainwater and wastewater separation is enforced. Rainwater is
collected in the onsite collection tank (regularly cleaned) and is then discharged into the municipal
rainwater pipes. Dining hall wastewater is pre-treated in an oil separation tank (regularly cleaned) before
being aggregated into the total wastewater outlet. Employee domestic sewage and workshop cleaning
wastewater are pre-treated in a septic tank (regularly cleaned) before being aggregated into the total
wastewater outlet (regularly cleaned). Spray painting wastewater and defatting silane wastewater arecombined and treated in the wastewater treatment station using “flocculation reaction + sedimentation +flocculation reaction + air flotation” before being gathered at the total wastewater outlet. This is
ultimately routed to Hangzhou Qingshanhu Science and Technology City Drainage Co. Ltd. The
wastewater discharge standards enforced by Hangzhou Qingshanhu Science and Technology CityDrainage Co. Ltd. comply with the “Standards for Discharge of Main Water Pollutants from UrbanWastewater Treatment Plants” (DB33/2169-2018) issued by the Zhejiang Provincial People's
Government. COD NH3-N TN (Total Nitrogen) and TP (Total Phosphorus) are discharged according
to the standards for Class W surface water environmental quality while other indicators follow the Class
A discharge standards in the “Pollutant Discharge Standards for Urban Wastewater Treatment Plants”
(GB18918-2002).
2) Air Pollutants
The main exhaust gases generated during the company’s production process include shot blasting dust
grinding dust welding smoke putty drying exhaust moisture drying exhaust curing baking exhaust
spray painting exhaust paint mixing exhaust and paint drying exhaust. The main pollutants in the
exhaust gases are: toluene xylene methyl acetate ethyl acetate butyl acetate non-methane total
87 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
hydrocarbons particulate matter and styrene. The implementation of exhaust gas prevention and control
measures is as follows:
1.Dust generated from shot blasting is treated by a high-efficiency bag filter before being discharged at a
high altitude. 2.Grinding dust is settled in a bottom water tank and treated in a side suction bag filter
before being discharged at a high altitude. 3.A dedicated fixed welding point is set up for the welding
process with curtains around it for semi-enclosure. Collected welding smoke is filtered through multiple
mesh layers before being discharged at a high altitude. 4.Moisture drying exhaust is discharged at a high
altitude after passing through a filter and quad combustion. 5.Curing baking exhaust is discharged at a
high altitude after passing through a filter and quad combustion. 6.Natural gas combustion exhaust is
discharged at a high altitude through an exhaust pipe. 7.Organic exhaust generated during the painting
process (mixing + spraying + drying) is discharged at a high altitude after passing through a filter
zeolite wheel adsorption and CO treatment. 8.Organic exhaust generated during the finishing touches
and repainting of vehicles is discharged at a high altitude after being treated by water cyclone and
activated carbon adsorption.
3) Solid Waste
The company’s solid waste mainly includes: edge materials oil-contaminated rags waste paint buckets
putty residue paint residue sludge waste hydraulic oil waste emulsions waste activated carbon waste
metal shavings waste packaging materials waste welding slag trough slag trough liquid and domestic
waste. General solid waste such as edge materials putty residue waste metal shavings waste packaging
materials and waste welding slag is collected and temporarily stored by the company before being sold
for comprehensive utilization. Domestic waste is handled and transported by the Qingshanhu Street
Environmental Hygiene Management Office. Hazardous waste includes oil-contaminated rags sludge
waste hydraulic oil waste paint buckets paint residue waste emulsions waste activated carbon trough
slag and trough liquid. A hazardous waste temporary storage area has been constructed in the factory in
accordance with the “Pollution Control Standards for Hazardous Waste Storage” (GB18597-2023).Various types of hazardous waste are collected and stored separately and qualified third parties are
entrusted to dispose of them.
4) Noise
The noise within the company primarily comes from the operation of production and auxiliary
equipment in the workshops. To reduce the noise at the source the company has selected low-noise fans
air compressors and similar equipment; the layout of the factory is designed rationally with high-noise
equipment and operations placed in the center of the workshop. Soundproofing measures are
implemented to cut off the pathways for noise transmission: soundproof rooms are built around
high-noise equipment such as fans silencers are installed at the intake and exhaust of fans and vibration
isolation measures are taken to reduce the strength of noise sources. Management is strengthened for
large vehicles entering and exiting the factory and honking is prohibited within the factory and near
entrances and exits with speed limits enforced. After implementing various noise reduction measures
the daytime and nighttime noise levels at the factory boundaries comply with the Class 3 standards for
88 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.daytime and nighttime noise emissions outlined in the “Industrial Enterprise Boundary EnvironmentalNoise Emission Standards” (GB12348-2008).
(3). Environmental Impact Assessment and Other Environmental Protection Administrative
Licensing Situations
"√ Applicable" "□ Not applicable"
The company adheres to the development concept of "optimizing the environment saving energy and
reducing consumption" and strictly complies with relevant national laws and regulations. According to
the provisions of the “Environmental Protection Law of the People's Republic of China” and the
“Regulation on Environmental Protection Management of Construction Projects” the company has
conducted an environmental impact assessment that has passed environmental protection approval. The
requirements and regulations of the environmental impact assessment and the environmental protection
authority have been fundamentally implemented ensuring that environmental protection facilities are
designed constructed and put into operation simultaneously with the main project. The specific
situations are as follows:In April 2014 the company commissioned Zhejiang University to complete the “Environmental ImpactReport of Hangcha Group Co. Ltd. Integrated Platform Project Based on the Internet of Things andCloud Computing.” On May 26 2014 the Lin'an Environmental Protection Bureau approved this
project’s environmental impact report with document number “LinHuanShen [2014] No. 121.” This
project commenced in April 2017 and was completed in March 2020 with trial operation starting in the
same month.In May 2014 the company commissioned Zhejiang University to complete the “Environmental ImpactReport of Hangcha Group Co. Ltd. Intelligent Industrial Vehicle R&D and Manufacturing Project.” On
June 12 2014 the Lin'an Environmental Protection Bureau approved this project’s environmental
impact report with document number “LinHuanShen [2014] No. 137.” This project also commenced in
April 2017 and was completed in March 2020 beginning trial operation in the same month.In May 2014 the company commissioned Zhejiang University to complete the “Environmental ImpactReport of Hangcha Group Co. Ltd. Environmental-Friendly Forklift Production Capacity ExpansionTechnological Transformation Project.” On June 12 2014 the Hangzhou Lin'an District Environmental
Protection Bureau approved this project’s environmental impact report with document number
“LinHuanShen [2014] No. 137.” This project likewise commenced in April 2017 and was completed in
March 2020 with trial operation starting in the same month.In August 2018 the company commissioned Zhejiang University to complete the “EnvironmentalImpact Report of Hangcha Group Co. Ltd. 50000 Electric Industrial Vehicles Expansion andTransformation Project.” On September 10 2018 the Hangzhou Lin'an District Environmental
Protection Bureau approved this project’s environmental impact report with document number
“LinHuanQingShen [2018] No. 50.” This project commenced in November 2018 and was completed in
March 2020 also beginning trial operation in the same month.
89 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
In April 2023 the company commissioned Zhejiang Metallurgy Environmental Protection DesignResearch Co. Ltd. to complete the “Environmental Impact Report of Hangcha Group's 100000 InternalCombustion Forklift/Year Expansion and Transformation Project.” In April 2023 the Hangzhou
Ecological Environment Bureau Lin'an Branch approved this project’s environmental impact report with
document number “HangLinHuanPingShen [2023] No. 41.” This project has commenced in April 2023
and will be accepted and put into production after completion.On August 25 2023 the company submitted an application for a pollutant discharge permit on the
National Pollutant Discharge Permit Information Management Platform and passed the review. The
permit number is 9133000014304182XR001V valid until August 24 2028.
(4) Emergency Response Plan for Environmental Incidents
"√ Applicable" "□ Not applicable"
In October 2024 the "Emergency Response Plan for Environmental Incidents" was revised and the plan
passed expert review and was filed with the local environmental protection bureau with the filing
number 330185—2024-101-L. The plan provides a detailed description of emergency measures for
environmental incidents and the company conducts irregular (at least once a year) emergency drills
effectively enhancing its ability and measures to respond to sudden environmental incidents.
(5) Self-Monitoring Program
"√ Applicable" "□ Not applicable"
The Self-Monitoring Program is established to consciously fulfill the obligation to protect the
environment actively accept social supervision and comply with relevant national laws and standards.In 2024 the company formulated the corresponding self-monitoring plan and strictly carried out
monitoring work according to the requirements of the self-monitoring program. At the same time the
company continuously improves its environmental self-monitoring capabilities and commissions
qualified testing agencies to conduct regular pollutant emission monitoring as required ensuring
compliance with emission standards. In accordance with the requirements of the local environmental
protection department pollutant monitoring information is made public. The monitoring indicators
include: 1.Exhaust Gas: Toluene Xylene Non-methane Total Hydrocarbons Particulate Matter SO2
NOX Ethyl Acetate Butyl Acetate Methyl Acetate Styrene; 2.Wastewater: pH COD Ammonia
Nitrogen SS Total Phosphorus Total Nitrogen Petroleum Anionic Surfactants Five-day Biochemical
Oxygen Demand; 3.Boundary Noise: Noise levels at the East West South and North boundaries of the
factory. The park has established a standardized total wastewater discharge outlet and installed online
monitoring equipment for wastewater with the main monitoring indicators being pH COD and flow
rate.
(6) Administrative punishment for environmental problems during the reporting period
"□ Applicable" "√ Not applicable"
90 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(7) Other Required Environmental Information Disclosure
"√ Applicable" "□ Not applicable"
According to the "Environmental Protection Law of the People's Republic of China" and the "Measures
for the Disclosure of Environmental Information by Enterprises and Public Institutions" (Ministry of
Environmental Protection Order No. 31) the company has set up relevant sections on its official website
to publicly disclose environmental information related to the company.
2. Environmental Situation of the Company Outside of Key Pollutant Discharge Units
"√ Applicable" "□ Not applicable"
(1) Situations Regarding Administrative Penalties for Environmental Issues
"□ Applicable" "√ Not applicable"
(2) Refer to other environmental information disclosed by key pollutant discharge units
"√ Applicable" "□ Not applicable"
In addition to key pollutant discharge units Hangcha Group and its other 10 holding subsidiaries have
established an environmental management system. Environmental protection work relies on advanced
technologies and processes. The company continuously implements engineering preventive controls by
adopting new technologies and processes at the source followed by process control and management
control and finally considering end-of-pipe treatment. For example techniques such as powder coating
and water-based paint are used to replace oil-based paints gradually reducing exhaust emissions. The
company commissions third-party agencies annually for the testing of wastewater exhaust gas and
noise. In 2024 wastewater and exhaust gas emissions met the standards and hazardous waste was
disposed of in 100% compliance.
(3) Reasons for not disclosing other environmental information
"□ Applicable" "√ Not applicable"
3. Information Beneficial for Ecological Protection Pollution Prevention and Environmental
Responsibility Fulfillment
"√ Applicable" "□ Not applicable"
The company uses advanced production equipment ensuring that the exhaust gas and wastewater
produced are processed effectively before meeting discharge standards. All solid wastes are disposed of
and utilized by qualified entities.
4. Measures Taken to Reduce its Carbon Emissions during the Reporting Period and their Effects
Has the Company Taken Yes
91 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Carbon Reduction
Measures
Reduction of Carbon
Dioxide Equivalent
Emissions (Unit: Tons)
1.During the reporting period the company increased its greenery area by
13068.9 square meters bringing the total greenery area of the group to
159357.9 square meters effectively absorbing the carbon dioxide
emitted by the company and improving the ecological quality of the park.The company leads the maintenance of greenery to ensure the
sustainability and effectiveness of the greening projects.
2.The company actively promotes the application of renewable energy by
constructing distributed solar photovoltaic power stations on the roofs of
factory buildings in the park utilizing solar photovoltaic power
generation. During the reporting period the installed capacity of
renewable energy facilities reached 9.9 MW an increase of 76.79%
compared to 2023. The total electricity generation in 2024 reached
Type of Carbon Reduction 7036400 kWh effectively reducing the company’s dependence on
Measures (e.g. using clean traditional electricity and decreasing carbon emissions thereby
energy for power promoting the optimization of the company's energy structure.generation using carbon 3.The company actively promotes the application of powder coating
reduction technologies in lines. During the reporting period five powder coating lines have been
production processes put into production. In the powder curing process the company adopted
developing new products an infrared heating method using natural gas combined with hot air
that help reduce carbon circulation replacing traditional diesel heating. This innovative process
emissions etc.) not only accelerated the heating speed but also significantly reduced
natural gas consumption by effectively utilizing heated air insulation
thus reducing carbon emissions and promoting the green upgrade of the
coating process.
4.Lighting: The company's lighting design employs zoned grouped and
timed automatic dimming measures. Energy-efficient lighting fixtures
such as LEDs are gradually adopted in the factory and various rooms or
areas and skylights are utilized for natural lighting effectively reducing
energy consumption.
5.During the reporting period the company introduced dry operations for
new milling machines achieving zero discharge of waste cutting fluid
which reduces resource waste and environmental pollution. The company
ensures that all equipment meets industry access standards utilizes
92 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
advanced equipment and processes and is equipped with comprehensive
environmental treatment facilities to avoid using energy-intensive
low-efficiency equipment. The actual operating efficiency of all common
energy equipment meets national energy efficiency standards effectively
reducing carbon emissions and enhancing the energy utilization
efficiency of the production process.
6.The company has established a dedicated energy management
organization with defined energy management goals and implementation
plans. Combining performance evaluations lean production proposals
rewards and other methods the company continuously explores
energy-saving renovations and projects for optimizing energy structure.
7.The company actively promotes the application of renewable resources
investing over 2 million yuan in VOC (Volatile Organic Compounds)
waste gas treatment during the reporting period upgrading and improving
five sets of renewable activated carbon waste gas treatment facilities. The
company actively responds to the government's "Green Island" project
promotes resource recycling reduces hazardous waste emissions and
through the recycling of activated carbon can reduce the amount of
original activated carbon used. The more times it is recycled the more
indirect carbon dioxide emissions are reduced enhancing the company's
level of sustainable development.
8.The company focuses on treating organic waste gases generated from
paint workshop processes such as paint mixing spraying and drying.During the reporting period the company invested 3.6 million yuan in
advanced waste gas treatment processes upgrading the original activated
carbon adsorption treatment process to one set of zeolite wheel +
catalytic combustion device + online monitoring system. According to
online monitoring estimates the VOC reduction amount is 4.603 tons per
year.Specific Statement
"□ Applicable" "√ Not applicable"
II. Social Responsibility Work Status
1. Disclosure of Social Responsibility Report Sustainable Development Report or ESG Report
Separately
"√ Applicable" "□ Not applicable"
93 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The full text of the company's ESG report can be found on the Shanghai Stock Exchange website
(http://www.sse.com.cn/).
2. Specific Situation of Social Responsibility Work
"√ Applicable" "□ Not applicable"
External Donations and
Public Welfare Projects Quantity/Content Notes
Supporting Zitong Town through the "Close-Personal
Total Investment: ( ) 106.33 Connections Three Services" initiative paired assistance
donations to Baiyu County Sichuan etc.Of Which: Funding ( ) 106.33
Material Contribution: ( ) 0
Number of Beneficiaries:
(Persons) 800
Specific Statement
"□ Applicable" "√ Not applicable"
III. Specific Situation of Consolidating and Expanding Achievements in Poverty Alleviation and
Rural Revitalization
"√ Applicable" "□ Not applicable"
Poverty Alleviation and
Rural Revitalization Quantity/Content Notes
Projects
Paired assistance to Baiyu County in Sichuan Zuokou
Total Investment: ( ) 88.33 Township and Tianmushan Town in Lin'an DistrictYankou Primary School in Lin'an District and visiting
underprivileged groups etc.Of Which: Funding ( ) 0
Material Contribution: ( ) 88.33
Number of Beneficiaries:
(Persons) 500
Industrial Poverty Alleviation: Deepening the
paired-assistance mechanism focusing on supporting
Zitong Town in Chun'an County and promoting
collective economic income projects in Fushi Villageforming a dual-driven model of “reducing poverty andincreasing income + artistic industry.”
Employment Poverty Alleviation: Through the "Tianmu
Forms of Assistance Common Prosperity Alliance" three-shared construction
(e.g. Industrial Poverty mechanism driving the development of rural industries
Alleviation Employment in villages such as Guifangqiao Village in Lin'an
Poverty Alleviation District with over 200 new job positions created.Educational Poverty Educational Poverty Alleviation: Continuing the
Alleviation etc.) “Children’s Day” visits to Yankou Primary School in
Lin'an District; donating 30000 yuan to Baiyu County
for the improvement of educational facilities aiding the
enhancement of educational resources in remote areas.Public Welfare Assistance: Responding to the “TenThousand Enterprises Support Ten Thousand Villages”
initiative deepening the paired-assistance between
Lin'an and Baiyu and supporting rural revitalization
94 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
through human settlement improvement projects
recognized as one of the top 100 leading enterprises in
social responsibility among private enterprises in
Zhejiang Province for two consecutive years.Specific Statement
"√ Applicable" "□ Not applicable"
The company actively responded to the call of the Hangzhou municipal government and was among the
first units to become a member of the Hangzhou Assistance Group. Since 2000 it has paired assistance
with "Zuokou Township" and "Zitong Town" in Chun'an County as well as Tianmushan Town in Lin'an
District. Over nearly 20 years a total of over 10 million yuan in funds and materials have been provided
for assistance.During the reporting period the company’s paired assistance unit Zitong Town in Chun'an County
firmly focused on "reducing poverty and increasing income" and "artistic industry" actively
demonstrating the leadership role of the funds allocated through the “paired assistance” mechanism
based on actual conditions highlighting key areas and implementing various livelihood projects such as
collective economic income projects in Fushi Village procurement projects for beekeeping for
low-income households in various administrative villages and renovation projects for art galleries. The
“paired assistance” strategy has played a significant role in strengthening collective village economies
and aiding households in increasing their income and wealth.During the reporting period the company established a "three-shared construction mechanism"
involving "alliance party building and industry" with the Tianmu Common Prosperity Alliance. This
not only changed the previous one-to-one paired assistance model but also enhanced the party-led
cooperation work in village-enterprise collaboration through party building driving industrial
development with talent support. As a corporate representative of the "Tianmu Common Prosperity"
Alliance in Lin'an District Hangcha Group actively fulfills its social responsibilities and contributes to
the common prosperity efforts in Guifangqiao Village Lin'an District supporting rural revitalization
initiatives while also being confident in the future advancement of enterprise-village pairing projects.Every year together with GreatStar Group the company visits Yankou Primary School in Yuqian
Township Lin'an District to bring gifts for Children’s Day. In 2024 to promote the pairing assistance
work between Lin'an District and Baiyu County effectively consolidating and expanding the
achievements in poverty alleviation and the connection with rural revitalization and deepening
comprehensive support between Lin'an and Baiyu Hangcha Group donated 30000 yuan to Baiyu
County for improving living conditions.
95 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Caring Enterprises Supporting Baiyu County in Ganzi Prefecture Hangzhou Zhejiang Province
During the reporting period as a corporate representative of the "Tianmu Common Prosperity" Alliance
in Lin'an District the company actively fulfilled its social responsibility and contributed to the common
prosperity efforts in Guifangqiao Village Zuokou Township and other areas aiding rural revitalization
initiatives. In April 2024 Hangcha Group was recognized as an Excellent Team Enterprise in the 2023
"Ten Thousand Enterprises Support Ten Thousand Villages" Action by the leadership group of
Hangzhou's Lin'an District. It was also honored as an Advanced Unit in Social Public Welfare by the
Hangzhou Lin'an District Federation of Industry and Commerce.Achievements in the 2023 "Ten Thousand Enterprises Support Ten Thousand Villages" Action
96 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2023 Advanced Unit in Social Public Welfare
During the reporting period the company having made its first appearance on the list of the top 100
leading private enterprises in Zhejiang for social responsibility in 2022 was again recognized in 2023.On March 21 2024 the "2024 Zhejiang Private Enterprises Social Responsibility and Zhejiang Business
ESG Seminar" was held in Lin'an Hangzhou where participants visited the Hangcha Group exhibition
hall smart logistics workshop and other facilities. Wang Fuxi the Deputy Secretary of the Party
Committee of Hangcha Group provided a comprehensive explanation to attendees on the company’s
efforts and achievements in sustainable development in 2023 touching upon aspects such as integrity in
operations standardized governance technological innovation green products energy conservation and
emissions reduction intelligent factories being people-oriented caring for employees practicing public
welfare and giving back to society.
97 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Participants of the 2024 Zhejiang Private Enterprises Social Responsibility and Zhejiang Business
ESG Seminar Visit Hangcha Group
Over the years Hangcha Group has adhered to its core values of "Integrity First Performance Priority;
Sustainable Development Social Contribution" actively improving the work environment fulfilling
social responsibilities and implementing governance systems. The company incorporates various
elements of social responsibility into its daily management and operations striving for harmonious and
win-win development between the enterprise and its employees the enterprise and society and the
enterprise and the environment. It seeks to organically combine its development with social progress and
embodies the win-win philosophy in fulfilling the social responsibilities of a listed company.Moving forward Hangcha Group will take new steps in deepening its social responsibility philosophy
making new contributions to high-quality development in Zhejiang showcasing new initiatives in
establishing a social responsibility brand and achieving breakthroughs in enhancing the company's ESG
governance capabilities. Hangcha Group is determined to use this as a new starting point to continuously
elevate its efforts in the realm of social responsibility and achieve new progress.
98 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 6 Important Matters
I. Commitment Fulfillment
1. The commitments made by the company's actual controllers shareholders related parties acquirers and other relevant parties during the reporting
period or continuing into the reporting period."√ Applicable" "□ Not applicable"
Is It If not timely If nottimely
Commitment Commitment Is There a Timely fulfilled
Background Type Made by
Commitment Deadline of fulfilled
Content Made on Fulfillment and specify theDeadline commitment Strictly reasons for the specify
Fulfilled non-fulfillment. the nextsteps.
1. The Company will not directly
or indirectly engage in or
participate in any business
activity that constitutes potential
direct or indirect competition
with the business activities of the
listed company and its
subsidiaries and the Company
Commitments Resolution will ensure that effective legal
Related to of measures are taken to prevent
Major Asset Competing
Hangcha
Holding other companies controlled by Long-term No Long-term Yes N/A N/A
Restructuring Business the Company from engaging inIssues or participating in any business
activities that competes with the
business activities of the listed
company and its subsidiaries. 2.If the listed company further
expands its scope of business the
Company and other companies
under its control will not
compete with the listed
99 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
company's business activities
under the expanded scope. If
there is potential competition
with the listed company's
business activities under the
expanded scope the Company
and other companies under its
control will exit the competition
with the listed company in the
following ways: A) ceasing the
business activities that constitute
or may constitute competition
with the listed company; B)
integrating the competing
business activities into the listed
company's operations; C)
transferring the competing
business activities to an unrelated
third party. 3. If the Company or
other companies under its control
have any commercial opportunity
to engage in or participate in any
activity that may compete with
the listed company's operations
the Company or other companies
under its control will
immediately notify the listed
company of such commercial
opportunity. If the listed
company confirms its willingness
to take advantage of the
opportunity within the reasonable
period specified in the
notification the Company or
other companies under its control
100 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
will make all efforts to provide
the commercial opportunity to
the listed company. 4. If I breach
the above commitments the
Company is willing to bear all
liability arising therefrom and
fully indemnify the listed
company for all direct or indirect
losses.
1. I will not directly or indirectly
engage in or participate in any
business activity that constitutes
potential direct or indirect
competition with the business
activities of the listed company
and its subsidiaries and I will
ensure that effective legal
measures are taken to prevent
other companies controlled by
Resolution me from engaging in or
of participating in any business
Competing Qiu Jianping activities that competes with the
Business business activities of the listed
Long-term No Long-term Yes N/A N/A
Issues company and its subsidiaries. 2.If the listed company further
expands its scope of business I
and other companies under my
control will not compete with the
listed company's business
activities under the expanded
scope. If there is potential
competition with the listed
company's business activities
under the expanded scope I and
other companies under my
101 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
control will exit the competition
with the listed company in the
following ways: A) ceasing the
business activities that constitute
or may constitute competition
with the listed company; B)
integrating the competing
business activities into the listed
company's operations; C)
transferring the competing
business activities to an unrelated
third party. 3. If I or other
companies under my control
have any commercial opportunity
to engage in or participate in any
activity that may compete with
the listed company's operations I
will immediately notify the listed
company of such commercial
opportunity. If the listed
company confirms its willingness
to take advantage of the
opportunity within the reasonable
period specified in the
notification I will make all
efforts to provide the commercial
opportunity to the listed
company. 4. If I breach the above
commitments I am willing to
bear all liability arising
therefrom and fully indemnify
the listed company for all direct
or indirect losses.Resolution Hangcha 1. The Company and the
of Related Holding companies under its control will Long-term No Long-term Yes N/A N/A
102 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Transactions reduce related party transactions
with the listed company as much
as possible and will not seek
treatment more favorable than
that given to other third parties in
business cooperation with the
listed company by taking
advantage of its position as the
controlling shareholder of the
listed company. 2. The Company
will not seek preference in
reaching transactions with the
listed company by taking
advantage of its position as the
controlling shareholder of the
listed company. 3. If any related
party transaction is indeed
necessary and unavoidable I and
the companies under my control
will sign agreements with the
listed company in accordance
with the principles of equality
fairness and equal consideration
perform legal procedures fulfill
information disclosure
obligations and relevant internal
decision-making and approval
procedures as required by
relevant laws regulations
normative documents and the
Company's Articles of
Association ensure that
transactions with the listed
company will not be conducted
under terms that are evidently
103 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
unfair compared to market
prices and refrain from any acts
that harm the legitimate rights
and interests of the listed
company and other shareholders
through such transactions.
1. I and the companies under my
control will reduce related party
transactions with the listed
company as much as possible
and will not seek treatment more
favorable than that given to other
third parties in business
cooperation with the listed
company by taking advantage of
my position as the actual
controller of the listed company.
2.I will not use my position as
the actual controller of a listed
Resolution company to seek the right to
of Related Qiu Jianping prioritize transactions with the Long-term No Long-term Yes N/A N/A
Transactions listed company. 3.In the event
that there are necessary and
unavoidable related transactions
I and the enterprises I control
will enter into agreements with
the listed company in accordance
with the principles of fairness
equity and equivalent
compensation. We will follow
the legal procedures and in
compliance with the
requirements of relevant laws
regulations and normative
documents as well as the
104 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
provisions of the "Articles of
Association" we will fulfill our
information disclosure
obligations and follow the
relevant internal decision-making
and approval procedures. We
will ensure that we do not
conduct transactions with the
listed company under conditions
that are significantly unfair
compared to market prices nor
will we engage in any actions
that harm the legal rights and
interests of the listed company
and other shareholders through
such transactions.The Company undertakes that
after the completion of this
transaction it will ensure that the
listed company continues to
improve its corporate governance
structure and independent
operating management system in
Other Hangcha accordance with the requirementsHolding of relevant laws regulations and Long-term No Long-term Yes N/A N/A
its Articles of Association and
the listed company will maintain
its independence in terms of
business assets finance
institutions staffing and other
aspects to effectively protect the
interests of all shareholders.I undertake that after the
Other Qiu Jianping completion of this transaction I Long-term No Long-term Yes N/A N/A
will ensure that the listed
105 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
company continues to improve
its corporate governance
structure and independent
operating management system in
accordance with the requirements
of relevant laws regulations and
its Articles of Association and
the listed company will maintain
its independence in terms of
business assets finance
institutions staffing and other
aspects to effectively protect the
interests of all shareholders.If the prospectus for this public
offering of shares contains false
records misleading statements
or significant omissions that
materially affect the judgment of
whether the company meets the
legal conditions for issuance the
company will promptly propose
Commitments a share repurchase plan and
Related to submit it for discussion by the
Initial Public Other Company board of directors and the
Offering shareholders' meeting. The
Long-term No Long-term Yes N/A N/A
(IPO) company will legally repurchasethe newly issued shares from the
initial public offering (excluding
shares publicly offered by
original shareholders). For shares
that have been issued but not yet
listed the repurchase price will
be determined based on the
issuance price plus the interest on
bank deposits at the same period;
106 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
for shares that have been listed
the repurchase price will be
determined based on the
company's stock issuance price
plus the interest on bank deposits
for the same period and the
higher of the average closing
price of the stock for the twenty
trading days preceding the
recognition of the above matters.The implementation of the above
share repurchase will be carried
out in accordance with the
relevant laws regulations and
procedures stipulated in the
company's articles of association.If there are other stipulations in
laws regulations or the
company's articles of association
during the implementation of the
repurchase those stipulations
shall prevail. If the company’s
stock undergoes any distribution
of dividends bonus shares or
capitalization of reserves the
issuance price shall be adjusted
accordingly. If the company's
prospectus contains false records
misleading statements or
significant omissions that cause
investors to suffer losses in
securities trading the company
will compensate investors for
their losses in accordance with
the law. After such illegal facts
107 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
are recognized by the China
Securities Regulatory
Commission securities
exchanges or judicial authorities
the company will simplify
procedures actively negotiate
provide advance payments and
take practical measures to protect
the interests of investors
especially small and
medium-sized investors and will
compensate investors for their
direct economic losses incurred
as a result by choosing to settle
with investors mediating with
investors through third parties
and establishing an investor
compensation fund among other
means.If the prospectus of the company
contains false records
misleading statements or
significant omissions that lead to
investor losses in securities
Directors trading I will compensate
Supervisors investors for their losses in
Other and Senior accordance with the law. AfterManagement such illegal facts are recognized Long-term No Long-term Yes N/A N/A
of the by the China Securities
Company Regulatory Commission
securities exchanges or judicial
authorities the company will
simplify procedures actively
negotiate provide advance
payments and take practical
108 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
measures to protect the interests
of investors especially small and
medium-sized investors and will
compensate investors for their
direct economic losses incurred
as a result by choosing to settle
with investors mediating with
investors through third parties
and establishing an investor
compensation fund among other
means.
(1) I/this company is currently
not engaged in the same business
operations as Hangcha Group
and will not have direct or
indirect industry competition
with Hangcha Group. In the
future I/this company will not
engage in any form of business
Controlling activities that are the same as or
Resolution Shareholder: similar to the existing business
of Hangcha and related products of Hangcha
Competing Holdings Group including not engaging in
Business Actual any form of industry competition
Long-term No Long-term Yes N/A N/A
Issues Controller: with Hangcha Group throughChou investment acquisition or
Jianping merger with companies or other
economic organizations that
operate the same or similar
businesses and related products
as Hangcha Group. (2) The
enterprises that I/this company
currently or will invest in and
control will also not engage in
the same business operations as
109 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangcha Group and will not
have direct or indirect industry
competition with Hangcha
Group. (3) If there are business
opportunities within the scope of
Hangcha Group's operations
I/this company will prioritize
transferring or introducing such
opportunities to Hangcha Group.
(1) I/this company will not
overstep my/its authority to
interfere with the company's
management activities or infringe
upon the company's interests;
I/this company will not provide
benefits to other units or
individuals on an unpaid basis or
under unfair conditions nor will
Controlling I/it engage in other actions that
Shareholder: harm the company's interests. (2)
Commitments Hangcha As of the date of this
Related to Other Holdings commitment if the ChinaActual Securities Regulatory Long-term No Long-term Yes N/A N/ARefinancing Controller: Commission (CSRC) issues new
Chou regulatory provisions regarding
Jianping compensation measures and
commitments that the above
commitments do not meet I/this
company commits to providing
supplemental commitments in
accordance with the latest
regulations of the CSRC at that
time. (3) If I/this company
violates these commitments or
refuses to fulfill them I/this
110 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
company willingly accepts
relevant penalties or management
measures imposed by the CSRC
the Shanghai Stock Exchange
and other securities regulatory
agencies; if violating these
commitments causes losses to the
company or its shareholders
I/this company is willing to bear
legal liability for compensation.
(1) I will not provide benefits to
other units or individuals on an
unpaid basis or under unfair
conditions nor will I engage in
other actions that harm the
company's interests. (2) I will
strictly adhere to the company's
budget management and any
expenses incurred in my capacity
will only be within the necessary
scope of fulfilling my
Directors responsibilities subject to strict
Other and Senior supervision and management by Long-term No Long-term Yes N/A N/A
Management the company to avoid waste or
premature spending. (3) I will
not use company assets for
investment or consumption
activities unrelated to my
responsibilities. (4) I will make
my utmost effort to promote the
implementation of measures for
timely returns. I will be
responsible for linking the
execution of the compensation
system established by the board
111 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
of directors or the compensation
committee with the company's
measures for filling returns. (5) I
will be responsible for linking
the exercise conditions (if any) of
the company's proposed equity
incentive plans to be published in
the future with the execution of
the company's measures for
filling returns. I will support
relevant proposals that tie to the
implementation of the company's
measures for filling returns and
will be willing to vote in favor (if
I have voting rights). (7) As of
the date of this commitment if
regulatory agencies introduce
additional requirements
regarding measures for filling
returns and their commitments
and if the above commitments do
not meet the relevant
requirements I promise to
provide supplemental
commitments according to the
relevant regulations at that time.
(8) If I violate or refuse to fulfill
the above commitments I am
willing to bear corresponding
responsibilities according to the
relevant regulations and rules of
the China Securities Regulatory
Commission and the Shanghai
Stock Exchange.
112 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. If the company has profit forecasts for assets or projects and the reporting period is still within
the forecast period please explain whether the assets or projects have met the original profit
forecast and the reasons for this."□ Achieved" "□ Not Achieved" "√ Not applicable"
3. Completion Status of Performance Commitments and Its Impact on Goodwill Impairment
Testing
"□ Applicable" "√ Not applicable"
II. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties
During the Reporting Period
"□ Applicable" "√ Not applicable"
III. Illegal Guarantee Situations
"□ Applicable" "√ Not applicable"
IV. Board of Directors' Explanation Regarding "Non-standard Opinion Audit Report" from the
Accounting Firm
"□ Applicable" "√ Not applicable"
V. Analysis and Explanation of the Reasons and Impact of Changes in Accounting Policies
Accounting Estimates or Corrections of Significant Accounting Errors
1. Explanation of Reasons and Impact of Changes in Accounting Policies and Estimates
"√ Applicable" "□ Not applicable"
On October 25 2023 the Ministry of Finance issued "Interpretation No. 17 of the Accounting Standards
for Enterprises" (Cai Kuai [2023] No. 21) which stipulates relevant content regarding "the classification
of current liabilities and non-current liabilities" "disclosure of supplier financing arrangements" and
"the accounting treatment of sale-and-leaseback transactions." This interpretation will come into effect
on January 1 2024.On December 6 2024 the Ministry of Finance issued "Interpretation No. 18 of the Accounting
Standards for Enterprises" (Cai Kuai [2024] No. 24) which stipulates relevant content regarding
"subsequent measurement of investment properties held under a basis project using the fair value model"
and "the accounting treatment of quality guarantees that do not constitute individual performance
obligations." This interpretation will come into effect from the date of issuance and allows enterprises to
implement it in advance of the issued year.
113 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Company's Analysis and Explanation of the Reasons and Impact of Corrections of Significant
Accounting Errors
"□ Applicable" "√ Not applicable"
3. Communication Status with the Former Accounting Firm
"□ Applicable" "√ Not applicable"
4. Approval Procedures and Other Explanations
"□ Applicable" "√ Not applicable"
VI. Appointment and Dismissal of Accounting Firms
Unit: Ten thousand yuan Currency: CNY
Current Appointment
Accounting firm in China Pan-China Certified Public Accountants
LLP (Special General Partnership)
Remuneration for Domestic Accounting Firm: 180
Audit Tenure for Domestic Accounting Firm: 24
Name of the CPAs from accounting firm in China Xu Jinbo Tang Zheren
Cumulative Audit Service Tenure of Certified Public
Accountants from Domestic Accounting Firm: 5 years 2 years
Name of Foreign Accounting Firm:
Remuneration for Foreign Accounting Firm:
Audit Tenure for Foreign Accounting Firm:
Item Remuneration
Internal Control Audit Pan-China Certified Public Accountants 30
Accounting Firm LLP (Special General Partnership)
Explanation of Appointment and Dismissal of Accounting Firms
"√ Applicable" "□ Not applicable"
On April 17 2024 the Company's seventh board of directors held its tenth meeting during which it
approved the proposal regarding the reappointment of the audit firm for the fiscal year 2024. The
resolution decided to reappoint Tianjian Certified Public Accountants (Special General Partnership) as
the Company's audit firm for the fiscal year 2024.Explanation of the Situation Regarding the Reappointment of Accounting Firms During the Audit Period
"□ Applicable" "√ Not applicable"
Explanation of Audit Fees Decreasing by More Than 20% Compared to the Previous Year (Including
20%)
"□ Applicable" "√ Not applicable"
VII. Situations Facing Delisting Risk
1. Reasons Leading to the Warning of Delisting Risk
"□ Applicable" "√ Not applicable"
114 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Proposed Measures to Address the Situation
"□ Applicable" "√ Not applicable"
3. Situations and Reasons for Facing Termination of Listing
"□ Applicable" "√ Not applicable"
VIII. Matters Related to Bankruptcy Reorganization
"□ Applicable" "√ Not applicable"
IX Major Litigation and Arbitration Matters
"□ The Company has major litigation or arbitration matters this year."
"√ The Company does not have any major litigation or arbitration matters this year."
X. Circumstances of the Listed Company and Its Directors Supervisors Senior Management
Controlling Shareholders and Actual Controllers Suspected of Violating Laws and Regulations
and Their Punishments and Rectifications
"□ Applicable" "√ Not applicable"
XI Explanation of the Integrity of the Company Its Controlling Shareholders and Actual
Controllers During the Reporting Period
"√ Applicable" "□ Not applicable"
During the reporting period the integrity of the Company its controlling shareholders and actual
controllers is good.XII Major Related Party Transactions
1. Related Party Transactions Related to Daily Operations
(1) Matters disclosed in the temporary announcement with no subsequent progress or changes
"□ Applicable" "√ Not applicable"
(2) Matters disclosed in the temporary announcement but with subsequent progress or changes
"√ Applicable" "□ Not applicable"
Item Overview Search Index
Announcement on the Addition and Adjustment
http://www.sse.com.cn (Announcement No.:
of Certain Expected Daily Related Party
2024-042)
Transactions for the Company in 2024
(3). Matters Not Disclosed in the Temporary Announcement
"□ Applicable" "√ Not applicable"
115 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Related Party Transactions Occurring fromAsset or Equity Acquisitions or Sales
(1) Matters disclosed in the temporary announcement with no subsequent progress or changes
"□ Applicable" "√ Not applicable"
(2) Matters disclosed in the temporary announcement but with subsequent progress or changes
"□ Applicable" "√ Not applicable"
(3) Matters Not Disclosed in the Temporary Announcement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason
s for
Signifi
cant
Impact Differe
of the nces
Transa Betwee
Pricing Apprai Settlem ction nType
Relat of Conten Principl
Book sal ent Return on the Transa
ed Conne Connec t of es for
Value
of Value Tran
Method Compa ction
cted Connect of sfer for
s from ny’s Price
partie Party ted transac ed Transfe Transfe Price Connect
Transfe Operati and
s Transa tion rred
ction Transac
rred ed ng Book
tions Assets
rred
Assets Transac
Assets Results Value
tions and or
Financi Apprai
al sal
Status Value
or
Market
Fair
Value
Acquis
ition of
100%
Zheji Equity
ang in Negotia
Guoz Other
i Relate Acquisi
Zhejian ted
g Based 2985.9 2986 Bank
No
Robo d tion of
signific
Equity Guozi on
-710.48 5 .00 Transfe N/A ant N/A
tics Parties Intellig Apprais r impact
Co. ent al Value
Ltd. Equip
ment
Co.Ltd.Description of Related Party Transactions Occurring from Asset Acquisitions or Sales
None
(4) If Involving Performance Agreements Performance Achievement During the Reporting Period
Should Be Disclosed
"□ Applicable" "√ Not applicable"
116 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
3. Major Related Party Transactions of Joint External Investment
(1) Matters disclosed in the temporary announcement with no subsequent progress or changes
"□ Applicable" "√ Not applicable"
(2) Matters disclosed in the temporary announcement but with subsequent progress or changes
"□ Applicable" "√ Not applicable"
(3) Matters Not Disclosed in the Temporary Announcement
"□ Applicable" "√ Not applicable"
4. Related Party Debt and Creditor Transactions
(1) Matters disclosed in the temporary announcement with no subsequent progress or changes
"□ Applicable" "√ Not applicable"
(2) Matters disclosed in the temporary announcement but with subsequent progress or changes
"□ Applicable" "√ Not applicable"
(3) Matters Not Disclosed in the Temporary Announcement
"□ Applicable" "√ Not applicable"
5. Financial Transactions Between the Company and Financial Companies with Related
Relationships and Financial Companies Controlled by the Company with Related Parties
"□ Applicable" "√ Not applicable"
6. Other
"□ Applicable" "√ Not applicable"
XIII. Significant Contracts and Their Performance
1. Entrustment Contracting and Leasing Matters
(1) Entrustment Situation
"□ Applicable" "√ Not applicable"
(2) Contracting Situation
"□ Applicable" "√ Not applicable"
(3) Leasing Situation
"□ Applicable" "√ Not applicable"
117 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Guarantee Situation
"√ Applicable" "□ Not applicable"
Unit: Hundred million yuan Currency: CNY
Company's External Guarantee Situation (Excluding Guarantees for Subsidiaries)
Relationship Date of
Between the Guarantee Guarantee
Guarantor Guaranteed Occurrence Guarantee
Amount
Guarantor Amount Starting Guarantee Type of Collateral
Performance Is the for Related
and the party (Date of Maturity guarantee (if any) completed Guarantee
of Counter-Guarantee
date or not Overdue Overdue Situation
related Relationship
Listed Agreement Guarantee parties or
Company Signing) not
Total Guarantee Amount During the Reporting Period
(Excluding Guarantees for Subsidiaries)
Total Guarantee Balance at the End of the Reporting Period
(A) (Excluding Guarantees for Subsidiaries)
Company and Its Subsidiaries' Guarantees for Subsidiaries
Total Guarantee Amount for Subsidiaries During the 3.2
Reporting Period
Total Guarantee Balance for Subsidiaries at the End of the 3.2
Reporting Period (B)
Total Guarantee Situation of the Company (Including Guarantees for Subsidiaries)
Total Guarantee Amount (A + B) 3.2
Total Guarantee Amount as a Percentage of Company's Net 3.15
Assets (%)
Including:
Amount of Guarantees Provided for Shareholders Actual
Controllers and Their Related Parties (C)
Debt Guarantee Amounts Provided Directly or Indirectly for 3.1
Guaranteed Parties with Liabilities Exceeding 70% (D)
Amount of Guarantees Exceeding 50% of Net Assets (E)
Sum of the Above Three Guarantee Amounts (C + D + E) 3.1
118 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Explanation of Joint and Several Liability for Guarantees
That Have Not Yet Expired
Guarantee Situation Explanation The company respectively approved the "Proposal on the Company's Estimated External Guarantees for 2024" at the
10th meeting of the 7th Board of Directors on April 17 2024 and at the 2023 Annual General Meeting of
Shareholders held on May 10 2024. It was agreed that from the date of the approval by the 2023 Annual General
Meeting of Shareholders until the date of the 2024 Annual General Meeting of Shareholders the chairman of the
company is authorized to sign relevant "Guarantee Contracts" and other legal documents with banks and other
financial institutions within the authorized scope of guarantee.
3. Situation of Entrusting Others for Cash Asset Management
(1) Entrustment Wealth Management Situation
a. Overall Situation of Entrustment Wealth Management
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Type Source of funds Amount Balance not yet due Overdue Amount Not Collected
Securities Firm Wealth Self-owned funds 80000000.00 80000000.00 0Management Products
Other Situations
"□ Applicable" "√ Not applicable"
b. Single Entrusted Wealth Management Situation
"□ Applicable" "√ Not applicable"
Other Situations
"□ Applicable" "√ Not applicable"
c. Impairment Provision for Entrusted Wealth Management
"□ Applicable" "√ Not applicable"
119 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2) Entrusted Loan Situation
a. Overall Situation of Entrusted Loans
"□ Applicable" "√ Not applicable"
Other Situations
"□ Applicable" "√ Not applicable"
b. Single Entrusted Loan Situation
"□ Applicable" "√ Not applicable"
Other Situations
"□ Applicable" "√ Not applicable"
c. Impairment Provision for Entrusted Loans
"□ Applicable" "√ Not applicable"
(3) Other Situations
"□ Applicable" "√ Not applicable"
4. Other Significant Contracts
"□ Applicable" "√ Not applicable"
XIV Progress Explanation of Raised Funds Usage
"√ Applicable" "□ Not applicable"
1. Overall Usage of Raised Funds
"√ Applicable" "□ Not applicable"
Unit:
120 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Among Cumulative Cumulative
Total Them: Investment Investment
Total Accumulated Cumulative Progress of Progress of
Total
Proportion
Committed Total Investment Investment Raised Overraised Amount of Amount Amount
Source of Raised Time of Fund Total Net Capital Investment in Amount of in Raised in Funds by Funds by Invested Invested of Raised
Funds Availability raised Raised (1) Prospectus or Overraised Funds by the Overraised the End of the End of This Year This Year Funds
funds Funds (3) Funds by the the with
Fund-Raising = (1) - (2) End of the (8) (%) (9) = Changed
Document (2) Reporting the End of Reporting Reporting (8) / (1)
Period (4) the Period (%) Period (%)
Purpose
Reporting (6) = (4) / (7) = (5) /
Period (5) (1) (3)
Issue convertible 2021年 3月 31日 115000 113866.25 113866.25 92535.23 81.27 4654.78 4.0879
bonds
Total Amount / 115000 113866.25 113866.25 92535.23 / / 4654.78 /
Other notes
"√ Applicable" "□ Not applicable"
As of March 31 2024 all investment projects using the raised funds by the company have been completed and are in a state of availability. Any remaining raised
funds have been permanently used to supplement working capital and the specialized account for raised funds has completed the closure procedures. For detailed
information please refer to the announcement titled "Announcement on the Completion of Fund-Raising Project and Permanent Supplementation of Working
Capital with Remaining Raised Funds" (Announcement No.: 2024-013) disclosed by the company on April 18 2024 on the Shanghai Stock Exchange website as
well as the announcement titled "Announcement on the Completion of Closure of Specialized Account for Raised Funds" (Announcement No.: 2024-024) disclosed
on June 12 2024.
2. Details of Fund-Raising Projects:
"√ Applicable" "□ Not applicable"
(1) Usage Situation of Raised Funds Details
"√ Applicable" "□ Not applicable"
Unit:
121 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Has there
Cumulative been a
Is it a Total Specific
Investment significant
committed Is there Planned Accumulated Does the reasons
Progress Date of Benefits or change in
investment any Total Amount Investment Has the investment for not Benefits
Source of by the End achieving R&D project
Nature of the project in change in Investment Invested in Raised project progress meeting Achieved Remaining
Raised Item Name of the expected Achievements feasibility
Project the the Amount of This Funds by the been meet the the This Amount
Funds Reporting conditions Realized by If yes
prospectus investment Raised Year End of the completed planned planned Year
Period (%) for use this Project please
or offering direction Funds (1) Reporting schedule investment
(3) ＝ explain the
document Period (2) progress
(2)/(1) specific
situation
Investment
Project for
the
Issue Construction
Production March
convertible of 60000 Yes No 83113.58 2968.94 67482.19 81.19 Yes Yes 57323.30 103923.44 No
Construction 2024
bonds Units of
New Energy
Forklifts
Annually
R&D Center
Issue Research and
Upgrade March
convertible Development Yes No 12927.43 960.60 6861.69 53.08 Yes Yes N/A N/A No
Construction 2024
bonds (R&D)
Project
Group
Information
Issue
Technology Operations March
convertible Yes No 8439.90 725.24 8509.62 100.83 Yes Yes N/A N/A No
Upgrade Management 2024
bonds
Construction
Project
Issue Marketing
Operations March
convertible Network Yes No 9385.34 9681.73 103.16 Yes Yes N/A N/A No
Management 2024
bonds and Forklift
122 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Experience
Center
Construction
Project
Total
////113866.254654.7892535.23/////57323.30//
Amount
(2) Details of the Use of Overraised Funds
"□ Applicable" "√ Not applicable"
3. Changes or Termination of Fundraising Investments during the Reporting Period
"□ Applicable" "√ Not applicable"
4. Other Situations Regarding the Use of Raised Funds during the Reporting Period
(1) Advance investment and fund replacement of the raised funds investment project
"□ Applicable" "√ Not applicable"
(2) Description of temporary replenishment of working capital with idle raised funds
"□ Applicable" "√ Not applicable"
(3) Cash Management of Idle Raised Funds and Investment in Related Products
"□ Applicable" "√ Not applicable"
(4) Other
"□ Applicable" "√ Not applicable"
XV. Explanation of Other Significant Matters That Have a Major Impact on Investors' Value Judgments and Investment Decisions
"□ Applicable" "√ Not applicable"
123 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 7 Share Changes and Shareholder Information
I. Changes in Share Capital
1. Share Change Table
(1) .Share Change Table
Unit: Share
Before change Change Amount (+ -) After change
N
e Bo
w
Perc nu Conversion of Ot Percsh
Quantity enta s capital reserve enta
ge ar
he Subtotal Quantity
sh into share r ge
(%) es ar capital (%)
iss es
ue
d
I. Conditional shares
1. State-owned shares
2. Legal person shares of
state
3. Shares held by other
domestic capital
Among them:
Non-State-Owned Legal
Entities Holding Shares in
China
Domestic natural
person shares
4. Shares held by overseas
capital
Of which: Overseas legal
person shares
Overseas natural person
shares
II. Circulating Shares with 935580035 100 374232014 374232014 1309812049 100
No Sale Restrictions
1. RMB-denominated 935580035 100 374232014 374232014 1309812049 100
ordinary shares
2. Foreign capital shares
listed in China
3. Foreign capital stocks
listed overseas
4. Others
III. Total number of shares 935580035 100 374232014 374232014 1309812049 100
(2) Explanation of Share Changes
"√ Applicable" "□ Not applicable"
The company at the 10th meeting of the 7th Board of Directors on April 17 2024 and at the 2023
Annual Shareholders Meeting on May 10 2024 approved the proposal regarding the distribution of
profits and capital reserve to increase share capital for the year 2023. All shareholders will receive 4
additional shares for every 10 shares held using the capital reserve. After this stock allocation the
company’s total share capital will increase from 935580035 shares to 1309812049 shares. For
124 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
specific details please refer to the "Announcement on the Implementation of the 2023 Annual Profit
Distribution by Hangcha Group Co. Ltd." (Announcement Number: 2024-022) disclosed on May 24
2024 on the Shanghai Stock Exchange (www.sse.com.cn).
(3) Impact of Share Changes on Financial Indicators such as Earnings Per Share and Net Assets
Per Share for the Last Year and the Most Recent Period (if applicable)
"√ Applicable" "□ Not applicable"
Due to the implementation of the 2023 profit distribution plan during this reporting period resulting in
an increase of 4 shares for every 10 shares held the completion of this stock allocation will cause the
company’s earnings per share and net assets per share in 2024 to be diluted.
(4) Other contents that the Company considers necessary or are required by the securities
regulatory authorities to disclose
"□ Applicable" "√ Not applicable"
2. Changes in Restricted Shares
"□ Applicable" "√ Not applicable"
II. Securities Issuance and Listing Situation
1. Securities Issuance Situation up to the Reporting Period
"□ Applicable" "√ Not applicable"
Explanation of Securities Issuance Situation up to the Reporting Period (For bonds with different interest
rates during the duration please explain separately):
"□ Applicable" "√ Not applicable"
2. Changes in Total Shares and Shareholder Structure of the Company and Changes in Asset and
Liability Structure
"□ Applicable" "√ Not applicable"
3. Existing Internal Employee Shares Situation
"□ Applicable" "√ Not applicable"
III. Shareholder and Actual Controller Information
1. Total Number of Shareholders
Total number of common stock shareholders as of the end of the 24407
reporting period (households):
Total number of common stock shareholders as of the end of the 18068
previous month prior to the annual report disclosure:
Total number of preferred stock shareholders with restored voting 0
rights as of the end of the reporting period (households):
Total number of preferred stock shareholders with restored voting 0
rights as of the end of the previous month prior to the annual report
125 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
disclosure:
Shareholding Information of the Top Ten Shareholders and Top Ten Circulating Shareholders (or
Shareholders with No Sale Restrictions) as of the End of the Reporting Period
Unit: Share
Shareholding Information of the Top Ten Shareholders (excluding shares lent through margin trading)
Number Pledged marked
Change Shareholding of or frozen
Name of shareholder During the Percentage Nature of
at Period Restricted
(Full Name) Reporting (%) shareholder
End Shares Share
Period Quantity
Held status
Zhejiang Hangcha Domestic
Holding Co.Ltd 154697984 541442944 41.34 0 None 0 non-state-owned
legal person
Hangzhou Industrial State-owned
Investment Group Co. 76289058 267011704 20.39 0 None 0
Entity
Ltd.Domestic
Zhao Limin 8176004 28616014 2.18 0 None 0
natural person
Hong Kong Securities
Clearing Company -8568447 25089537 1.92 0 None 0 Other
Limited
China Life Insurance
Company Limited -
Traditional - Ordinary 13487839 21967938 1.68 0 None 0 Other
Insurance Product - 005L
- CT001 Shanghai
National Social Security
Fund 418 Portfolio 12001100 12910800 0.99 0 None 0 Other
National Social Security
11577395 11577395 0.88 0 None 0 Other
Fund 406 Portfolio
Dai Jingjing 3399150 9897024 0.76 0 None 0 Domestic
natural person
Xu Lida 2186188 7651658 0.58 0 None 0 Domestic
natural person
Shanghai Chengrui
Investment Management 3253524 7551782 0.58 0 None 0 Other
Co. Ltd. - Yonglong
Select B Fund
Shareholding Situation of the Top Ten Shareholders with No Sell Restrictions (Excluding Shares Lent through Transfer for
Financing)
Number of Type and amount of shares
Circulating Shares
Name of shareholder
with No Sell Type Quantity
Restrictions
Zhejiang Hangcha Holding Co.Ltd 541442944 RMB Ordinary Shares 541442944
Hangzhou Industrial Investment Group 267011704 RMB Ordinary Shares 267011704
Co. Ltd.Zhao Limin 28616014 RMB Ordinary Shares 28616014
126 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hong Kong Securities Clearing Company
25089537 RMB Ordinary Shares 25089537
Limited
China Life Insurance Company Limited -
Traditional - Ordinary Insurance Product 21967938 RMB Ordinary Shares 21967938
- 005L - CT001 Shanghai
National Social Security Fund 418
12910800 RMB Ordinary Shares 12910800
Portfolio
National Social Security Fund 406
11577395 RMB Ordinary Shares 11577395
Portfolio
Dai Jingjing 9897024 RMB Ordinary Shares 9897024
Xu Lida 7651658 RMB Ordinary Shares 7651658
Shanghai Chengrui Investment
Management Co. Ltd. - Yonglong Select 7551782 RMB Ordinary Shares 7551782
B Fund
Explanation of the Repurchase Special
Account Situation Among the Top Ten N/A
Shareholders
Explanation of the Delegation of Voting
Rights Entrusted Voting Rights or
N/A
Waiver of Voting Rights by the Above
Shareholders
Description of the relationship or
The company is unaware of any relationships or concerted actions among the
concerted action among the above above shareholders.shareholders
Explanation of Preferred Shareholders
with Restored Voting Rights and Their N/A
Shareholding Amounts
Status of Shareholders Holding More than 5% of Shares the Top Ten Shareholders and the Top Ten
Shareholders with Unrestricted Circulating Shares Participating in Transfer for Financing Activities
"√ Applicable" "□ Not applicable"
Unit: Share
Status of Shareholders Holding More than 5% of Shares the Top Ten Shareholders and the Top Ten Shareholders with
Unrestricted Circulating Shares Participating in Transfer for Financing Activities
Number of shares Number of shares Number of shares
held by common Number of shares
lent through held by common
securities accounts lent through
refinancing and have securities accounts
Name of and credit securities not yet returned at and credit securities refinancing and have
shareholders (full accounts at the not yet returned atthe beginning of the accounts at the end of
name) beginning of the the end of the periodperiod the period
period
Total Percentage Total Percentage Total Percentage Total Percentage
number (%) number (%) number (%) number (%)
Shanghai Chengrui
Investment
Management Co. 4298258 0.46 729100 0.08 7551782 0.58 0 0
Ltd. - Yonglong
Select B Fund
127 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Changes in the Top Ten Shareholders and the Top Ten Shareholders with Unrestricted Circulating
Shares Due to Lending/Returning of Shares in Transfer for Financing
"√ Applicable" "□ Not applicable"
Unit: Share
Changes in the Top Ten Shareholders and the Top Ten Shareholders with Unrestricted Circulating Shares Due to
Lending/Returning of Shares in Transfer for Financing
Number of Shares Held in Ordinary
Enter/Slip Number of shares lent Accounts and Margin Accounts by
out of the through refinancing and Shareholders at Period-End and the
Name of shareholders (full top 10 have not yet returned at the Number of Shares Lent in Transfer for
name) during the end of the period Financing that Have Not Yet Been
reporting Returned
period Percenta Percentage
Total number ge (%) Total number (%)
Shanghai Chengrui
Investment Management Co.Enter 0 0 7551782 0.58
Ltd. - Yonglong Selected B
Fund
Number of Shares Held and Lock-up Conditions of the Top Ten Shareholders with Restricted Shares
"□ Applicable" "√ Not applicable"
2. Strategic Investors or General Corporations Becoming Top 10 Shareholders Due to the
Distribution of New Shares
"□ Applicable" "√ Not applicable"
IV. Situation of Controlling Shareholders and Actual Controllers
1. Controlling Shareholder Information
(1) Legal Entity
"√ Applicable" "□ Not applicable"
Item Zhejiang Hangcha Holding Co. Ltd
Person in Charge or Legal Representative Qiu Jianping
Date of Incorporation 01/23/2003
Industrial investment development
Main Business Operations
property management real estate leasing
Shareholdings of other domestic and overseas listed
companies that controlled and owned during the reporting None
period
Additional information None
(2) Natural Person
"□ Applicable" "√ Not applicable"
(3) Special Explanations for the Absence of Controlling Shareholders in the Company
"□ Applicable" "√ Not applicable"
128 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4) Explanation for Changes in Controlling Shareholders During the Reporting Period
"□ Applicable" "√ Not applicable"
(5) Diagram of Property Rights and Control Relationship Between the Company and the
Controlling Shareholder
"√ Applicable" "□ Not applicable"
Hangcha Holding
Hangcha Group Co. Ltd
2. Situation of Actual Controllers
(1) Legal Entity
"□ Applicable" "√ Not applicable"
(2) Natural Person
"√ Applicable" "□ Not applicable"
Name Qiu Jianping
Nationality China
Whether to obtain
residency permits in
No
other countries or
regions
Main occupation and Chairman and Actual Controller of Zhejiang Hangcha Holdings Co. Ltd.;
position Company Director
1.Hangzhou GreatStar Technology Co. Ltd. Stock Code: 002444
Stock Abbreviation: GreatStar Technology This company was listed on the
Shenzhen Stock Exchange on July 13 2010.Overseas listed Main businesses include hand tools handheld electric tools smart tools
companies controlled etc.over the past decade 2.Zhejiang Xinchai Co. Ltd. Stock Code: 301032 Stock Abbreviation:
Xinchai Co. Ltd. This company was listed on the Shenzhen Stock
Exchange on July 22 2021 mainly engaged in diesel engines and parts
engineering machinery agricultural machinery casting engine
components and mechanical parts etc.
(3) Special Explanations for the Absence of an Actual Controller in the Company
"□ Applicable" "√ Not applicable"
129 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4) Explanation for Changes in Company Control during the Reporting Period
"□ Applicable" "√ Not applicable"
(5) Block diagram showing the property rights and control relationships between the Company
and the actual controller
"√ Applicable" "□ Not applicable"
Qiu Jianping
GreatStar Holdings
GreatStar Holdings GreatStar Technology
Hangcha Holding
Hangcha Group Co.Ltd.
(6) The actual controller controls the Company via asset management methods such as trust
"□ Applicable" "√ Not applicable"
3. Other Information on Controlling Shareholders and Actual Controllers
"□ Applicable" "√ Not applicable"
V . Have the Number of Pledged Shares of the Controlling Shareholder or the Largest
Shareholder and Their Concerted Actors Reached 80% or More of the Shares Held by Them
"□ Applicable" "√ Not applicable"
VI . Other Legal Entity Shareholders Holding More Than 10% of Shares
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuan Currency: CNY
Main
Name of Legal Person in Business
Charge or Date of Organization Code Registered
Entity Activities or
Legal Incorporation capital
Shareholder Management
Representative
Activities
Hangzhou Niu Jian 11/13/2001 91330100730327291G 600000 Industrial
Industrial investment
130 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Investment etc.Group Co. Ltd.Notes None
VII Explanation of Shareholding Restrictions on Reductions
"□ Applicable" "√ Not applicable"
VIII Implementation progress of share repurchase during the reporting period
"□ Applicable" "√ Not applicable"
Chapter 8 Information Related to Preferred Shares
"□ Applicable" "√ Not applicable"
Chapter 9 Bond-Related Information
I. Company Bonds (Including Corporate Bonds) and Non-Financial Enterprise Debt Financing
Instruments
"□ Applicable" "√ Not applicable"
II. Convertible Corporate Bonds
"□ Applicable" "√ Not applicable"
131 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Chapter 10 Financial reporting
I. Audit Report
"√ Applicable" "□ Not applicable"
To all shareholders of Hangcha Group Co. Ltd.
1. Opinion
We have audited the accompanying financial statements of Hangcha Group Co. Ltd. (hereinafter
referred to as “Hangcha Group Company”) which comprise the consolidated and parent company's
balance sheets as at December 31 2024 the consolidated and parent company’s income statements the
consolidated and parent company’s statements of cash flows the consolidated and parent company’s
statements of changes in owners’ equity for the year then ended and the related notes to the financial
statements.In our opinion the accompanying financial statements have been prepared in all material respects in
accordance with the Accounting Standards for Business Enterprises and give a fair view of the
consolidated and parent company’s financial position of Hangcha Group Company as at December 31
2024 and the consolidated and parent company’s operating results and cash flows for the year then
ended.
2 Basis for Opinion
We conducted our audit in accordance with the provisions of China CPA Standard on Auditing (CSA).Our responsibilities under those standards are further described in the CPA's Responsibilities for the
Audit of the Financial Statements section of the Audit Report. We are independent of Hangcha Group
Company and have fulfilled our other ethical responsibilities in accordance with the Code of Ethics for
Certified Public Accountants of China. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
3. Critical Audit Matters
Critical audit matters are those matters that in our professional judgment were of most significance in
our audit of the Financial Statements of the current period. These matters shall be addressed in the
context of our audit of the Financial Statements as a whole and in forming our opinion thereon and we
do not provide a separate opinion on these matters.
(1) Revenue
a. Description
For details on relevant information disclosures please refer to Notes 3.26 and 5.2.1 to the financial
statements.The operating revenue of Hangcha Group Company primarily stems from the sales of forklifts and parts.In 2024 its operating revenue amounted to RMB 16485830300.Hangcha Group Company mainly engages in the sales of forklifts and parts which represent
performance obligations satisfied at a point in time. Domestic sales revenue is recognized when
Hangcha Group Company delivers the products to the buyer as agreed in the contract receives the
132 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
payment or obtains the right to payment and it is probable that the associated economic benefits will
flow into Hangcha Group Company. Export sales revenue is recognized when Hangcha Group Company
completes customs clearance as agreed in the contract receives a bill of lading receive the payment for
goods or obtains the right to payment and it is probable that the associated economic benefits will flow
into Hangcha Group Company.As operating revenue is one of the key performance indicators of Hangcha Group Company there exists
an inherent risk that management of Hangcha Group Company (hereinafter referred to as “Management”)
may meet specific targets or expectations through inappropriate revenue recognition. Therefore we
included revenue recognition as a critical audit matter.b. Audit response
(1) Obtained an understanding of the key internal controls related to revenue recognition evaluated the
design of these controls identified whether they are implemented and tested whether the relevant
internal controls function effectively;
(2) Perform analytical procedures on operating revenue by year month product and customer to
identify significant or unusual fluctuations and investigate their causes;
(3) Analyze business models and sales contracts to identify contractual terms and conditions related to
the transfer of control over goods and related performance obligations and evaluate whether revenue
recognition policies comply with the Accounting Standards for Business Enterprises;
(4) For domestic sales revenue: Select items to verify supporting documents including sales contracts
delivery notes shipping documents sales invoices and acceptance certificates. For export sales revenue:
Select items to verify supporting documents such as sales contracts export customs declarations bills of
lading and sales invoices and conduct interviews with certain key customers;
(5) Perform confirmation procedures on accounts receivable and select key customers to confirm sales
revenue for the current period;
(6) Performed a cut-off test on the operating revenues recognized before and after the balance sheet date
to evaluate whether the operating revenues have been recognized within the appropriate period; and
(7) Assessed whether the information related to the operating revenues has been appropriately presented
in the Financial Statements.
2. Impairment of accounts receivable and contract assets
(1). Description
For details on relevant information disclosure please refer to Notes 3.12 5.1.4 and 5.1.9 to the financial
statements.As of December 31 2024 Hangcha Group Company reported a book balance of accounts receivable of
RMB 2642728100 with the provision for bad debts of RMB 176330700 resulting in the carrying
amount of RMB 2466397400 and a book balance of contract assets of RMB 121510000 with the
provision for impairment of RMB 13410400 resulting in the carrying amount of RMB 108099600.Management measures loss provisions for amounts receivable and contract assets at an amount equal to
lifetime ECL either individually or collectively based on their credit risk characteristics. Due to the
133 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
significant amounts of accounts receivable and contract assets and the significant management judgment
involved in their impairment testing we identified the impairment of accounts receivable and contract
assets as a key audit matter.
2. Audit response
We performed the following audit procedures for impairment of accounts receivable and contract assets
among others:
(1) Obtain an understanding of internal controls relevant to the impairment of accounts receivable and
contract assets evaluate the design of these controls determine whether they have been implemented
and test the operational effectiveness of relevant internal controls;
(2) Review the results of Management’s estimates of provisions for bad debts and impairment in
previous years or subsequent re-estimates thereof made by Management;
(3) Review the relevant considerations and objective evidence of Management’s credit risk evaluation
of accounts receivable and contract assets and evaluate whether Management has properly identified the
credit risk characteristics of all accounts receivable and contract assets;
(4) For accounts receivable and contract assets measured for expected credit losses on an individual
basis review Management’s forecast of expected cash flows evaluate the appropriateness of significant
assumptions and the appropriateness relevance and reliability of data used in the forecast and verify
them against the external evidence obtained;
(5) for accounts receivable and contract assets measured for expected credit losses on a portfolio basis
evaluate the reasonableness of Management’s classification of portfolios by credit risk characteristics;
evaluate the reasonableness of the expected credit loss rates for accounts receivable and contract assets
determined by Management including the appropriateness of significant assumptions used and the
appropriateness relevance and reliability of data; and test the accuracy of Management’s calculation of
provisions for bad debts and impairment;
(6) Evaluate the reasonableness of Management’s provision for bad debts and impairment by combining
the confirmation procedures on accounts receivable and contract assets with the subsequent payments
after the period;
(7) Verify whether the information related to the impairment of accounts receivable and contract assets
has been appropriately presented in the financial statements.IV. Other information
The Management of the Company are responsible for the other information. The other information
comprises all the information included in the annual report other than the Financial Statements and our
Audit Report thereon.Our audit opinion on the Financial Statements does not cover the other information and we do not
express any form of appraisal conclusion thereon.We are responsible for reading the other information based on our audit of the Financial Statements and
in doing so consider whether the other information is materially inconsistent with the Financial
Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
134 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
If we conclude that there is a material misstatement of the other information based on the work we have
performed we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and those charged with governance for the Financial
Statements
The Management of the Company is responsible for the preparation of the Financial Statements that give
a true and fair view in accordance with the Accounting Standards for Business Enterprises and for the
design implementation and maintenance of such internal controls so as to ensure that the Financial
Statements are free from material misstatement whether due to fraud or error.In preparing the financial statements Management is responsible for assessing Hangcha Group
Company’s ability to continue as a going concern disclosing as applicable matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
Hangcha Group Company or to cease operations or has no realistic alternative but to do so.Those charged with governance of Hangcha Group Company (hereinafter referred to as “Those Chargedwith Governance”) are responsible for overseeing the preparation of those financial statements of
Hangcha Group Company.VI. Responsibilities of the CPAs for the audit of the Financial Statements
We aim to obtain reasonable assurance about whether the Financial Statements are free from material
misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with the CSA will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these Financial
Statements.As part of an audit in accordance with the CSA we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the Financial Statements whether due to
fraud or error design and perform audit processes responsive to those risks and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. As fraud may involve collusion
forgery intentional omissions misrepresentations or the override of internal control the risk of failing
to detect a material misstatement resulting from fraud is higher than the risk of failing to detect a
material misstatement resulting from error.
2. Obtain an understanding of internal controls relevant to the audit in order to design appropriate audit
processes.
3. Evaluate the appropriateness of accounting policies used by the Management and the rationality of
accounting estimates and related disclosures made by the Management.
4. Conclude on the appropriateness of the Management's use of the assumption of ongoing concern and
based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on Hangcha Group Company’s ability to continue as a going
135 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
concern. In accordance with the CSA we are required to draw attention in our audit report to the related
disclosures in the Financial Statements if we conclude that a material uncertainty exists or to issue an
audit report containing the modified opinion if such disclosures are inadequate. Our conclusions are
based on the audit evidence obtained up to the date of our audit report. However future events or
conditions may cause Hangcha Group Company to cease to continue as a going concern.
5. Evaluate the overall presentation structure and content of the Financial Statements and whether the
Financial Statements give a true and fair view of the underlying transactions and events.
6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within Hangcha Group Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit and we remain
solely responsible for our audit opinion.We communicate with those charged with governance regarding matters such as the planned scope and
timing of the audit and significant audit findings including any significant deficiencies in internal
control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and to communicate with them on all relationships and
other matters that may reasonably be considered to bear on our independence and relevant preventive
measures which are applicable.Based on the matters communicated with those charged with governance we determine the matters that
are of most significance in the audit of the Financial Statements of the current period and are therefore
the critical audit matters. We describe such matters in our audit report unless law or regulation precludes
public disclosure of the matters or when in extremely rare circumstances we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.Pan-China Certified Public Accountants LLP Chinese CPA: Xu Jinbo
(Project Partner)
Hangzhou China Chinese CPA: Tang Zheren
April 17 2025
136 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
II. Financial Statements
Consolidated Balance Sheet
12/31/2024
Prepared by: Hangcha Group Co. Ltd.Unit: Yuan Currency: CNY
Item Notes: 12/31/2024 12/31/2023
Current assets:
Monetary funds 7.1 4107928866.53 3804264360.54
Settlement funds
Loans to other banks
Held-for-trading financial assets 7.2 80000333.33
Derivative financial assets
Notes receivable 7.4 17251330.80 20456574.93
Accounts receivable 7.5 2466397400.92 1619232489.21
Receivables financing 7.7 282597817.02 205590299.79
Advances paid 7.8 343486147.30 497494686.48
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 7.9 274834855.58 153373157.90
Including: Interest receivable
Dividend receivable
Financial assets under reverse repo
Inventories 7.10 2306224031.16 2225985108.23
including: data source
Contract assets 7.6 108099563.58 79058317.03
Assets held for sale
Non-current assets due within one year 7.12 183727543.92 156388815.70
Other current assets 7.13 140748519.54 113990707.48
Total current assets 10311296409.68 8875834517.29
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables 7.16 82893465.17 73437482.43
Long-term equity investments 7.17 2363589008.85 1982422755.19
Other equity instrument investments
Other non-current financial assets 7.18 26325621.62 25591400.00
Investment property 7.20 67035373.96 72945876.13
Fixed assets 7.21 2196536129.01 1926935915.66
Construction in progress 7.22 584836969.86 425329238.21
Productive biological assets
Oil & gas assets
Right-of-use assets 7.25 174626534.71 104527653.15
Intangible assets 7.26 402285769.43 369192651.96
including: data source
Development expenditures
including: data source
Goodwill 7.27 10652989.76 10652989.76
Long-term prepayments 7.28 25559923.43 16458700.91
Deferred tax assets 7.29 116909765.24 80999988.50
Other non-current assets 7.30 30750000.00
Total non-current assets 6051251551.04 5119244651.90
137 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Total assets 16362547960.72 13995079169.19
Current liabilities:
Short-term borrowings 7.32 331742341.83 927842373.02
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities 7.34 366815.63 3911.26
Notes payable 7.35 881330175.61 575292393.95
Accounts payable 7.36 2565134276.77 2048474699.62
Advances received 7.37 913546.17 915837.83
Contractual liabilities 7.38 307715552.05 599700870.86
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposit for agency security transaction
Deposit for agency security underwriting
Employee benefits payable 7.39 128557681.29 121696321.81
Taxes and rates payable 7.20 177947878.38 146581955.05
Other payables 7.41 86678278.91 85131164.62
Including: Interest payable
Dividend payable 40000.00 20000.00
Handling fee and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 7.43 629798754.44 25913389.64
Other current liabilities 7.44 69453487.35 80186736.97
Total current liabilities 5179638788.43 4611739654.63
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 7.45 54717119.68
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 7.47 143909897.42 74459998.09
Long-term payables 7.48 4578954.00 4578954.00
Long-term employee benefits payable
Provisions
Deferred income 7.21 93427574.52 54161691.30
Deferred tax liabilities 7.29 647003.11 66269.23
Other non-current liabilities
Total non-current liabilities 297280548.73 133266912.62
Total liabilities 5476919337.16 4745006567.25
Owners' (shareholders’) equity:
Paid-in Capital (or Share Capital) 7.53 1309812049.00 935580035.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 7.55 1407448822.40 1797762921.30
Less: Treasury shares
Other comprehensive income 7.57 -3901280.77 -10529703.70
Special reserve 7.58 2121472.10 2143872.40
Surplus reserve 7.59 654906024.50 559673773.25
General risk reserve
Undistributed profit 7.60 6793507969.21 5334504538.97
Total owners' equity (or shareholders' 10163895056.44 8619135437.22
138 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
equity) attributable to the parent company
Non-controlling interest 721733567.12 630937164.72
Total Owner's Equity (or Shareholder's
Equity) 10885628623.56 9250072601.94
Total Liabilities and Owner's Equity
(or Shareholder's Equity) 16362547960.72 13995079169.19
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
Parent Company’s Balance Sheet
12/31/2024
Prepared by: Hangcha Group Co. Ltd.Unit: Yuan Currency: CNY
Item Notes: 12/31/2024 12/31/2023
Current assets:
Monetary funds 3009319307.95 2779724513.51
Held-for-trading financial assets 80000333.33
Derivative financial assets
Notes receivable 10289951.17 17533375.18
Accounts receivable 19.1 3036808048.50 1888049720.82
Receivables financing 241700512.87 133226535.78
Advances paid 42474339.91 41436429.31
Other receivables 19.2 36385301.01 24128538.11
Including: Interest receivable
Dividend receivable
Inventories 886530210.32 920933113.07
including: data source
Contract assets 14916040.74 14307196.55
Assets held for sale
Non-current assets due within one year
Other current assets 3452385.10
Total current assets 7358424045.80 5822791807.43
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 19.3 3809634099.42 3084655235.76
Other equity instrument investments
Other non-current financial assets 25591400.00 25591400.00
Investment property 116934882.69 125503792.06
Fixed assets 971997970.63 1036024795.74
Construction in progress 485529865.89 418255632.51
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 321547885.32 318082925.82
including: data source
Development expenditures
including: data source
Goodwill
Long-term prepayments 15845397.68 14796751.38
Deferred tax assets 31848322.16 12904801.03
139 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other non-current assets
Total non-current assets 5778929823.79 5035815334.30
Total assets 13137353869.59 10858607141.73
Current liabilities:
Short-term borrowings 100000000.00 850742708.33
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1017600000.00 540900000.00
Accounts payable 1769306207.71 1306081999.84
Advances received
Contractual liabilities 91006780.99 102597540.85
Employee benefits payable 53208863.39 53529086.94
Taxes and rates payable 105503344.63 84350041.96
Other payables 36652318.12 5012067.85
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one year 600388888.89
Other current liabilities 11830881.53 13337680.31
Total current liabilities 3785497285.26 2956551126.08
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 4578954.00 4578954.00
Long-term employee benefits payable
Provisions
Deferred income 89096793.31 49016214.64
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 93675747.31 53595168.64
Total liabilities 3879173032.57 3010146294.72
Owners' (shareholders’) equity:
Paid-in Capital (or Share Capital) 1309812049.00 935580035.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 1546607800.60 1914375439.40
Less: Treasury shares
Other comprehensive income -14670146.36 -32737146.49
Special reserve 1484527.12 1223802.51
Surplus reserve 656061435.10 560829183.85
Undistributed profit 5758885171.56 4469189532.74
Total Owner's Equity (or Shareholder's
Equity) 9258180837.02 7848460847.01
Total Liabilities and Owner's Equity
(or Shareholder's Equity) 13137353869.59 10858607141.73
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
140 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Consolidated Income Statement
January - December 2024
Unit: Yuan Currency: CNY
Item Notes: 2024 2023
I. Total operating revenue 7.61 16485830318.58 16298640931.47
Including: Operating income 7.61 16485830318.58 16298640931.47
Interest income
Premiums earned
Revenue from handling charges and
commission
II. Total operating cost 7.61 14537003813.40 14578182826.29
Including: Operating cost 7.61 12603220242.48 12915289176.66
Interest expenses
Handling charges and commission
expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance policy
reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 7.62 73487504.14 64014861.51
Selling expenses 7.63 728012409.97 597205662.69
Administrative expenses 7.64 406617549.36 345284671.71
R&D expenses 7.65 774177062.16 739836786.84
Financial expenses 7.66 -48510954.71 -83448333.12
Including: Interest expense 35903231.84 51829568.92
Interest income 62988025.19 82750968.45
Add: Other earnings 7.67 212407744.40 124060363.58Investment income （losses presentedby “-” 7.68 383409328.29 277376161.12）
Including: Earnings from the
investment in associated company and joint 385124878.33 288812454.73
venture
Gains from derecognition of
financial assets at amortized cost
Foreign exchange gains (“-” for
losses)
Net exposure hedging income (“-” for
loss)
Gains from changes in fair value (“-”
for losses) 7.70 -362571.04 -3911.26
Credit impairment losses (losses
presented by “-”) 7.71 -71671551.44 -30671333.34
Assets impairment loss (losses
presented by “-”) 7.72 -32797059.11 -10070844.63
Gains on disposal of assets (“-” for
losses) 7.73 2645073.50 5088170.62
III. Operating profit (losses presented by “-”) 2442457469.78 2086236711.27
Add: Non-operating revenue 7.74 2462553.39 1919802.08
Less: Non-operating expenditure 7.75 1184180.10 1100193.57
IV. Profit before tax (or less: total loss) 2443735843.07 2087056319.78
Less: Income tax expenses 7.76 282818107.08 258248570.73
V. Net profit ("-" for net loss) 2160917735.99 1828807749.05
(I) Categorized by the continuity of operations
141 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
1. Net profit from continuing operations
(“-” for net loss) 2160917735.99 1828807749.05
2. Net profit from discontinuing
operations (losses presented by “-”)
(II) Categorized by the portion of equity ownership
1. Net income attributable to
shareholders of the parent company ("-" for 2022025698.99 1715611831.59
net loss)
2. Net profit attributable to
non-controlling shareholders ("-" for net loss) 138892037.00 113195917.46
VI. Other comprehensive income after tax 6493446.93 30137967.88
(I) Items attributable to the owners of the
parent company 6628422.93 30137967.88
1． Not to be reclassified subsequently
to profit or loss
1. Remeasurement gains or losses of a
defined benefit plan
2. Other comprehensive income using the
equity method that will not be reclassified to
profit or loss
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of enterprise’s
own credit risk
2． To be reclassified subsequently to
profit or loss 6628422.93 30137967.88
1. Other comprehensive income that can be
reclassified to profit or loss in equity method 18067000.13 17489694.15
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
debt investments
5. Cash flow hedging reserves
6. Exchange differences on translation of
foreign currency financial statements -11438577.20 12648273.73
(7) Others
(II) Items attributable to non-controlling
shareholders -134976.00
VII.Total comprehensive income 2167411182.92 1858945716.93
(I) Items attributable to the owners of the
parent company 2028654121.92 1745749799.47
(II) Items attributable to non-controlling
shareholders 138757061.00 113195917.46
VIII.Earnings per share (EPS):
(i) Basic earnings per share (RMB/share) 1.54 1.33
(ii) Diluted earnings per share
(RMB/share) 1.54 1.31
In the case of a business combination under the same control in the current period the net profit realized
by the acquiree before the combination is: RMB -1983591.63 and the net profit realized by the
acquiree in the previous period was: RMB -5804004.79.
142 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
Parent Company’s Income Statement
January - December 2024
Unit: Yuan Currency: CNY
Item Notes: 2024 2023
I. Business revenue 19.4 13528371666.54 13566775143.27
Less: Business cost 19.4 11302992882.10 11579161512.39
Taxes and surcharges 46934744.75 38035302.63
Selling expenses 72535257.70 73702617.45
Administrative expenses 193636017.07 158914601.76
R&D expenses 461983610.00 480248479.64
Financial expenses -29315709.93 -29213311.64
Including: Interest expense 18974465.11 36178404.41
Interest income 51462498.51 66628638.40
Add: Other earnings 133462206.87 86701301.76Investment income （losses presentedby “-” 19.5 514438460.63 358822298.88）
Including: Earnings from the
investment in associated company and joint 385124878.33 289070371.77
venture
Gains from derecognition of
financial assets at amortized cost
Net exposure hedging income(“-” for
loss)
Gains from changes in fair value (“-”
for losses) 333.33
Credit impairment losses (losses
presented by “-”) -62361253.54 -26995914.48
Assets impairment loss (losses
presented by “-”) -20465711.51 -8260093.26
Gains on disposal of assets (“-” for
losses) -815733.52 69833.74
II. Operating profit (“-” for loss) 2043863167.11 1676263367.68
Add: Non-operating revenue 983010.65 726377.49
Less: Non-operating expenditure 112067.23 764829.36
III. Total profit (“-” for loss) 2044734110.53 1676224915.81
Less: Income tax expenses 192016202.96 161175624.20
IV. Net profit (losses presented by “-”) 1852717907.57 1515049291.61
(I) Net profit from continuing operations
(losses presented by “-”) 1852717907.57 1515049291.61
(II) Net profit from discontinued
operations (losses presented by “-”)
V. Other comprehensive income after tax 18067000.13 17489694.15
(I) Not to be reclassified subsequently to
profit or loss
1. Remeasurement gains or losses of a
defined benefit plan
2. Other comprehensive income using
the equity method that will not be reclassified
to profit or loss
3. Changes in fair value of other equity
instrument investments
143 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
4. Changes in fair value of enterprise’s
own credit risk
(II) To be reclassified subsequently to
profit or loss 18067000.13 17489694.15
1. Other comprehensive income that can
be reclassified to profit or loss in equity 18067000.13 17489694.15
method
2. Changes in fair value of other debt
investments
3. Amount of financial assets
reclassified into other comprehensive income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserves
6. Exchange differences on translation
of foreign currency financial statements
7. Others
VI. Total comprehensive income 1870784907.70 1532538985.76
VII. Earnings per share (EPS):
(i) Basic earnings per share (RMB/share)
(ii) Diluted earnings per share
(RMB/share)
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting
Department: Yuan Guanghui
Consolidated Statement of Cash Flows
January - December 2024
Unit: Yuan Currency: CNY
Item Notes: 2024 2023
I. Cash flows from operating activities:
Cash receipts from sales of goods or
rendering of services 12019175100.35 13301353264.65
Net increase of client deposit and interbank
deposit
Net increase of central bank loans
Net increase of loans from other financial
institutions
Cash receipts from original insurance
contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and
investment
Cash receipts from interest handling
charges and commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security
transaction
Receipts of tax refund 694788689.11 736088223.96
Other cash receipts related to operating
activities 550217992.12 615623531.29
Subtotal of cash inflows from operating
activities 13264181781.58 14653065019.90
Cash payments for goods purchased and 9149464479.62 10389816661.88
144 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
services received
Net increase of loans and advances to
clients
Net increase of central bank deposit and
interbank deposit
Cash payments for insurance indemnities
of original insurance contracts
Net increase of loans to others
Cash payments for interest handling
charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of employees 1264079291.83 1085195924.57
Cash payments for taxes and rates 759332278.62 764204768.87
Other cash payments related to operating
activities 754480131.39 781760484.24
Subtotal of cash outflows from
operating activities 11927356181.46 13020977839.56
Net cash flows from operating
activities 7.78 1336825600.12 1632087180.34
II. Cash flows from investing activities:
Cash receipts from withdrawal of
investments 102205647.70
Cash receipts from investment income 28490000.00 8958500.00
Net cash receipts from the disposal of
fixed assets intangible assets and other 19439560.79 21557459.51
long-term assets
Net cash receipts from the disposal of
subsidiaries & other business units
Other cash receipts related to investing
activities 996834.60 8550000.00
Subtotal of cash inflows from investing
activities 48926395.39 141271607.21
Cash payments for the acquisition of fixed
assets intangible assets and other long-term 452043148.26 594982360.44
assets
Cash payments for investments 92894141.62
Net increase of pledged borrowings
Net cash payments for the acquisition of
subsidiaries & other business units 29860000.00 7272600.00
Other cash payments related to investing
activities 1762249.85 34608908.55
Subtotal of cash outflows from investing
activities 576559539.73 636863868.99
Net cash flows from investing
activities 7.78 -527633144.34 -495592261.78
III. Cash flows from financing activities:
Cash receipts from absorbing investments 50011960.00 31896400.00
Including: Cash received by subsidiaries
from non-controlling shareholders as 50011960.00 31896400.00
investments
Cash receipts from borrowings 1330467036.00 1126840000.07
Other cash receipts related to financing
activities 230000000.00 54790211.00
Subtotal of cash inflows from financing
activities 1610478996.00 1213526611.07
Cash payments for repayment of 1501486308.56 1037797716.78
145 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
borrowings
Cash payments for distribution of
dividends or profits and for interest expenses 585042150.64 463806879.10
Including: Cash paid by subsidiaries to
non-controlling shareholders as dividend or 90520278.70 49619258.30
profit
Other cash payments related to financing
activities 46703086.14 160289609.08
Subtotal of cash outflows from
financing activities 2133231545.34 1661894204.96
Net cash flows from financing
activities 7.78 -522752549.34 -448367593.89
IV. Effect of foreign exchange rate changes
on cash & cash equivalents 15078940.43 68076646.55
V. Net increase in cash and cash
equivalents 301518846.87 756203971.22
Add: Opening balance of cash and cash
equivalents 3773016919.56 3016812948.34
VI. Closing balance of cash and cash
equivalents 4074535766.43 3773016919.56
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
Parent Company’s Statement of Cash Flows
January - December 2024
Unit: Yuan Currency: CNY
Item Notes: 2024 2023
I. Cash flows from operating activities:
Cash receipts from sales of goods or
rendering of services 9299141930.83 10541575336.14
Receipts of tax refund 9582046.49 24447996.58
Other cash receipts related to operating
activities 310268611.38 307658497.93
Subtotal of cash inflows from operating
activities 9618992588.70 10873681830.65
Cash payments for goods purchased and
services received 7226509155.32 8541435848.91
Cash paid to and on behalf of employees 401061289.17 354104542.27
Cash payments for taxes and rates 416745006.83 348840843.89
Other cash payments related to operating
activities 259234757.32 317669554.79
Subtotal of cash outflows from
operating activities 8303550208.64 9562050789.86
Net cash flows from operating activities 1315442380.06 1311631040.79
II. Cash flows from investing activities:
Cash receipts from withdrawal of
investments 104287750.00
Cash receipts from investment income 162803581.30 77887721.15
Net cash receipts from the disposal of
fixed assets intangible assets and other 67460648.96 6989709.44
long-term assets
Net cash receipts from the disposal of
subsidiaries & other business units 1.00 900000.00
146 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other cash receipts related to investing
activities
Subtotal of cash inflows from investing
activities 230264231.26 190065180.59
Cash payments for the acquisition of fixed
assets intangible assets and other long-term 250180904.83 476980558.59
assets
Cash payments for investments 428812610.00 119063006.00
Net cash payments for the acquisition of
subsidiaries & other business units
Other cash payments related to investing
activities
Subtotal of cash outflows from investing
activities 678993514.83 596043564.59
Net cash flows from investing
activities -448729283.57 -405978384.00
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 1000000000.00 1000000000.00
Other cash receipts related to financing
activities 100000000.00
Subtotal of cash inflows from financing
activities 1100000000.00 1000000000.00
Cash payments for repayment of
borrowings 1250000000.00 851982716.78
Cash payments for distribution of
dividends or profits and for interest expenses 487118302.05 400900824.33
Other cash payments related to financing
activities 95000727.88
Subtotal of cash outflows from
financing activities 1737118302.05 1347884268.99
Net cash flows from financing
activities -637118302.05 -347884268.99
IV. Effect of foreign exchange rate changes
on cash & cash equivalents
V. Net increase in cash and cash
equivalents 229594794.44 557768387.80
Add: Opening balance of cash and cash
equivalents 2779724513.51 2221956125.71
VI. Closing balance of cash and cash
equivalents 3009319307.95 2779724513.51
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
147 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Consolidated Statement of Changes in Owners’ Equity
January - December 2024
Unit: Yuan Currency: CNY
2024
Owners' equity attributable to the parent company
Item Non-controlling
Paid-in Capital Other equity instruments Less: Other General interest Total equity
Special Surplus Undistributed
(or Share Preferred Perpetual Capital reserve Treasury comprehensive risk Other Subtotal
Other reserve reserve profitCapital) shares bonds shares income reserve
I. Year-end
balance of the 935580035.00 1789662921.30 -10529703.70 2143872.40 559673773.25 5343334318.75 8619865217.00 631108347.64 9250973564.64
previous year
Add: Changes in
accounting
policies
Correction
for previous
errors
Other 8100000.00 -8829779.78 -729779.78 -171182.92 -900962.70
II. Opening
balance for the 935580035.00 1797762921.30 -10529703.70 2143872.40 559673773.25 5334504538.97 8619135437.22 630937164.72 9250072601.94
current year
Amount of
increase/decrease
within the 374232014.00 -390314098.90 6628422.93 -22400.30 95232251.25 1459003430.24 1544759619.22 90796402.40 1635556021.62
current period
("-" for less)
(I) Total
comprehensive 6628422.93 2022025698.99 2028654121.92 138757061.00 2167411182.92
income
(II) Owners'
investment and
reductions in -22546460.10 -22546460.10 42579620.10 20033160.00
capital
1. Common
shares invested 49893160.00 49893160.00
by owners
2. Capital
contribution
from holders of
other equity
instruments
3. Amount of
share-based
148 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
payments
recognized in
owners' equity
4． Other -22546460.10 -22546460.10 -7313539.9 -29860000.00
(III) Profit
distribution 95232251.25 -563022268.75 -467790017.50 -90540278.70 -558330296.20
1. Withdrawal
of surplus 95232251.25 -95232251.25
reserves
2． Withdrawal
of general risk
reserve
3． Distribution
to owners (or -467790017.50 -467790017.50 -90540278.70 -558330296.20
shareholders)
4． Other
(IV) Internal
carry-forward of 374232014.00 -374232014.00
owners' equity
1．Capital
reserves 374232014.00 -374232014.00
converted into
capital (or stock)
2． Surplus
reserves
converted into
capital (or stock)
3．Makeup for
loss of surplus
reserves
4. Changes
from
re-measurement
of defined
benefit plan
carried over to
retained earnings
5. Other
comprehensive
income carried
over to retained
earnings
6． Other
(V) Special
reserve -22400.30 -22400.30 -22400.30
1. Withdrawn
for the current 11895166.88 11895166.88 11895166.88
period
149 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Used for the
current period -11917567.18 -11917567.18 -11917567.18
(VI) Others 6464375.20 6464375.20 6464375.20
IV. Ending
balance of the 1309812049.00 1407448822.40 -3901280.77 2121472.10 654906024.50 6793507969.21 10163895056.44 721733567.12 10885628623.56
current period
2023
Owners' equity attributable to the parent company
Item Non-controlling
Paid-in Total equityOther equity instruments Other General interestLess: Treasury Surplus Undistributed
Capital (or Preferred Perpetual Capital reserve comprehensive Special reserve risk
Other Subtotal
shares reserve profit
Share Capital) shares bonds
Other
income reserve
I. Year-end
balance of the 866397337.00 172756051.39 731940012.30 9998014.45 -40667671.58 1748632.94 559673773.25 3997253257.28 6279103378.13 530936463.47 6810039841.60
previous year
Add: Changes in
accounting
policies
Correction
for previous errors
Other 8100000.00 -4128535.90 3971464.10 931577.99 4903042.09
II. Opening
balance for the 866397337.00 172756051.39 740040012.30 9998014.45 -40667671.58 1748632.94 559673773.25 3993124721.38 6283074842.23 531868041.46 6814942883.69
current year
Amount of
increase/decrease
within the current 69182698.00 -172756051.39 1057722909.00 -9998014.45 30137967.88 395239.46 1341379817.59 2336060594.99 99069123.26 2435129718.25
period ("-" for
less)
(I) Total
comprehensive 30137967.88 1715611831.59 1745749799.47 113195917.46 1858945716.93
income
(II) Owners'
investment and
reductions in 1052489683.31 95000727.88 957488955.43 35512464.10 993001419.53
capital
1. Common
shares invested by 38744150.00 38744150.00
owners
2. Capital
contribution from
holders of other 1052427298.71 1052427298.71 1052427298.71
equity instruments
3. Amount of
share-based
payments
recognized in
owners' equity
4． Other 62384.60 95000727.88 -94938343.28 -3231685.90 -98170029.18
150 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(III) Profit
distribution -374232014.00 -374232014.00 -49639258.30 -423871272.30
1. Withdrawal of
surplus reserves
2．Withdrawal of
general risk
reserve
3. Distribution to
owners (or -374232014.00 -374232014.00 -49639258.30 -423871272.30
shareholders)
4． Other
(IV) Internal
carry-forward of 69182698.00 -172756051.39 -1425388.94 -104998742.33
owners' equity
1. Capital reserves
converted into
capital (or stock)
2. Surplus
reserves converted
into capital (or
stock)
3. Makeup for
loss of surplus
reserves
4. Changes from
re-measurement
of defined benefit
plan carried over
to retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6． Other 69182698.00 -172756051.39 -1425388.94 -104998742.33
(V) Special
reserve 395239.46 395239.46 395239.46
1. Withdrawn for
the current period 11191873.44 11191873.44 11191873.44
2. Used for the
current period -10796633.98 -10796633.98 -10796633.98
(VI) Others 6658614.63 6658614.63 6658614.63
IV. Ending
balance of the 935580035.00 1797762921.30 -10529703.70 2143872.40 559673773.25 5334504538.97 8619135437.22 630937164.72 9250072601.94
current period
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
Parent Company’s Statement of Changes in Owners’ Equity
January - December 2024
Unit: Yuan Currency: CNY
151 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2024
Other equity
instruments
Pr Less:
Item Paid-in Capital (or ef Other
Share Capital) err
Perp Treasu
ed etual Othe
Capital reserve ry comprehensive Special reserve Surplus reserve Undistributed profit Total equity
sh bon r shares
income
ar ds
es
I. Year-end balance
of the previous year 935580035.00 1914375439.40 -32737146.49 1223802.51 560829183.85 4469189532.74 7848460847.01
Add: Changes in
accounting policies
Correction for
previous errors
Other
II. Opening balance
for the current year 935580035.00 1914375439.40 -32737146.49 1223802.51 560829183.85 4469189532.74 7848460847.01
Amount of
increase/decrease
within the current 374232014.00 -367767638.80 18067000.13 260724.61 95232251.25 1289695638.82 1409719990.01
period ("-" for less)
(I) Total
comprehensive 18067000.13 1852717907.57 1870784907.70
income
(II) Owners'
investment and
reductions in capital
1. Common shares
invested by owners
2. Capital
contribution from
holders of other
equity instruments
3. Amount of
share-based payments
recognized in owners'
equity
4． Other
(III) Profit 95232251.25 -563022268.75 -467790017.50
152 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
distribution
1. Withdrawal of
surplus reserves 95232251.25 -95232251.25
2. Distribution to
owners (or -467790017.50 -467790017.50
shareholders)
3． Other
(IV) Internal
carry-forward of 374232014.00 -374232014.00
owners' equity
1. Capital reserves
converted into capital 374232014.00 -374232014.00
(or stock)
2. Surplus reserves
converted into capital
(or stock)
3. Makeup for loss
of surplus reserves
4. Changes from
re-measurement of
defined benefit plan
carried over to
retained earnings
5. Other
comprehensive
income carried over
to retained earnings
6． Other
(V) Special reserve 260724.61 260724.61
1. Withdrawn for
the current period 11910872.11 11910872.11
2. Used for the
current period -11650147.50 -11650147.50
(VI) Others 6464375.20 6464375.20
IV. Ending balance of
the current period 1309812049.00 1546607800.60 -14670146.36 1484527.12 656061435.10 5758885171.56 9258180837.02
2023
Item
Paid-in Capital (or Other equity instruments Capital reserve Less: Treasury Other Special reserve Surplus reserve Undistributed profit Total equity
153 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Share Capital) Prefe Perpe shares comprehensive
rred tual income
Other
share bond
s s
I. Year-end balance of the
866397337.00172756051.39856714915.009998014.45-50226840.64417771.53560829183.853328372255.135725262658.81
previous year
Add: Changes in
accounting policies
Correction for
previous errors
Other
II. Opening balance for the
866397337.00172756051.39856714915.009998014.45-50226840.64417771.53560829183.853328372255.135725262658.81
current year
Amount of
increase/decrease within
69182698.00-172756051.391057660524.40-9998014.4517489694.15806030.981140817277.612123198188.20
the current period ("-" for
less)
(I) Total comprehensive 17489694.15 1515049291.61 1532538985.76
income
(II) Owners' investment
1052427298.7195000727.88957426570.83
and reductions in capital
1. Common shares
invested by owners
2. Capital contribution
from holders of other 1052427298.71 1052427298.71
equity instruments
3. Amount of share-based
payments recognized in
owners' equity
4． Other 95000727.88 -95000727.88
(III) Profit distribution -374232014.00 -374232014.00
1. Withdrawal of surplus
reserves
2. Distribution to owners
-374232014.00-374232014.00
(or shareholders)
3． Other
(IV) Internal
carry-forward of owners' 69182698.00 -172756051.39 -1425388.94 -104998742.33
equity
1. Capital reserves
converted into capital (or
stock)
154 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Surplus reserves
converted into capital (or
stock)
3. Makeup for loss of
surplus reserves
4. Changes from
re-measurement of defined
benefit plan carried over to
retained earnings
5. Other comprehensive
income carried over to
retained earnings
6． Other 69182698.00 -172756051.39 -1425388.94 -104998742.33
(V) Special reserve 806030.98 806030.98
1. Withdrawn for the
11191873.4411191873.44
current period
2. Used for the current
-10385842.46-10385842.46
period
(VI) Others 6658614.63 6658614.63
IV. Ending balance of the
935580035.001914375439.40-32737146.491223802.51560829183.854469189532.747848460847.01
current period
Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of
Accounting Department: Yuan Guanghui
155 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
III. Basic Company Information
1. Company Profile
"√ Applicable" "□ Not applicable"
Hangcha Group Co. Ltd. (hereinafter referred to as the “Company”) headquartered in Hangzhou
Zhejiang Province was established with approval from the Leading Group of the People’s Government
of Zhejiang Province for Enterprise Listing (Document ZSS [2003] No. 25). It was jointly initiated by
Zhejiang Hangcha Holding Co. Ltd. (formerly Zhejiang Hangcha Group Co. Ltd.) Hangzhou Industrial
Investment Group Co. Ltd. (formerly Hangzhou Industrial Assets Management Co. Ltd.) Hangzhou
High-Tech Investment Co. Ltd. and 7 natural person shareholders including Zhao Limin and registered
with the Zhejiang Administration for Industry and Commerce on May 6 2003. The Company currently
holds a business license with the Unified Social Credit Code 9133000014304182XR a registered capital
of RMB 1309812049 and the total shares of 1309812049 (with a par value of RMB 1 per share). All
of the shares are non-restricted outstanding A-shares. The Company’s stock has been listed on the
Shanghai Stock Exchange since December 27 2016.Operating in the general equipment manufacturing industry the Company primarily engages in the R&D
production and sales of forklifts and other industrial vehicles. Its main products include internal
combustion forklifts electric forklifts and other industrial vehicles.These financial statements were approved for disclosure by the 20th Meeting of the 7th Board of
Directors on April 17 2025.IV. Basis for Preparation of Financial Statements
1. Basis for preparation
These Financial Statements of the Company are prepared on a going concern basis.
2. Going concern
"√ Applicable" "□ Not applicable"
There is no matter or circumstance that results in any significant doubt about the Company's ability to
continue as a going concern for a period of 12 months from the end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Reminder to specific accounting policies and accounting estimates:
"√ Applicable" "□ Not applicable"
Important: The Company has made specific accounting policies and accounting estimates for
transactions or events such as impairment of financial instruments inventories depreciation of fixed
assets depreciation of right-of-use assets amortization of intangible assets and revenue recognition
based on its actual production and operation characteristics.
156 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and give a true and complete view of the financial position
operating results changes in shareholders' equity and cash flows of the Company.
2. Fiscal period
The Company's fiscal year runs from January 1 to December 31 of the calendar year.
3. Operating cycle
"√ Applicable" "□ Not applicable"
The Company features a short period of business operations with 12 months as the standard for the
liquidity of its assets and liabilities.
4. Bookkeeping currency
The Company adopts RMB as its functional currency.
5. Determination method and selection basis of materiality standard
"√ Applicable" "□ Not applicable"
Item Materiality standard
Significant accounts receivable with the Individual amounts exceeding 0.3% of total assets
provision for bad debts made on an
individual basis
Recovery or reversal of provision for bad Individual amounts exceeding 0.3% of total assets
debts of significant accounts receivable
Significant Write-offs of Accounts Individual amounts exceeding 0.3% of total assets
Receivable
Significant other receivables with the Individual amounts exceeding 0.3% of total assets
provision for bad debts made on an
individual basis
Recovery or reversal of provision for bad Individual amounts exceeding 0.3% of total assets
debts of significant other receivables
Significant Write-offs of Other Receivables Individual amounts exceeding 0.3% of total assets
Important construction in progress The total investment of a single project exceeds 0.3%
of the total assets
Important cash flow from investing Individual amounts exceeding 0.3% of total assets
activities
Important subsidiary and non-wholly owned Revenue exceeding 15% of the Group’s total revenue
subsidiary
Significant joint ventures and associates The carrying amount of an individual long-term equity
investment exceeds 1% of total assets
Important events subsequent to the balance Profit distribution after the balance sheet date
sheet date
6. Accounting treatment for merger of enterprises under or not under the joint control
"√ Applicable" "□ Not applicable"
(1) Accounting methods for merger of enterprises under the joint control
157 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Assets and liabilities acquired by the Company in a merger are measured at the book value of the party
being consolidated in the consolidated financial statements of ultimate controlling party at the date of
merger. The Company adjusts capital surplus by the difference between the share of the book value of
the owners' equity of the party being consolidated in the consolidated financial statements of the ultimate
controlling party and the book value of the consideration paid for the consolidation or the total nominal
value of the shares issued. If capital surplus is insufficient for write-down the retained earnings shall be
adjusted.
(2) Accounting methods for merger of enterprises not under the joint control
The Company recognizes the difference of the cost of consolidation minus the share of fair value of the
identifiable net assets of the acquiree acquired in the consolidation at the date of purchase as the
goodwill. If the cost of consolidation is less than the share of fair value of the identifiable net assets of
the acquiree acquired in the consolidation the Company firstly reviews the fair value of each of
identifiable assets liabilities and contingent liabilities acquired from the acquiree as well as the
measurement of consolidation cost; and if the cost of consolidation remains less than the share of fair
value of the identifiable net assets of the acquiree acquired in the consolidation upon review the
difference is recognized in the current gains or losses.
7. Determination criteria of control and preparation of consolidated financial statements
"√ Applicable" "□ Not applicable"
(1) Recognition of control
Control is recognized if one entity has the power over the invested entity enjoying variable returns
through participating in related activities of the invested entity and has the ability to use the power over
the invested entity to influence its variable return amount.
(2) Method of preparing consolidated financial statements
The parent company includes all subsidiaries it controls in the scope of the consolidated financial
statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared by the parent company in accordance with Accounting
Standards for Business Enterprises No. 33 – Consolidated Financial Statements with reference to other
information.
8. Classification of joint venture arrangements and accounting treatment for joint operations
"√ Applicable" "□ Not applicable"
(1) Joint venture arrangements are divided into joint operation and joint venture.
(2). Where the Company is a joint party in a joint operation the following items related to the share of
interest in the joint operation shall be recognized:
a. To recognize the assets held assumed solely by the Company and the assets held assumed jointly as
per the shares of the Company;
b. to recognize the liabilities held assumed solely by the Company and the assets held assumed jointly as
per the shares of the Company;
c. to recognize revenue from disposal of the share of joint operations of the company to be sold;
158 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
d. to recognize revenue from joint operations arising from the sale of assets based on the shares held by
the Company; and
e. to recognize fees solely incurred by Company and recognize fees from joint operations in
appropriation to the share of the Company.
9. Recognition criteria of cash and cash equivalents
Cash equivalents are the Company’s short-term (generally due within three months from the date of
purchase) highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
10. Translation of transactions and financial statements denominated in foreign currencies
"√ Applicable" "□ Not applicable"
(1) Translation of foreign-currency transactions
A foreign currency transaction is on initial recognition translated into RMB at the spot exchange rate
prevailing at the date of the transaction. At the balance sheet date monetary items denominated in
foreign currency are translated using the spot exchange rate prevailing at the balance sheet date and
exchange differences arising from the differences between the spot exchange rates are recognized in
profit or loss for the period except for those attributable to principal and interest of borrowings
denominated in foreign currency that have been taken out specifically for the acquisition construction or
production of qualifying assets; non-monetary items denominated in foreign currency measured at
historical costs are still translated using the spot exchange rate at the date of the transaction without
changing the amount in RMB; non-monetary items denominated in foreign currency that are measured at
fair value are translated using the spot exchange rate prevailing on the date when fair value is
determined and the resulting exchange differences will be recognized in profit or loss for the period or
other comprehensive income.
(2). Translation of foreign-currency financial statements
Assets and liabilities in the balance sheet are translated at the spot exchange rates prevailing at the
balance sheet date. Among the owners’ equity items the items other than “Retained earnings” are
translated at the spot exchange rates at the date of the transaction. Revenue and expense items in the
income statement are translated using the spot exchange rates at the date of the transaction. Differences
in translation of foreign-currency financial statements arising from the foregoing are stated as other
comprehensive income.
11. Financial instruments
"√ Applicable" "□ Not applicable"
1). Classification of financial assets and financial liabilities
Financial assets are classified into the three categories at initial recognition: (1) Financial assets
measured at amortized cost; (2) financial assets measured at fair value through other comprehensive
income; and (3) financial assets measured at fair value through current gains/losses.
159 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Financial liabilities are classified into four categories at initial recognition: (1) Financial liabilities
measured at fair value through current gains/losses; (2) financial liabilities resulting from unqualified
transfer of financial assets on derecognition or from continued involvement in the transferred financial
assets; (3) financial guarantee contracts that do not fall under (1) or (2) above and loan commitments
that fall out of (1) above and that are loaned out at a lower-than-market interest rate; and (4) financial
liabilities measured at amortized cost.
2). Basis of recognition measurement method and derecognition conditions of financial assets and
financial liabilities
(1) Basis of recognition and initial measurement of financial assets and financial liabilities
The Company recognizes an item of financial asset or financial liability at the time when it becomes one
party to a contract of the financial instruments. On initial recognition a financial asset or financial
liability is measured at fair value; for financial assets and financial liabilities at fair value through current
gains or losses the related transaction costs are recognized directly in the current gains or losses; for
other categories of financial assets or financial liabilities relevant transaction costs are included in the
amount of initial recognition. However if the receivables initially recognized by the Company exclude
significant financing components or if the Company does not consider any financing component in a
contract of less than a year the Company initially measures the receivables in accordance with the
transaction price as defined in Accounting Standards for Business Enterprises No. 14 -Revenue.
(2) Subsequent measurement of financial assets
a. Financial assets measured at amortized cost
Such financial liabilities are measured subsequently at amortized cost by the actual interest rate method.Gains or losses arising from financial assets measured at amortized cost that are not part of any hedging
relationship are recognized in the current gains or losses when they are derecognized reclassified
amortized by the effective interest rate method or recognized as impairment.b. Investment in debt instruments measured at fair value through other comprehensive income
Such financial asset is measured subsequently at fair value. Interest impairment losses or gains and
exchange gains/losses calculated using the method of effective interest rate are recognized in the current
gains or losses for the period. Upon derecognition the cumulative gains or losses previously recognized
in other comprehensive income are transferred out and recognized in current gains/losses.c. Investment in equity instruments at fair value through other comprehensive income
Such financial asset is measured subsequently at fair value. Dividends received (except for those
attributable to the investment costs recovered) are recognized in current gains/losses and other gains or
losses are recognized in other comprehensive income. Upon derecognition the cumulative gains or
losses previously recognized in other comprehensive income are transferred therefrom to retained
earnings.d. Financial assets measured at fair value through current gains/losses
Gains or losses arising from subsequent measurement at fair value including interest and dividend
income are stated as current gains/losses unless the financial assets are part of a hedging relationship.
160 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3) Subsequent measurement of financial liabilities
a. Financial liabilities at fair value through current gains/losses
Such financial liabilities comprise those held for trading (including derivatives that are financial
liabilities) and those designated for measurement at fair value through current gains/losses. Such
financial liabilities are measured subsequently at fair value. The amount of changes in the fair value of
financial liabilities designated for measurement at fair value through current gains/losses arising from
changes in the Company's credit risk is recognized in other comprehensive income unless such disposal
would create or enlarge the accounting mismatch in gains/losses. Other gains or losses arising from such
financial liabilities (including interest cost and changes in fair value other than those arising from
changes in the Company's credit risk) are recognized in current gains/losses unless the financial
liabilities are part of a hedging relationship. Upon derecognition the cumulative gains or losses
previously recognized in other comprehensive income are transferred therefrom to retained earnings.b. Financial liabilities resulting from unqualified transfer of financial assets on derecognition or from
continued involvement in the transferred financial assets
Such financial liabilities are measured in accordance with Accounting Standards for Business
Enterprises No.23 -Transfer of Financial Assets.c. Financial guarantee contracts that do not fall under (1) or (2) above and loan commitments that
fall out of (1) above and that are loaned out at a lower-than-market interest rate
Subsequent measurement after initial recognition is based on whichever is higher:* The amount of the
provision for losses determined in accordance with the regulations on impairment of financial
instruments; or * difference between the amount initially recognized minus the amount of cumulative
amortization defined in accordance with Accounting Standards for Business Enterprises No. 14 -
Revenue.d. Financial liabilities measured at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Gains or
losses arising from financial liabilities measured at amortized cost and not part of any hedging
relationship are recognized in the current gains/losses at the time of derecognition and amortized by
effective interest method.
(4) Derecognition of financial assets and financial liabilities
a. Financial assets are derecognized if one of the following conditions is satisfied:
* The contractual right to receive cash flows from financial assets is terminated;
* The financial asset is transferred and such transfer satisfies the regulations on derecognition of
financial assets under Accounting Standards for Business Enterprises No.23 - Transfer of Financial
Assets.b. Where a financial liability (or a portion thereof) is discharged from a present obligation such financial
liability (or such portion thereof) is derecognized accordingly.
3. Basis of recognition and measurement methods of financial assets
161 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
If the Company transfers nearly all the risks and rewards of ownership of a financial asset such financial
asset is derecognized and the right and obligation arising from or retained in the transfer is recognized
as an asset or a liability; if nearly all the risks and rewards on the ownership of a financial asset are
retained the transferred financial asset continues to be recognized. If the Company neither transfers nor
retains nearly all risks and rewards on the ownership of a financial asset the Company shall: (1)
derecognize the financial asset and recognize the right and obligation arising from or retained in the
transfer if it has no control over the asset; and (2) recognize the relevant financial asset and relevant
financial liability by the extent of its continued involvement in the transferred financial asset if it has
control over the said financial asset.If the overall transfer of a financial asset satisfies the conditions for derecognition the difference
between (1) the book value of the transferred financial asset on the date of derecognition; and (2) the
sum of the consideration from the transfer of the financial asset and the amount of derecognized portion
in the accumulated changes of fair value originally stated as other comprehensive income (the financial
asset involved in transfer is an investment in a debt instrument measured at fair value through other
comprehensive income) is recognized in current gains/losses. Should a portion of a financial asset be
transferred and such transferred portion as a whole is qualified for derecognition the book value of such
financial asset as a whole before the transfer is apportioned between the derecognized portion and the
portion for continued recognition based on their respective fair value on the date of transfer; and the
difference between (1) the book value of the derecognized portion and (2) the sum of the consideration
for the derecognized portion and the amount of derecognized portion in the accumulated changes of fair
value originally stated as other comprehensive income (the financial asset involved in transfer is an
investment in a debt instrument measured at fair value through other comprehensive income) is
recognized in current gains/losses.
4. Methods for determining the fair value of financial assets and financial liabilities
The Company employs the appraisal technique that is applicable in current period and is supported by
sufficient available data and other information to determine the fair value of financial assets and
financial liabilities. The Company categorizes the inputs used in the valuation technique in the following
levels and applies such inputs in a certain order:
(1) Level-1 inputs are unadjusted offers in any active market for identical assets or liabilities that are
available on the measurement date;
(2) Level-2 inputs are those other than the Level-1 inputs and observable for underlying assets or
liabilities directly or indirectly including offers for similar assets or liabilities in any active market;
offers for identical or similar assets or liabilities in any inactive market; observable inputs other than
offers (e.g. interest rates and yield curves observable in normal intervals of offering; and
market-validated inputs;
(3) Level-3 inputs are unobservable inputs for the underlying assets or liabilities including interest rates
that are not directly observable or cannot be verified with observable market data stock volatility future
162 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
cash flows assuming retirement obligations in a business merger and financial projections with
self-owned data.
5. Impairment of financial instruments
The Company impairs and recognizes provisions for loss based on expected credit losses on financial
assets measured at amortized cost investments in debt instruments at fair value through other
comprehensive income contract assets receivables from leasing loan commitments other than those
classified as financial liabilities measured at fair value through current gains/losses and financial
guarantee contracts that are not classified as financial liabilities measured at fair value through current
gains/losses or financial liabilities resulting from unqualified transfer of financial assets on derecognition
or from continued involvement in the transferred financial assets.Expected credit loss refers to the weighted average of credit loss of financial instruments weighted by
the risk of default. Credit loss represents the difference between all contractual cash flows discounted at
the original effective interest rate and receivable under the contract and all cash flows expected to be
collected i.e. the present value of the entire cash shortfall. In particular for any financial asset
purchased or originated by the Company with credit impairment such asset is discounted at effective
interest rate upon credit adjustment.For any financial asset purchased or originated by the Company with credit impairment the Company
recognizes only the cumulative changes in expected credit losses over the entire period of existence from
initial recognition as the provision for losses on the balance sheet date.For lease receivables receivables resulting from transactions regulated by Accounting Standards for
Business Enterprises No. 14 - Revenue and contract assets the Company measures the provision for
losses based on the amount equal to the expected credit loss for the entire life under simplified approach.For any financial asset other than those measured by the above-mentioned methods the Company
evaluates on each balance sheet date whether the credit risk of such asset sees significant increase after
initial recognition. If the credit risk has increased significantly since initial recognition the Company
measures the provision for losses based on the number of expected credit losses over the entire period of
existence; if not the Company measures the provision for losses based on the number of expected credit
losses of such financial instrument over the next 12 months.The Company uses reasonably available and supportable information including forward-looking
information to determine whether the credit risk of a financial instrument sees significant increase after
initial recognition by comparing the risk of default of the said financial instrument on the balance sheet
date with the risk of default on the date of initial recognition.On the balance sheet date if the Company believes that a financial instrument features a low credit risk
it shall be assumed that its credit risk has not increased significantly since initial recognition.The Company evaluates expected credit risks and measures expected credit losses based on a single
financial instrument or a portfolio of financial instruments. Where a portfolio of financial instruments is
applied the Company classifies financial instruments into portfolios based on common risk features.
163 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company remeasures expected credit losses on each balance sheet date from which the amount
increased or reversed from the provision for losses resulted is recognized as impairment gains or losses
in current gains/losses. For any financial asset measured at amortized cost the provision for losses is
offset against the book value of such financial asset as stated in the balance sheet; for any debt
investment measured at fair value through other comprehensive income the Company recognizes its
provision for losses in other comprehensive income without offsetting the book value of the financial
asset.
6. Offset between financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not
mutually offset. However where both of the following conditions are met the financial assets and
financial liabilities will be presented in the balance sheet with the net amount after mutual offset: (1) The
Company has the legal right to offset the recognized amount which is executable for; and (2) the
Company plans to make settlement in net amount or realizes the financial assets and settles the financial
liabilities simultaneously.When a financial asset is transferred without satisfying the conditions for derecognition the Company
does offset such transferred financial asset and related liabilities.
12. Notes receivable
"√ Applicable" "□ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"√ Applicable" "□ Not applicable"
For details on the Company’s determination methods and accounting treatment for expected credit losses
on notes receivable please refer to “5.11 Financial Instruments under Section X Financial Reports”.Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"□ Applicable" "√ Not applicable"
Determination criteria for provision for bad debts on an individual basis
"□ Applicable" "√ Not applicable"
13. Accounts receivable
"√ Applicable" "□ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"√ Applicable" "□ Not applicable"
Basis for
Category portfolio Methods to measure expected credit losses
determination
The Company calculates expected credit losses by
Acceptance reference to historical credit loss taking into currentBankers' acceptances receivable bill drawer conditions and projections of future economicconditions through default exposures and expected
credit loss rate over the entire period of existence.
164 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Commercial acceptances Prepare a comparison table between the aging of
receivable accounts receivable commercial acceptance bills
Receivables - Ageing Ageing receivable and contract assets and the expected
combination combination credit loss rate for the entire life and calculate theexpected credit losses based on current conditions
Contract assets - Aging portfolio and forecasts of future economic conditions with
reference to historical credit loss experience
Other receivables - Portfolio of
deposits and margins receivable The Company calculates expected credit losses by
Other receivables - Temporary reference to historical credit loss taking into current
payments receivable Nature of conditions and projections of future economic
Other receivables - Temporary payment conditions through default exposures and expected
employee borrowings credit loss rate within the next 12 months or over the
Other receivables - Others entire period of existence.Prepare a comparison table between the overdue
aging and the expected credit loss rate for the entire
Long-term receivables - Finance Overdue life and calculate the expected credit losses based
lease portfolio aging on current conditions and forecasts of future
economic conditions with reference to historical
credit loss experience
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"√ Applicable" "□ Not applicable"
1) Comparison table of aging in the aging portfolio and expected credit loss rate for the entire life
Accounts receivable Contract assets
Aging Expected credit loss rate Expected credit loss rate
(%)(%)
Within one year (inclusive the same below) 5 5
1-2 years 10 10
2-3 years 30 30
3-5 years 50 50
More than 5 years 100 100
2) Long-term receivables - Comparison table of finance lease portfolio and expected credit loss rate for
the entire life
Overdue aging Long-term receivablesExpected credit loss rate (%)
Not past due 1
Less than 3 months past
due 10
3 - 6 months past due 30
6 - 12 months past due 50
Over one year past due 100
The aging of accounts receivable contract assets and long-term receivables is calculated from the month
in which they are actually incurred.Determination criteria for provision for bad debts on an individual basis
165 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"√ Applicable" "□ Not applicable"
For accounts receivable and contract assets whose credit risk is significantly different from the portfolio
credit risk the Company measures expected credit losses on a single item basis.
14. Receivables financing
"√ Applicable" "□ Not applicable"
For details on the Company’s determination methods and accounting treatment for expected credit losseson receivables financing please refer to “11.(5) Impairment of Financial Instruments under Section XFinancial Reports”. The Company prepares a table of comparing the ageing of receivables and expected
credit losses over the entire period of existence by reference to historical credit loss taking into current
conditions and projections of future economic conditions in a bid to calculate the expected credit losses.Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"□ Applicable" "√ Not applicable"
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"□ Applicable" "√ Not applicable"
Determination criteria for provision for bad debts on an individual basis
"□ Applicable" "√ Not applicable"
15. Other receivables
"√ Applicable" "□ Not applicable"
For details on the Company’s determination methods and accounting treatment for expected credit losseson receivables financing please refer to “11. (5) Impairment of Financial Instruments under Section XFinancial Reports”. The Company prepares a table of comparing the ageing of receivables and expected
credit losses over the entire period of existence by reference to historical credit loss taking into current
conditions and projections of future economic conditions in a bid to calculate the expected credit losses.Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"√ Applicable" "□ Not applicable"
The Company makes a provision for bad debts on an individual basis and recognizes the expected credit
losses for individual other receivables where there is an objective evidence of credit impairment. When
it is not practicable to evaluate expected credit losses for individual other receivables at a reasonable cost
the Company classifies the receivables into several combinations based on the credit risk characteristics
and calculates the expected credit losses on a portfolio basis.Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"□ Applicable" "√ Not applicable"
Determination criteria for provision for bad debts on an individual basis
"□ Applicable" "√ Not applicable"
16. Inventories
"√ Applicable" "□ Not applicable"
166 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Inventory categories methods for inventory valuation on dispatch inventory system methods of
amortization of low-value consumables and packaging materials
"√ Applicable" "□ Not applicable"
(1) Category of inventories
Inventories include finished products or commodities held for sale in daily operations or work in
progress or materials and supplies to be consumed in production or provision of labour.
(2) Method for appraising outgoing inventories
The Company appraises outgoing inventories with weighted-average system at the end of the month.
(3) Stocktaking system of inventories
Stocktaking is based on perpetual inventory system.
(4) Amortization of low-value consumables and packages
a. Low-value consumables
Low-value consumables are amortized by lump sum.b. Packages
Low-value consumables are amortized by lump sum.Recognition criteria and accrual method for provision for decline in value of inventories
"√ Applicable" "□ Not applicable"
Inventories are valued at lower of cost and NRV (net realizable value) at the balance sheet date and the
provision for the decline in the value of inventories is made based on the difference between cost and
NRV. The net realizable value of an inventory directly for sale is determined in the normal production
and operation by its estimated selling price minus estimated selling expense(s) and related tax(es); and
that of an inventory requiring processing is determined in normal production and operation by the
estimated selling price of the finished product minus estimated cost(s) to incur by the time of completion
estimated selling expense(s) and related tax(es). In case the price of part of an inventory is specified in
the contract but that of the other parts is not specified in the contract by the balance sheet date their net
realizable values are determined separately and compared with their corresponding costs in order to
determine the amount for withdrawal or reversal of provision for inventory depreciation.Portfolio categories for which the provision for depreciation of inventories on a portfolio basis and
the basis for determination and basis for determination of net realizable value of different
categories of inventories
"□ Applicable" "√ Not applicable"
Calculation method and basis for determination of net realizable value of each inventory aging
portfolio recognized based on inventory aging
"□ Applicable" "√ Not applicable"
17. Contract assets
"√ Applicable" "□ Not applicable"
Recognition method and criteria of contract assets
"√ Applicable" "□ Not applicable"
167 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the fulfillment of performance obligations and clients' payment. The contractual
assets and liabilities under the same contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.depending only on the passage of time) as a receivable and the right to receive consideration for a
commodity transferred to a client (depending on any factor other than the passage of time) as a contract
asset.The obligation to transfer goods to a client for which consideration has been received or is receivable
from the client is shown as a contractual liability.Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"□ Applicable" "√ Not applicable"
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"□ Applicable" "√ Not applicable"
Determination criteria for provision for bad debts on an individual basis
"□ Applicable" "√ Not applicable"
18. Non-current assets or disposal groups held for sale
"√ Applicable" "□ Not applicable"
The Company classifies non-current assets or disposal groups as held for sale where both of the
following conditions are satisfied: (1) The sale is imminent under current conditions based on the
common practice of selling such assets or disposal groups in similar transactions; and (2) the sale is
highly possible i.e. the Company has resolved on a plan for the sale and obtained a firm commitment to
purchase and the sale is expected to be completed within one year.Non-current assets or disposal groups acquired by the Company for the sole purpose of resale are
classified as held for sale on the date of acquisition if on the date of acquisition the condition that "the
sale is expected to be completed within one year" is satisfied and other conditions for classification as
held for sale are also likely to be satisfied within a short period of time (normally three months).If any transaction between or among unconnected parties fails to be completed within one year for any
of the following reasons beyond the control of the Company and the Company remains committed to
selling the non-current assets or disposal groups such assets or groups will continue to be classified as
held for sale: (1) The buyer or any other party unexpectedly sets conditions that result in a delay in the
sale and the Company has acted on those conditions in a timely manner and expects to successfully
resolve the delay within one year upon the setting; (2) any rare event occurs that causes the sale of the
non-current assets or disposal groups held for sale not to be completed within one year and the
Company has addressed such event within the initial year for which the conditions for classification of
those held for sale have been satisfied.Recognition criteria and accounting treatment for non-current assets or disposal groups classified
as held for sale
168 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"√ Applicable" "□ Not applicable"
(1) Initial measurement and subsequent measurement
At the initial measurement of and remeasurement on balance sheet date of non-current assets or disposal
groups held for sale if the book value is higher than the fair value less costs to sell the book value is
written down to a net amount of fair value less costs to sell and the amount of write-down is stated as an
impairment loss on the assets through current gains/losses and a provision for impairment of the assets
held for sale is withdrawn.Non-current assets or disposal groups classified as held for sale on the date of acquisition measured at
whichever is lower amount of initial measurement that would have been determined assuming that they
were not classified as held for sale or the net amount of fair value less costs to sell. Except for the
non-current assets or disposal groups acquired in a business merger the difference arising from the
initial measurement of a non-current asset or disposal group at fair value less costs to sell is recognized
in current gains/losses.The amount of asset impairment loss recognized for a disposal group held for sale is offset against the
book value of goodwill in the disposal group and then against the book value of each non-current asset
on a pro rata basis by its proportion in the disposal group.Non-current assets held for sale or in the disposal groups shall not be depreciated or amortized and
interest and other expenses of liabilities in the disposal groups held for sale shall be recognized.
(2) Accounting treatment for reversal of assets impairment loss
If the net amount of the fair value of non-current assets held for sale after subtracting the selling expense
increases at subsequent balance sheet dates the amount previously written down shall be restored.Moreover the amount of assets impairment loss recognized after non-current assets are classified as held
for sale shall be reversed and recorded in profit or loss for the current period. The assets impairment loss
recognized before non-current assets are classified as held for sale shall not be reversed.If the net amount of the fair value of disposal groups held for sale after subtracting the selling expense
increases at subsequent balance sheet dates the amount previously written down shall be restored.Moreover the amount of assets impairment loss recognized after non-current assets are classified as held
for sale shall be reversed and recorded in profit or loss for the current period. The book value of
goodwill that has been written off and the assets impairment loss recognized before non-current assets
are classified as held for sale shall not be reversed.For the subsequently reversed amount of the assets impairment loss recognized on disposal groups held
for sale the book value shall be increased based on the proportion of the book value of each non-current
asset except goodwill in the disposal group.
(3) Discontinued classification as held for sale and derecognition
When non-current assets or disposal groups are no longer classified as held for sale because they do not
meet the corresponding conditions or non-current assets are removed from disposal groups held for sale
they shall be measured at the lower of the following: 1) the book value before being classified as held
169 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
for sale adjusted for depreciation amortization or impairment that would have been recognized had they
not been classified as held for sale; 2) the recoverable amount.At the time of derecognition of non-current assets or disposal groups held for sale the unrecognized
gains or losses shall be recorded in profit or loss for the current period.Criteria for determination and presentation of discontinued operations
"√ Applicable" "□ Not applicable"
Recognition criteria for discontinued operations
A separately distinguishable component that has been disposed of or is held for sale and meets one of the
following conditions is recognized as a discontinued operation:
(1) The component represents an independent main business or an independent main business area;
(2) The component is part of a plan concerning the proposed disposal of an independent main business
or an independent main business area;
(3) This component is a subsidiary acquired exclusively for resale.
Presentation of discontinued operations
The Company presents the profit or loss from continuing operations and the profit or loss from
discontinued operations separately in the income statement. Operating profit or loss and profit or loss
from disposal such as the impairment loss and the reversed amount from discontinued operations are
reported as profit or loss from discontinued operations. For the discontinued operations reported in the
current period the data originally presented as the profit or loss from continuing operations shall be
re-presented as the profit or loss from discontinued operations for the comparable period in the current
financial statements. If the discontinued operation no longer meets the criteria to be classified as held for
sale the data originally presented as the profit or loss from discontinued operations shall be re-presented
as the profit or loss from continuing operations for the comparable period in the current financial
statements.
19. Long-term equity investments
"√ Applicable" "□ Not applicable"
(1) Recognition of joint control and significant influence
Joint control refers to the shared control over an arrangement regarding which activities can be decided
on only with the unanimous consent of the parties sharing control as agreed upon. Significant influence
refers to the power to participate in decision-making on the financial and operating policies of the
investee but with no control or joint control over the formulation of these policies.
(2) Determination of investment cost
1) For business combination under common control where long-term equity investments are obtained by
cash paid non-monetary funds paid assumed liabilities or equity securities issued as consideration by
the combining party on the combination date the initial investment cost shall be taken as the share of
the owner's equity of the combined party at book value in the final control party's consolidated financial
statements. According to the difference between the initial investment cost of long-term equity
investments and the book value of the consideration paid or the aggregate nominal value of shares issued
170 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
capital reserve shall be written down. If the capital reserve is not sufficient to be written down then the
retained earnings shall be written down.For long-term equity investments resulting from business combinations involving entities under
common control which are achieved step by step in multiple transactions the Company will assess
whether these transactions constitute a "package deal". Each of these transactions shall be accounted for
as a transaction for acquisition of control if they constitute a "package deal". Otherwise the initial
investment cost shall be recognized on the combination date according to the share of the combined
party's net assets to be acquired after combination at book value in the final control party's consolidated
financial statements. According to the difference between the initial investment cost of long-term equity
investments on the combination date and the sum of the book value of long-term equity investments
before combination plus the book value of the consideration paid for further acquisition of shares on the
combination date capital reserve shall be written down. If the capital reserve is not sufficient to be
written down then the retained earnings shall be written down.
2) For business combination not under common control on the combination date the initial investment
cost of long-term equity investments shall be taken as the fair value of the consideration paid.For long-term equity investments resulting from business combinations involving entities not under
common control which are achieved step by step in multiple transactions different approaches in
accounting treatment are adopted for individual financial statements and consolidated financial
statements as follows:
a. For individual financial statements the initial investment cost is calculated as the sum of the book
value of investments in equity originally held plus the additional investment cost using the cost method.b. For consolidated financial statements whether these transactions constitute a "package deal" will be
assessed. Each of these transactions shall be accounted for as a transaction for acquisition of control if
they constitute a "package deal". For transactions that do not constitute a "package deal" the target
entity's equity held before the purchase date shall be remeasured at the fair value of the equity on the
purchase date and the difference between the fair value and book value of the equity shall be recorded
in investment income for the current period; if the target entity's equity held before the purchase date
involves other comprehensive income accounted with the equity method other comprehensive income
associated except when arising from the changes due to remeasurement of net liabilities or net assets of
defined benefit plan by the investor shall be transferred to income for the current period on the purchase
date. However this excludes other comprehensive income generated by changes in the remeasurement
of the net liabilities or net assets of the investee related to the defined benefit plans.c. Other long-term equity investments not resulting from business combination: For long-term equity
investments obtained by cash paid the initial investment cost shall be the amount actually paid. For
those obtained by equity securities issued the initial investment cost shall be the fair value of equity
securities issued. For those obtained by debt restructuring the initial investment cost shall be recognized
according to Accounting Standards for Business Enterprises No. 12 - Debt Restructuring. For those
171 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
obtained by the exchange of non-monetary funds the initial investment cost shall be recognized
according to Accounting Standards for Business Enterprises No. 7 Exchange of Non-monetary funds.
(3). Subsequent measurement and recognition of profit or loss
Where the Company is able to exercise control over an investee long-term equity investments are
accounted for using the cost method. Long-term equity investments in associates and joint ventures are
accounted for using the equity method.
(4). Accounting treatment for disposal of investments in subsidiaries step by step in multiple transactions
and loss of control
1) Judgment principles of whether the transactions constitute a "package deal"
Where the equity investment in a subsidiary is disposed of step by step through multiple transactions
until it loses control the Company shall judge whether the transactions constitute a "package deal" based
on information including the terms of the transaction agreement the consideration of disposal obtained
the object of the sale of the equity the method of disposal and the time of disposal for each step of the
step-by-step transaction. The multiple transactions constitute a "package deal" when the terms
conditions and economic impacts of the multiple transactions meet the following one or more
conditions:
a . These transactions are entered into at the same time or after considering their impacts on each
other;
b. These transactions as a whole may reach a complete business result;
c. The occurrence of a transaction depends on at least the occurrence of another transaction;
d. An individual transaction is not deemed as economic but is deemed as economic when considered
with other transactions.
2) Accounting treatments do not constitute a "package deal"
a. Individual financial statements
For the equity to be disposed of the difference between its book value and the actual acquisition price
shall be recorded in profit or loss for the current period. The residual equity that still has a significant
influence on the investee or for which joint control is exercised over the investee shall be accounted for
using the equity method. If no control or joint control is exercised over the investee or there is no
significant influence on the investee the accounting treatment shall be subject to Accounting Standards
for Business Enterprises No. 22 Recognition and Measurement of Financial Instruments.b. Consolidated financial statements
Prior to the loss of control according to the difference between the disposal price and the share of
long-term equity investments disposed of in the net assets of subsidiaries to be held and continuously
calculated from the combination date capital reserve (capital premium) shall be written down. If the
capital reserve is not sufficient to be written down then the retained earnings shall be written down.For the loss of control over former subsidiaries the residual equity shall be remeasured at the fair value
on the date of such loss. The difference between the sum of the consideration received from the disposal
of the equity plus the fair value of the residual equity and the share of former subsidiaries' net assets to
172 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
be held and continuously calculated from the combination date based on the shareholding ratio shall be
recorded in investment income for the current period in which the loss of control occurs and goodwill
shall be written down. Other comprehensive income related to equity investments in former subsidiaries
shall be transferred to investment income for the current period at the time of the loss of control.
3) Accounting treatments constitute a "package deal"
a. ividual financial statements
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in
subsidiaries and loss of control. However the difference between the disposal price and the book value
of the long-term equity investment corresponding to the disposal investment shall be recognized as other
comprehensive income in individual financial statements prior to the loss of control and at the time of
the loss of control transferred to profit or loss for the current period in which the loss of control occurs.b. solidated financial statements
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in
subsidiaries and loss of control. However the difference between the disposal price and the share of
investments disposed of in the net assets of subsidiaries to be held shall be recognized as other
comprehensive income in consolidated financial statements prior to the loss of control and at the time of
the loss of control transferred to profit or loss for the current period in which the loss of control occurs.
20. Investment property
(1).If the investment properties are measured at cost:
Method of depreciation or amortization
1). Investment properties include land use rights leased out land use rights held and to be transferred
after appreciation and buildings leased out.
2). Investment properties are measured initially at cost and subsequently using the cost model and
depreciated or amortized in the same way as fixed assets and intangible assets.
21. Fixed assets
(1).Recognition criteria
"√ Applicable" "□ Not applicable"
Fixed assets refer to tangible assets held for the purpose of commodity production services rendering
renting or business administration with useful lives exceeding one accounting year. Fixed assets shall be
recognized when economic benefits are likely to flow in and costs can be measured reliably.
(2).Depreciation method
"√ Applicable" "□ Not applicable"
Category Depreciation method Term of Residual Annual depreciationdepreciation (year) rate rate
Buildings Straight-line method 20 5 4.75
Machinery and
equipment Straight-line method 3-10 5 9.50-31.67
Transportation Straight-line method 5 5 19.00
173 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
facilities
Other equipment Straight-line method 3-10 5 9.50-31.67
22. Construction in progress
"√ Applicable" "□ Not applicable"
(1). The construction in progress shall be recognized when the economic benefits are likely to flow to
the Company and the cost can be measured reliably. The construction in progress is measured at the
actual cost incurred before it is ready for its intended use.
(2). The construction in progress shall be transferred to fixed assets at actual cost when it is ready for its
intended use. It shall be transferred to fixed assets at estimated value when it is ready for its intended use
but the final settlement of account has not been finished. The estimated value shall be adjusted according
to the actual cost after the final settlement of account while the accrued depreciation shall not be
adjusted.Category The standard and time node for the construction in progress to betransferred to fixed assets
Buildings Ready for intended use upon the project completion
Machinery equipment and The machinery and equipment meet the design requirements or the
other equipment standards stipulated in the contract
Other construction in progress Ready for intended use upon the project completion
23. Borrowing costs
"√ Applicable" "□ Not applicable"
(1) Recognition criteria for capitalization of borrowing costs
Borrowing costs are capitalized when they are directly attributable to the acquisition construction or
production of a qualifying asset and included in the cost of related assets. Other borrowing costs are
recognized as expenses and recorded in profit or loss for the current period when incurred.
(2). Capitalization period of borrowing costs
1) Borrowing costs can only begin to be capitalized if the following three conditions are all met
simultaneously: 1) The expenditures to acquire assets have been incurred; 2) The borrowing costs have
been incurred; 3) The acquisition construction or production activities to make the asset ready for its
intended use or sale have begun.
2) If the acquisition construction or production of assets that meet the conditions for capitalization is
suspended abnormally and the suspension lasts for more than 3 months the capitalization of borrowing
costs will be suspended. The borrowing costs incurred during the suspension period will be recognized
as current expenses until the acquisition construction or production of such assets is resumed.
3) When the acquired constructed or produced asset that meets the conditions for capitalization is ready
for its intended use or sale the capitalization of borrowing costs will be stopped.
(3). Capitalization rate and capitalized amount of borrowing costs
If a special loan is borrowed for the acquisition construction or production of assets that meet the
capitalization conditions the amount of interest expenses (including amortization of discounts or
174 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
premiums determined using the effective interest method) actually incurred in the current period of the
special loan shall be recognized as the interest amount to be capitalized after deduction of the interest
income obtained by depositing the unused loan funds in the bank or the income from temporary
investment. If general borrowings are occupied for the purpose of acquisition construction or production
of assets that meet the capitalization conditions the Company shall calculate and determine the amount
of interest of general borrowings to be capitalized based on the weighted average value of asset
expenditures over which the accumulated asset expenditure exceeds the special borrowings multiplied
by the capitalization rate of the occupied general borrowings.
24.Biological assets
"□ Applicable" "√ Not applicable"
25. Oil & gas assets
"□ Applicable" "√ Not applicable"
26. Intangible assets
(1).Useful life and the basis for determination estimates amortization method or review process
thereof
"√ Applicable" "□ Not applicable"
1). Intangible assets include land use rights software proprietary technology and emission permit
which are initially measured at cost.
2). Intangible assets with limited useful lives shall be systematically and reasonably amortized during
their useful lives according to the expected realization mode of economic benefits relating to such assets
and where the expected realization mode cannot be reliably determined the assets shall be amortized
using the straight-line method. The details are listed below:
Item Useful life and basis for determination Amortization method
Land use rights The useful life is determined as 50 years based onthe property right registration period Straight Line Method
Software The useful life is determined as 2 - 10 years basedon the expected beneficial period Straight Line Method
Proprietary technologies The useful life is determined as 10 years based onthe expected beneficial period Straight Line Method
Emission permit The useful life is determined as 20 years based onthe expected beneficial period Straight Line Method
The Company does not amortize intangible assets with indefinite useful lives and the Company
reviews the useful lives of these intangible assets in each accounting period.
(2). Adscription ranges of expenditures on research and development and relevant accounting
treatment
"√ Applicable" "□ Not applicable"
1) Personnel and labor costs
175 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Personnel and labor costs cover the wages and salaries of the Company's R&D personnel basic
endowment insurance premiums basic medical insurance premiums unemployment insurance
premiums work-related injury insurance premiums maternity insurance premiums and housing
provident funds as well as labor costs for external R&D personnel.For R&D personnel serving multiple R&D projects at the same time the labor costs are confirmed based
on the working hours records of the R&D personnel of each R&D project provided by the management
department of the Company and are distributed among different R&D projects on a proportional basis.For personnel directly engaged in R&D activities and external R&D personnel engaged in non-R&D
activities at the same time the Company will distribute the actual personnel and labor costs incurred
among R&D expenses and production and operation expenses based on working hours records of R&D
personnel in different positions by adopting reasonable methods such as the proportion of actual working
hours.
2) Direct investment costs
Direct investment costs refer to the relevant expenses actually incurred by the Company for the
implementation of R&D activities including: (1) the cost of materials fuel and power directly consumed;
(2) the development and manufacturing cost of molds and process equipment for intermediate testing
and trial production the purchase cost of samples prototypes and general testing methods that do not
constitute fixed assets and the inspection cost of trial products; (3) the operation and maintenance
adjustment inspection testing and overhaul of instruments and equipment for R&D activities.
3) Depreciation expense and long-term deferred expenses
Depreciation expense represents the depreciation expense of instruments equipment and buildings in
use used in R&D activities.For instruments equipment and buildings in use used both in R&D activities and non-R&D activities
the necessary records shall be kept on the use of such instruments equipment and buildings in use and
the actual depreciation expense incurred is allocated between R&D expenses and production and
operating expenses by reasonable methods with reference to factors such as actual working hours and
usable area.Long-term deferred expenses represent the long-term deferred expenses in the process of reconstruction
modification decoration and repair of R&D facilities which are aggregated according to actual
expenditures and amortized in equal installments over a specified period of time.
4) amortization expense of intangible assets
The amortization costs of intangible assets mean that of software proprietary technology and land used
for research and development activities.
5) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to the R&D
activities including information costs for technical books data translation fees expert consultation fees
high-tech research and development insurance premiums search demonstration review appraisal and
176 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
acceptance fees of R&D results intellectual property rights application fees registration fees agency
fees conference fees travel costs communication fees etc.
4. Expenditures for the research phase of internal R&D projects are recognised in the profit and loss for
the current period when incurred. Expenditures incurred during the development phase of internal
research and development projects shall be recognized as intangible assets if the following conditions
are all met simultaneously: (1) It is technically feasible to complete the intangible asset so that it can be
used or sold; (2) There is intention to complete the intangible asset for use or sales; (3) The methods for
intangible assets to generate economic benefits are useful and there is a potential market for the
products manufactured by applying the intangible assets or for the intangible assets themselves (for
intangible assets to be used internally the usefulness can be proved); (4) Adequate technical financial
and other resources are available to finish the development of the intangible assets and use or sell the
intangible assets; (5) The expenditure attributable to the intangible asset during its development phase
can be measured reliably.
27.Impairment of long-term assets
"√ Applicable" "□ Not applicable"
For long-term equity investments investment properties measured using the cost model fixed assets
construction in progress right-of-use assets intangible assets with limited useful lives and other
long-term assets where there are indications of impairment at the balance sheet date the recoverable
amount shall be estimated. For goodwill arising from a business combination or intangible assets with
indefinite useful lives regardless of whether there are indications of impairment an impairment test
shall be conducted every year. Goodwill shall together with the related asset group or combination of
asset groups be subject to the impairment test.If the recoverable amount of any of the above-mentioned long-term assets is lower than its book value
the provision for assets impairment shall be recognized according to the difference and recorded in profit
or loss for the current period.
28. Long-term prepayments
"√ Applicable" "□ Not applicable"
Long-term amortized expenses refer to expenses that have been paid and whose amortization period is
more than 1 year (excluding 1 year). Long-term amortized expenses are recorded at the actual amounts
incurred and amortized evenly over the benefit period or specified period. If a long-term amortized
expense item does not bring benefits over the subsequent accounting periods the amortized value of the
item that has not been amortized shall be fully transferred to profit or loss for the current period.
29. Contractual liabilities
"√ Applicable" "□ Not applicable"
177 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the fulfillment of performance obligations and clients' payment. The contractual
assets and liabilities under the same contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.depending only on the passage of time) as a receivable and the right to receive consideration for a
commodity transferred to a client (depending on any factor other than the passage of time) as a contract
asset.The obligation to transfer goods to a client for which consideration has been received or is receivable
from the client is shown as a contractual liability.
30. Payroll
(1).Accounting treatment for short-term compensation
"√ Applicable" "□ Not applicable"
In the accounting period in which employees have rendered services the Company recognizes the
short-term employee benefits actually incurred as a liability and charges to profit or loss for the current
period or the cost of related assets.
(2).Accounting treatment for post-employment benefits
"√ Applicable" "□ Not applicable"
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period in which employees have rendered services the Company recognizes
the contributions to be paid according to the defined contribution plans as a liability and charges to profit
or loss for the current period or the cost of related assets.
(2) The accounting treatment of defined benefit plans generally covers the following steps:
1) It is necessary to use unbiased and mutually compatible actuarial assumptions based on the projected
unit credit method to estimate related demographic variables and financial variables measure the
obligations under the defined benefit plans and determine the periods to which the obligations are
attributable. Furthermore the obligations under the defined benefit plans shall be discounted to
determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets the deficit or surplus by deducting the present value of the
defined benefit plan obligations from the fair value of the defined benefit plan assets shall be recognized
as a net liability or net asset of the defined benefit plan. The net asset of the defined benefit plan shall be
measured at the lower of the surplus in the defined benefit plan and the asset ceiling.
3) At the end of the period the employee benefit costs arising from defined benefit plans shall be
recognized as the cost of service the net interest on net liabilities or assets of defined benefit plans and
the changes resulting from the remeasurement of net liabilities or assets of defined benefit plans. The
cost of service and the net interest on net liabilities or assets of defined benefit plans are recorded in
profit or loss for the current period or the cost of related assets while the changes resulting from the
remeasurement of net liabilities or assets of defined benefit plans are included in other comprehensive
178 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
income and shall not be transferred back to profit or loss in subsequent accounting periods. However the
amounts recognized as other comprehensive income may be transferred within the scope of equity.
(3).Accounting treatment for termination benefits
"√ Applicable" "□ Not applicable"
Termination benefits provided to employees are recognized as an employee benefit liability and charged
to profit or loss for the current period at the earlier of the following dates: (1) The Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; (2) The Company recognizes costs or expenses related to the reconstructing that
involves the payment of termination benefits.
(4).Accounting treatment of other long-term employee benefits
"√ Applicable" "□ Not applicable"
Other long-term employee benefits provided to employees are accounted for in accordance with the
requirements relating to defined contribution plans if the conditions for classifying as a defined
contribution plan are met and otherwise are accounted for in accordance with the requirements relating
to defined benefit plans. To simplify the relevant accounting treatment process the employee benefit
costs incurred are recognized as the cost of service the net interest on net liabilities or assets of other
long-term employee benefits and the changes resulting from the remeasurement of net liabilities or
assets of other long-term employee benefits. The total net amount is included in profit or loss for the
current period or the cost of related assets.
31. Provisions
"√ Applicable" "□ Not applicable"
1). The Company recognizes an obligation arising from the provision of external guarantees litigation
matters product quality assurance loss contract and other contingencies as a present obligation of the
Company when it is probable that the performance of the obligation will result in an outflow of
economic benefits from the Company and the amount of the obligation can be measured reliably as a
provision for liabilities.
2). The Company initially measures the provision for liabilities based on the best estimate of the
expenditures required to meet the relevant present obligations and reviews the carrying amount of the
provision for liabilities at the balance sheet date.
32. Share-based payments
"□ Applicable" "√ Not applicable"
33. Preferred shares perpetual bonds and other financial instruments
"√ Applicable" "□ Not applicable"
Pursuant to the relevant standards for financial instruments and the Regulations on Accounting
Treatment for Perpetual Bonds (CK [2019] No. 2) the Company classifies financial instruments issued
179 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
by it such as preferred shares/perpetual bonds (e.g. long-term medium-term notes with embedded
options)/warrants/convertible corporate bonds or their components as financial assets financial
liabilities or equity instruments at initial recognition based on the contractual terms of the issued
financial instruments and their economic substance rather than their legal form in conjunction with the
definitions of financial assets financial liabilities and equity instruments.At the balance sheet date for financial instruments classified as equity instruments their interest
expenses or dividend distributions are treated as profit distributions of the Company and their
repurchase or cancellation is accounted for as changes in equity; for financial instruments classified as
financial liabilities their interest expenses or dividend distributions are accounted for as borrowing costs
and gains or losses arising from their repurchase or redemption are recognized in profit or loss for the
period.
34. Revenue
(1). Disclosure of accounting policies used in revenue recognition and measurement by business
type
"√ Applicable" "□ Not applicable"
1. Revenue recognition principle
At the commencement date of a contract the Company performs an assessment of the contract
identifies the individual performance obligation contained in the contract and determines whether the
individual performance obligation is performed within a certain period of time or at a certain point in
time.A performance obligation is satisfied within a certain period of time when one of the following
conditions is met; otherwise the performance obligation is satisfied at a certain point in time: (1) the
client obtains and consumes the economic benefits brought by the performance of the company while
the company performs; (2) the client is able to control the goods under construction during the
performance of the Company; (3) Commodities produced in the course of the Company's performance
have an irreplaceable use and the Company is entitled to collect payments for the part of performance
that has been completed so far during the entire contract period.For performance obligations performed over a period of time the Company recognizes revenue based on
the progress of the performance over that period of time. When the performance progress cannot be
reasonably determined if the costs incurred are expected to be compensated revenue is recognized
based on the number of costs incurred until the performance progress can be reasonably determined. For
performance obligations performed at a certain point in time revenue is recognized at the point in time
when the client obtains control of the related goods or services. In determining whether the client has
obtained control of the commodity the Company considers the following indicators: (1) the Company
has a present collection right in respect of the commodity i.e. the client has a present payment obligation
in respect of the commodity; (2) the Company has transferred the legal ownership of the commodity to
the client i.e. the client has owned the legal ownership of the commodity; (3) The Company has
180 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
physically transferred the commodity to the client i.e. the client has physically occupied the commodity;
(4) the Company has transferred the principal risks and rewards of ownership of the commodity to the
client i.e. the client has obtained the principal risks and rewards of ownership of the commodity; (5) the
client has accepted the commodity; (6) Other indicators that the client has obtained control of the
commodity.
2. Revenue measurement principles
(1) The Company measures revenue at the transaction price allocated to the individual performance
obligation. The transaction price is the amount of consideration to which the Company is expected to be
entitled to collect for the transfer of goods or services to the client excluding amounts received on
behalf of third parties and amounts expected to be returned to the client.
(2) Where there is a variable consideration in the contract the Company determines the best estimate of
the variable consideration based on the expected value or the amount that is most likely to occur but the
transaction price that contains the variable consideration does not exceed the amount by which it is
highly probable that a significant reversal of the cumulative revenue recognized will not occur when the
relevant uncertainty is eliminated.
(3) Where there is a significant financing component in the contract the Company determines the
transaction price based on the amount payable that is assumed to be paid in cash when the client obtains
control of the goods or services. The difference between the transaction price and the contract
consideration is amortised using the effective interest method over the contract period. At the
commencement date of the contract if the company expects the client to obtain control of the goods or
services within one year of the customer paying the price it does not consider the significant financing
component in the contract.
(4) If the contract contains two or more performance obligations the Company shall on the
commencement date of the contract allocate the transaction price to the individual performance
obligation based on the relative proportion of the individual selling prices of the commodities promised
by the individual performance obligation.
(2). Adoption of different business models for similar business types involves different revenue
recognition methods and measurement approaches
"√ Applicable" "□ Not applicable"
The Company mainly engages in the sales of forklifts and parts which represent performance
obligations satisfied at a point in time. Domestic sales revenue is recognized when the Company delivers
the products to the buyer as agreed in the contract receives the payment or obtains the right to payment
and it is probable that the associated economic benefits will flow into the Company. Export sales
revenue is recognized when the Company completes customs clearance as agreed in the contract
receives a bill of lading receive the payment for goods or obtains the right to payment and it is probable
that the associated economic benefits will flow into the Company.
181 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
35. Contract costs
"√ Applicable" "□ Not applicable"
Incremental costs of the Company to acquire a contract that are expected to be recovered are recognized
as an asset as contract acquisition cost. Costs of the Company for the performance of a contract which
fall out of the scope of regulation on standards about inventories fixed assets or intangible assets and
fall in the following conditions are recognized as an asset as contract performance cost:
1). Such cost is directly related to a current contract or a contract expected to be awarded including the
cost on direct labor direct materials manufacturing expense (or similar cost) cost explicitly attributable
to a client and any other cost incurred solely as a result of contract;
2). Such cost increases the resources available to the Company to fulfil its performance obligations in
the future; and
3). Such cost is expected to be recovered.
The Company amortizes assets related to contract costs on the same basis as income recognition for the
commodities or services to which the asset connects through current gains/losses.If the book value of an asset related to contract costs is greater than the remaining consideration
expected to be received for the transfer of commodities or services related to the asset less estimated
costs estimated to be incurred the Company withdraws a provision for impairment and recognizes an
asset impairment loss for the excess. If as a result of subsequent changes to the factors to impair the
asset in a previous period the residual consideration expected to be received for the transfer of the
commodities or services on the asset less estimated costs to be incurred is greater than the book value
of the asset the original provision for impairment of the asset is reversed and stated as current
gains/losses provided that the book value of the asset after the reversal is no greater than what the asset
would have been had no provision for impairment been withdrawn by the date of the reversal.
36. Government grants
"√ Applicable" "□ Not applicable"
1). A government grant is recognized when both of the following conditions are met: (1) the Company is
able to meet the conditions attached to the government grant; (2) The Company is able to receive
government grants. Where government grants are Monetary funds they are measured at the amount
received or receivable. Government grants that are non-monetary funds are measured at fair value;
Where the fair value cannot be reliably obtained the non-monetary funds shall be measured at the
nominal amount.
2). Basis for judging government grants related to assets and accounting methods
Government documents provide that government grants used to purchase build or otherwise forming
long-term assets are classified as government grants related to the assets. If the government documents
are not clear the judgment shall be based on the basic conditions necessary to obtain the grant and the
government grant whose basic conditions are to purchase build or otherwise form long-term assets shall
be deemed as the government grant related to the asset. Government grants relating to assets offset
against the carrying amount of the related assets or are recognized as deferred income. Where
182 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
government grants relating to assets are recognized as deferred income they are credited to profit or loss
over the useful life of the relevant assets in a reasonable and systematic manner. Government grants
measured at nominal amounts are credited directly to profit or loss for the current period. Where the
relevant asset is sold transferred scrapped or damaged before the end of its useful life the undistributed
balance of the relevant deferred income is transferred to the profit or loss of the current period in which
the asset is disposed of.
3). Basis for judging government grants related to income and accounting method
Government grants other than those relating to assets are classified as income-related government grants.For government grants that contain both asset-related and revenue-related components those that are
difficult to distinguish between asset-related and income-related are classified as income-related
government grants in their entirety. Government grants relating to income that compensate for related
costs expenses or losses in subsequent periods are recognized as deferred income and are credited to
profit or loss or reduced to related costs in the current period in which the related costs expenses or
losses are recognized; Those used to compensate the related costs or losses incurred are directly included
in the current profit or loss or offset against the related costs.
4). Government grants relating to the Company's daily operating activities are included in other revenue
or offset against related costs and expenses in accordance with the substance of the economic business.Government grants that are not related to the Company's daily activities are included in the
non-operating revenue and expenses.
5). Accounting treatment for preferential loan with interest subsidy subject to the policy
(1) If the Ministry of Finance allocates the fund for interest subsidy to the lending bank and the lending
bank provides the loan to the Company at the preferential interest rate the Company accounts for the
loan at the actual amount of the loan received and calculates the borrowing costs based on the principal
and the preferential interest rate of the loan.
(2) When the government directly allocates the interest subsidy funds to the company the corresponding
subsidy amount is deducted from the relevant borrowing costs.
37. Deferred tax assets/deferred tax liabilities
"√ Applicable" "□ Not applicable"
1). A deferred income tax asset or a deferred income tax liability is recognized based on the difference
between the carrying amount of an asset or liability and its tax basis (or the difference between the
carrying amount of an item that is not recognized as an asset or liability and the tax basis if its tax basis
can be determined in accordance with the provisions of the tax law) at the tax rates applicable in the
period in which the asset is expected to be recovered or the liability is settled.
2). Deferred income tax assets are recognized to the extent of the amount of the taxable income that is
likely to be obtained and deducted from deductible temporary difference. On the balance sheet date
deferred income tax assets that have not been recognized in previous accounting periods shall be
recognized if there is conclusive evidence that sufficient taxable income is likely to be obtained in the
future period to offset deductible temporary differences.
183 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
3). On the balance sheet date the carrying value of deferred income tax assets is reviewed and if it is
probable that sufficient taxable income will not be available in future periods to offset the benefits of the
deferred income tax assets the carrying value of the deferred income tax assets is written down. The
amount written down is reversed when it is probable that sufficient taxable income will be available.
4). The current corporate income tax and deferred income tax are included in the current profit or loss as
income tax expense or earnings but do not include income tax arising from (1) business combination; (2)
Transactions or events recognized directly in owner's equity.
5). The Company will list the deferred tax assets and deferred tax liabilities as the net amounts upon
offsetting where all the following conditions are met: (1) It has the statutory right to offset current tax
assets against current tax liabilities; (2) The deferred tax assets and deferred tax liabilities are related to
the income tax levied by the same tax administration department on the same taxpayer or related to
different taxpayers but during any future period in which important deferred tax assets or liabilities are
reversed the taxpayers involved have the intention to offset the current tax assets against the current tax
liabilities or acquire assets and settle liabilities concurrently.
38. Lease
"√ Applicable" "□ Not applicable"
Basis for determination of simplified treatment of and accounting treatment for short-term leases
and leases of low-value assets as lessee
"√ Applicable" "□ Not applicable"
At the commencement date of the lease term the Company considers a lease that has a lease term of not
more than 12 months and does not contain a purchase option as a short-term lease; Leases that have a
lower value when the individual leased asset is an entirely new asset are considered to be leases of
low-value assets. Where the Company subleases or expects to sublease the leased asset the original
lease is not deemed as a lease of low-value assets.For all short-term leases and leases of low-value assets the Company includes the amount of lease
payments into the relevant asset cost or current profit and loss according to the straight-line method
during each period of the lease term.In addition to the short-term leases and leases of low-value assets with simplified treatment described
above the Company recognizes right-of-use assets and lease liabilities for leases at the commencement
date of the lease term.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost which includes: 1) the amount initially measured for
the lease liability; 2) the number of lease payments paid on or before the commencement date of the
lease term if there is a lease incentive less the amount of the lease incentive already enjoyed; 3) initial
direct costs incurred by the lessee; 4) the costs that the lessee expects to incur to dismantle and remove
the leased asset restore the site on which the leased asset is located or restore the leased asset to the
condition agreed upon in the lease terms.
184 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company depreciates the right-of-use assets on a straight-line basis. If it is reasonably certain that
the ownership of assets leased will be obtained at the end of the lease term the Company conducts
depreciation during the remaining useful life of the leased assets. Otherwise depreciation is conducted
during the lease term or the remaining useful life of the leased assets whichever is shorter.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes the present value of the unpaid
lease payments as the lease liabilities. The present value of lease payments is calculated using the
interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease cannot be
determined the corporate incremental borrowing rate is used as the discount rate. The difference
between the lease payments and their present value is treated as an unrecognized finance charge. Interest
expense is recognized in profit or loss for each lease term period at the discount rate used to recognize
the present value of the lease payments. Variable lease payments that are not included in the
measurement of lease liabilities are included in current profit or loss when they actually occur.After the commencement date of the lease term when there is a change in the amount of substantially
fixed payments a change in the amount expected to be payable for the remaining value of the guarantee
a change in the index or rate used to determine the amount of the lease payments a change in the
outcome of an assessment of a purchase option a renewal option or a termination option or a change in
the actual exercise the Company remeasures the lease liability based on the present value of the changed
lease payments and adjusts the carrying value of the right-of-use asset accordingly. If the carrying value
of the right-of-use asset has been reduced to zero but the lease liability still needs to be further reduced
the remaining amount is included in the current profit or loss.Sale-and-leaseback
The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company measures the
right-of-use asset resulting from the sale-and-leaseback at the portion of the original asset's carrying
value that relates to the right-of-use acquired through the leaseback and recognizes a gain or loss related
to the right transferred to the lessor only.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company continues to
recognize the transferred asset and at the same time recognizes a financial liability equal to the transfer
proceeds and accounts for the financial liability in accordance with Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments.Lease classification criteria and accounting treatment as lessor
"√ Applicable" "□ Not applicable"
At the commencement date of a lease the Company classifies a lease as a finance lease in which
substantially all the risks and rewards associated with ownership of the leased asset are transferred with
the exception of an operating lease.
(1) Operating leases
185 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company recognizes lease receipts as rental income on a straight-line basis over each period of the
lease term capitalises the initial direct costs incurred and allocates them on the same basis as rental
income recognition and is credited to profit or loss in installments. Variable lease payments relating to
operating leases obtained by the Company that are not included in the lease receipts are included in
profit or loss as they actually occur.
(2) Finance lease
At the commencement date of the lease term the Company recognizes the finance lease payments
receivable based on the net investment in the lease (the sum of the unguaranteed residual value and the
present value of the lease receipts outstanding at the commencement date discounted at the interest rate
implicit in the lease) and derecognizes the finance lease asset. The Company calculates and recognizes
interest income at the interest rate implicit in the lease for each period of the lease term.Variable lease payments received by the Company that are not included in the measurement of net lease
investment are included in profit or loss as they actually occur.The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company accounts for the
purchase of assets in accordance with other applicable Accounting Standards for Business Enterprises
and accounts for the lease of assets in accordance with Accounting Standards for Business Enterprises
No. 21 - Leases.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company does not
recognize the transferred asset but recognizes a financial asset equal to the transfer proceeds and
accounts for the financial asset in accordance with Accounting Standards for Business Enterprises No.
22 - Recognition and Measurement of Financial Instruments.
39. Other significant accounting policies and accounting estimates
"√ Applicable" "□ Not applicable"
1. Basis for hedge accounting and accounting treatment
(1) Categories of hedges include fair value hedge/cash flow hedge/hedge of a net investment in a foreign
operation.
(2) Hedges that meet the following criteria are accounted for using hedge accounting: 1) the hedging
relationship consists solely of eligible hedging instruments and hedged items; 2) at the inception of the
hedge the Company formally designates the hedging instruments and hedged items and documents in
writing the hedging relationship as well as the risk management strategy and objectives for undertaking
the hedge; 3) the hedging relationship meets the hedge effectiveness requirements.A hedging relationship is deemed to meet the hedge effectiveness requirements only if all of the
following criteria are satisfied: 1) there is an economic relationship between the hedged item and the
hedging instrument; 2) the effect of credit risk does not dominate the value changes that result from that
economic relationship; 3) the hedge ratio of the hedging relationship is the same as that resulting from
the quantity of the hedged item that the Company actually hedges and the quantity of the hedging
186 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
instrument that the Company actually uses to hedge that quantity of hedged item. However that
designation shall not reflect an imbalance between the weightings of the hedged item and the hedging
instrument.The Company assesses on an ongoing basis both at the inception of the hedge and in subsequent periods
whether the hedging relationship meets the hedge effectiveness requirements. If a hedging relationship
no longer meets the hedge effectiveness requirements due to changes in the hedge ratio but the risk
management objective for designating the hedging relationship has not changed the Company will
rebalance the hedging relationship.
(3) Accounting treatment for hedges
1) Fair value hedge
* Gains or losses arising from hedging instruments are recognized in profit or loss for the period. If the
hedging instrument is to hedge a non-trading equity instrument (or a component thereof) to be measured
at fair value through other comprehensive income the gains or losses arising from the hedging
instruments are recognized other comprehensive income.* Gains or losses arising from risk exposure of hedged items are recognized in profit or loss for the
period while adjusting the carrying amount of recognized hedged items not measured at fair value. If the
hedged item is a financial asset (or a component thereof) classified as measured at fair value through
other comprehensive income in accordance with Article 18 of the Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments the gains or losses arising
from the hedged risk exposure are recognized in profit or loss for the period and its carrying amount
will be not adjusted as it has been measured at fair value; if the hedged item is a non-trading equity
instrument investment (or a component thereof) designated by the Company to be measured at fair value
through other comprehensive income the gains or losses arising from the hedged risk exposure are
recognized in other comprehensive income and its carrying amount will be not adjusted as it has been
measured at fair value.If the hedged item is an unrecognized firm commitment (or a component thereof) the cumulative change
in fair value attributable to the hedged risk after the designation of the hedging relationship is recognized
as an asset or liability with the related gains or losses recognized in profit or loss in each relevant period.When fulfilling the firm commitment to acquire an asset or assume a liability the initial recognition
amount of such asset or liability is adjusted to include the cumulative change in the fair value of the
hedged item that was recognized.If the hedged item is a financial instrument (or a component thereof) measured at amortized cost the
adjustment made by the Company to the carrying amount of the hedged item is amortized based on the
recalculated effective interest rate at the date amortization begins and recognized in profit or loss for the
period. If the hedged item is a financial asset (or a component thereof) classified as measured at fair
value through other comprehensive income in accordance with Article 18 of the Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments the
cumulative recognized hedging gains or losses are amortized in the same manner and recognized in
187 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
profit or loss for the period but the carrying amount of the financial asset (or a component thereof) will
not be adjusted.
2) Cash flow hedge
* The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge
is recognized in other comprehensive income as a cash flow hedge reserve while the ineffective portion
is recognized in profit or loss for the period. The amount of the cash flow hedge reserve is recognized at
the lower of the following (in absolute amounts): A. the cumulative gain or loss on the hedging
instrument from inception of the hedge; B. the cumulative change in present value of the expected future
cash flow of the hedged item from inception of the hedge.* The hedged item is an anticipated transaction and if that anticipated transaction subsequently results
in the recognition of a non-financial asset or non-financial liability by the Company or when the
anticipated transaction for non-financial assets and liabilities forms a firm commitment eligible for fair
value hedge accounting the amount of the cash flow hedge reserve originally recognized in other
comprehensive income is removed and included in the initial recognition amount of that asset or
liability.* For other cash flow hedges the amount of the cash flow hedge reserve originally recognized in other
comprehensive income is removed in the same period when the hedged anticipated transaction affects
the profit or loss and recognized in profit or loss for the period.
3) Hedge of a net investment in a foreign operation
The portion of the gain or loss arising from hedging instrument that is determined to be an effective
hedge is recognized in other comprehensive income and subsequently reclassified to current profit or
loss upon disposal of the foreign operation; the ineffective portion of the gain or loss arising from
hedging instrument is recognized in profit or loss for the period.
2. Accounting treatment related to repurchase of the Company’s shares
For share repurchases due to capital reduction or employee incentives the actual amount paid is
accounted for as treasury shares and registered for future reference. If the repurchased shares are
canceled the difference between the total par value of the canceled shares calculated based on the face
value of the canceled shares and the number of canceled shares and the actual amount paid for the
repurchase will be offset against the capital reserve. If the capital reserve is insufficient the retained
earnings will be offset against. If the repurchased shares are granted to employees of the Company as
equity-settled share-based payment when the payment is received from the employees for exercise of
their right to purchase the Company’s shares the carrying amount of the treasury shares allocated to
employees and the cumulative capital reserve (other capital reserves) recognized during the vesting
period shall be de-recognized while any difference arising from this transaction shall be adjusted against
the capital reserve (share premium).
188 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
40. Changes in significant accounting policies and accounting estimates
(1).Changes in significant accounting policies
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Name of the
Affected
The content and reason of the change of accounting policy Financial Amount
Statement affected
ItemsThe provisions on “Classification of Current Liabilities and Non-currentLiabilities” in the Interpretation No. 17 on Accounting Standards for
Business Enterprises issued by the Ministry of Finance are applied as of None 0
January 1 2024The provisions on “Accounting Treatment for Sale and LeasebackTransactions” in the Interpretation No. 17 on Accounting Standards for
Business Enterprises issued by the Ministry of Finance are applied as of None 0
January 1 2024
The provisions on “Disclosure of Supplier Financing Arrangements” in the
Interpretation No. 17 on Accounting Standards for Business Enterprises None 0
issued by the Ministry of Finance are applied as of January 1 2024The provisions on “Accounting Treatment for Assurance-Type Warrantiestot Considered Separate Performance Obligations” in the Interpretation No.
18 on Accounting Standards for Business Enterprises issued by the Ministry None 0
of Finance are applied as of December 6 2024
Other notes:
None
(2).Changes in significant accounting estimates
"□ Applicable" "√ Not applicable"
(3).First application of new accounting standards or their interpretations from 2024 involves
adjustments to the financial statements at the beginning of the first application year
"□ Applicable" "√ Not applicable"
41. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Main tax types and rates
Main tax types and rates
"√ Applicable" "□ Not applicable"
Taxes Tax basis Tax rate
The output tax is calculated based on the income from
sales of goods and taxable services calculated in
Value-added tax accordance with the provisions of the tax law. After [Note 1]
deducting the deductible input tax for the current period
the difference is the value-added tax payable.Property tax If levied on an ad valorem basis calculated and paid at 1.2%12%
189 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
1.2% of the residual value after deducting 30% from the
original value of the property; If levied on the rental
calculated and paid at 12% of the rental income
Urban maintenance
and construction Actual turnover tax paid [Note 2]
tax
Education Actual turnover tax paid 3%
surcharge
Local education
Actual turnover tax paid 2%
surcharge
Business income
Taxable amount of income 15%-29.66%
tax
[Note 1] The subsidiary HANGCHA EUROPE GMBH is subject to tax at a rate of 19% the subsidiary HANGCHA
FORKLIFT CANADA INC at 14.975% the subsidiary HANGCHA NETHERLANDS B.V. at 21% the subsidiary
HANGCHA (THAILAND) CO.LTD. at 7% the subsidiary HC FORKLIFT AUSTRALIA PTY LTD. at 10% the
subsidiary HANGCHA BRASIL LTDA. at 12% the subsidiary PT HANGCHA INDONESIA FORKLIFT at 11% the
subsidiary HANGCHA JAPAN CO.LTD. And HANGCHA (MALAYSIA) SDN.BHD. at 10% and the subsidiary
HANGCHA EUROPE RENTAL&SALES at 20%. The sales revenue of goods and taxable services by the Company and
its other subsidiaries is subject to tax at a rate of 13%. Income from leasing of immovable property is subject to tax at a
rate of 9% (for leasing of immovable property acquired by the Company prior to April 30 2016 the tax rate of 5% under
the simplified tax calculation method applies); the exported goods are entitled to the “exemption credit and rebate” policy
with a tax rebate rate of 13% applicable to the vehicles. The tax rebate rate is 13% for key parts and 0 for certain batteries
and tires.[Note 2] Except for the subsidiaries Shanghai Hangcha Forklift Sales Co. Ltd. Zhongshan Hangcha Forklift Co. Ltd.Ningxia Hangcha Forklift Sales Co. Ltd. Zhanjiang Hangcha Forklift Co. Ltd. Inner Mongolia Hangcha Forklift Sales
Co. Ltd. Anhui Hangcha Forklift Sales Co. Ltd. Beijing Hangcha Forklift Co. Ltd. and Fujian Hangcha Forklift Co.Ltd. which are subject to a tax rate of 5% based on the amount of turnover tax payable the Company and its other
subsidiaries are subject to a tax rate of 7% based on the amount of turnover tax payable.Disclosure of details when taxpayers are subject to different enterprise income tax rates
"√ Applicable" "□ Not applicable"
Name of tax payer Income tax rate
The Company and its 14 subsidiaries including
Hangzhou Forklift Sheet Welding Co. Ltd 15%
HANGCHA NETHERLANDS B.V. 15% 25.8% [Note 1]
HC FORKLIFT AMERICA CORPORATION 23.5% [Note 2]
HANGCHA FORKLIFT CANADA INC. 26.50% [Note 3]
HANGCHA EUROPE GMBH 29.66% [Note 4]
HANGCHA (THAILAND) CO.LTD. 20% [Note 5]
HANGCHA BRASIL LTDA. 15% 25% [Note 6]
PT HANGCHA INDONESIA FORKLIFT 20% 25% [Note 7]
HANGCHA JAPAN CO.LTD. 15% 23.2% [Note 8]
HANGCHA (MALAYSIA) SDN.BHD. 24% [Note 9]
49 subsidiaries including Taizhou Hangcha Forklift
Sales Co. Ltd. 20%
Other taxpayers other than those mentioned above 25%
[Note 1] The subsidiary HANGCHA NETHERLANDS B.V is subject to corporate income tax in accordance with the tax
policies of the Netherlands where it is registered. The portion of taxable income not exceeding EUR 395000.00 is subject
to the tax rate of 15% and the portion exceeding EUR 395000.00 is subject to the tax rate of 25.8%
190 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
[Note 2] The subsidiary HC FORKLIFT AMERICA CORPORATION is subject to corporate income tax in accordance
with the tax policies of the USA where it is registered including federal tax of 21% and North Carolina tax of 2.5%
[Note 3] The subsidiary HANGCHA FORKLIFT CANADA INC. is subject to corporate income tax in accordance with
the tax policies of Canada where it is registered including federal tax of 15% and Quebec income tax of 11.5%
[Note 4] The subsidiary HANGCHA EUROPE GMBH is subject to corporate income tax in accordance with the tax
policies of Germany where it is registered including corporate income tax of 15% solidarity surcharge of 0.83% and
business tax of 13.83%
[Note 5] The subsidiary HANGCHA (THAILAND) CO. LTD. is subject to corporate income tax at a rate of 20% in
accordance with the tax policies of Thailand where it is registered
[Note 6] The subsidiary HANGCHA BRASIL LTDA. is subject to corporate income tax in accordance with the tax
policies of Brazil where it is registered. The tax rate is 15% for the portion of the Company’s profit less than BRL
240000 and 25% for the portion of the Company’s profit exceeding BRL 240000
[Note 7] The subsidiary PT HANGCHA INDONESIA FORKLIFT is subject to corporate income tax in accordance with
the tax policies of Indonesia where it is registered. If the Company’s annual turnover is less than IDR 50 billion the
applicable tax rate is 20%; if more than IDR 50 billion the applicable tax rate is 25%
[Note 8] The subsidiary HANGCHA JAPAN CO. LTD. is subject to corporate income tax in accordance with the tax
policies of Japan where it is registered. The tax rate is 15% for the portion of taxable income less than JPY 8 million and
the applicable tax rate is 23.2% for the portion of taxable income above JPY 8 million
[Note 9] The subsidiary HANGCHA (MALAYSIA) SDN.BHD. is subject to corporate income tax at a rate of 24% in
accordance with the tax policies of MALAYSIA where it is registered
2. Tax incentives
"√ Applicable" "□ Not applicable"
Relevant basis and explanations for the reduction and exemption of corporate income tax
1. Pursuant to the Letter on the Filing of High-tech Enterprises Certified by Zhejiang Provincial
Certification Agency in 2022 (GKHZ [2023] No. 33) issued by the National High-tech Enterprise
Certification Management Leading Group Office on January 17 2023 the subsidiaries Hangzhou
Hangzhong Engineering Machinery Co. Ltd. Hangzhou Hangcha Kangli Forklift Parts Co. Ltd. and
Hangzhou Hangcha Cab Co. Ltd. have been officially certified as high-tech enterprises which remains
valid for a period of three years. Subject to the relevant regulations including the Corporate Income Tax
Law these subsidiaries are entitled to a corporate income tax rate of 15% for national high-tech
enterprises during the period from January 1 2022 to December 31 2024. Consequently a reduced
income tax rate of 15% is applicable to this period.
2. Pursuant to the Announcement on the Filing of High-tech Enterprises Certified and Reported by
Zhejiang Provincial Certification Agency in 2023 issued by the National High-tech Enterprise
Certification Management Leading Group Office on December 28 2023 the Company Hangcha Group
Co. Ltd. and its subsidiaries Hangzhou Forklift Sheet Welding Co. Ltd. Hangzhou Forklift Mast Co.Ltd. Hangzhou Hangcha Electric Equipment Co. Ltd. Hangzhou Hangcha Machinery Equipment
Manufacturing Co. Ltd. Zhejiang Hangcha Intelligent Technology Co. Ltd. Hangzhou Hangcha Aerial
Equipment Co. Ltd. and Hangzhou Hangcha Precision Manufacturing Co. Ltd. have been certified as
high-tech enterprises which remains valid for a period of three years. Subject to the relevant regulations
191 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
including the Corporate Income Tax Law they are entitled to a corporate income tax rate of 15% for
national high-tech enterprises during the period from January 1 2023 to December 31 2025.Consequently a reduced income tax rate of 15% is applicable to this period.
3. Pursuant to the Announcement on the Filing of High-tech Enterprises Certified and Reported by
Zhejiang Provincial Certification Agency in 2024 issued by the National High-tech Enterprise
Certification Management Leading Group Office on December 26 2024 the subsidiaries Hangzhou
Hangcha Axle & Gearbox Co. Ltd. and Zhejiang Hangcha Okamura Intelligent Technology Co. Ltd.have been certified as high-tech enterprises which remains valid for a period of three years. Subject to
the relevant regulations including the Corporate Income Tax Law they are entitled to a corporate
income tax rate of 15% for national high-tech enterprises during the period from January 1 2024 to
December 31 2026. Consequently a reduced income tax rate of 15% is applicable to this period.
4. Pursuant to the Notice on Announcing the List of the Second Batch of High-tech Enterprises to be
Certified by Shaanxi Province in 2023 issued by the Shaanxi Province High-tech Enterprise Certification
Management Leading Group Office on July 31 2023 the subsidiary Baoji Hangcha Engineering
Machinery Co. Ltd. has been certified as a high-tech enterprise which remains valid for a period of
three years. Subject to the relevant regulations including the Corporate Income Tax Law it is entitled to
a corporate income tax rate of 15% for national high-tech enterprises during the period from January 1
2023 to December 31 2025. Consequently a reduced income tax rate of 15% is applicable to this
period.
5. Pursuant to the Announcement on the Implementation of Preferential Income Tax Policies for Small
and Micro Enterprises and Individual Businesses (Announcement [2021] No. 12 of the Ministry of
Finance and the State Taxation Administration) and the Announcement on Further Implementation of
Preferential Income Tax Policies for Small and Micro Enterprises (Announcement [2022] No. 13 of the
Ministry of Finance and the State Taxation Administration) issued by the Ministry of Finance and the
State Taxation Administration 49 subsidiaries including Taizhou Hangcha Forklift Sales Co. Ltd.qualify as small and micro enterprises. The portion of annual taxable income not exceeding RMB 3
million is recognized in taxable income at a reduced income tax rate of 25% and subject to corporate
income tax at a rate of 20% (resulting in an effective tax rate of 5%).
6. Pursuant to Article 2 of the Announcement of the Ministry of Finance and the State Taxation
Administration on Tax and Fee Policies for Further Supporting the Development of Small and Micro
Enterprises and Individual Businesses (Announcement [2023] No. 12 of the Ministry of Finance and the
State Taxation Administration) from January 1 2023 to December 31 2027 the small-scale VAT
taxpayers small low-profit enterprises and individual businesses are entitled to a 50% reduction in
resource tax (excluding water resource tax) urban maintenance and construction tax property tax urban
land use tax stamp duty (excluding stamp duty on securities transactions) cultivated land occupation tax
education surcharges and local education surcharges. 49 subsidiaries of the Company are eligible and
entitled to the preferential policies of 50% reduction in urban construction tax education surcharge and
local education surcharge.
192 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
7. Pursuant to the relevant provisions of the Announcement of the Ministry of Finance and the State
Taxation Administration on the Additional Value-added Tax Deduction Policy for Advanced
Manufacturing Enterprises (Announcement [2023] No. 43 of the Ministry of Finance and the State
Taxation Administration) from January 1 2023 to December 31 2027 the eligible advanced
manufacturing enterprises are permitted to claim an additional 5% deduction in their current deductible
input VAT against the VAT amount payable for the period. During the current period this Company
Hangcha Group Co. Ltd. and its 17 subsidiaries including Hangzhou Forklift Sheet Welding Co. Ltd.are entitled to this preferential policy.
8. Pursuant to the Circular on VAT Policies for Software Products (CS [2011] No. 100) this Company
Hangcha Group Co. Ltd. and its subsidiaries Hangzhou Hangcha Aerial Equipment Co. Ltd. Hangzhou
Hangcha Cab Co. Ltd. Zhejiang Hangcha Intelligent Technology Co. Ltd. Hefei Hanhe Intelligent
Logistics Technology Co. Ltd. Zhejiang Hangcha Okamura Intelligent Technology Co. Ltd. and
Hangzhou Hangzhong Engineering Machinery Co. Ltd. are eligible for the immediate refund upon
payment for the portion exceeding 3% of the actual VAT burden on software product sales.
3. Other
"□ Applicable" "√ Not applicable"
VII . Notes to the Consolidated Financial Statements Items
1. Monetary funds
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Cash on hand 1184642.16 1664527.92
Bank deposits 4084974640.77 3770560056.15
Other monetary capital 21769583.60 32039776.47
Deposits with Finance Companies
Total Amount 4107928866.53 3804264360.54
Of which: Total amount of
funds deposited beyond China 374943574.91 211873985.29
Other notes:
The closing balance of other monetary funds comprises: Guarantee Deposit of RMB 8779539.01
Letter of Credit (L/C) Deposit of RMB 3361119.30 Bank Acceptance (B/A) Deposit of RMB
8554271.21 Performance Bond of RMB 657050.58 and Third-Party Payment Account Amount of
RMB 417603.50.
2. Held-for-trading financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance Designated Reasonand Basis
Financial assets measured at /
fair value and the changes are 80000333.33
193 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
included in current profits and
losses
Including:
Wealth management 80000333.33 /
products
Total Amount 80000333.33 /
Other notes:
"□ Applicable" "√ Not applicable"
3. Derivative financial assets
"□ Applicable" "√ Not applicable"
4. Notes receivable
(1). Notes Receivable Listed by Category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Bank acceptance bills
Commercial acceptance bills 17251330.80 20456574.93
Total Amount 17251330.80 20456574.93
(2). Notes receivable pledged by the Company at the end of the period
"□ Applicable" "√ Not applicable"
(3). Notes receivable endorsed or discounted by the Company at the end of the period and not
yet due at the balance sheet date
"□ Applicable" "√ Not applicable"
(4). Disclosure of notes receivable by bad debt accrual method
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category Book BookPercenta value Percenta value
Percenta ge of
Amount Amount Value
Percenta ge of
Amount Amount Value
ge (%) Provisio ge (%) Provisio
n (%) n (%)
Provision
made on a 18247890. 996559. 17251330. 21757497. 1300922. 20456574.
100.005.46100.005.98
portfolio 00 20 80 30 37 93
basis
Including:
Commerc
ial 18247890. 996559. 17251330. 21757497. 1300922. 20456574.
100.005.46100.005.98
acceptanc 00 20 80 30 37 93
e bill
Total 18247890. 996559. 17251330. 21757497. 1300922. 20456574.////
Amount 00 20 80 30 37 93
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
194 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"√ Applicable" "□ Not applicable"
Items accrued in portfolio: Commercial acceptance bill
Unit: Yuan Currency: CNY
Closing balance
Item Notes receivable Provision for bad debts Percentage of Provision(%)
Commercial
acceptance bill as a 18247890.00 996559.20 5.46
combination
Total Amount 18247890.00 996559.20 5.46
Notes to the provision for bad debts by portfolio
"□ Applicable" "√ Not applicable"
Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of notes receivable with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of change during the period
Opening Closing
Category Make Recoverybalance Write-off or Otheror balance
provision Cancellation changes
reversal
Commercial
acceptance bill as a 1300922.37 -304363.17 996559.20
combination
Total Amount 1300922.37 -304363.17 996559.20
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(6). Actual notes receivable written off during the period
"□ Applicable" "√ Not applicable"
Of which significant write-offs of notes receivable
"□ Applicable" "√ Not applicable"
Description of notes receivable write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
195 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
5. Accounts receivable
(1).Disclosure by ageing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ageing Closing book balance Opening book balance
Within 1 year
Including: Sub-item within one year
Within 1 year 2411766395.55 1552390473.45
Subtotal within one year 2411766395.55 1552390473.45
1 to 2 years 144333180.03 129935480.28
2 to 3 years 57169206.65 36125583.19
More than 3 years
3 to 4 years 16456609.73 7902580
4 to 5 years 5689715.00 3092380.00
More than 5 years 7313002.38 6013556.97
Total Amount 2642728109.34 1735460053.89
(2).Disclosure of notes receivable by bad debt accrual method
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Catego
Percent Book value Percent Book value
ry
Percent age of Value Percent age of Value
Amount Amount Amount Amount
age (%) Provisio age (%) Provisio
n (%) n (%)
Provisi
on for
bad
debts
7945132.95286560.2
made 7945132.95 0.30 100.00 5286560.25 0.30 100.00
55
on an
individ
ual
basis
Including:
Provisi
on
made 263478297 16838557 246639740 173017349 11094100 161923248
99.706.3999.706.41
on a 6.39 5.47 0.92 3.64 4.43 9.21
portfoli
o basis
Including:
Total
2642728101763307024663974017354600511622756161923248
Amoun 100.00 / 100.00 /
9.348.420.923.894.689.21
t
Provision for bad debts made on an individual basis:
196 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance
Item Book balance Provision for bad Percentage of Rationale for thedebts Provision (%) provision
Provision for bad debts Difficult to be
made on an individual 7945132.95 7945132.95 100.00 recovered as
basis expected
Total Amount 7945132.95 7945132.95 100.00 /
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"√ Applicable" "□ Not applicable"
Items accrued in portfolio: Ageing combination
Unit: Yuan Currency: CNY
Closing balance
Item
Accounts receivable Provision for bad debts Percentage of Provision
(%)
Within 1 year 2411535995.55 120576799.80 5.00
1-2 years 139782030.95 13978203.11 10.00
2-3 years 55591753.98 16677526.20 30.00
3-5 years 21440299.13 10720149.58 50.00
More than 5 years 6432896.78 6432896.78 100.00
Total Amount 2634782976.39 168385575.47 6.39
Description of the provision for bad debts by portfolio：
"□ Applicable" "√ Not applicable"
Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of accounts receivable with provision for bad
debts during the period
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Amount of change during the periodCategory balance Make Recovery Write-off or Other
Closing
provision or reversal Cancellation changes balance
Provision
for
Individual 5286560.25 4368985.84 1710413.14 7945132.95
bad debt
Provision
made on a
portfolio 110941004.43 61291292.60 133982.00 3712739.56 168385575.47
basis
Total 116227564.68 65660278.44 133982.00 5423152.70 176330708.42
197 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Amount
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(4).Accounts receivable actually written off during the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount written off
Accounts receivable actually written off 5423152.70
Of which significant accounts receivable write-offs:
"□ Applicable" "√ Not applicable"
Description of notes receivable write-off:
"□ Applicable" "√ Not applicable"
(5).Accounts receivable with top five closing balances grouped by party in default
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ending Total Ending Percentage of
total accounts Closing
Balance Balance of
Unit Closing balance of of Accounts receivable and balance of
name accounts receivable provision for
Contract Receivable and contract assets at
the end of the bad debts
Assets Contract Assets
period (%)
Customer
One 119955163.15 119955163.15 4.34 5997758.16
Customer 57895384.88 57895384.88 2.09 2894769.24
Two
Customer
53196066.8253196066.821.922659803.34
Three
Customer
51148715.8551148715.851.852557435.79
Four
Customer 50890107.16 50890107.16 1.84 2544505.36
Five
Total 333085437.86 333085437.86 12.04 16654271.89
Amount
Other notes:
None
Other notes:
"□ Applicable" "√ Not applicable"
6. Contract assets
(1).Contract Assets
"√ Applicable" "□ Not applicable"
198 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Provision Book Provision
Book balance for bad Book value for bad Book value
balance
debts debts
Warranty
deposits 121510035.3 13410471.7 108099563.5 87126418.2 8068101.2 79058317.0
receivabl 4 6 8 7 4 3
e
Total 121510035.3 13410471.7 108099563.5 87126418.2 8068101.2 79058317.0
Amount 4 6 8 7 4 3
(2).Amount of and reasons for significant changes in the book value during the reporting period:
"□ Applicable" "√ Not applicable"
(3).Disclosure of notes receivable by bad debt accrual method
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
Categor debts Book
y Percenta Book value Percenta value
Percenta ge of Value Percenta ge of
Amount Amount Amount Amount Value
ge (%) Provisio ge (%) Provisio
n (%) n (%)
Provisi
on
made 121510035. 13410471. 108099563. 87126418. 8068101. 79058317.
100.0011.04100.009.26
on a 34 76 58 27 24 03
portfoli
o basis
Including:
Total
121510035.13410471.108099563.87126418.8068101.79058317.
Amoun 100.00 / 100.00 /
347658272403
t
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"√ Applicable" "□ Not applicable"
Items accrued in portfolio: Ageing combination
Unit: Yuan Currency: CNY
Closing balance
Item Contract assets Provision for bad debts Percentage of Provision(%)
Ageing combination 121510035.34 13410471.76 11.04
Total Amount 121510035.34 13410471.76 11.04
Notes to the provision for bad debts by portfolio
"□ Applicable" "√ Not applicable"
199 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of contract assets with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
(4).Provision for bad debts on contract assets during the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of change during the period
Recovery Write-of
Opening or reversal fs/Rever
Item Provision Other
Reas
balance during the sals Closing balanceduring the chan on
period during
period the ges
period
Provision for
impairment
8068101.245342370.5213410471.76
by
combination
Total Amount 8068101.24 5342370.52 13410471.76 /
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(5).Contract assets actually written off during the period
"□ Applicable" "√ Not applicable"
Including: Significant contract assets written off
"□ Applicable" "√ Not applicable"
Contract asset write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
7. Receivables financing
(1).Receivables financing by category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Bankers' acceptance bill 282597817.02 205590299.79
Total Amount 282597817.02 205590299.79
200 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Receivables financing pledged by the Company at the end of the period
"□ Applicable" "√ Not applicable"
(3).Receivables financing endorsed or discounted by the Company at the end of the period and
not yet due at the balance sheet date
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amounts derecognised at the end Amounts not derecognised at the
Item
of the period end of the period
Bankers' acceptance bill 1927790677.90
Total Amount 1927790677.90
(4).Disclosure of notes receivable by bad debt accrual method
"□ Applicable" "√ Not applicable"
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"□ Applicable" "√ Not applicable"
Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in the carrying amount of receivables financing due to loss provision
changes in the current period:
"□ Applicable" "√ Not applicable"
(5).Provision for bad debts
"□ Applicable" "√ Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(6).Actual write-offs of receivables financing during the current period
"□ Applicable" "√ Not applicable"
Including: Significant receivables financing write-offs
"□ Applicable" "√ Not applicable"
Description of write-off:
"□ Applicable" "√ Not applicable"
201 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(7).Increase and decrease in receivables financing during the period and changes in fair value
"□ Applicable" "√ Not applicable"
(8).Other notes
"√ Applicable" "□ Not applicable"
The acceptors of bankers' acceptance bills are commercial banks with a high credit standing. The
Company derecognises such bankers' acceptance bills that have been endorsed or discounted as the
commercial banks have a high level of creditworthiness and the likelihood of non-payment of bankers'
acceptance bill at maturity is low. However if such bills are not paid at maturity the Company will still
be jointly and severally liable to the bearer in accordance with the provisions of the Bills of Exchange
Act.
8. Advances paid
(1).Prepayments by ageing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ageing Closing balance Opening balanceAmount Percentage (%) Amount Percentage (%)
Within 1
year 338694575.44 98.61 492765223.53 99.05
1 to 2 years 3340952.75 0.97 3068636.39 0.62
2 to 3 years 872887.44 0.25 1639448.56 0.33
More than 3
years 577731.67 0.17 21378.00 0.00
Total
Amount 343486147.30 100.00 497494686.48 100.00
A description of the reasons why prepayments aged more than one year and with significant amounts
have not been settled in a timely manner:
None
(2). Prepayments with the top five ending balances aggregated by prepayment recipients
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Unit name Closing balance Percentage of total closingbalance of prepayments (%)
Supplier I 33712332.59 9.81
Supplier II 32284350.08 9.40
Supplier III 27653477.45 8.05
Supplier IV 22868829.59 6.66
Supplier V 13771843.78 4.01
Total Amount 130290833.49 37.93
Other notes:
None
Other notes:
"□ Applicable" "√ Not applicable"
202 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
9. Other receivables
Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 274834855.58 153373157.90
Total Amount 274834855.58 153373157.90
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1).Interest receivable
"□ Applicable" "√ Not applicable"
(2).Significant overdue interest
"□ Applicable" "√ Not applicable"
(3).Disclosure of notes receivable by bad debt accrual method
"□ Applicable" "√ Not applicable"
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"□ Applicable" "√ Not applicable"
(4).Provision for bad debts using the general model for expected credit losses.
"□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of interest receivable with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
(5).Provision for bad debts
"□ Applicable" "√ Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
203 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(6).Actual write-offs of interest receivable during the current period
"□ Applicable" "√ Not applicable"
Including: Significant write-offs of interest receivable
"□ Applicable" "√ Not applicable"
Description of write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(7).Dividend receivable
"□ Applicable" "√ Not applicable"
(8). Significant dividend receivables aged over 1 year
"□ Applicable" "√ Not applicable"
(9).Disclosure of notes receivable by bad debt accrual method
"□ Applicable" "√ Not applicable"
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"□ Applicable" "√ Not applicable"
(10).Provision for bad debts using the general model for expected credit losses.
"□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of dividends receivable with provision for bad
debts during the period
"□ Applicable" "√ Not applicable"
(11).Provision for bad debts
"□ Applicable" "√ Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
204 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(12).Actual write-offs of dividends receivable during the current period
"□ Applicable" "√ Not applicable"
Including: Significant write-offs of dividends receivable
"□ Applicable" "√ Not applicable"
Description of write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(13).Disclosure by ageing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ageing Closing book balance Opening book balance
Within 1 year
Including: Sub-item within one year
Within 1 year 255195588.02 136367972.07
Subtotal within one year 255195588.02 136367972.07
1 to 2 years 16086746.86 13876740.47
2 to 3 years 12577309.75 4326906.62
More than 3 years
3 to 4 years 4263968.5 3593715.12
4 to 5 years 2589542.32 2128017.28
More than 5 years 4938044.94 8037039.69
Total Amount 295651200.39 168330391.25
(14).By nature of amount
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Nature of payment Closing book balance Opening book balance
Export tax refund 217123393.52 108896343.50
Deposit Guarantee 50128555.80 33952237.20
Temporary borrowings by
employees 15299254.76 15058459.88
Temporary payments receivable 8570459.64 3858359.69
Other 4529536.67 6564990.98
Total Amount 295651200.39 168330391.25
(15).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Phase I Phase II Phase III
Expected
credit Expected credit
Expected credit
Provision for bad debts losses for the entire losses for the entirelosses for duration (no credit duration (credit
Total Amount
the next 12 impairment
months impairment) occurred)
Balance as of January
120241373581.401387674.0612195977.8914957233.35
205 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Balance January 1
2024 during the period
-- Transferred to Phase
II -517333.62 517333.62
-- Transferred to Phase
III -1257730.98 1257730.98
-- Reversed to Phase II
-- Reversed to Phase I
Provision during the
period 1047361.94 387390.54 5066943.22 6501695.70
Reversal during the
period 612384.24 612384.24
Write-offs in the
current period 30200.00 30200.00
Write-offs during the
period
Other changes
Balance as of
December 31 2024 1903609.72 1034667.24 17878067.85 20816344.81
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of other receivables with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments
"□ Applicable" "√ Not applicable"
(16).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Amount of change during the periodCategory balance Make Recovery Write-off or Other Closing balanceprovision or reversal Cancellation changes
Provision for bad
debts made on an 5551811.00 2726464.83 612384.24 7665891.59
individual basis
Provision made on a
portfolio basis 9405422.35 3775230.87 30200.00 13150453.22
Total Amount 14957233.35 6501695.70 612384.24 30200.00 20816344.81
Of which the amount of provisions for bad debt reversed or recovered during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(17).Other receivables actually written off during the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount written off
Other receivables actually written off 30200.00
206 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Of which significant write-offs of other receivables:
"□ Applicable" "√ Not applicable"
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(18).Other receivables of the top 5 in ending balance of the debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percentage of Provision
Unit name Closing balance total closing Nature of
for bad
balance of other payments Ageing debts
receivables (%) Closingbalance
Hangzhou Gongshu
District Tax Service
State Taxation 217123393.52 73.44
Export tax
refund Within 1 year
Administration
Unit I 15168200.00 5.13 DepositGuarantee Within 1 year 758410.00
Unit II 4250000.00 1.44 DepositGuarantee 2-3 years 1275000.00
Unit III Temporary
3000000.00 1.01 payments More than 5 years 3000000.00
receivable
Unit IV 2160000.00 0.73 Deposit With 1 year 1- 2Guarantee years 178000.00
Total Amount 241701593.52 81.75 / / 5211410.00
(19).Listed as other receivables due to centralized management of funds
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
10. Inventories
(1).Inventories by category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for Provision for
decline in value decline in value
of inventories of inventories
Item
Book balance or impairment Book value Book balance or impairment Book value
of contractual of contractual
performance performance
costs costs
Raw materials 816369025.72 18825970.86 797543054.86 615825474.87 8218225.93 607607248.94
207 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Work in
276877468.914023268.56272854200.35289571508.42243376.35289328132.07
progress
Inventory 1121315798.89 7041024.64 1114274774.25 1195680504.70 5135421.46 1190545083.24
Commissioned
processing 12401665.33 12401665.33 14749822.89 14749822.89
materials
Contract
performance 109150336.37 109150336.37 123754821.09 123754821.09
costs
Total Amount 2336114295.22 29890264.06 2306224031.16 2239582131.97 13597023.74 2225985108.23
(2).Data resources recognized as inventories
"□ Applicable" "√ Not applicable"
(3).Provision for decline in value of inventories or impairment of contractual performance costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of increase during Amount of decrease
Item Opening balance the period during the periodReversal or Closing balanceMake provision Other write-offs Other
Raw
materials 8218225.93 16655508.37 6047763.44 18825970.86
Work in
progress 243376.35 4023268.55 243376.34 4023268.56
Inventory 5135421.46 6775911.67 4870308.49 7041024.64
Total
Amount 13597023.74 27454688.59 11161448.27 29890264.06
Reasons for reversal or write-off of provision for decline in value of inventories in the current period
"√ Applicable" "□ Not applicable"
Item Specific basis for determining Reasons for reversal of Reasons for write-off of provision for
net realizable value provision for inventory inventory depreciation
depreciation
Raw Net realisable value is Raw materials/products-in-progress for
materials determined as the estimated which provision for inventory
selling price of the relevant depreciation was made at the beginning
Work in finished goods less costs of the period have been claimed during
progress estimated to be incurred to the current period and the related
completion estimated selling inventories have been sold.expenses and related taxes Finished goods for which provision for
Inventory inventory depreciation was made at thebeginning of the period have been sold
during the current period.Allowance for Inventory Write-Down by Category
"□ Applicable" "√ Not applicable"
Recognition Standards for Allowance for Inventory Write-Down by Category
"□ Applicable" "√ Not applicable"
208 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4).Amount of borrowing costs capitalized included in the closing balance of inventories and the
criteria and basis for calculation
"□ Applicable" "√ Not applicable"
(5).Explanation of the amount of amortisation of contract performance costs for the period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
11 . Assets held for sale
"□ Applicable" "√ Not applicable"
12. Non-current assets due within one year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term receivables matured 183727543.92 156388815.70
within one year
Total Amount 183727543.92 156388815.70
Debt investments matured within one year
"□ Applicable" "√ Not applicable"
Other debt investments matured within one year
"□ Applicable" "√ Not applicable"
Other description of non-current assets matured within one year:
None
13. Other current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Value-added tax to be deducted 124955873.75 106493814.74
Prepaid enterprise income tax 15792645.79 7496892.74
Total Amount 140748519.54 113990707.48
Other notes:
None
14. Debt investments
(1).Debt investments
"□ Applicable" "√ Not applicable"
Changes in provision for impairment of debt investments during the current period
"□ Applicable" "√ Not applicable"
209 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Significant debt investments at the end of the period
"□ Applicable" "√ Not applicable"
(3).Provision for impairment
"□ Applicable" "√ Not applicable"
Basis for classification of phases and proportion of impairment provisions
N/A
Description of significant changes in carrying amount of equity investment with provision for bad debts
during the period:
"□ Applicable" "√ Not applicable"
Basis for using the amount of the impairment provision for Less debts for the current period and basis
for evaluating any significant increase in the credit risk of the financial instruments
"□ Applicable" "√ Not applicable"
(4).Actual write-off of debt investments during the current period
"□ Applicable" "√ Not applicable"
Including: Significant write-offs of debt investments
"□ Applicable" "√ Not applicable"
Description of write-offs of debt investments:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
15. Other debt investments
(1).Other debt investment
"□ Applicable" "√ Not applicable"
Others changes in provision for impairment of debt investments during the current period
"□ Applicable" "√ Not applicable"
(2).Other significant debt investments at the end of the period
"□ Applicable" "√ Not applicable"
(3).Provision for impairment
"□ Applicable" "√ Not applicable"
Basis for classification of phases and proportion of impairment provisions
N/A
Description of significant changes in carrying amount of other equity investment with provision for bad
debts during the period:
"□ Applicable" "√ Not applicable"
Basis for using the amount of the impairment provision for Less debts for the current period and basis
for evaluating any significant increase in the credit risk of the financial instruments
210 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
(4).Other debt investments actually written off during the current period
"□ Applicable" "√ Not applicable"
Including: Other significant write-offs of debt investments
"□ Applicable" "√ Not applicable"
Description of write-offs of other debt investments:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
16. Long-term receivables
(1).Long-term receivables
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Provision for Discount rateBook balance bad debts Book value Book balance
Provision for
bad debts Book value range
Finance
lease 85976464.39 3082999.22 82893465.17 75489957.47 2052475.04 73437482.43 4.04%-20.85%
payments
Of
which:
unrealised -4643114.21 -4643114.21 -3953299.97 -3953299.97
financing
gains
Total
Amount 85976464.39 3082999.22 82893465.17 75489957.47 2052475.04 73437482.43
/
(2).Disclosure of notes receivable by bad debt accrual method
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Percentage Percentage
Category Book value Book value
Percentage of Percentage of
Amount Amount Value Amount Amount Value
(%) Provision (%) Provision
(%)(%)
Provision
made on a
85976464.39100.003082999.223.5982893465.1775489957.47100.002052475.042.7273437482.43
portfolio
basis
Including:
Total
85976464.39/3082999.22/82893465.1775489957.47/2052475.04/73437482.43
Amount
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
211 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Provision for bad debts by combination:
√适用□不适用
Items accrued in portfolio: Portfolio
Unit: Yuan Currency: CNY
Closing balance
Item
Long-term receivables Provision for bad Percentage of Provision
debts (%)
Provision made on a 85976464.39 3082999.22 3.59
portfolio basis
Total Amount 85976464.39 3082999.22 3.59
Notes to the provision for bad debts by portfolio
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts using the general model for expected credit losses.
"□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of long-term receivable with provision for bad
debts during the period
"□ Applicable" "√ Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments:
"□ Applicable" "√ Not applicable"
(4).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of change during the period
Opening Closing
Category
balance Make
Recovery Write-off or Other
or balance
provision Cancellation changes
reversal
Provision made on a 2052475.04 1030524.18 3082999.22
portfolio basis
Total Amount 2052475.04 1030524.18 3082999.22
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(5).Long-term receivables actually written off during the current period
"□ Applicable" "√ Not applicable"
Including: Significant long-term receivables written off
"□ Applicable" "√ Not applicable"
Description of long-term receivables written off:
212 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
213 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
17. Long-term equity investments
(1).Long-term equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase and decrease during the period
Gains and Closing
Opening Declarationlosses on Adjustment to Closing balance of
Invested units Account Other of issuing ProvisionAdditional Decrease in investments other Account provision
Balance changes in cash for accrual Otherinvestments investments recognised comprehensive Balance forequity dividends or impairment
under the income impairment
profits
equity method
I. Joint ventures
Subtotal
II. Associated enterprises
HANGCHA
SOUTHEAST ASIA 1548958.19 204490.24 50438.88 1803887.31
CO. LTD.Zhejiang Huachang
Hydraulic 96873437.09 13743415.72 532407.76 23868000.00 87281260.57
Machinery Co. Ltd.Hangzhou Gangcun
Transmission Co. 30205453.27 945726.00 31151179.27
Ltd.Hangzhou
Pengcheng New 35600570.73 -1645099.96 33955470.77
Energy Technology
Co. Ltd.Hangzhou Zhongce
Haichao Enterprise
1670401382.16353709550.5818016561.255679831.152047807325.14
Management Co.Ltd.Henan Jiachen
Intelligent Control 110654999.46 12748414.77 53902.93 123457317.16
Co. Ltd.
214 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Changsha
Zhongchuan 10237058.66 384403.68 198233.36 10819695.70
Transmission Co.Ltd.Nanjing Hangcha
Logistics Equipment 2668371.62 574839.78 560000.00 2683211.40
Co. Ltd.Nanchang Hangcha 4134378.92 557335.41 630000.00 4061714.33
Forklift Co. Ltd.Changsha Hangcha
Forklift Sales Co. 2970972.68 678044.79 562000.00 3087017.47
Ltd.Shijiazhuang
Hangcha Forklift 4813694.34 592981.81 840000.00 4566676.15
Sales Co. Ltd.Taiyuan Hangcha 2754528.77 488052.80 525000.00 2717581.57
Lift Truck Co. Ltd.Chongqing Hangcha
Forklift Truck Sales 3402652.56 868691.45 455000.00 3816344.01
Co. Ltd.Yunnan Hangcha 2956038.76 651607.78 420000.00 3187646.54
Lift Truck Co. Ltd.Shenyang Hangcha
Lift Truck Sales Co. 3200257.98 622423.48 630000.00 3192681.46
Ltd.Subtotal 1982422755.19 385124878.33 18067000.13 6464375.20 28490000.00 2363589008.85
Total Amount 1982422755.19 385124878.33 18067000.13 6464375.20 28490000.00 2363589008.85
215 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Impairment testing of long-term equity investments
"□ Applicable" "√ Not applicable"
Other notes:
None
18. Other equity instrument investments
(1).Investment in other equity instruments
"□ Applicable" "√ Not applicable"
(2).Description of the existence of derecognition during the current period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
19. Other non-current financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Financial assets measured at fair value and the changes 26325621.62 25591400.00
thereof are included in current profits and losses
Including: Investment in other equity instruments 26325621.62 25591400.00
Total Amount 26325621.62 25591400.00
Other notes:
"√ Applicable" "□ Not applicable"
Other non-current financial assets represent equity investments that do not constitute control and
significant influence.
20. Investment property
Measurement model of investment properties
(1). Investment properties by using cost measurement model
Unit: Yuan Currency: CNY
Item Housesbuildings Land use rights Total Amount
I. Original book value
1. Opening balance 116336568.36 3718843.99 120055412.35
2. Increase amounts during the period
(1) Outsourcing
(2) Transfer from inventories\fixed
assets\construction in progress
(3) Increase in business combination
3. Decrease amounts during the period
(1) Disposals
(2) Other transfers out
4. Closing balance 116336568.36 3718843.99 120055412.35
II. accumulated depreciation and accumulated amortisation
216 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
1. Opening balance 45884180.08 1225356.14 47109536.22
2. Increase amounts during the
period 5835457.50 75044.67 5910502.17
(1) Accrual or amortisation 5835457.50 75044.67 5910502.17
3. Decrease amounts during the
period
(1) Disposals
(2) Other transfers out
4. Closing balance 51719637.58 1300400.81 53020038.39
III. Provision for impairment
1. Opening balance
2. Increase amounts during the
period
1) Accrural
3. Decrease amounts during the
period
(1) Disposals
(2) Other transfers out
4. Closing balance
IV. Book value
1. Closing book value 64616930.78 2418443.18 67035373.96
2. Opening book value 70452388.28 2493487.85 72945876.13
(2).Investment properties with outstanding title certificates
"□ Applicable" "√ Not applicable"
(3).Impairment testing of investment properties by the cost measurement model
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
21. Fixed assets
Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Fixed assets 2196536129.01 1926935915.66
Liquidation of fixed assets
Total Amount 2196536129.01 1926935915.66
Other notes:
"□ Applicable" "√ Not applicable"
Fixed assets
(1).Fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Buildings Machinery and Transportation Other equipment Total Amount
217 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
equipment facilities
I. Original book value:
1. Opening balance 1321113637.97 933879658.60 924402360.92 107072540.37 3286468197.86
2. Increase amounts
39047399.4774248448.83483411745.7225632366.89622339960.91
during the period
(1) Acquisitions 538608.69 16752236.15 35276305.58 10861613.34 63428763.76
(2) Transfer from
38508790.7854309126.40219255.3514770753.55107807926.08
construction in progress
(3) Increase in
business combination
(4) Transferred
3187086.28447916184.79451103271.07
from finished goods
3. Decrease amounts
2389806.3824625323.9963279774.452498155.6392793060.45
during the period
(1) Disposal or
2389806.3813474168.9459190817.442498155.6377552948.39
retirement
2) Transfer to
8761601.508761601.50
construction in progress
3) Transfer to
2389553.554088957.016478510.56
inventories
4. Closing balance 1357771231.06 983502783.44 1344534332.19 130206751.63 3816015098.32
II. Accumulated depreciation
1. Opening balance 468008698.97 402360195.23 415091843.68 66501706.61 1351962444.49
2. Increase amounts
65621920.6669910007.58182483114.1214609531.16332624573.52
during the period
1) Accrural 65621920.66 69910007.58 182483114.12 14609531.16 332624573.52
3. Decrease amounts
1194627.249244419.9955254802.402385234.1768079083.80
during the period
(1) Disposal or
1194627.246904839.0553916315.282385234.1764401015.74
retirement
2) Transfer to 1684903.95 1684903.95
construction in progress
3) Transfer to 654676.99 1338487.12 1993164.11
inventories
4. Closing balance 532435992.39 463025782.82 542320155.40 78726003.60 1616507934.21
III. Provision for impairment
1. Opening balance 89206.35 6879583.64 134331.01 466716.71 7569837.71
2. Increase amounts
during the period
1) Accrural
3. Decrease amounts
4598802.614598802.61
during the period
(1) Disposal or 4598802.61 4598802.61
218 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
retirement
4. Closing balance 89206.35 2280781.03 134331.01 466716.71 2971035.10
IV. Book value
1. Closing book value 825246032.32 518196219.59 802079845.78 51014031.32 2196536129.01
2. Opening book
853015732.65524639879.73509176186.2340104117.051926935915.66
value
(2).Temporarily idle fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Original book Accumulated Provision for Book value Remark
value depreciation impairment s
Buildings 180355.00 82130.90 89206.35 9017.75
Machinery and 9320931.33 6574122.75 2280781.03 466027.55
equipment
Transportation 557605.65 395394.96 134331.01 27879.68
facilities
Other equipment 1335136.96 801668.89 466716.71 66751.36
Subtotal 11394028.94 7853317.50 2971035.10 569676.34
(3).Fixed assets leased through operating leases
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Book value at the end of the period
Machinery and equipment 111101395.77
Transport equipment 706561855.82
Other equipment 2385956.98
Subtotal 820049208.57
(4).Fixed assets for which title certificates have not been issued
"□ Applicable" "√ Not applicable"
(5).Impairment testing of fixed assets
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Liquidation of fixed assets
"□ Applicable" "√ Not applicable"
22. Construction in progress
Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
219 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Construction in progress 584836969.86 425329238.21
Engineering materials
Total Amount 584836969.86 425329238.21
Other notes:
"□ Applicable" "√ Not applicable"
Construction in progress
(1).Construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Hangcha Group Shiqiao 450626697.66 450626697.66 353311606.67 353311606.67
Factory Upgrading
Construction Project
Hangcha Intelligence 96369579.73 96369579.73
Project on Annual Output
of 10000 Automation
Equipment
Intellectualization Reform 21774574.45 21774574.45
Project of Hangzhou Cha
on Core Process
Capability with an Annual
Output of 3000
High-tonnage Forklifts for
High-end Markets
Prepayment of Equipment 12328740.56 12328740.56 7988846.03 7988846.03
Project Payment and
Other Projects
Information project 3737377.46 3737377.46
Investment Project for the 49188721.65 49188721.65
Construction of 60000
Units of New Energy
Forklifts Annually
Marketing Network and 6585899.94 6585899.94
Forklift Experience Center
Construction Project
R&D Center Upgrade 6203573.99 6203573.99
Construction Project
220 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Group Information 2050589.93 2050589.93
Technology Upgrade
Construction Project
Total 584836969.86 584836969.86 425329238.21 425329238.21
(2).Changes in important construction projects in progress during the current period
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuan Currency: CNY
The
Othe propo Of
Amo Amou r rtion which:
nts decr of
Open unt transf ease Closi Accum Amou Interest
Budg ing of
cumul
erred in ng Prog ulated nt of capitaliative
Item eted Acco incre to amo Acco ress interest interes zation Sourc
ase invest of capitali t rate for e of
Name num unt durin fixed unts unt ment wor zation apitali the funds
ber Bala g the assets duri Bala in the ks amount zation period
nce durin ng nce projec
perio g the the s during (%)
d t ofperiod peri thethe
od periodbudge
t (%)
Investmen
t Project
for the
Constructi
on of 7224 4918 2968 7861. 26.5 100. Raised
60000 3.83 .87 .94 26 5 87.24 00 funds
Units of
New
Energy
Forklifts
Annually
Group
Informatio
n 8439. 205. 725. 46.54 883. 107.9 100. RaisedTechnolog 90 06 24 76 4 00 funds
y Upgrade
Constructi
on Project
Hangcha
Group
Shiqiao Self-o
600035339731450683.9
Factory 83.92 wned0.00 1.16 .51 2.67 2
Upgrading funds
Constructi
on Project
Marketing
Network
and
Forklift 9385. 658. 70.15 588. 103.1 100. Raised
Experienc 34 59 44 6 00 funds
e Center
Constructi
on Project
221 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
R&D
Center 1292 620. 960. 1580. 100. Raised
Upgrade 7.43 36 60 96 63.46 00 funds
Constructi
on Project
Hangcha
Intelligenc
e Project
on Annual Self-o
Output of 2500 9636 9636 43.5
100000.00.96.96
43.56 6 wned
funds
Automatio
n
Equipmen
t
Intellectua
lization
Reform
Project of
Hangzhou
Cha on
Core
Process
Capability Self-o1600 2785 607.7 2177 19.6
with an 0.00 .20 4 .46 19.67 7 wned
Annual funds
Output of
3000
High-tonn
age
Forklifts
for
High-end
Markets
Total 4173 2680 10166 1498 5687 / / / /
Amount 4.04 8.45 .65 .75 7.09
(3).Provision for impairment of construction in progress during the current period
"□ Applicable" "√ Not applicable"
(4).Impairment testing of construction in progress
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Engineering materials
(5).Construction materials
"□ Applicable" "√ Not applicable"
23. Productive biological assets
(1).Productive biological assets measured using the cost measurement model
"□ Applicable" "√ Not applicable"
222 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Impairment testing of productive biological assets measured at cost
"□ Applicable" "√ Not applicable"
(3). Productive biological assets using the fair value measurement model
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
24. Oil & gas assets
(1) Oil and gas assets
"□ Applicable" "√ Not applicable"
(2) Impairment testing of oil and gas assets
"□ Applicable" "√ Not applicable"
Other notes:
None
25. Right-of-use assets
(1) Right-of-use assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Buildings Total Amount
I. Original book value
1. Opening balance 148583109.18 148583109.18
2. Increase amounts during the
period 115435287.56 115435287.56
Leased 115435287.56 115435287.56
3. Decrease amounts during the 24963808.19 24963808.19
period
1) Disposal on lease 11833296.27
termination 11833296.27
2) Disposal upon lease 13130511.92
expiration 13130511.92
4. Closing balance 239054588.55 239054588.55
II. Accumulated depreciation
1. Opening balance 44055456.03 44055456.03
2. Increase amounts during the
period 41795323.39 41795323.39
(1) Accrual 41795323.39 41795323.39
3. Decrease amounts during the 21422725.58 21422725.58
period
(1) Disposal
(2) Disposal on lease
termination 8292213.66 8292213.66
(3) Disposal upon lease
expiration 13130511.92 13130511.92
223 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
4. Closing balance 64428053.84 64428053.84
III. Provision for impairment
1. Opening balance
2. Increase amounts during the
period
(1) Accrual
3. Decrease amounts during the
period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 174626534.71 174626534.71
2. Opening book value 104527653.15 104527653.15
(2) Impairment testing of right-of-use assets
"□ Applicable" "√ Not applicable"
Other notes:
None
26. Intangible assets
(1).Intangible assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Land userights Software
Proprietary Emission
technologies permit Total Amount
I. Original book value
1. Opening
balance 351641263.28 105306778.37 1504558.00 669191.66 459121791.31
2. Increase
amounts during the 31687875.00 21005104.64 52692979.64
period
(1) Acquisitions 432101.30 432101.30
(2) Internal
R&D
(3) Increase in
business combination
Carried over
from constructions in 937875.00 20573003.34 21510878.34
progress
Carried over
from other non-current 30750000.00 30750000.00
assets [Note]
3. Decrease
amounts during the 1495883.28 458174.37 1504558.00 3458615.65
period
(1) Disposal 1495883.28 458174.37 1504558.00 3458615.65
4. Closing balance 381833255.00 125853708.64 669191.66 508356155.30
II. Accumulated amortization
1. Opening
balance 67419603.61 20255099.39 1504558.00 183531.00 89362792.00
224 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
2. Increase
amounts during the 7900822.63 11655807.10 43232.44 19599862.17
period
1) Accrural 7900822.63 11655807.10 43232.44 19599862.17
3. Decrease
amounts during the 1495883.28 458174.37 1504558.00 3458615.65
period
(1) Disposal 1495883.28 458174.37 1504558.00 3458615.65
4. Closing balance 73824542.96 31452732.12 226763.44 105504038.52
III. Provision for impairment
1. Opening
balance 566347.35 566347.35
2. Increase
amounts during the
period
1) Accrural
3. Decrease
amounts during the
period
(1) Disposal
4. Closing balance 566347.35 566347.35
IV. Book value
1. Closing book
value 308008712.04 93834629.17 442428.22 402285769.43
2. Opening book
value 284221659.67 84485331.63 485660.66 369192651.96
[Note] The original book value increased by RMB30750000.00 transferred from other non-current assets during the
current period due to the land deposit paid in the previous period.The proportion of intangible assets formed through in-house R&D to the balance of intangible assets at the end of the
period was RMB0
(2).Data resources recognized as intangible assets
"□ Applicable" "√ Not applicable"
(3). Land use rights for which title certificates have not been issued
"□ Applicable" "√ Not applicable"
(3) Impairment testing of impairment of intangible assets
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
27. Goodwill
(1).Original carrying amount of goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Name of investee or matters Opening balance Increase for the Decrease forforming goodwill period the period Closing balance
225 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Resulting
from
business Disp
combinati osals
ons
Hangzhou Forklift Sheet Metal
Welding Co. Ltd. 1099023.98 1099023.98
Hangzhou Forklift Mast Co. Ltd. 1662110.47 1662110.47
Hangzhou Hangcha Bridge Box
Co. Ltd. 6571.29 6571.29
Hefei Hanhe Intelligent Logistics
Technology Co. Ltd. 612684.02 612684.02
HC FORKLIFT AUSTRALIA
PTY. LTD. 7272600.00 7272600.00
Total Amount 10652989.76 10652989.76
(2).Provision for impairment of goodwill
"□ Applicable" "√ Not applicable"
(3).Information about the asset group or combination of asset groups in which goodwill is located
"√ Applicable" "□ Not applicable"
Consistency
Item Composition and basis of the asset group or Operating with
portfolio to which the goodwill belongs segment and basis previous
years
Goodwill was formed upon the acquisition of
Hangzhou Forklift Sheet Metal equity interests and the asset group where
Business on
Welding Co. Ltd. the goodwill belonged at the end of the forklift trucks and Yes
period was consistent with the asset group accessories
identified at the purchase date.Goodwill was formed upon the acquisition of
equity interests and the asset group where Business on
Hangzhou Forklift Mast Co. Ltd. the goodwill belonged at the end of the forklift trucks and Yes
period was consistent with the asset group accessories
identified at the purchase date.Goodwill was formed upon the acquisition of
Hangzhou Hangcha Bridge Box Co. equity interests and the asset group where Business on
the goodwill belonged at the end of the forklift trucks and Yes
Ltd.period was consistent with the asset group accessories
identified at the purchase date.Goodwill was formed upon the acquisition of
Hefei Hanhe Intelligent Logistics equity interests and the asset group where Business on
the goodwill belonged at the end of the forklift trucks and Yes
Technology Co. Ltd.period was consistent with the asset group accessories
identified at the purchase date.Goodwill was formed upon the acquisition of
HC FORKLIFT AUSTRALIA PTY. equity interests and the asset group where Business on
the goodwill belonged at the end of the forklift trucks and Yes
LTD.period was consistent with the asset group accessories
identified at the purchase date.Changes in asset groups or its portfolio
"□ Applicable" "√ Not applicable"
Other notes:
226 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
(4).Specific method to determine recoverable amount
The recoverable amount is determined based on the fair value less costs of disposal."□ Applicable" "√ Not applicable"
The recoverable amount was determined based on the present value of expected future cash flows
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Key
parameters
Basis for
Basis for for the
Key parameters determining
Years determining stabilization
for the forecast key
Recoverable Amount of of the the period
Item Book value period (growth parameters
amount impairment forecast parameters in (growth rate
rate profit margin for the
period the forecast profit
etc.) stationary
period margin
phase
discount
rate etc.)
The
Management Average
determines revenue
Average revenue key growth rate
Reference
Hangzhou growth rate of parameters of 10%
to the data
Forklift Sheet 10% average for the average
at the end
Metal 1099023.98 1099023.98 3 profit margin of forecast gross profit
of the
Welding Co. 2.44% pre-tax period based margin of
forecast
Ltd. discount rate of on historical 2.29%
period
15% data and pre-tax
forecasts of discount rate
market of 15%
development.The
Management Average
determines revenue
Average revenue key growth rate
Reference
growth rate of parameters of 10%
to the data
Hangzhou 10% average for the average
at the end
Forklift Mast 1662110.47 1662110.47 3 profit margin of forecast gross profit
of the
Co. Ltd. 1.31% pre-tax period based margin of
forecast
discount rate of on historical 1.21%
period
15% data and pre-tax
forecasts of discount rate
market of 15%
development.The Average
Average revenue
Management revenue Reference
growth rate of
Hangzhou determines growth rate to the data
10% average
Hangcha key of 10% at the end
6571.29 6571.29 3 profit margin of
Bridge Box parameters average of the
2.14% pre-tax
Co. Ltd. for the gross profit forecast
discount rate of
forecast margin of period
15%
period based 2.08%
227 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
on historical pre-tax
data and discount rate
forecasts of of 15%
market
development.The
Management Average
determines revenue
Average revenue key growth rate
Reference
Hefei Hanhe growth rate of parameters of 10%
to the data
Intelligent 10% average for the average
at the end
Logistics 612684.02 612684.02 3 profit margin of forecast gross profit
of the
Technology 21.95% pre-tax period based margin of
forecast
Co. Ltd. discount rate of on historical 16.11%
period
15% data and pre-tax
forecasts of discount rate
market of 15%
development.The
Management Average
determines revenue
Average revenue key growth rate
Reference
growth rate of parameters of 20%
HC to the data
20% average for the average
FORKLIFT at the end
7272600.00 7272600.00 3 profit margin of forecast gross profit
AUSTRALIA of the
2.59% pre-tax period based margin of
PTY. LTD. forecast
discount rate of on historical 5.01%
period
15% data and pre-tax
forecasts of discount rate
market of 15%
development.Total Amount 10652989.76 10652989.76 / / / / /
Reasons for Differences Between the Above Information and the Information or External Information
Used in Previous Years' Impairment Tests
"□ Applicable" "√ Not applicable"
Reasons for the Significant Discrepancy Between the Information Used in Previous Years' Impairment
Tests and the Actual Situation in the Current Year
"□ Applicable" "√ Not applicable"
(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 reporting period falls within the performance commitment period."□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
28. Long-term prepayments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening Amount of Amortization Other Closing balance
228 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
balance increase during amounts for the decreases
the period period in
amounts
Operating
expenses on
improvement of 16458700.91 15844847.00 6743624.48 25559923.43
fixed assets
leased
Total Amount 16458700.91 15844847.00 6743624.48 25559923.43
Other notes:
None
29. Deferred tax assets/deferred tax liabilities
(1).Deferred income tax assets not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Deductible Deferred income Deductible Deferred income
temporary tax temporary tax
differences Assets differences Assets
Provision for 218356270.95 43290941.65 150072384.05 29415276.48
impairment of assets
-- Unrealized profits of
294793611.8669871358.84210315808.7949211705.22
internal transactions
Deferred income 93427574.52 14014136.18 54161691.30 8124253.69
Changes in fair value of
derivative financial 366815.63 91703.91 3911.26 977.82
liabilities
Deductible losses 67068213.75 10088544.77 119658405.88 19398144.68
Lease transactions 166355768.98 42466522.93 98300677.85 24472216.03
Total Amount 840368255.69 179823208.28 632512879.13 130622573.92
(2).Deferred income tax liabilities not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Taxable Deferred Taxable Deferred income
temporary income tax temporary tax
differences Liabilities differences Liabilities
Accelerated depreciation 138715544.04 20807331.60 168348739.76 25252310.96
differences
Lease transactions 173928041.98 42753114.55 100274976.40 24436543.69
Total Amount 312643586.02 63560446.15 268623716.16 49688854.65
(3). Deferred income tax assets or liabilities listed by the net value of offsets
"√ Applicable" "□ Not applicable"
229 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Unit: Yuan Currency: CNY
Amount of Ending balance Amount of Opening balance
of deferred deferred tax of deferred
deferred tax
income tax assets and income tax
Item assets and
liabilities offset assets or liabilities offset assets or
liabilities after at beginning of liabilities after
at end of period
offsetting period offsetting
Deferred tax assets 62913443.04 116909765.24 49622585.42 80999988.50
Deferred tax liabilities 62913443.04 647003.11 49622585.42 66269.23
(4).Details of unrecognized deferred income tax assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Deductible temporary
30149335.1414957233.35
differences
Deductible losses 54553297.01 50734454.82
Total Amount 84702632.15 65691688.17
(5). The deductible losses for which no deferred income tax assets have been recognized will
expire in the following years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Years Closing amount Opening amount Remarks
2024506367.34
20251841085.351841085.35
202612053290.5912053290.59
20277114927.517114927.51
202829218784.0329218784.03
20294325209.53
Total Amount 54553297.01 50734454.82 /
Other notes:
"□ Applicable" "√ Not applicable"
30. Other non-current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Book Provision Book Book balance Provision
balance for for Book value
value
impairment impairment
Land deposit 30750000.00 30750000.00
Total
30750000.0030750000.00
Amount
Other notes:
None
230 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
31. Assets with restricted ownership or right of use
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Closing Opening
Item Book Types ofBook value restrictio Restricted Book
Types of
balance Situation balance Book value restrictio
Restricted
ns ns Situation
Restricted
use due to
incomplete
bank
Monetar 12041120. 12041120.y funds 00 00 Other
account
informatio
n of a
newly
established
company
Endorsed
outstandin
Notes g
receivabl 1435714.0 1435714.0 Other commercia
e 0 0 l
promissory
notes
Mortgage
Intangibl 31687875. 31159743. Mortgage of
e assets 00 70 d borrowing
s
Letter of Letter of
guarantee guarantee
bond bond
letter of letter of
credit credit
Monetar 21351980. 21351980.y funds 10 10 Other
bond 31247440. 31247440. bond
bankers' 98 98 Other bankers'
acceptance acceptance
bill bond bill bond
and and
performan performan
ce bond ce bond
Total 65080975. 64552843. / / 32683154. 32683154. / /Amount 10 80 98 98
Other notes:
None
32. Short-term borrowings
(1).Short-term borrowings by category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Credit borrowing 273011861.12 880073299.60
Guaranteed borrowing 58730480.71 47769073.42
Total Amount 331742341.83 927842373.02
Notes on classification of short-term borrowings:
None
231 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Overdue short-term borrowings
"□ Applicable" "√ Not applicable"
Including: Significant overdue short-term borrowings as below
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
33. Held-for-trading financial liabilities
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
34. Derivative financial liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Foreign exchange derivatives [Note] 366815.63 3911.26
Total Amount 366815.63 3911.26
[Note] Foreign exchange derivatives were converted from financial liabilities held for trading to the derivative financial
liabilities in accordance with the Compilation of Application Guidelines for Business Accounting Standards 2024.Other notes:
None
35. Notes payable
(1).Notes payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Type Closing balance Opening balance
Commercial acceptance bill
Bankers' acceptance bill 881330175.61 575292393.95
Total Amount 881330175.61 575292393.95
The total amount of notes payable that were due and unpaid at the end of the current period was 0 Yuan.Reason for notes payable due and unpaid: Not applicable
36. Accounts payable
(1).Accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Materials 2388648634.77 1872593328.42
Project equipment 146750146.17 146471792.91
Other 29735495.83 29409578.29
Total Amount 2565134276.77 2048474699.62
232 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2).Significant accounts payable aged over one year or overdue
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
37. Advances received
(1). Accounts received in advance
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Rent 913546.17 915837.83
Total Amount 913546.17 915837.83
(2). Significant accounts received in advance aged over one year
"□ Applicable" "√ Not applicable"
(3). Amount of and reasons for significant changes in the book value during the reporting
period:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
38. Contractual liabilities
(1).Contract liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Loans 307715552.05 599700870.86
Total Amount 307715552.05 599700870.86
(2).Important contract liabilities with aging over 1 year
"□ Applicable" "√ Not applicable"
(3).Amount of and reasons for significant changes in the book value during the reporting period:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
39. Employee benefits payable
(1).Payroll payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening Increase for the Decrease for the Closing balance
233 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
balance period period
I. Short-term
employee benefits 107844046.44 1167962383.69 1161375576.90 114430853.23
II. Post-employment
benefits - defined 13852275.37 103419590.68 103161465.99 14110400.06
contribution plans
3. Termination
Benefits 789888.46 773460.46 16428.00
IV. Other benefits due
within one year
Total Amount 121696321.81 1272171862.83 1265310503.35 128557681.29
(2).1. Short-term remunerations
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Increase for the Decrease for the
Item Closing balance
balance period period
I. Salary bonus
51060089.36976200891.14970542895.2056718085.30
subsidy and grant
II. Employee welfare 47964840.13 47964840.13
III. Social insurance 9631616.06 68936039.21 67295644.31 11272010.96
premium
Including: Medical
insurance premiums 8606096.36 63056027.70 61507778.09 10154345.97
Work injury
compensation 782414.14 5499632.11 5403389.26 878656.99
insurance premiums
Maternity
243105.56380379.40384476.96239008.00
insurance premiums
IV. Housing provident 592451.74 60567230.85 60321249.36 838433.23
fund
V. Trade union fee 46559889.28 14293382.36 15250947.90 45602323.74
and staff education fee
VI. Short-term
compensated absence
VII. Short-term
profit-sharing plan
Total Amount 107844046.44 1167962383.69 1161375576.90 114430853.23
(3).Defined contribution plan
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase for the Decrease for the
Item Opening balance Closing balance
period period
1. Basic pension 13478249.28 99694870.51 99430395.87 13742723.92
insurance
2. Unemployment
374026.093724720.173731070.12367676.14
insurance premiums
3. Enterprise pension
234 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
contribution
Total Amount 13852275.37 103419590.68 103161465.99 14110400.06
Other notes:
"□ Applicable" "√ Not applicable"
40. Taxes and rates payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Business income tax 117854715.76 93548795.44
Value-added tax 26140843.27 23696496.24
Property tax 13942413.58 12697605.61
Land use tax 7348258.54 7174343.63
Withheld individual income tax 5502513.73 4288593.32
Stamp duty 3451182.39 3279625.60
Urban maintenance and 1446469.47 906744.71
construction tax
Property tax 711241.86
Education surcharge 658732.22 423719.89
Local education surcharge 429484.71 264550.91
Disability insurance fund 386571.09 223822.07
Local water conservancy 74966.85 76746.26
development fund
Vehicle and vessel tax 450.00
Other 484.91 461.37
Total Amount 177947878.38 146581955.05
Other notes:
None
41. Other payables
(1).Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest payable
Dividend payable 40000.00 20000.00
Other payables 86638278.91 85111164.62
Total Amount 86678278.91 85131164.62
Other notes:
"□ Applicable" "√ Not applicable"
(2).Interest payable
By category
"□ Applicable" "√ Not applicable"
Significant overdue interest payable
235 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(3).Dividend payable
By category
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Common Stock Dividends
Dividends on preferred shares/perpetual
bonds classified as equity instruments
Dividends payable to minority shareholders of 40000.00 20000.00
subsidiaries
Total Amount 40000.00 20000.00
Other notes including significant dividends payable overdue for over 1 year and reasons for
non-payment:
N/A
(4).Other payables
Other payables by the nature of funds
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Deposit Guarantee 73457042.30 75216711.88
Temporary receipts payable 10747890.28 7665465.20
Other 2433346.33 2228987.54
Total Amount 86638278.91 85111164.62
Significant other accounts payable aged over one year or overdue
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
42. Liabilities held for sale
"□ Applicable" "√ Not applicable"
43. Non-current liabilities matured within one year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term loans matured within one year 600388888.89
Bonds payable matured within one year
Long-term payables matured within one year
Lease liabilities matured within one year 29409865.55 25913389.64
Total Amount 629798754.44 25913389.64
236 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other notes:
None
44. Other current liabilities
Other current liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Short-bonds payable
Refund payable
Output tax amount to be forwarded 69453487.35 78751022.97
Endorsed outstanding commercial 1435714.00
promissory notes
Total Amount 69453487.35 80186736.97
Increase/decrease in short-term bonds payable:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
45. Long-term borrowings
(1). Long-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Pledge borrowing
Mortgage 54717119.68
Guaranteed borrowing
Credit borrowing
Total Amount 54717119.68
Notes on classification of long-term borrowings:
None
Other notes:
"□ Applicable" "√ Not applicable"
46. Bonds payable
(1).Bonds payable
"□ Applicable" "√ Not applicable"
(2).Details of bonds payable: (Excluding other financial instruments such as preferred shares and
perpetual bonds classified as financial liabilities)
"□ Applicable" "√ Not applicable"
(3).Description of convertible corporate bonds
"□ Applicable" "√ Not applicable"
237 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Accounting treatment and judgment basis for conversion of equity shares
"□ Applicable" "√ Not applicable"
(4). Notes on other financial instruments classified as financial liabilities
General information on preferred stock perpetual bonds and other financial instruments outstanding at
the end of the period
"□ Applicable" "√ Not applicable"
Changes in preferred stock perpetual bonds and other financial instruments outstanding at the end of the
period
"□ Applicable" "√ Not applicable"
Notes on the basis of classing other financial instruments as financial liabilities
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
47. Lease liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
House lease 143909897.42 74459998.09
Total Amount 143909897.42 74459998.09
Other notes:
None
48. Long-term payables
Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term payables 4578954.00 4578954.00
Specific payables
Total Amount 4578954.00 4578954.00
Other notes:
"□ Applicable" "√ Not applicable"
Long-term payables
(1).Long-term payables by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
238 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Medical retention for retirees of 4578954.00 4578954.00
enterprises before restructuring [Note]
Total Amount 4578954.00 4578954.00
[Note] The amount of the medical fee retention of retirees of the Company at the time of restructuring
from the Hangzhou Forklift Truck Factory into a limited liability company.Other notes:
None
Specific payables
(2).Special accounts payable by nature
"□ Applicable" "√ Not applicable"
49. Long-term employee benefits payable
"□ Applicable" "√ Not applicable"
50. Provisions
"□ Applicable" "√ Not applicable"
51. Deferred income
Deferred income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Item Opening Increase for the Decrease for the Closing balance Reason for
balance period period formation
Government 54161691.30 53475718.28 14209835.06 93427574.52 Financial
grants allocation
Total
54161691.3053475718.2814209835.0693427574.52/
Amount
Other notes:
"□ Applicable" "√ Not applicable"
52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase/decrease (+ -) in current change
Provident
Opening balance New Bonus fund Closing balance
shares Other Subtotal
shares Conversion of
issued
shares
239 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Total
number
935580035.00374232014.00374232014.001309812049.00
of
shares
Other notes:
In accordance with the Proposal on Profit Distribution and Conversion of Capital Reserve into Share
Capital of the Company for 2023 approved at the 2023 annual general meeting of the Company on May
10 2024 the Company converted four shares for every ten to each shareholder by conversion of capital
reserve on the basis of the total 935580035 shares as at the date of registration of interests on December
31 2023 with the total of 374 232014 shares to be converted. Following the conversion the registered
capital of the Company was RMB1309812049.00. The aforesaid capital increase was audited by
Pan-China Certified Public Accountants LLP (Special General Partnership) which issued the Capital
Verification Report (Pan-China [2024] No. 214) and the Company has completed the registration on
industrial and commercial changes on June 25 2024.
54. Other equity instruments
(1).General information on preferred stock perpetual bonds and other financial instruments
outstanding at the end of the period
"□ Applicable" "√ Not applicable"
(2).Changes in preferred stock perpetual bonds and other financial instruments outstanding at
the end of the period
"□ Applicable" "√ Not applicable"
Increase/decrease in other equity instruments during the period reasons for changes and bases of related
accounting treatment:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
55. Capital reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase for the Decrease for the
Item Opening balance Closing balance
period period
Capital premium 1763474386.50 1688911.92 398467386.02 1366695912.40
(share premium)
Other capital 34288534.80 6464375.20 40752910.00
reserves
Total Amount 1797762921.30 8153287.12 398467386.02 1407448822.40
Other notes including increase/decrease during the period and reasons for changes:
1) Increase in equity premium during the period
During the current period the Company increased the capital of Hangzhou Hangcha Aerial Platform Co.Ltd. and Hangcha Group Leasing Co. Ltd. and the difference between the capital increase and the net
240 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
assets entitled after the increase was RMB1688911.92 with an increase of capital surplus by
RMB1688911.92 accordingly.
2) Decrease in capital premium during the period
* During the current period after the Company acquired part of the equity of Hangzhou Hangcha
Machinery & Equipment Manufacturing Co. Ltd the minority shareholders increased the capital of
Hangzhou Hangcha Machinery & Equipment Manufacturing Co. Ltd and the difference between the
cost of the Company's share purchases and the net assets entitled was RMB31520.89 with decrease of
capital surplus by RMB31520.89 accordingly. During the period the Company increased the capital of
Zhumadian Hangcha Forklift Truck Co. Ltd. and the difference between the capital increase and the net
assets entitled after the capital increase was RMB17251.13 with the decrease of capital surplus by
RMB17251.13 accordingly.* In the conversion of capital reserve into share capital during the current period the capital premium
was reduced by RMB374232014.00 as stated in Section X Financial Report VII 55.* As for the business merger under the same control of Zhejiang Guozi Intelligent Equipment Co. Ltd.during the current period the capital premium decreased by RMB24186600.00.
3) Increase of other capital reserve during the current period
Due to the change of capital reserve of associates accounted for under the equity method capital reserve
was increased by RMB6464375.20 accordingly.
56. Treasury shares
"□ Applicable" "√ Not applicable"
57. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Accrued amount in the current period
Less: Less:
Amounts Amounts
of of
transferring transferring After-tax
Accrued from other from other
Opening amount comprehen comprehen Less:
After-tax amount
amount attributable Closing
Item Account before sive sive Income tax attributabl to AccountBalance income income income expens e to the non-control Balancetax in the recognized recognized parent ling
period in previous in previous es company shareholder
periods to periods to s
gains and retained
losses in earnings in
the period the period
I. Not to be
reclassified
subsequently
to profit or
loss
Including:
Remeasurem
ents of the
241 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
net defined
benefit plan
Items
under equity
method that
will not be
reclassified
to profit or
loss
Changes
in fair value
of other
equity
instrument
investments
Changes
in fair value
of own
credit risk
II. To be
reclassified
subsequently -1052970 6493446.9 6628422.9 -3901280.to profit or 3.70 3 3
-134976.0077
loss
Including:
Items under
equity
method that -3273714 18067000. 18067000. -1467014
may be 6.49 13 13 6.36
reclassified
to profit or
loss
Changes
in fair value
of other debt
investments
Profit or
loss from
reclassificati
on of
financial
assets into
other
comprehensi
ve income
Provision
for credit
impairment
of other debt
investments
Cash flow
hedging
reserve
Translatio 22207442. -1157355 -1143857 -134976.00 10768865.n reserve 79 3.20 7.20 59
Total of
other -1052970 6493446.9 6628422.9 -3901280.comprehensi 3.70 3 3 -134976.00 77
ve income
Other notes including effective portion of gains/losses of cash flow hedging reclassified to adjustment
to initially recognized amount of hedged items:
None
242 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
58. Special reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Increase for the Decrease for the
Item Opening balance Closing balance
period period
Safety 2143872.40 11895166.88 11917567.18 2121472.10
production fee
Total Amount 2143872.40 11895166.88 11917567.18 2121472.10
Other notes including increase/decrease during the period and reasons for changes:
The increase in the current period was due to the Company's withdrawal of safety production expenses
based on production characteristics and in accordance with the Management Measures for the
Withdrawal and Use of Safety Production Expenses (Caizi [2022] No. 136) while the decrease was
incurred due to the safety production expenses.
59. Surplus reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Increase for the Decrease for the Closing balance
period period
Statutory surplus 559673773.25 95232251.25 654906024.50
reserve
Discretionary
surplus reserve
Reserve fund
Corporate
development fund
Other
Total Amount 559673773.25 95232251.25 654906024.50
Notes on surplus reserves including increase/decrease during the period and reasons for changes:
In accordance with the Company Law of the People's Republic of China and the Articles of Association
of the Company the Company is required to withdraw 10% of its annual net profit as legal reserve
which may be discontinued when the accumulated amount of legal reserve reaches 50% of the registered
capital. The Company has appropriated statutory surplus reserve of RMB95232251.25 for 2024 and
the accumulated amount of statutory surplus reserve after appropriation has reached 50% of the
registered capital.
60. Undistributed profit
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current period Previous period
Undistributed profits at the end of the previous 5343334318.75 3997253257.28
period before adjustment
243 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Total opening undistributed profit after
-8829779.78-4128535.90
adjustment (+ for increase; - for decrease)
Undistributed profits at the end of the period 5334504538.97 3993124721.38
after adjustment
Add: Net profits attributable to owners of the
2022025698.991715611831.59
parent company
Less: Provision of statutory surplus reserve 95232251.25
Discretionary surplus reserve
Withdrawal of general risk reserve
Dividends payable for common shares 467790017.50 374232014.00
Common dividend converted into share
capital
Undistributed profits at the end of the period 6793507969.21 5334504538.97
Breakdown of adjustment to undistributed profits at the beginning of the period:
1) The undistributed profits at the beginning of the period by RMB 0 due to the retrospective adjustment
according to the Accounting Standards for Business Enterprises and relevant new regulations.
2) The undistributed profits at the beginning of the period by RMB 0 due to changes in the accounting
policies.
3) The undistributed profits at the beginning of the period by RMB 0 due to significant accounting error
correction.
4) The undistributed profits at the beginning of the period by RMB -8829779.78 due to changes in the
scope of consolidation caused by the common control.
5) The undistributed profits at the beginning of the period by RMB 0 due to the total of other
adjustments.
61. Operating revenue and cost
(1).Operating revenue and cost Description
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Jan.-Sept. 2023 Jan.-Sept. 2022
Item
Revenue Cost Revenue Cost
Operating 16231527540.45 12369506117.41 16054436345.59 12720572739.18
Non-operating 254302778.13 233714125.07 244204585.88 194716437.48
Total Amount 16485830318.58 12603220242.48 16298640931.47 12915289176.66
(2).Breakdown of operating revenue and cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Total Amount
Contract category
Operating income Operating cost
Goods category
Forklift trucks accessories and others 16159066408.31 12342372212.20
Categorization by region
Domestic 9312991276.41 7599697397.74
244 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Overseas 6846075131.90 4742674814.46
Categorization by time of goods transfer
Revenue is recognized at a point in 16159066408.31 12342372212.20
time
Total Amount 16159066408.31 12342372212.20
Other notes:
"□ Applicable" "√ Not applicable"
(3).Description of performance obligations
"□ Applicable" "√ Not applicable"
(4).Description of apportionment to remaining performance obligations
"□ Applicable" "√ Not applicable"
(5).Material contract changes or material transaction price adjustments
"□ Applicable" "√ Not applicable"
Other notes:
None
62. Taxes and surcharges
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Urban maintenance and
construction tax 21207119.04 20880723.18
Education surcharge 9139290.94 8995869.87
Local education surcharge 6099231.71 5993192.98
Property tax 14373515.25 12655292.99
Land use tax 7854908.93 1343564.96
Vessel and vehicle use tax 263571.86 276120.52
Stamp duty 13095915.07 13309976.88
Property tax 711241.86
Other 742709.48 560120.13
Total Amount 73487504.14 64014861.51
Other notes:
None
63. Selling expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency:CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Salary benefits and insurance 385306464.52 325543570.24
After-sale service fee 90183762.77 67660093.44
Lease 43272485.48 27997095.63
245 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Advertising and promotion fee 38898732.68 37384287.55
Vehicle expenses 33282568.51 27475808.68
Packaging and printing expenses 18548736.14 16413073.52
Other 118519659.87 94731733.63
Total Amount 728012409.97 597205662.69
Other notes:
None
64. Administrative expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Salary benefits and insurance 200676071.46 174962387.83
Depreciation and amortization 61380831.10 40538522.41
General Service Charge 38966663.77 35013182.37
House lease 18735264.15 21273526.64
Repair cost 12788400.01 10098023.54
Office expenses 11282492.58 11687261.88
Other 62787826.29 51711767.04
Total Amount 406617549.36 345284671.71
Other notes:
None
65. R&D expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Salary benefits and insurance 280704679.57 253206441.19
Direct input 374553650.92 384954426.64
Depreciation and amortization 11311846.20 11623098.55
Other 107606885.47 90052820.46
Total Amount 774177062.16 739836786.84
Other notes:
None
66. Financial expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Interest expenses 35903231.84 51829568.92
Interest income -62988025.19 -82750968.45
Gains or losses on foreign -26272818.24 -54863355.31
exchange
Handling fees 4846656.88 2336421.72
Total Amount -48510954.71 -83448333.12
Other notes:
246 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
None
67. Other income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
By nature Jan.-Sept. 2023 Jan.-Sept. 2022
Government grants related to 11324835.06 7673344.92
assets
Government grants related to 52970369.02 51290934.08
income
Refund of handling fees for 1566539.13 544668.75
withholding personal income tax
Additional deduction of 146546001.19 64551415.83
value-added tax
Total Amount 212407744.40 124060363.58
Other notes:
None
68. Income from investment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Income from long-term equity investments 385124878.33 288812454.73
recognised under the equity method
Investment income from disposal of long-term -1320847.10 67329.73
equity investments
Investment income from held-for-trading financial -394702.94 -11503623.34
assets during the holding period
Dividend income from investments in other equity
instruments during the holding period
Interest income from debt investments during the
holding period
Interest income from other debt investments
during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt
investments
Investment income from disposal of other debt
investments
Revenue from debt restructuring
Total Amount 383409328.29 277376161.12
Other notes:
None
247 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
69. Net exposure hedging income
"□ Applicable" "√ Not applicable"
70. Gains from changes in fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Sources generating gains on changes in fair
value Jan.-Sept. 2023 Jan.-Sept. 2022
Held-for-trading financial assets 333.33
Including: Gains on changes in fair value from
derivative financial liabilities 333.33
Derivative financial liabilities -362904.37 -3911.26
Investment properties measured at fair value
Total Amount -362571.04 -3911.26
Other notes:
None
71. Credit impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Bad debt losses on notes receivable 304363.17 713073.9
Loss due to bad debt of accounts receivable -65392314.44 -22425612.18
Loss due to bad debt of other receivables -5276927.22 -6954585.84
Impairment losses on debt investments
Impairment losses on other debt investments
Bad debt losses on long-term receivables -1306672.95 -2004209.23
Impairment losses related to financial guarantees
Total Amount -71671551.44 -30671333.34
Other notes:
None
72. Assets impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
I. Impairment losses on contract assets -5342370.52 -2358617.50
II. Loss on decline in value of inventories or -27454688.59
impairment of contractual performance costs -7712227.13
III. Impairment losses on long-term equity
investments
IV. Impairment losses on investment properties
V. Impairment losses on fixed assets
VI. Impairment losses on construction materials
VII. Impairment losses on construction in
progress
VIII. Impairment losses on productive biological
assets
IX. Impairment losses on oil and gas assets
X. Impairment losses on intangible assets
248 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
XI. Goodwill impairment losses
XII. Others
Total Amount -32797059.11 -10070844.63
Other notes:
None
73. Gains on disposal of assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Gains on disposal of fixed assets 2376287.58 4600925.55
Right-of-use assets 268785.92 487245.07
Total Amount 2645073.50 5088170.62
Other notes:
None
74. Non-operating revenue
Non-operating revenue
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amounts included in
Item Jan.-Sept. 2023 Jan.-Sept. 2022 non-recurring gains and
losses of the period
Total gains from disposal of 86976.17 244382.78 86976.17
non-current assets
Including: Gains from 86976.17 244382.78 86976.17
disposal of fixed assets
Gains from disposal
of intangible assets
Gains from exchange of
non-monetary assets
Receipt of donations
Government grants
Accounts not to be paid 1205475.07 909739.56 1205475.07
Gains from confiscation 943965.67 734712.00 943965.67
Other 226136.48 30967.74 226136.48
Total Amount 2462553.39 1919802.08 2462553.39
Other notes:
"√ Applicable" "□ Not applicable"
None
75. Non-operating expenditures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022 Amounts included in
non-recurring gains and
249 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
losses of the period
Total losses from disposal of 422102.12 844741.99 422102.12
non-current assets
Including: Losses from 422102.12 844741.99 422102.12
disposal of fixed assets
Losses from disposal
of intangible assets
Losses from exchange of
non-monetary assets
Outward donations 3000.00 20000.00 3000.00
Compensation and
313371.57313371.57
liquidated damages
Fines 225534.38 133398.01 225534.38
Other 220172.03 102053.57 220172.03
Total Amount 1184180.10 1100193.57 1184180.10
Other notes:
None
76. Income tax expenses
(1).Statement of income tax expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Current income tax expenses 318147149.94 276271764.87
Deferred income tax expenses -35329042.86 -18023194.14
Total Amount 282818107.08 258248570.73
(2).Process of adjusting accounting profits and income tax expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023
Total profits 2443735843.07
Income tax expenses calculated based on statutory/applicable tax rates 366560376.47
Impact of different tax rates applicable to subsidiaries 39736814.01
Impact of adjusting income tax in previous periods
Impact of non-taxable income -78011393.94
Impact of non-deductible costs expenses and losses 5885128.99
Impact of applying deductible losses for which no deferred income tax
assets have been recognized in previous periods
Impact of deductible temporary differences or deductible losses for which 3923778.85
no deferred income tax assets have been recognized in the current period
Effect of addition and deduction -55276597.30
Income tax expenses 282818107.08
Other notes:
"□ Applicable" "√ Not applicable"
250 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
77. Other comprehensive income
"√ Applicable" "□ Not applicable"
See Note VII (57) in Section X of this Report for details of other comprehensive income
78. Items of the cash flow statement
(1).Cash related to operating activities
Other cash received related to business activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Government grants 84787376.99 51660573.74
Lease income 43701484.48 44631245.79
Interest income 62988025.19 82750968.45
Receipt of rent from finance lease 191885601.80
business 244762287.05
Receipt and return of guarantee 187933962.77
deposits 62479645.22
Receipt of monetary funds and 32954685.21
guarantee deposits not classified as
cash and cash equivalents 28958687.56
Receipt of equity transfer on behalf 5643700.00
of individual shareholders
Other 22540485.63 18162793.53
Total Amount 550217992.12 615623531.29
Notes on other cash receipts related to operating activities:
None
Other cash paid related to business activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Payment and return of deposits 80406284.24 160054065.19
Payment of principal for finance 94758805.10 118756348.24
lease operations
Payment on behalf of individual 5643700.00
shareholders for transfer of equity
Monetary funds and guarantee 31104346.68 39370573.66
deposits not classified as cash and
cash equivalents
Cash paid for sales expenses 313124129.83 231490408.42
Cash paid for administrative 123037856.00 113038375.67
expenses
Cash paid for R&D expenses 107246744.78 89284752.75
Other 4801964.76 24122260.31
251 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Total Amount 754480131.39 781760484.24
Notes on other cash payments related to operating activities:
None
(2).Cash related to investment activities
Cash received in relation to significant investment activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Redemption of bank finance 102205647.70
Total Amount 102205647.70
Description of cash received in relation to significant investment activities
None
Cash paid in relation to significant investment activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Purchase of bank finance 80000000.00
Payment for investment in
subsidiaries 12041120.00
Purchase of other non-current
financial assets 734221.62
Purchase of interests of minority
subsidiaries 118800.00
Total Amount 92894141.62
Description of cash paid in relation to significant investment activities
None
Other cash received related to investment activities
"□ Applicable" "√ Not applicable"
Other cash paid related to investment activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Losses on payment of derivative 23037775.52
financial assets 436229.58
Disposal of cash outflow of 3021133.03
subsidiaries 1326020.27
Return of investments 8550000.00
Total Amount 1762249.85 34608908.55
Notes on other cash payments related to investment activities:
None
252 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3).Cash received in relation to financing activities
Other cash received related to fund-raising activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Discounted outstanding notes 230000000.00
Borrowings from non-banking 45942461.00
financial institutions
Disposal of part of equity interest in 6847750.00
subsidiaries
Factoring of accounts receivable 2000000.00
Total Amount 230000000.00 54790211.00
Notes on other cash receipts related to fund-raising activities:
None
Other cash paid related to fund-raising activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Rental payments 46703086.14 29880807.79
Repurchase of treasury shares 95000727.88
Repayment of borrowings from 19908073.41
non-banking financial institutions
and interest
Repayment of borrowings from 15500000.00
non-banking financial institutions
Total Amount 46703086.14 160289609.08
Notes on other cash payments related to fund-raising activities:
None
Changes in Liabilities Arising from Financing Activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase for the period Decrease for the period
Opening
Item Non-cash Non-cash Closing balance
balance Cash Change Cash Change
change change
Short-term
927842373.02555860000.0017333533.141169293564.33331742341.83
borrowings
Long-term
54607036.00372793.99262710.3154717119.68
borrowings
Long-term
borrowings
950000000.009050777.25358661888.36600388888.89
due within
one year
Lease
100373387.73208066575.9744978499.2890141701.45173319762.97
liabilities
253 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(including
those due
within one
year)
Total
1028215760.751560467036.00234823680.351573196662.2890141701.451160168113.37
Amount
(4).Description of cash flows listed on a net basis
"□ Applicable" "√ Not applicable"
(5).Significant activities and financial effects that do not involve current cash receipts and
disbursements but affect the Company’s financial position or may affect the Company's cash
flows in the future
"√ Applicable" "□ Not applicable"
Item Current period cumulative Preceding period comparative
Amount of commercial bills
transferred through endorsement 5061018231.26 5116352763.53
including: payment for goods 5061018231.26 5116352763.53
79. Additional information on cash flow statement
(1).Additional information on cash flow statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Additional information Amount for the current period Amount in the previousperiod
1． Reconciliation of net profit to cash flows from operating activities
Net profit 2160917735.99 1828807749.05
Add: Provision for impairment of
assets 32797059.11 10070844.63
Credit impairment loss 71671551.44 30671333.34
Depreciation of fixed assets depletion
of oil and gas assets and depreciation 380330399.08 296799854.31
of productive biological assets
Amortization of right-of-use assets
Amortization of intangible assets 19599862.17 12048233.41
Amortization of long-term amortized
expenses 6743624.48 3859568.05
Loss on disposal of fixed assets
intangible assets and other long-term -2645073.50 -5088170.62
assets (or less: income)
Loss on scrapping of fixed assets (or
less: income) 335125.95 600359.21
Loss from changes in fair value (or
less: income) 362571.04 3911.26
Financial expenses (or less: income) 9630413.60 -3033786.39
Investment losses (or less: income) -383409328.29 -277376161.12
Decrease in deferred income tax assets -35909776.74 451195.48
254 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(or less: increase)
Increase in deferred income tax
liabilities (or less: decrease) 580733.88 -37494121.22
Decrease in inventory (or less:
increase) -551896335.44 -646799943.38
Decrease in operating receivables (or
less: increase) -1045313177.29 -246207903.42
Increase in operating payables (or
less: decrease) 673052614.94 645256682.01
Other -22400.30 19517535.74
Net cash flows from operating
activities 1336825600.12 1632087180.34
2． Significant investing and financing activities not involving cash receipts and payments:
Debt converted to capital
Convertible corporate bonds maturing
within one year
Financial lease of fixed assets
3． Net changes in cash and cash equivalents:
Closing balance of cash 4074535766.43 3773016919.56
Less: Opening balance of cash 3773016919.56 3016812948.34
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
equivalents 301518846.87 756203971.22
(2). Net cash from acquiring subsidiaries paid in the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Cash or cash equivalents paid in the current period for business
29860000.00
combination occurring in the current period
Less: Cash and Cash Equivalents Held by Subsidiaries Acquired 0.00
Add: Cash or cash equivalents paid during the current period for 0.00
business merger in previous periods
Net cash payments for the acquisition of subsidiaries 29860000.00
Other notes:
None
(3). Net cash from disposal of subsidiaries received in the period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Cash or cash equivalents received in the current period for disposal of 1.00
subsidiaries in the current period
Less: Cash and cash equivalents held by the Company on the date of 1326021.27
loss of control
Add: Cash or cash equivalents received in the current period from the 0.00
disposal of subsidiaries in previous periods
Net cash received from the disposal of subsidiaries -1326020.27
255 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other notes:
None
(4).Composition of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
I. Cash 4074535766.43 3773016919.56
including: cash on hand 1184642.16 1664527.92
Bank deposits readily available for
payment 4072933520.77 3770560056.15
Other monetary fund readily
available for payment 417603.50 792335.49
Central bank deposit available for
payment
Deposit from the same trade
Call loan to the same trade
II. Cash Equivalents
including: bond investment maturing
within three months
II. Closing balance of cash and cash
equivalents 4074535766.43 3773016919.56
Including: Cash and cash equivalents
restrictedly used in the parent company
or subsidiaries
(5).Restricted scope of use but still presented as cash and cash equivalents
"□ Applicable" "√ Not applicable"
(6).Monetary funds not classified as cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount for the Amount in thecurrent period previous period Because
Other monetary 8779539.01 7621326.14 Letter of guarantee margin
capital
Other monetary 3361119.30 6100715.59 Deposits for letter of credit
capital
Other monetary 8554271.21 16839231.60 Guarantee deposit for bank acceptance
capital
Other monetary 657050.58 686167.65 Performance Bond
capital
12041120.00 Restricted use due to incomplete bank
Bank deposits account information of a newly
established company
Total Amount 33393100.10 31247440.98 /
Other notes:
"□ Applicable" "√ Not applicable"
256 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
80. Notes to items in the statement of changes in owners' equity
Notes on item "Others" for adjustment to closing balance of the previous period adjustment amount
etc.:
"□ Applicable" "√ Not applicable"
81. Monetary items in foreign currency
(1).Monetary items in foreign currency
"√ Applicable" "□ Not applicable"
Unit:
Item Closing balance of Exchange rate for
In RMB at the end of
foreign currencies translation the periodAccount Balance
Monetary funds - - 473197133.87
Including: 38827526.81 7.1884 279107793.72
EUR 5790201.84 7.5257 43575321.99
CAD 6760481.07 5.0498 34139077.31
AUD (Australian
Dollars) 7787514.52 4.5070 35098327.94
JPY 669849757.00 0.0462 30947058.77
THB 87595462.77 0.2126 18622795.38
BRL (Brazilian Real) 26822399.76 1.1821 31706758.76
Accounts receivable - - 1560013925.23
Including: USD 193084416.58 7.1884 1387968020.14
EUR 4832060.25 7.5257 36364635.82
CAD 3034195.56 5.0498 15322080.74
AUD (Australian
Dollars) 7718435.89 4.5070 34786990.56
THB 325514741.45 0.2126 69204434.03
BRL (Brazilian Real) 13846344.59 1.1821 16367763.94
Other receivables - - 8552409.72
Including: USD 498738.07 7.1884 3585128.74
EUR 54572.00 7.5257 410692.50
CAD 517760.39 5.0498 2614586.42
AUD (Australian
Dollars) 169471.80 4.5070 763809.40
JPY 6204867.95 0.0462 286664.90
THB 2090514.96 0.2126 444443.48
BRL (Brazilian Real) 378211.89 1.1821 447084.28
Accounts payable - - 196124819.12
Including: USD 19627181.61 7.1884 141088032.29
EUR 4511536.11 7.5257 33952467.30
CAD 200400.52 5.0498 1011982.55
AUD (Australian
Dollars) 4114839.39 4.5070 18545581.13
THB 7181353.95 0.2126 1526755.85
Other payables - - 2264595.30
Where: Euro 26570.53 7.5257 199961.84
CAD 114693.45 5.0498 579178.98
AUD (Australian
Dollars) 6579.00 4.5070 29651.55
THB 1720873.28 0.2126 365857.66
BRL (Brazilian Real) 922041.51 1.1821 1089945.27
257 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other notes:
None
(2). Notes on overseas operating entities including the principal overseas operating locations
bookkeeping currencies and selection basis to be disclosed of significant overseas operating
entities. If there are changes bookkeeping currencies the reasons should also be disclosed."√ Applicable" "□ Not applicable"
(1) Hangcha Forklift America with main business domicile in the U.S. and USD as its bookkeeping
currency.
(2) Hangcha Europe with main business domicile in Germany and EUR as its bookkeeping currency.
(3) Hangcha Forklift Canada with main business domicile in Canada and CAD as its bookkeeping
currency.
(4) Hangcha Netherlands B.V. with main business domicile in the Netherlands and EUR as its
bookkeeping currency.
(5) Hangcha Australia Pty Ltd with main business domicile in Australia and AUD as its bookkeeping
currency.
(6) Hangcha Thailand with main business domicile in Thailand and THB as its bookkeeping currency.
(7) Hangcha Forklift Brazil with main business domicile in Brazil and BRL as its bookkeeping
currency.
(8) Hangcha Indonesia with main business domicile in Indonesia and INR as its bookkeeping currency.
(9) Hangcha Japan with main business domicile in Japan and JPY as its bookkeeping currency.
(10) Hangcha Europe Rental & Sales with main business domicile in France and EUR as its
bookkeeping currency.
(11) Hangcha Forklift Malaysia with main business domicile in Malaysia and MYR as its bookkeeping
currency.
82. Lease
(1) As lessee
"√ Applicable" "□ Not applicable"
The Company as lessee
1) Relevant disclosures of right-of-use assets are included in Section 10 – Financial Statements Note
7.25
2) Refer to Section X. Financial Reporting V. 38. Description of Leases for details of the Company's
accounting policies for short-term leases and leases of low-value assets. The expenses for short-term
leases and leases of low-value assets recognized in current profits and losses are as follows:
Current period Preceding period
Item
cumulative comparative
Expenses for short-term lease 25293785.80 49270622.27
Total 25293785.80 49270622.27
3) Current profits and losses and cash flow related to leasing
Current period Preceding period
Item
cumulative comparative
258 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Interest expense for lease liabilities 8857519.70 2267427.39
Total cash outflow related to leasing 71996871.94 79151430.06
4) Refer to Section X. Financial Reporting XII. 1. Description of Risks of Financial Instruments for
details of maturity analysis of lease liabilities and corresponding liquidity risk management.Variable lease payments that are not included in the measurement of lease liabilities
"□ Applicable" "√ Not applicable"
Lease expenses for short-term leases or low-value asset leases that are accounted for using the simplified
approach
"√ Applicable" "□ Not applicable"
Short-term leasing expenses using simplified treatment included in current profit or loss for the current
period amounted to 25293785.80 (Unit: Yuan Currency:
RMB)
Sale and leaseback transactions and basis of judgment
"□ Applicable" "√ Not applicable"
Total cash outflows associated with leases: 71996871.94(Unit: Yuan; Currency: CNY
(2) As lessor
Operating leases as the lessor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Including: Income related to
Item Lease income variable lease payments not
included in lease receivables
Lease income 310857727.20
Total Amount 310857727.20
Financing leases as the lessor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Income related to
Item Sale profit and loss Financing income variable lease paymentsnot included in net
investment in leases
Financing income from net
leasing investment 15906183.07
Total Amount 15906183.07
Reconciliation table between undiscounted lease receivables and net lease investment
"√ Applicable" "□ Not applicable"
Item Closing balance Opening balance
Undiscounted lease receipts 288892719.57 245978969.25
less: unrealised financing gains related to lease
receipts 15468884.62 12520511.07
Net leasing investment 273423834.95 233458458.18
Undiscounted lease receivables for the next five years
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
259 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Item Annual undiscounted lease receivablesClosing amount Opening amount
Year 1 196164232.60 167396444.68
Year 2 67371462.93 63225467.60
Year 3 20035613.32 13220960.93
Year 4 3568152.72 2077295.32
Year 5 1753258.00 58800.72
Total undiscounted lease receivables after five
years 288892719.57 245978969.25
(3) Recognition of gains and losses on sales under finance leases as a manufacturer or distributor
"□ Applicable" "√ Not applicable"
Other notes:
The Company as a lessor mainly leases means of transportation for a term ranging from one to five
years with the option for renewal.
83. Data resources
"□ Applicable" "√ Not applicable"
84. Other
"□ Applicable" "√ Not applicable"
VIII. R&D expenditure
1. By nature of expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Salary benefits and insurance 280704679.57 253206441.19
Direct input 374553650.92 384954426.64
Depreciation and amortization 11311846.20 11623098.55
Other 107606885.47 90052820.46
Total Amount 774177062.16 739836786.84
Including: expenditures on research and
development that are expensed 774177062.16 739836786.84
Capitalized R&D expenditures
Other notes:
None
2. Development expenditures on R&D projects eligible for capitalization
"□ Applicable" "√ Not applicable"
Significant capitalized R&D projects
"□ Applicable" "√ Not applicable"
Provision for impairment of development expenditures
"□ Applicable" "√ Not applicable"
Other notes:
None
260 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
3. Significant outsourced R&D projects in progress
"□ Applicable" "√ Not applicable"
IX. Changes in the scope of merger
1. Business merger not under common control
"□ Applicable" "√ Not applicable"
2. Consolidation of businesses under common control
"√ Applicable" "□ Not applicable"
(1).Merger of enterprises under the same control within the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Revenues
of the
merged Net profits of
entity the merged
Basis for from the entity fromProportion Revenues
of equity recognizing Basis of beginning the of the Net profits of
Consolidated obtained business Date of recognizing of the beginning of merged the merged
entity in the merger merger date of period the period entity in the entity in the
under the during during which comparative
business common merger which the the merger
comparative period
merger control merger takes place
period
takes to the date of
place to merger
the date of
merger
Under the
control of
Zhejiang the same
Guozi beneficial January Acquisition
Intelligent 100.00% owner 31 0 -1983591.63 -1346472.77
Equipment before and 2024
of control
Co. Ltd. after the
transfer of
shares
Other notes:
None
(2).Merger costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Merger costs Zhejiang Guozi Intelligent Equipment Co. Ltd.-- Cash 29860000.00
-- Book value of non-cash assets
-- Book value of issued or undertaken obligations
-- Book value of issued equity securities
-- Contingent consideration
-- Notes on contingent considerations and their changes:
None
Other notes:
261 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
None
(3).Book value of assets and liabilities of merged entities on dates of merger
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Zhejiang Guozi Intelligent Equipment Co. Ltd.Date of merger End of the previous period
Assets: 64611668.25 103566107.27
Current assets 62290830.21 101242975.73
Non-current assets 2320838.04 2323131.54
Liabilities: 67496222.58 104467069.97
Current liabilities 65405949.80 103459211.67
Non-current liabilities 2090272.78 1007858.30
Net assets -2884554.33 -900962.70
Less: Non-controlling interests
Acquired net assets -2884554.33 -900962.70
Contingent liabilities of merged entities undertaken in business mergers:
None
Other notes:
None
3. Counter purchase
"□ Applicable" "√ Not applicable"
262 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
4. Disposal of subsidiaries
Existence of any transaction or event leading to the loss of control during the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Difference Method of
between the determinin Amount of
disposal Carrying Fair value g the fair otherprice and the
share of the value of the of the
value of the comprehensiv
net assets of Proportio remaining remaining Gains or
remaining e income
Disposa Disposal n (%) of equity equity losses arising equity related to
Time l price proportio Basis for the interest on equity
of loss at the n (%) at Disposal method at determinin subsidiary on
remainin interest on interest on from the
g equity the the remeasureme the investmentsSubsidiary of time of the time the time of loss of g the time thecontrol of loss of consolidated at the consolidate consolidate nt of the
consolidate in original
control loss of of loss of control financial date of d financial d financial remaining
d financial subsidiaries
control control statements loss of statements statements equity interest
statements transferred to
on the date investment
correspondin control on the date on the date at fair valueof loss of of loss of of loss of gains org to the
disposal of control control
control and losses or
major retained
the assumption earnings
investment s
Equity
transfer
Zhejiang payment
Asteroid Januar received
Investment y 31 1.00 100.00 Transfer/Assignme and -1320847.10
Manageme 2024 nt industrial
nt Co. Ltd. andcommercia
l change
completed
Other notes:
"□ Applicable" "√ Not applicable"
Is there any situation where the investment in a subsidiary are disposed of in several steps and the loss of control takes place in the current period
"□ Applicable" "√ Not applicable"
Other notes:
263 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
5. Changes in the scope of merger for other reasons
Notes on changes in the scope of mergers due to other reasons (such as the establishment of new subsidiaries liquidation of subsidiaries etc.) and related
information:
"√ Applicable" "□ Not applicable"
Company name Method of equityacquisition Date of equity acquisition Contribution
Proportion of contribution
Hangzhou Hangcha Yunrui
Technology Co. Ltd. Established June 2024 RMB10.2 million 51.00%
Zhejiang Hangbo Electrical Drive
Co. Ltd. Established July 2024 RMB2750 million 55.00%
PT HANGCHA INDONESIA
FORKLIFT Established August 2024 USD1 million 100.00%
HANGCHA JAPAN CO.LTD. Established August 2024 JPY300 million 100.00%
HANGCHA EUROPE RENTAL &
SALES Established November 2024 EUR1 million 60.00%
HANGCHA (MALAYSIA)
SDN.BHD. Established October 2024 USD0.5 million 100.00%
6. Other
"□ Applicable" "√ Not applicable"
264 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
X. Interests in other entities
1. Interests in subsidiaries
(1).Composition of the Group
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Subsidiary Principal
Holding
operating Registered Place of Nature of proportion (%) Method ofItem locations capital registration business Direct Indirect method
Hangzhou Forklift Mast Lin’an Lin’an
Co. Ltd. Zhejiang 5040.00 Zhejiang Manufacturing 65.00 EstablishedProvince Province
Business
Hangzhou Forklift Sheet Lin’an Lin’an merger not
Metal Welding Co. Ltd. Zhejiang 4000.00 Zhejiang Manufacturing 71.37 underProvince Province common
control
Business
Hangzhou Hangcha Bridge Lin’an Lin’an merger not
Box Co. Ltd. Zhejiang 3000.00 Zhejiang Manufacturing 62.33 underProvince Province common
control
Jinan Hangcha Forklift Jinan Jinan
Sales Co. Ltd. Shandong 1275.00 Shandong Commerce 35.00 EstablishedProvince Province
Guangzhou Zhehang Guangzhou Guangzhou
Forklift Co. Ltd. Guangdong 1100.00 Guangdong Commerce 34.09 EstablishedProvince Province
Shanghai Hangcha Forklift
Sales Co. Ltd. Shanghai 1300.00 Shanghai Commerce 35.00 Established
Zhejiang Hangcha Import Hangzhou Hangzhou
and Export Co. Ltd. Zhejiang 2070.00 Zhejiang Commerce 51.07 Establishedprovince province
Hangzhou Hangcha Lin’an Lin’an
Foundry Co. Ltd. Zhejiang 4500.00 Zhejiang Manufacturing 77.78 EstablishedProvince Province
Hangzhou Hangcha Lin’an Lin’an
Electrical Co. Ltd. Zhejiang 2000.00 Zhejiang Manufacturing 65.35 EstablishedProvince Province
Hangzhou Hangcha Lin’an Lin’an
Materials Trading Co. Ltd. Zhejiang 8000.00 Zhejiang Commerce 100.00 EstablishedProvince Province
Baoji Hangcha Engineering Baoji Baoji
Machinery Co. Ltd. Shaanxi 3004.01 Shaanxi Manufacturing 69.91 EstablishedProvince Province
Hangzhou Hangcha Lin’an Lin’an
Machining Co. Ltd. Zhejiang 450.00 Zhejiang Manufacturing 51.00 EstablishedProvince Province
Hangzhou Hangcha Kangli Lin’an Lin’an
Forklift Attachments Co. Zhejiang 1260.00 Zhejiang Manufacturing 74.81 Established
Ltd. Province Province
Hangzhou Hangcha Aerial Lin’an Lin’an
Equipment Co. Ltd. Zhejiang 5000.00 Zhejiang Manufacturing 67.00 EstablishedProvince Province
Hangzhou Hangcha Cab Lin’an 520.00 Lin’an Manufacturing 51.92 Established
265 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Co. Ltd. Zhejiang Zhejiang
Province Province
Hangcha Group Leasing Lin’an Lin’an
Co. Ltd. Zhejiang 20000.00 Zhejiang Commerce 95.64 EstablishedProvince Province
Wuxi Hangcha Forklift Wuxi Jiangsu Wuxi Jiangsu
Sales Co. Ltd. Province 600.00 Province Commerce 35.00 Established
Suzhou Hangcha Forklift Suzhou Suzhou
Sales Co. Ltd. Jiangsu 250.00 Jiangsu Commerce 35.00 EstablishedProvince Province
Wuhan Hangcha Forklift Wuhan Wuhan
Sales Co. Ltd. Hubei 350.00 Hubei Commerce 30.00 EstablishedProvince Province
Nantong Hangcha Forklift Nantong Nantong
Sales Co. Ltd. Jiangsu 350.00 Jiangsu Commerce 31.00 EstablishedProvince Province
Kunshan Hangcha Forklift Kunshan Kunshan
Sales Co. Ltd. Jiangsu 320.00 Jiangsu Commerce 35.00 EstablishedProvince Province
Taizhou Hangcha Forklift Taizhou Taizhou
Sales Co. Ltd. Zhejiang 400.00 Zhejiang Commerce 35.00 EstablishedProvince Province
Xuzhou Hangcha Forklift Xuzhou Xuzhou
Sales Co. Ltd. Jiangsu 570.00 Jiangsu Commerce 35.00 EstablishedProvince Province
Beijing Hangcha Forklift
Co. Ltd. Beijing 400.00 Beijing Commerce 34.00 Established
Yancheng Hangcha Forklift Yancheng Yancheng
Sales Co. Ltd. Jiangsu 400.00 Jiangsu Commerce 33.00 EstablishedProvince Province
Gansu Hangcha Forklift Gansu Gansu
Co. Ltd. Province 260.00 Province Commerce 35.00 Established
Fujian Hangcha Forklift Fuzhou Fuzhou
Co. Ltd. Fujian 320.00 Fujian Commerce 35.00 EstablishedProvince Province
Taixing Hangcha Forklift Taixing Taixing
Sales Co. Ltd. Jiangsu 510.00 Jiangsu Commerce 30.00 EstablishedProvince Province
Yantai Hangcha Forklift Yantai Yantai
Sales Co. Ltd. Shandong 200.00 Shandong Commerce 35.00 EstablishedProvince Province
Qingdao Hangcha Forklift Qingdao Qingdao
Sales Co. Ltd. Shandong 350.00 Shandong Commerce 35.00 EstablishedProvince Province
Changchun Hangcha Changchun Changchun
Forklift Sales Co. Ltd. Jilin Province 200.00 Jilin Province Commerce 35.00 Established
Nanning Nanning
Nanning Hangcha Forklift Guangxi Guangxi
Sales Co. Ltd. Zhuang 240.00 Zhuang Commerce 35.00 EstablishedAutonomous Autonomous
Region Region
Guiyang Hangcha Forklift Guiyang Guiyang
Sales Co. Ltd. Guizhou 220.00 Guizhou Commerce 34.77 EstablishedProvince Province
Tangshan Hangcha Forklift Tangshan 216.00 TangshanSales Co. Ltd. Hebei Hebei Commerce 35.00 Established
266 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Province Province
Xiangyang Hangcha Forklift Xiangyang Xiangyang
Sales Co. Ltd. Hubei 150.00 Hubei Commerce 33.00 EstablishedProvince Province
Dongguan Hangcha Forklift Dongguan Dongguan
Co. Ltd. Guangdong 320.00 Guangdong Commerce 35.00 EstablishedProvince Province
Henan Zhehang Forklift Zhengzhou Zhengzhou
Sales Co. Ltd. Henan 600.00 Henan Commerce 35.00 EstablishedProvince Province
Heilongjiang Hangcha Harbin Harbin
Forklift Sales Co. Ltd. Heilongjiang 200.00 Heilongjiang Commerce 35.00 EstablishedProvince Province
Xi'an Hangcha Forklift Co. Xi’an Xi’an
Ltd. Shaanxi 300.00 Shaanxi Commerce 35.00 EstablishedProvince Province
Shenzhen Hangcha Forklift Shenzhen Shenzhen
Co. Ltd. Guangdong 380.00 Guangdong Commerce 35.00 EstablishedProvince Province
Foshan Hangcha Forklift Foshan Foshan
Sales Co. Ltd. Guangdong 550.00 Guangdong Commerce 35.00 EstablishedProvince Province
Huizhou Hangcha Forklift Huizhou Huizhou
Co. Ltd. Guangdong 260.00 Guangdong Commerce 35.00 EstablishedProvince Province
Inner Mongolia Hangcha Hohhot Inner Hohhot Inner
Forklift Sales Co. Ltd. Mongolia 300.00 Mongolia Commerce 35.00 Established
Zhongshan Hangcha Zhongshan Zhongshan
Forklift Co. Ltd. Guangdong 350.00 Guangdong Commerce 35.00 EstablishedProvince Province
Yichang Hangcha Forklift Jingzhou Jingzhou
Sales Co. Ltd. Hubei 100.00 Hubei Commerce 35.00 EstablishedProvince Province
Zhanjiang Hangcha Forklift Zhanjiang Zhanjiang
Co. Ltd. Guangdong 200.00 Guangdong Commerce 35.00 EstablishedProvince Province
Rizhao Hangcha Forklift Rizhao Rizhao
Sales Co. Ltd. Shandong 400.00 Shandong Commerce 26.25 EstablishedProvince Province
Qingyuan Hangcha Forklift Qingyuan Qingyuan
Co. Ltd. Guangdong 180.00 Guangdong Commerce 35.00 EstablishedProvince Province
Ningxia Hangcha Forklift
Sales Co. Ltd. Ningxia 200.00 Ningxia Commerce 39.00 Established
Lianyungang Hangcha Lianyungang Lianyungang
Forklift Sales Co. Ltd. Jiangsu 150.00 Jiangsu Commerce 35.00 EstablishedProvince Province
Zhangjiagang Hangcha Zhangjiagang Zhangjiagang
Forklift Sales Co. Ltd. Jiangsu 250.00 Jiangsu Commerce 35.00 EstablishedProvince Province
Yiwu Hangcha Forklift Yiwu Yiwu
Sales Co. Ltd. Zhejiang 250.00 Zhejiang Commerce 35.00 EstablishedProvince Province
Anhui Hangcha Forklift Hefei Anhui Hefei Anhui
Sales Co. Ltd. Province 320.00 Province Commerce 51.56 Established
Dalian Zhehang Forklift Dalian 200.00 Dalian Commerce 35.00 Established
267 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Sales Co. Ltd. Liaoning Liaoning
Province Province
HANGCHA EUROPE
GMBH I.G. Europe 3517.74 Europe Commerce 100.00 Established
HC FORKLIF AMERICA
CORPORATION The US 3306.68 USA Commerce 100.00 Established
Hangzhou Hangzhong Hangzhou Hangzhou
Engineering Machinery Co. Zhejiang 8500.00 Zhejiang Manufacturing 81.18 Established
Ltd. province province
Wuhu Hangcha Forklift Wuhu Anhui Wuhu Anhui
Sales Co. Ltd. Province 200.00 Province Commerce 35.00 Established
Guigang Guigang
Guigang Hangcha Forklift Guangxi Guangxi
Sales Co. Ltd. Zhuang 200.00 Zhuang Commerce 35.00 EstablishedAutonomous Autonomous
Region Region
Zibo Hangcha Forklift Sales Zibo Zibo
Co. Ltd. Shandong 200.00 Shandong Commerce 35.00 EstablishedProvince Province
Zhejiang Hangcha Lin’an Lin’an
Intelligent Technology Co. Zhejiang 5000.00 Zhejiang Manufacturing 81.00 Established
Ltd. Province Province
Hangzhou Hangcha Lin’an Lin’an
Machinery Equipment Zhejiang 2300.00 Zhejiang Manufacturing 60.87 Established
Manufacturing Co. Ltd. Province Province
Hangcha Group (Tianjin)
Financing Leasing Co. Ltd. Tianjin 25000.00 Tianjin Commerce 100.00 Established
Business
Hefei Hanhe Intelligent
Logistics Technology Co. Hefei Anhui 320.00 Hefei Anhui
merger not
Province Province Service 62.50 underLtd. common
control
Hangcha Group (Tianjin)
Forklift Sales Co. Ltd. Tianjin 300.00 Tianjin Commerce 35.00 Established
Hangcha Forklift Canada
Inc. Canada 709.01 Canada Commerce 100.00 Established
Hangcha Group (Tianjin)
New Energy Forklift Co. Tianjin 1500.00 Tianjin Manufacturing 100.00 Established
Ltd.Zhumadian Hangcha Zhumadian Zhumadian
Forklift Co. Ltd. Henan 240.00 Henan Commerce 39.58 EstablishedProvince Province
Hangcha Netherlands B.V. Netherlands 1575.00 Netherlands Commerce 100.00 Established
Zhejiang Hangcha Parts Lin’an Lin’an
Sales Co. Ltd. Zhejiang 5000.00 Zhejiang Commerce 80.00 EstablishedProvince Province
Zhejiang Hangcha Occam Lin’an Lin’an
Intelligent Technology Co. Zhejiang 10000.00 Zhejiang Manufacturing 51.00 Established
Ltd. Province Province
HC FORKLIFT
AUSTRALIA PTY. LTD. Australia 3593.25 Australia Commerce 100.00 Established
HANGCHA (THAILAND)
CO.LTD. Thailand 2142.40 Thailand Commerce 100.00 Established
HANGCHA BRASIL
LTDA. Brazil 2054.94 Brazil Commerce 100.00 Established
Hangzhou Hangcha Lin’an 2000.00 Lin’an Manufacturing 90.00 Established
268 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Precision Manufacturing Zhejiang Zhejiang
Co. Ltd. Province Province
Zhejiang Hangcha Siweis Lin’an Lin’an
International Trade Co. Ltd. Zhejiang 2000.00 Zhejiang Commerce 51.00 EstablishedProvince Province
Hangzhou Hangcha Lin’an Lin’an
E-commerce Co. Ltd. Zhejiang 450.00 Zhejiang Commerce 51.00 EstablishedProvince Province
Hangcha New Energy Lin’an Lin’an
Forklift (Wenzhou) Co. Zhejiang 100.00 Zhejiang Commerce 100.00 Established
Ltd. Province Province
Hangzhou Hangcha Yunrui Lin’an Lin’an
Technology Co. Ltd. Zhejiang 2000.00 Zhejiang Manufacturing 51.00 EstablishedProvince Province
Zhejiang Hangbo Electrical Lin’an Lin’an
Drive Co. Ltd. Zhejiang 5000.00 Zhejiang Manufacturing 55.00 EstablishedProvince Province
PT HANGCHA
INDONESIA FORKLIFT Indonesia 1425.00 Indonesia Commerce 100.00 Established
HANGCHA JAPAN
CO.LTD. Japan 1496.7 Japan Commerce 100.00 Established
HANGCHA EUROPE
RENTAL & SALES Malaysia 365.58 Malaysia Commerce 100.00 Established
HANGCHA (MALAYSIA)
SDN.BHD. Europe 773.66 Europe Commerce 60.00 Established
Notes on inconsistency between the shareholding proportion and the vote proportion in a subsidiary:
The Company holds less than 50% of the shares in 45 subsidiaries including Jinan Hangcha Forklift
Sales Co. Ltd. but pursuant to the Voting Trust Agreement by and between the Company and other
shareholders of such subsidiaries the voting rights corresponding to the shares held by certain other
shareholders in the target companies will be exercised by the Company on their behalf. As a result the
Company has more than 50% of the voting rights in all of these subsidiaries.Basis for controlling an invested entity despite holding half or less of votes or not controlling an invested
entity despite holding more than half of votes:
None
Basis for controlling significant structured entities included in the scope of consolidation:
None
Basis for determining whether the Company is an agent or principal:
None
Other notes:
None
(2).Subsidiaries with material non-controlling interests
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Holding Gains or losses Declared Closing
Subsidiary proportion of attributable to dividends to be non-controlling
non-controlling non-controlling distributed to interests
269 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
shareholders interests in the non-controlling
period interests in the
period
Hangzhou Forklift Mast Co.Ltd. 35.00% 10862375.97 6174000.00 49782430.15
Hangzhou Forklift Sheet
28.63%6864077.1719468163.7023198441.80
Metal Welding Co. Ltd.Hangzhou Hangcha Bridge 37.67% 7867699.05 3955000.00 37066849.78
Box Co. Ltd.Jinan Hangcha Forklift Sales 65.00% 4131025.50 3729375.00 19606953.92
Co. Ltd.Guangzhou Zhehang Forklift
65.91%1964261.691087500.0014256736.08
Co. Ltd.Shanghai Hangcha Forklift 65.00% 4528467.27 2957500.00 20765447.06
Sales Co. Ltd.Zhejiang Hangcha Import and
48.93%13175306.497090440.0048032519.96
Export Co. Ltd.Hangzhou Hangcha Foundry 22.22% 920385.71 18798454.78
Co. Ltd.Hangzhou Hangcha Electrical 34.65% 8372067.06 3465000.00 25816238.85
Co. Ltd.Notes on inconsistency between the shareholding proportion and the vote proportion of non-controlling
shareholders in a subsidiary:
"√ Applicable" "□ Not applicable"
For details please refer to Note 10.1.(1) of this Report
Other notes:
"□ Applicable" "√ Not applicable"
270 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3). Key financial information of significant non-wholly-owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuan Currency: CNY
Closing balance Opening balance
Subsidiary Current Non-current Total assets Current Non-current Total Current Non-current Total assets Current Non-current Total
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Hangzhou
Forklift 51837.16 13525.30 65362.46 50783.50 355.41 51138.91 33557.38 15589.79 49147.17 35589.28 673.87 36263.15
Frame
Hangzhou
Forklift &
Metal 24888.76 9197.33 34086.09 25440.09 56.46 25496.55 31010.63 7485.64 38496.27 25092.54 411.71 25504.25
Working &
Welding
Hangcha 16206.13 4919.23 21125.36 11250.17 36.43 11286.60 14836.86 3294.70 18131.56 9107.92 223.45 9331.37
Bridge Box
Jinan 3452.74 495.60 3948.34 928.57 3.44 932.01 3679.57 357.75 4037.32 1023.96 58.83 1082.79
Hangcha
Guangzhou 3470.55 981.76 4452.31 1922.81 371.22 2294.03 3477.49 339.44 3816.93 1770.55 21.13 1791.68
Zhehang
Shanghai 7557.29 3324.89 10882.18 7434.48 252.13 7686.61 7822.54 2979.31 10801.85 7352.27 495.69 7847.96
Hangcha
Hangcha Imp. 219497.45 2429.87 221927.32 212110.48 212110.48 133957.37 1620.41 135577.78 126977.36 27.26 127004.62
&Exp.Hangcha 7207.94 3432.77 10640.71 2380.21 2380.21 6561.81 3703.46 10265.27 2418.98 2418.98
Casting
Hangcha
Electric 35683.08 628.88 36311.96 28861.38 28861.38 13426.79 204.96 13631.75 7597.36 7597.36
Appliance
Jan.-Sept. 2023 Jan.-Sept. 2022
Subsidiary Operating TotalNet profit Cash flows from Operating
Total
Net profit Cash flows from
income comprehensive operating activities income comprehensive operating activities
income income
271 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou Forklift
165898.743103.543103.54-6057.32172082.012608.242608.241236.26
Frame
Hangzhou Forklift &
Metal Working & 82239.37 2397.51 2397.51 10168.33 85544.47 3102.68 3102.68 -348.73
Welding
Hangcha Bridge Box 82661.60 2088.58 2088.58 2577.02 90096.60 2039.78 2039.78 3810.44
Jinan Hangcha 24887.40 635.54 635.54 959.99 25475.30 616.66 616.66 542.25
Guangzhou Zhehang 19682.68 298.02 298.02 280.96 24181.88 150.89 150.89 519.37
Shanghai Hangcha 25455.46 696.69 696.69 775.11 26597.86 283.74 283.74 661.06
Hangcha Imp. &Exp. 605405.10 2692.68 2692.68 -2140.17 591937.42 3435.19 3435.19 -7947.45
Hangcha Casting 112591.90 414.21 414.21 401.48 123045.53 334.57 334.57 -172.08
Hangcha Electric 108193.12 2416.18 2416.18 694.01 74618.21 1029.43 1029.43 -2143.42
Appliance
Other notes:
None
272 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4). Significant restrictions on the use of business group assets and the repayment of business
group debts
"□ Applicable" "√ Not applicable"
(5). Financial or support provided to structured entities included in the scope of consolidated
financial statements
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Transactions where the controlling interests in subsidiaries are maintained after the share of
owner's equity changes
"√ Applicable" "□ Not applicable"
(1).Explanations on changes in share in owners’ equity of the subsidiaries
"√ Applicable" "□ Not applicable"
Subsidiary Date of change Holding proportion Holding proportionbefore change （%） after change （%）
Zhumadian Hangcha Forklift Co.Ltd. February 2024 35.00 39.58
Hangzhou Hangcha Aerial
Equipment Co. Ltd. June 2024 51.58 67.00
Hangcha Group Leasing Co. Ltd. August 2024 93.46 95.64
Hangzhou Hangcha Machinery
Equipment Manufacturing Co. Ltd. July 2024 63.70 60.87
(2).Impact of transactions on non-controlling shareholders' equity and owner's equity
attributable to the parent company
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Zhumadian Hangzhou
Hangcha Hangcha Aerial Hangcha Group
Forklift Co. Equipment Co. Leasing Co. Ltd.Ltd. Ltd.Cost of purchase/consideration of disposal
-- Cash 118800.00 31548660.00 155000000.00
-- Fair value of non-cash assets
Total cost of purchase/consideration of disposal 118800.00 31548660.00 155000000.00
Less: Share of net assets of subsidiaries calculated based
on the proportion of equity acquired/disposed of 101548.87 33139506.55 155098065.37
Difference 17251.13 -1590846.55 -98065.37
Including: Adjustment to the capital reserve 17251.13 -1590846.55 -98065.37
Adjustment to the surplus reserve
Adjustment to the undistributed profits
Hangzhou Hangcha Machinery Equipment
Manufacturing Co. Ltd.Cost of purchase/consideration of disposal
-- Cash 2519000.00
273 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
-- Fair value of non-cash assets
Total cost of purchase/consideration of disposal 2519000.00
Less: Share of net assets of subsidiaries calculated based on the
proportion of equity acquired/disposed of 2487479.11
Difference 31520.89
Including: Adjustment to the capital reserve 31520.89
Adjustment to the surplus reserve
Adjustment to the undistributed profits
Other notes:
"□ Applicable" "√ Not applicable"
3. Interests in joint ventures or associates
(1). "√ Applicable" "□ Not applicable"
(1).Material joint ventures or associates
"√ Applicable" "□ Not applicable"
Holding Accounting
proportion (%) treatment method
Joint venture or Principal applied to
associated operating Place of Nature of
registration business investment in the
enterprise locations Direct Indirect joint venture or
associated
enterprise
Hangzhou
Zhongce Haichao Hangzhou Hangzhou
Business Equity method
Enterprise Zhejiang Zhejiang 27.8571
services accounting
Management Co. province province
Ltd.Notes on inconsistency between the shareholding proportion and the vote proportion in a joint venture or
associated enterprise:
None
Basis for imposing significant influence despite holding less than 20% of votes or imposing no
significant influence despite holding more than 20% or more votes:
None
(2).Key financial information of material joint ventures
"□ Applicable" "√ Not applicable"
(3).Key financial information of significant joint ventures
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuan Currency: CNY
Closing balance/accrued Opening balance/accrued
amount in the current amount in the previous
period period
Hangzhou Zhongce Hangzhou Zhongce
Haichao Enterprise Haichao Enterprise
Management Co. Ltd. Management Co. Ltd.
274 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Current assets 2176705.08 1855834.93
Non-current assets 2511870.32 2323629.66
Total assets 4688575.40 4179464.59
Current liabilities 2253119.75 2092263.42
Non-current liabilities 606179.15 554730.87
Total liabilities 2859298.90 2646994.29
Non-controlling interest 1094165.04 932838.10
Shareholders' equity attributable to the
parent company 735111.45 599632.19
Share of net assets calculated based on the
holding proportion 204780.73 167040.14
Adjustments
-- Goodwill
-- Unrealized profits of internal transactions
-- Others
Book value of equity investment in
associated enterprises 204780.73 167040.14
Fair value of equity investments in
associated enterprises with publicly quoted
prices
Operating income 3925480.99 3525225.46
Net profit 317343.21 242747.40
Net profits of discontinued operations
Other comprehensive income 15743.54 15236.05
Total comprehensive income 333086.75 257983.45
Dividends from associated enterprises
received in the year
Other notes:
None
(4).Summary of financial information on insignificant joint ventures and associated enterprises
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance/accrued Opening balance/accrued
amount in the current amount in the previous
period period
Associates:
Total book value of investment
Total of following items calculated by based on the holding proportion
-- Net profits
-- Other comprehensive income
-- Total comprehensive income
Joint ventures:
Total book value of investment 310429131.43 306668820.75
Total of following items calculated by based on the holding proportion
-- Net profits 31415327.75 29122993.40
-- Other comprehensive income 50438.88 53896.03
275 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
-- Total comprehensive income 31465766.63 29176889.43
Other notes:
None
(5). Notes on significant limitations on the ability of joint ventures and associated enterprises to
transfer funds to the Company
"□ Applicable" "√ Not applicable"
(6). Excess loss incurred by joint ventures or associated enterprises
"□ Applicable" "√ Not applicable"
(7). Unrecognized commitments related to investments in joint venture
"□ Applicable" "√ Not applicable"
(8). Contingent liabilities related to investments in joint ventures or associated enterprises
"□ Applicable" "√ Not applicable"
4. Material joint operations
"□ Applicable" "√ Not applicable"
5. Equity in structured entities included in the scope of consolidated financial statements
Notes on structured entities not included in the scope of consolidated financial statements:
"□ Applicable" "√ Not applicable"
6. Other
"□ Applicable" "√ Not applicable"
XI. Government grants
1. Government grants recognized at the amount receivable at the end of the reporting period
"□ Applicable" "√ Not applicable"
Reasons for not receiving the expected amount of government grants at the anticipated time
"□ Applicable" "√ Not applicable"
2. Liability items related to government grants
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Financial Increase Non-operating Transferred to
Other
Changes
statement Opening amounts in revenues other income Closing Related to
item balance grants during recorded in in the current
for the balance assets/income
the period the period period CurrentPeriod
Deferred
income 51276691.30 53475718.28 11324835.06 93427574.52
Related to
assets
Deferred
income 2885000.00 2885000.00
Related to
income
Total /
Amount 54161691.30 53475718.28 14209835.06 93427574.52
276 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
3. Government grants included in current gains and losses:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Type Jan.-Sept. 2023 Jan.-Sept. 2022
Related to assets 11324835.06 7673344.91
Related to income 52970369.02 46921459.76
Total Amount 64295204.08 54594804.67
Other notes:
None
XII. Risks associated with financial instruments
1. Risks arising from financial instruments
"√ Applicable" "□ Not applicable"
The Company's objective for managing risks associated with financial instruments is to balance risk and
return minimize the negative impact of risks on the Company's operating results and maximize returns
for shareholders and other equity investors. According to the risk management objective the Company
has developed a basic risk management strategy to identify and analyze the various risks faced by the
Company establish appropriate risk tolerance thresholds and risk controls and monitor risks in a timely
and reliable manner keeping them within predefined limits.In its daily activities the Company faces various risks associated with financial instruments primarily
including credit liquidity and market risks. The management has reviewed and approved policies for
managing these risks summarized below.(I) Credit risks
Credit risk refers the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation.
1. Credit risk management practices
(1) Credit risk evaluation methods
The Company evaluates at each balance sheet date whether the credit risks of relevant financial
instruments have increased significantly since their initial recognition. When determining whether credit
risks have increased significantly since their initial recognition the Company considers reasonable and
supported information that is available without unnecessary extra cost or effort including qualitative and
quantitative analyses based on historical data external credit risk ratings and forward-looking
information. The Company evaluates financial instruments either individually or collectively under
similar credit risk characteristics by comparing the risk of default occurring at the balance sheet date
with the risk of default at initial recognition to determine changes in the risk of default over the
expected life of the financial instrument.The Company considers that the credit risk of a financial instrument has increased significantly when
one or more of the following quantitative or qualitative criteria are triggered:
277 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
1) As the main quantitative criterion the probability of default in the remaining term on the balance
sheet date has increased by over a certain percentage compared to that in the initial recognition;
2) As the main qualitative criteria significant adverse changes appear in the operational or financial
situation of debtors or existing or anticipated changes in the technological market economic or legal
environment would have a significant adverse effect on debtors' ability to meet their obligations to the
Company etc.
(2) Definition of default and credit-impaired assets
The Company defines a financial asset as in default when one or more of the following conditions are
met which are consistent with the definition of credit-impaired assets:
1) The debtor faces significant financial difficulty;
2) The debtor breaches contractual covenants binding on the debtor;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor's financial
difficulty having granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss rate of
default and exposure to default risk. The Company develops a model of the probability of default loss
rate of default and exposure to default risk on the basis of quantitative analysis of historical data (e.g.counterparty rating guarantee measures and collateral type payment method etc.) and forward-looking
information.
3. For details on the reconciliation statement between the opening balance and the closing balance of
provision for losses of financial instruments please refer to the explanations in 7.4 7.5 7.6 7.9 7.13
and 7.16 under Section X Financial Reports.
4. Exposure to credit risk and concentration of credit risk
The Company's credit risk is primarily attributable to monetary funds and receivables. In order to control
such risks the Company has taken the following measures.
(1) Monetary funds
The Company deposits its bank balances and other monetary funds in financial institutions with a
relatively high credit rating and therefore its credit risk is relatively low.
(2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a continuous basis.The Company selects credible and well-reputed customers based on credit assessment result and
conducts ongoing monitoring on balance of receivables to avoid significant risks in bad debts.For domestic customers the Company has differentiated credit policies for different customers. For
general customers payment-before-delivery or payment-upon-acceptance-after-delivery terms are
primarily adopted; for the bidding customers and key accounts payment in installments through
negotiation is applied (with the final payment and warranty retention money generally not exceeding one
year); for network partners payment in advance is mainly used (except for special circumstances); and
278 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
for large foreign trade companies or large enterprises certain businesses are settled by means of the
bank acceptance bills.For foreign customers the Company primarily applies the methods of payment including L/C (letter of
credit) T/T (telegraphic transfer) and O/A (open account). The Company adopts different methods of
payment and extends credit periods ranging from 30 to 180 days based on factors such as customer
relationship and credit status. 1) In the case of 10% deposit + L/C According to the company's credit
policy the Company only accepts L/C issued or confirmed by banks banks that maintain correspondent
relationships with its settlement bank; 2) in the case of 10 - 30% deposit + balance by T/T after the B/L
date with document release after full payment receipt the Company has an internal credit rating system
for foreign customers and adopts payment-before-delivery terms for customers with records of payment
delays or those from regions with politically/economically unstable conditions; 3) in the case of O/A as
the method of payment for customers after receiving a deposit of 10% - 20% in advance the Company
require purchasing export credit insurance from China Export & Credit Insurance Corporation (Sinosure)
and manage it in strict compliance with the requirements of Sinosure. It is agreed in the insurance policy
that Sinosure provides 70% - 90% coverage for various risks including bankruptcy of the buyer default
of payment for goods rejection of goods or political factors yet the occurrence of bad debts cannot be
completely prevented. For customers who have a close cooperative relationship with the Company (in
the case of OEM projects) but have not taken out insurance the accounts receivable generated from the
Company’s export sales are subject to risks such as irrecoverable or overdue.Since the exposure to risks of the Company’s accounts receivable is distributed among multiple partners
and customers as of December 31 2024 1the Company’s accounts receivable and contract assets
attributable to the top five customers by balance accounted for 12.04% (December 31 2023: 11.85%)
and the Company does not have significant credit concentration risk.The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset at the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement. Liquidity risk is possibly attributable to failure
in selling financial assets at fair value on a timely basis or failure in collecting liabilities from
counterparties of contracts or early redemption of debts or failure in achieving estimated cash flows.In order to control such risk the Company comprehensively utilized financing tools such as notes
settlement bank borrowings etc. and adopts long-term and short-term financing methods to optimize
financing structures and finally maintains a balance between financing sustainability and flexibility. The
Company has obtained credit limit from several commercial banks to meet working capital requirements
and expenditures.Financial liabilities classified based on remaining time period till maturity
Closing balance
Item
Book value Contract amountnot yet discounted Within 1 year 1-3 years
More than 3
years
279 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Bank
borrowings 986848350.40 1005274244.55 946238488.97 25757913.20 33277842.38
Derivative
financial 366815.63 366815.63 366815.63
liabilities
Notes payable 881330175.61 881330175.61 881330175.61
Accounts
payable 2565134276.77 2565134276.77 2565134276.77
Other payables 86678278.91 86678278.91 86678278.91
Lease liabilities
due within one 29409865.55 29409865.55 29409865.55
year
Lease liabilities 143909897.42 167546602.21 64767450.64 102779151.57
Long-term
payables 4578954.00 4578954.00 4578954.00
Subtotal 4698256614.29 4740319213.23 4513736855.44 90525363.84 136056993.95
(Continued)
Opening balance
Item
Book value Contract amount notyet discounted Within 1 year 1-3 years
More than 3
years
Bank
borrowings 927842373.02 937708126.97 937708126.97
Derivative
financial 3911.26 3911.26 3911.26
liabilities
Notes payable 575292393.95 575292393.95 575292393.95
Accounts
payable 2048474699.62 2048474699.62 2048474699.62
Other payables 85131164.62 85131164.62 85131164.62
Non-current
liabilities due 25913389.64 25913389.64 25913389.64
within one year
Lease liabilities 74459998.09 84411996.88 36282441.62 48129555.26
Long-term
payables 4578954.00 4578954.00 4578954.00
Subtotal 3741696884.20 3761514636.94 3677102640.06 36282441.62 48129555.26
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of
financial instruments due to changes in market price. Market risk mainly includes interest risk and
foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of
financial instruments due to changes in market interest. The Company's fair value interest risks arise
from fixed-rate financial instruments while the cash flow interest risks arise from floating-rate financial
instruments. The Company determines the proportion of fixed-rate financial instruments and
280 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
floating-rate financial instruments based on the market environment and maintains a proper financial
instruments portfolio through regular review and monitoring.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial
instrument resulted from changes in exchange rate. The Company's foreign currency risk relates mainly
to foreign currency monetary funds and liabilities. When short-term imbalance occurred to foreign
currency assets and liabilities the Company may trade foreign currency at market exchange rate when
necessary in order to maintain the net risk exposure within an acceptable level.For details on the Company’s monetary assets and liabilities denominated in foreign currencies at the
end of the period please refer to 7.81 monetary items denominated in foreign currency under Section X
Financial Reports.
2. Hedging
(1) The Company undertakes hedging activities for risk management purposes
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(2) The Company undertakes eligible hedging activities and applies hedge accounting
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(3) The Company undertakes hedging activities for risk management purposes and is expected to
achieve risk management objective but has not applied hedging accounting
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
3. Transfer of financial assets
(1) Classification of methods of transfer
"□ Applicable" "√ Not applicable"
(2) Financial assets de-recognized due to transfer
"□ Applicable" "√ Not applicable"
(3) Continued involvement in transferred financial assets
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
281 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
XIII. Disclosures of fair value
1、 Fair value of assets and liabilities at fair value at the balance sheet date
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Fair value as of the balance sheet date
Item Level 1 fair Level 2 fairvalue value Level 3 fair value Total Amount
measurement measurement measurement
I. Continuing fair value
measurement
(I) Trading financial assets 106325954.95 106325954.95
1. Financial assets at fair
value through current 106325954.95 106325954.95
profit or loss
(1) Investment in debt
instruments
(2) Investment in equity
instruments 26325621.62 26325621.62
(3) Derivative financial
assets
(4) Wealth management
products 80000333.33 80000333.33
2. Financial assets
designated at fair value
through profit or loss
(1) Investment in debt
instruments
(2) Investment in equity
instruments
3. Receivables financing 282597817.02 282597817.02
(II) Other debt investments
(III) Investments in other
equity instruments
(IV) Investment Property
1. Land use rights for lease
2. Buildings leased
3. Land use rights held for
transfer after appreciation
(V) Biological assets
1. Consumable biological
assets
2. Productive biological
assets
Total assets continuously
measured at fair value 388923771.97 388923771.97
(VI) Trading financial
assets
1) Financial liabilities at
fair value through current
gains/losses
Including: Bonds held for
trading issued
Derivative
financial liabilities 366815.63 366815.63
282 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Other
2. Financial liabilities
designated at fair value
through profit or loss
Total liabilities measured
at fair value on a 366815.63 366815.63
continuing basis
II. Non-continuing 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 level 1 fair value at recurring and non-recurring fair measurement
"√ Applicable" "□ Not applicable"
The derivative financial liabilities of Company at the end of the period are foreign exchange forward
contracts that have not yet expired and their fair value is determined based on the forward rate quoted
by the financial institutions at the end of the period as determined by the remaining delivery period.
3. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2
fair value at recurring and non-recurring fair measurement
"□ Applicable" "√ Not applicable"
4. Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3
fair value at recurring and non-recurring fair measurement
"√ Applicable" "□ Not applicable"
The cost is used as the best estimate of fair value for all wealth management products purchased by the
Company and equity investments that do not constitute control or significant influence.The receivables financing held by the Company is a bank acceptance bill and its fair value is determined
at the face value.
5. Continuous third level fair value measurement items adjustment information between opening
balance and closing balance and sensitivity analysis of the non-observable parameter
"□ Applicable" "√ Not applicable"
6.Continuous fair value measurement items the reasons for conversion and the policy for
conversion time determination if the conversion occurs between different levels during current
period
"□ Applicable" "√ Not applicable"
7. Valuation techniques changing and its reason in current period
"□ Applicable" "√ Not applicable"
283 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
8. The fair value of financial assets and financial liabilities not measured with fair value.
"□ Applicable" "√ Not applicable"
9. Other
"□ Applicable" "√ Not applicable"
XIV. Related parties and related-party transactions
1. Parent company of the Company
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuan Currency: CNY
Holding Voting right
Place of Nature of Registered proportion over
Parent company proportion over
registration business capital the Company the Company (%)
(%)
Zhejiang Hangcha Hangzhou Industrial
Zhejiang 8908 41.34 41.34
Holding Co. Ltd investment
province
Information on the parent company
Zhejiang Hangcha Holding Co. Ltd. (formerly Zhejiang Hangcha Group Co. Ltd.) was jointly
established by 703 natural person shareholders including Chen Dansheng and Jin Bolin. It was registered
with Zhejiang Administration for Industry and Commerce on January 23 2003 and now holds a
business license with the unified social credit code 91330000747006398M. After a series of capital
increases and shares transfers as of December 31 2024 Zhejiang Hangcha Holding Co. Ltd. Had a
registered capital of RMB 89080000.00 of which GreatStar Holding Group Co. Ltd. (hereinafter
referred to as “GreatStar Group”) contributed RMB 70351544.00 accounting for 78.98% of theregistered capital.; Hangzhou GreatStar Industrial Co. Ltd. (hereinafter referred to as “GreatStarIndustrial”) contributed RMB 17816000.00 accounting for 20.00% of the registered capital; seven
natural person shareholders including contributed RMB 912456.00 accounting for 1.02% of the
registered capital.Business scope of the parent company: industrial investment development property management and
premises leasing.The Company’s ultimate controlling party is Qiu Jianping.Other notes:
GreatStar Group holds 78.98% shares of Zhejiang Hangcha Holding Co. Ltd. The Company is
ultimately controlled by Qiu Jianping a natural person as he holds 85.60% shares of GreatStar Group.
2. Subsidiaries of the Company
For details on the subsidiaries of the Company please refer to Notes
"√ Applicable" "□ Not applicable"For details on the subsidiaries of the Company please refer to “10. Interests in other entities underSection X Financial Reports”.
284 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
3. Joint ventures and associates of the Company
For details on material joint ventures or associates of the Company please refer to Notes
"√ Applicable" "□ Not applicable"For details on material joint ventures or associates of the Company please refer to “10. Interests in otherentities under Section X Financial Reports”.The information of other associates or joint ventures with related party transactions to the Company in
current period or with existing balance with the Company in previous periods are as follows:
"√ Applicable" "□ Not applicable"
Associates/ joint ventures names Relationship with the Company
Zhejiang Huachang Hydraulic Machinery Co. Ltd. Joint ventures
Hangzhou Gangcun Transmission Co. Ltd. Joint ventures
Changsha Zhongchuan Transmission Co. Ltd. Joint ventures
HANGCHA SOUTHEAST ASIA CO. LTD. Joint ventures
Henan Jiachen Intelligent Control Co. Ltd. Joint ventures
Hangzhou Pengcheng New Energy Technology Co. Ltd. Joint ventures
Shenyang Hangcha Lift Truck Sales Co. Ltd. Joint ventures
Taiyuan Hangcha Lift Truck Co. Ltd. Joint ventures
Shijiazhuang Hangcha Forklift Sales Co. Ltd. Joint ventures
Nanjing Hangcha Logistics Equipment Co. Ltd. Joint ventures
Changsha Hangcha Forklift Sales Co. Ltd. Joint ventures
Nanchang Hangcha Forklift Co. Ltd. Joint ventures
Chongqing Hangcha Forklift Truck Sales Co. Ltd. Joint ventures
Yunnan Hangcha Lift Truck Co. Ltd. Joint ventures
Other notes:
"□ Applicable" "√ Not applicable"
4. Other related parties
"√ Applicable" "□ Not applicable"
Other related parties Relationships with the Company
Hangzhou GreatStar Industrial Co. Ltd. Same actual controller and shareholder of
the parent company
Hangzhou Great Star Hardware Tools Co. Ltd. Same actual controller
Hangzhou GreatStar Tools Co. Ltd. Same actual controller
Zhejiang GreatStar Tools Co. Ltd. Same actual controller
Hangzhou Lianhe Tools Manufacturing Co. Ltd. Same actual controller
Hangzhou Lianhe Electric Manufacturing Co. Ltd. Same actual controller
Zhejiang Xinchai Co. Ltd. Same actual controller
Changzhou Huada Kejie Opto-Electro Instrument Co. Ltd. Same actual controller
Zhejiang Guozi Robotics Co. Ltd. Same actual controller
Zhongce Rubber Group Company Limited Same actual controller
Haining GreatStar Intelligent Equipment Co. Ltd. Same actual controller
Hangzhou Ole-Systems Co. Ltd. Same actual controller
Zhongshan Geelong Industry Co. Ltd. Same actual controller
Zhongshan Geelong Import and Export Trading Co. Ltd. Same actual controller
Zhongce Rubber (Tianjin) Co. Ltd. Same actual controller
Zhilun (Hangzhou) Technology Co. Ltd. Same actual controller
Zhejiang Shiwanke Electrical Appliance Co. Ltd. Same actual controller
Wuhu Xinchai Prestolite Power Technology Co. Ltd. Same actual controller
285 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou Haichao Rubber Co. Ltd. Same actual controller
HONGKONG GREATSTAR INTERNATIONAL CO. Same actual controller
LIMITED
Hangzhou Zhongce Qiantang Industrial Co. Ltd. Same actual controller
Hangzhou United Tools Co. Ltd. Same actual controller
Hangzhou CIEC Group Co. Ltd. Subsidiary of shareholders holding more
than 5% of shares
Zhejiang CIEC Zhongbang Supply Chain Services Co. Subsidiary of shareholders holding more
Ltd. than 5% of shares
Subsidiary of shareholders holding more
Hangzhou CIEC Logistics Technology Co. Ltd. than 5% of shares
Subsidiary of shareholders holding more
Zhejiang Hanghua New Material Technology Co. Ltd.than 5% of shares
Other notes:
None
5. Related-party transactions
(1). Related party transactions for purchase and sale of goods rendering and acceptance of
labor services
Purchase of goods and receiving of services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Approved Above the
transaction
Content of transaction
Related parties Jan.-Sept. 2023 limit or Jan.-Sept. 2022
transaction limit (if
applicable) not (if
applicable)
Zhejiang Xinchai Co. Ltd. Purchase 693767822.38 757439987.18
of goods
Zhejiang Huachang Hydraulic Purchase
474542736.91434758460.12
Machinery Co. Ltd. of goods
Hangzhou Pengcheng New Energy Purchase 288096519.40 451575582.00
Technology Co. Ltd. of goods
Zhongce Rubber Group Company Purchase
225389548.08232898101.46
Limited of goods
Hangzhou CIEC Group Co. Ltd. Purchase 205805051.59 118305230.64
of goods
Henan Jiachen Intelligent Control Purchase 160853142.39 168156418.65
Co. Ltd. of goods
Changsha Zhongchuan Purchase
Transmission Co. Ltd. of goods 62375836.66 61083185.69
Hangzhou Gangcun Transmission Purchase 50867070.60 78349708.61
Co. Ltd. of goods
Purchase
Zhejiang Guozi Robotics Co. Ltd. 28733710.97 6873506.38
of goods
Zhejiang CIEC Zhongbang Supply Purchase 18817915.86 44986356.15
Chain Services Co. Ltd. of goods
286 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou Great Star Hardware Purchase 11893990.10 12855935.71
Tools Co. Ltd. of goods
Hangzhou GreatStar Industrial Co. Purchase
3339390.883874607.18
Ltd. of goods
Chongqing Hangcha Forklift Truck Purchase 3393172.04 6107292.04
Sales Co. Ltd. of goods
Changsha Hangcha Forklift Sales Purchase
2587209.423791685.30
Co. Ltd. of goods
Hangzhou Ole-Systems Co. Ltd. Purchase 2230442.40 2148008.87
of goods
Nanchang Hangcha Forklift Co. Purchase 2294289.50 3495104.42
Ltd. of goods
Shenyang Hangcha Lift Truck Purchase
1848707.083863267.26
Sales Co. Ltd. of goods
Shijiazhuang Hangcha Forklift Purchase 1688441.88 2017783.12
Sales Co. Ltd. of goods
Hangzhou CIEC Logistics Purchase
1387821.52684537.91
Technology Co. Ltd. of goods
Nanjing Hangcha Logistics Purchase 1231645.13 1722657.52
Equipment Co. Ltd. of goods
Yunnan Hangcha Lift Truck Co. Purchase 971442.48 1458982.30
Ltd. of goods
Taiyuan Hangcha Lift Truck Co. Purchase
Ltd. of goods 249740.18 719392.72
Wuhu Xinchai Prestolite Power Purchase
77506.19
Technology Co. Ltd. of goods
Zhilun (Hangzhou) Technology Purchase
6814.23
Co. Ltd. of goods
Hangzhou GreatStar Sheffield Purchase 56637.17
Trading Co. Ltd. of goods
Subtotal 2242499790.81 2397172605.46
Sale of goods and rendering of services
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Related parties Content of transaction Jan.-Sept. 2023 Jan.-Sept. 2022
Shijiazhuang Hangcha Forklift Sales Forklifts parts and
Co. Ltd. materials etc. 128752215.79 183704034.49
Chongqing Hangcha Forklift Truck Forklifts parts and
Sales Co. Ltd. materials etc. 108205261.79 127395107.02
Taiyuan Hangcha Lift Truck Co. Ltd. Forklifts parts andmaterials etc. 87048499.59 123138042.53
Nanchang Hangcha Forklift Co. Ltd. Forklifts parts andmaterials etc. 82418883.57 118531289.27
Changsha Hangcha Forklift Sales Co.Ltd. Forklift and spare parts 79412051.33 79604156.65
Shenyang Hangcha Lift Truck Sales Forklifts parts and
Co. Ltd. materials etc. 76560427.72 82806015.81
Yunnan Hangcha Lift Truck Co. Ltd. Forklifts parts andmaterials etc. 75956436.93 83093944.32
287 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Nanjing Hangcha Logistics Equipment
Co. Ltd. Forklifts parts etc. 71887599.18 118138986.02
Zhongce Rubber Group Company
Limited Forklifts parts etc. 65629518.15 13240796.46
Zhejiang Guozi Robotics Co. Ltd. Forklifts parts etc. 62304018.10 84569139.01
Haining GreatStar Intelligent
Equipment Co. Ltd. Forklifts parts etc. 16825452.23 26551265.49
Zhejiang Huachang Hydraulic Forklifts parts and
Machinery Co. Ltd. materials etc. 9026392.39 7908059.75
Hangzhou Pengcheng New Energy Forklifts parts and
Technology Co. Ltd. materials etc. 7198036.85 23040618.85
Hangzhou GreatStar Industrial Co. Ltd. Forklifts parts etc. 6562811.35 3334407.92
Hangzhou Gangcun Transmission Co.Ltd. Forklifts parts etc. 1528943.74 192915.19
Changsha Zhongchuan Transmission
Co. Ltd. Forklifts parts etc. 1166030.20 2724371.42
Zhejiang Xinchai Co. Ltd. Forklifts parts etc. 1121627.44 833965.95
Zhejiang GreatStar Tools Co. Ltd. Forklifts parts etc. 312212.05 104879.69
Zhongshan Geelong Import and Export
Trading Co. Ltd. Spare parts 167582.34 190862.83
Hangzhou Great Star Hardware Tools
Co. Ltd. Parts materials etc. 114046.90 20163.73
Zhongshan Geelong Industry Co. Ltd. Forklifts parts etc. 111066.44 3991.15
Henan Jiachen Intelligent Control Co. Forklifts parts and
Ltd. materials etc. 67028.96 59869.36
Hangzhou United Tools Co. Ltd. Forklifts parts etc. 54960.40
Zhejiang Shiwanke Electrical Appliance
Co. Ltd. Forklifts parts etc. 29661.46 29380.53
Hangzhou Lianhe Tools Manufacturing
Co. Ltd. Parts materials etc. 28542.47 2438.94
Wuhu Xinchai Prestolite Power
Technology Co. Ltd. Spare parts 19954.68
Changzhou Huada Kejie Opto-Electro
Instrument Co. Ltd. Spare parts 1557.53 27345.13
Hangzhou GreatStar Tools Co. Ltd. Spare parts 1485.84
Hangzhou CIEC Group Co. Ltd. Material 91677777.26
HANGCHA SOUTHEAST ASIA CO.LTD. Forklift 24385413.11
Zhejiang CIEC Zhongbang Supply
Chain Services Co. Ltd. Forklifts parts etc. 6957725.42
Zhongce Rubber (Tianjin) Co. Ltd. Forklifts parts andmaterials etc. 539757.55
Hangzhou Haichao Rubber Co. Ltd. Forklifts parts andmaterials etc. 118267.26
Zhejiang Hanghua New Material
Technology Co. Ltd. Forklifts parts etc. 51769.91
HONGKONG GREATSTAR Forklifts parts and
INTERNATIONAL CO. LIMITED materials etc. 17608.77
Hangzhou Lianhe Electric
Manufacturing Co. Ltd. Spare parts 9884.07
Subtotal 882512305.42 1203004250.86
Note on purchase and sale of goods rendering and receiving of services
"□ Applicable" "√ Not applicable"
288 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2). Situation for related entrusted management/contracting and entrusting
management/subcontracting
The situation for entrusted management/contracting
"□ Applicable" "√ Not applicable"
Notes for related entrusting/contracting situation
"□ Applicable" "√ Not applicable"
Table of entrusted management/subcontracting:
"□ Applicable" "√ Not applicable"
Notes for related management/subcontracting
"□ Applicable" "√ Not applicable"
(3). Related-party leases
The Company as the lessor:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Lease income Lease income
recognized for
Lessees Types of asset leased recognized for
previous
current period
period
Hangzhou Gangcun Transmission Co.Buildings 3397373.51 1935360.00
Ltd.Hangzhou Pengcheng New Energy
Buildings 595809.55 1527771.48
Technology Co. Ltd.Changsha Hangcha Forklift Sales Co. Buildings 543577.98 317087.16
Ltd.Chongqing Hangcha Forklift Truck Buildings 481440.23 641887.94
Sales Co. Ltd.Nanchang Hangcha Forklift Co. Ltd. Transportation facilities 78584.07 85132.71
Henan Jiachen Intelligent Control Co. Transportation facilities 52662.86 52662.86
Ltd.Zhongshan Geelong Import and
Transportation facilities 47566.38
Export Trading Co. Ltd.Nanjing Hangcha Logistics Transportation facilities 9845.06 52211.44
Equipment Co. Ltd.Shenyang Hangcha Lift Truck Sales Transportation facilities 7848.11 390983.86
Co. Ltd.Zhejiang Huachang Hydraulic
Machinery Co. Ltd. Buildings 298628.57
Taiyuan Hangcha Lift Truck Co. Ltd. Transportation facilities 56371.77
Yunnan Hangcha Lift Truck Co. Ltd. Transportation facilities 50814.06
Chongqing Hangcha Forklift Truck
Transportation facilities 41405.97
Sales Co. Ltd.Shijiazhuang Hangcha Forklift Sales Transportation facilities 23446.92
Co. Ltd.Hangzhou GreatStar Industrial Co. Transportation facilities 7244.20
Ltd.
289 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
The Company as the lessee:
"□ Applicable" "√ Not applicable"
Notes for related party leases
"□ Applicable" "√ Not applicable"
(4). Related-party guarantees
The Company as the guarantor
"□ Applicable" "√ Not applicable"
The Company as the guaranteed party
"□ Applicable" "√ Not applicable"
Notes for related party guarantee
"□ Applicable" "√ Not applicable"
(5). Borrowings from related parties
"□ Applicable" "√ Not applicable"
(6). Transfer of assets and debt restructuring of related parties
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Related parties Content oftransaction Jan.-Sept. 2023 Jan.-Sept. 2022
Zhejiang Guozi Robotics Co. Ltd. Acquisition ofsubsidiaries 29860000.00
(7). Key management’s emoluments
"√ Applicable" "□ Not applicable"
Unit: Ten thousand yuanCurrency:CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Key management’s emoluments 1666.60 1595.30
(8). Other related-party transactions
"□ Applicable" "√ Not applicable"
6. Unsettled items such as receivables from and payables to related parties
(1).Receivables
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Name Related parties Provision ProvisionBook balance for bad Book balance for bad
debts debts
Accounts
receivable
Zhejiang Guozi Robotics
Co. Ltd. 51148715.85 2557435.79 780000.00 39000.00
Shenyang Hangcha Lift
Truck Sales Co. Ltd. 9541312.49 477065.62 5773324.34 288666.22
Haining GreatStar 7602689.00 380134.45
290 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Intelligent Equipment Co.Ltd.Zhongce Rubber Group
Company Limited 5376023.25 268801.16
Hangzhou GreatStar
Industrial Co. Ltd. 2923806.00 146190.30 1197371.00 58868.55
Hangzhou Pengcheng
New Energy Technology 2739510.61 136975.53 9587777.39 479388.87
Co. Ltd.Nanjing Hangcha
Logistics Equipment Co. 1211939.35 60596.97
Ltd.Taiyuan Hangcha Lift
Truck Co. Ltd. 1089621.70 54481.09 945129.28 47256.46
Zhejiang Huachang
Hydraulic Machinery Co. 768659.67 38432.98
Ltd.Henan Jiachen Intelligent
Control Co. Ltd. 612512.53 30625.63
Changsha Zhongchuan
Transmission Co. Ltd. 565273.01 28263.65 1103548.02 55177.40
Changsha Hangcha
Forklift Sales Co. Ltd. 165977.00 8298.85
Nanchang Hangcha
Forklift Co. Ltd. 55659.60 2782.98
Shijiazhuang Hangcha
Forklift Sales Co. Ltd. 33570.00 1678.50
Zhejiang GreatStar Tools
Co. Ltd. 33326.00 1666.30 7198.00 359.90
Hangzhou Gangcun
Transmission Co. Ltd. 28200.00 1410.00
Hangzhou United Tools
Co. Ltd. 9994.37 499.72
Hangzhou Great Star
Hardware Tools Co. Ltd. 6078.00 303.90 1519.00 75.95
Wuhu Xinchai Prestolite
Power Technology Co. 3775.80 188.79
Ltd.Hangzhou Lianhe Tools
Manufacturing Co. Ltd. 2948.00 147.40 403.54 20.18
HANGCHA
SOUTHEAST ASIA CO. 9737162.47 486858.12
LTD.Hangzhou Haichao
Rubber Co. Ltd. 133642.00 6682.10
Zhongce Rubber (Tianjin)
Co. Ltd. 109356.10 5467.81
Zhongshan Geelong
Import and Export Trading 64160.00 3208.00
Co. Ltd.Hangzhou GreatStar Tools
Co. Ltd. 60000.00 6000.00
Zhejiang Xinchai Co. Ltd. 20922.00 1046.10
Hangzhou Lianhe Electric
Manufacturing Co. Ltd. 9014.00 450.70
Subtotal 83919592.23 4195979.61 29530527.14 1478526.36
291 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Contract
assets
Zhongce Rubber Group
Company Limited 7222000.00 361100.00
Zhejiang Xinchai Co. Ltd. 138000.00 13800.00 138000.00 6900.00
Hangzhou Pengcheng
New Energy Technology 1810000.00 90500.00
Co. Ltd.Zhejiang Guozi Robotics
Co. Ltd. 390000.00 19500.00
Subtotal 7360000.00 374900.00 2338000.00 116900.00
Advances
paid
Hangzhou CIEC Group
Co. Ltd. 33712332.59
Changsha Zhongchuan
Transmission Co. Ltd. 1999731.53
Henan Jiachen Intelligent
Control Co. Ltd. 123893.81
Zhejiang Huachang
Hydraulic Machinery Co. 103552.76 651002.14
Ltd.Hangzhou Gangcun
Transmission Co. Ltd. 30000.00
Hangzhou GreatStar
Industrial Co. Ltd. 5420.00
Hangzhou Pengcheng
New Energy Technology 4700.00
Co. Ltd.Zhejiang CIEC
Zhongbang Supply Chain 7577154.54
Services Co. Ltd.Zhejiang Xinchai Co. Ltd. 23800.00
Subtotal 35979630.69 8251956.68
Long-term Shenyang Hangcha Lift
receivables Truck Sales Co. Ltd. 53708.77 537.09 112056.74 1120.57
Nanjing Hangcha
Logistics Equipment Co. 84539.34 845.39
Ltd.Subtotal 53708.77 537.09 196596.08 1965.96
Other
receivables
Hangzhou Zhongce
Qiantang Industrial Co. 20000.00 1000.00
Ltd.Subtotal 20000.00 1000.00
Non-current
assets due
within one
year
Chongqing Hangcha
Forklift Truck Sales Co. 156107.36 1561.07
Ltd.Nanjing Hangcha
Logistics Equipment Co. 84537.63 845.38 185453.23 1854.53
Ltd.
292 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Shenyang Hangcha Lift
Truck Sales Co. Ltd. 61239.79 612.40 58007.88 580.08
Subtotal 301884.78 3018.85 243461.11 2434.61
(2).Payables
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Name Related parties Closing book Opening book
balance balance
Accounts payable
Zhejiang Huachang Hydraulic Machinery
Co. Ltd. 66697577.62 45803045.07
Hangzhou Pengcheng New Energy
Technology Co. Ltd. 32809300.38 54654006.07
Henan Jiachen Intelligent Control Co. Ltd. 19964585.27 7976078.77
Zhongce Rubber Group Company Limited 18360819.60 16192695.38
Zhejiang Xinchai Co. Ltd. 13084796.88 15146581.45
Hangzhou Gangcun Transmission Co. Ltd. 9425701.90 2407049.34
Zhejiang Guozi Robotics Co. Ltd. 4528741.58
Hangzhou Great Star Hardware Tools Co.Ltd. 1530906.47 1258686.03
Hangzhou Ole-Systems Co. Ltd. 446000.00 872000.00
Wuhu Xinchai Prestolite Power
Technology Co. Ltd. 188518.54 6590.98
Hangzhou GreatStar Industrial Co. Ltd. 94199.87 82857.38
Taiyuan Hangcha Lift Truck Co. Ltd. 4360.00
Changsha Zhongchuan Transmission Co.Ltd. 5079858.74
Hangzhou CIEC Logistics Technology Co.Ltd. 62571.85
Nanjing Hangcha Logistics Equipment Co.Ltd. 1634.03
Subtotal 167135508.11 149543655.09
Notes payable
Henan Jiachen Intelligent Control Co. Ltd. 2880.00
Subtotal 2880.00
Advances
received
Nanjing Hangcha Logistics Equipment Co.Ltd. 1747.79
Subtotal 1747.79
Contractual
liabilities
Zhejiang Guozi Robotics Co. Ltd. 950202.59
Changsha Hangcha Forklift Sales Co. Ltd. 6011814.95 3371691.56
Nanchang Hangcha Forklift Co. Ltd. 5121515.66 3816410.41
Shijiazhuang Hangcha Forklift Sales Co.Ltd. 4025659.04 6124517.76
Chongqing Hangcha Forklift Truck Sales
Co. Ltd. 3742296.90
Zhongce Rubber Group Company Limited 273900.00
Yunnan Hangcha Lift Truck Co. Ltd. 170997.75
Hangzhou Pengcheng New Energy
Technology Co. Ltd. 65262.21
Zhejiang Xinchai Co. Ltd. 28700.00 18743.81
293 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Hangzhou United Tools Co. Ltd. 4869.43
Zhejiang GreatStar Tools Co. Ltd. 4500.00 3982.30
Hangzhou Zhongce Qiantang Industrial
Co. Ltd. 10730973.45
Hangzhou GreatStar Industrial Co. Ltd. 2962831.86
Nanjing Hangcha Logistics Equipment Co.Ltd. 104463.23
Subtotal 20399718.53 27133614.38
Other payables
Hangzhou Gangcun Transmission Co. Ltd. 155520.00
Shenyang Hangcha Lift Truck Sales Co.Ltd. 16464.00
Zhejiang Guozi Robotics Co. Ltd. 10595.13
Nanjing Hangcha Logistics Equipment Co.Ltd. 5000.00
Subtotal 187579.13
(3).Other items
"□ Applicable" "√ Not applicable"
7. Related-party commitments
"□ Applicable" "√ Not applicable"
8. Other
"□ Applicable" "√ Not applicable"
XV. Share-based payments
1. Equity instruments
"□ Applicable" "√ Not applicable"
Stock options or other equity instruments outstanding at the end of the period
"□ Applicable" "√ Not applicable"
2. Equity-settled share-based payments
"□ Applicable" "√ Not applicable"
3. Cash-settled share-based payments
"□ Applicable" "√ Not applicable"
4. Share-based payment expenses for the period
"□ Applicable" "√ Not applicable"
5. Modification or termination of share-based payments
"□ Applicable" "√ Not applicable"
6. Other
"□ Applicable" "√ Not applicable"
294 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
XVI. Commitments and contingencies
1. Material commitments
"√ Applicable" "□ Not applicable"
Material external commitments nature and amount on the balance sheet date
As of the balance sheet date the Company has no materials commitments to be disclosed.
2. Contingencies
(1). Important contingent matters as at the balance sheet date
"√ Applicable" "□ Not applicable"
As of the balance sheet date the Company has no material contingencies to be disclosed.
(2).If the Company has no important contingent matters to disclose a statement thereof shall be
made
"□ Applicable" "√ Not applicable"
3. Other
"□ Applicable" "√ Not applicable"
XVII. Post balance sheet events
1. Material non-adjusting events
"□ Applicable" "√ Not applicable"
2. Profit distributions
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Profits or dividends to be distributed 654906024.50
Profits or dividends declared after
consideration and approval
The Company intends to distribute a cash dividend of RMB 5 (inclusive of tax) to all shareholders for
every 10 shares based on the total share capital on the record date for equity distribution. As of April 17
2025 based on the total share capital of 1309812049 shares of the Company the total cash dividend
amount to be distributed is RMB654906024.50 (tax inclusive). If the total share capital of the Company
changes during the record date for equity distribution the distribution ratio per share will remain
unchanged and the total amount to be distributed will be adjusted accordingly. The profit distribution
plan has been considered and approved at the 20th meeting of the 7th Board of Directors of the
Company and still needs to be submitted to the 2024 Annual General Meeting of Shareholders for
deliberation.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Other events after the balance sheet date
"□ Applicable" "√ Not applicable"
295 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
XVIII. Other significant events
1. Correction of accounting errors in prior period
(1).Retrospective restatement
"□ Applicable" "√ Not applicable"
(2).Prospective application
"□ Applicable" "√ Not applicable"
2. Significant debt restructuring
"□ Applicable" "√ Not applicable"
3. Assets Exchange
(1). Non-cash Assets Exchange
"□ Applicable" "√ Not applicable"
(2). Other assets Exchange
"□ Applicable" "√ Not applicable"
4. Annuity Plan
"□ Applicable" "√ Not applicable"
5. Discontinued operations
"□ Applicable" "√ Not applicable"
6. Segment information
(1). Determination basis and accounting policy of the reportable segments
"√ Applicable" "□ Not applicable"
The Company primarily engage in the production and sales of forklift products. The Company manages
this business and evaluate its operating results as a whole. As a result the Company is not required to
disclose the information of its business segments. For details on the breakdown of the Company’s
revenue please refer to Note 7(61) under Section X hereof.
(2). Financial information of reporting segments
"□ Applicable" "√ Not applicable"
(3).If the Company has no reporting segments or cannot disclose the total assets and liabilities of
each reporting segments the reasons shall be explained
"□ Applicable" "√ Not applicable"
(4).Other notes
"□ Applicable" "√ Not applicable"
296 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
7. Other important transactions and matters that can affect investor decision - making
"□ Applicable" "√ Not applicable"
8. Other
"□ Applicable" "√ Not applicable"
XIV.Notes to the Principal Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1).Disclosure by ageing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ageing Closing book balance Opening book balance
Within 1 year
Including: Sub-item within one year
Within 1 year 3102311741.58 1919739193.36
Subtotal within one year 3102311741.58 1919739193.36
1 to 2 years 95167063.73 67598837.64
2 to 3 years 4331505.00 2156259.50
More than 3 years
3 to 4 years 1256863.56 2765842.15
4 to 5 years 602102.72 1203461.06
More than 5 years 4393144.13 4217331.18
Total Amount 3208062420.72 1997680924.89
(2).Disclosure of notes receivable by bad debt accrual method
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Book balance Provision for bad Provision for baddebts Book balance debts
Category Percent Book value Percent Book value
Amount Percent Amount age of Value Amount Percent Amount age of Valueage (%) Provisi age (%) Provisi
on (%) on (%)
Provisio
n for bad
debts
made on 460024.00 0.01 460024.00 100.00 531024.00 0.03 531024.00 100.00
an
individu
al basis
Including:
Provisio
n made
on a 320760239 17079434 303680804 199714990 10910018 188804972
portfolio 6.72
99.998.225.328.500.8999.970.075.460.82
basis
Including:
Ageing
combinat 320760239 170794346.72 99.99 8.22 5.32
30368080419971499010910018188804972
ion 8.50 0.89
99.970.075.460.82
Total 320806242 / 17125437 / 303680804 199768092 10963120 188804972Amount 0.72 2.22 8.50 4.89 / 4.07 / 0.82
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
297 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"√ Applicable" "□ Not applicable"
Items accrued in portfolio: Ageing combination
Unit: Yuan Currency: CNY
Closing balance
Item Accounts receivable Provision for bad debts Percentage of Provision(%)
Within 1 year 3102311741.58 155115587.08 5.00
1-2 years 95167063.73 9516706.37 10.00
2-3 years 4331505.00 1299451.50 30.00
3-5 years 1858966.28 929483.14 50.00
More than 5 years 3933120.13 3933120.13 100.00
Total Amount 3207602396.72 170794348.22 5.32
Description of the provision for bad debts by portfolio：
"□ Applicable" "√ Not applicable"
Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of accounts receivable with provision for bad
debts during the period
"□ Applicable" "√ Not applicable"
(3).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of change during the period
Opening Closing
Category Make Recovery Write-off or Other
balance balance
provision or reversal Cancellation changes
Provision
for
531024.0071000.00460024.00
Individual
bad debt
Provision
made on a
109100180.0762809615.0710200.001105246.92170794348.22
portfolio
basis
Total
109631204.0762809615.0710200.001176246.92171254372.22
Amount
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
298 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(4).Accounts receivable actually written off during the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount written off
Accounts receivable actually written off 1176246.92
Of which significant accounts receivable write-offs:
"□ Applicable" "√ Not applicable"
Description of notes receivable write-off:
"□ Applicable" "√ Not applicable"
(5).Accounts receivable with top five closing balances grouped by party in default
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percentage
of total
Total Ending accounts
Ending Balance of Closing
Closing balance of Balance of receivable balance of
Unit name Accounts and
accounts receivable Contract provision for
Receivable and contract
Assets Contract Assets bad debtsassets at the
end of the
period (%)
Customer 1688052234.10
One 1688052234.10 52.35 84402611.71
Customer 367956639.02 367956639.02 11.41 18397831.95
Two
Customer 334247506.00
334247506.0010.3716712375.30
Three
Customer 186681877.50 186681877.50 5.79 12965082.17
Four
Customer 47428562.84 47428562.84 1.47 2371428.14
Five
Total 2624366819.46 2624366819.46 81.39 134849329.27
Amount
Other notes:
None
Other notes:
"□ Applicable" "√ Not applicable"
2. Other receivables
Items
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
299 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Dividend receivable
Other receivables 36385301.01 24128538.11
Total Amount 36385301.01 24128538.11
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1).Interest receivable
"□ Applicable" "√ Not applicable"
(2).Significant overdue interest
"□ Applicable" "√ Not applicable"
(3).Disclosure of notes receivable by bad debt accrual method
"□ Applicable" "√ Not applicable"
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"□ Applicable" "√ Not applicable"
(4).Provision for bad debts using the general model for expected credit losses.
"□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of interest receivable with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
(5).Provision for bad debts
"□ Applicable" "√ Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(6).Actual write-offs of interest receivable during the current period
"□ Applicable" "√ Not applicable"
Including: Significant write-offs of interest receivable
"□ Applicable" "√ Not applicable"
300 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Description of write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(7).Dividend receivable
"□ Applicable" "√ Not applicable"
(8).Significant dividend receivables aged over 1 year
"□ Applicable" "√ Not applicable"
(9).Disclosure of notes receivable by bad debt accrual method
"□ Applicable" "√ Not applicable"
Provision for bad debts made on an individual basis:
"□ Applicable" "√ Not applicable"
Description of provision for bad debts by individual item
"□ Applicable" "√ Not applicable"
Provision for bad debts by combination:
"□ Applicable" "√ Not applicable"
(10).Provision for bad debts using the general model for expected credit losses.
"□ Applicable" "√ Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of dividends receivable with provision for bad
debts during the period
"□ Applicable" "√ Not applicable"
(11).Provision for bad debts
"□ Applicable" "√ Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(12).Actual write-offs of dividends receivable during the current period
"□ Applicable" "√ Not applicable"
Including: Significant write-offs of dividends receivable
"□ Applicable" "√ Not applicable"
Description of write-off:
301 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(13).Disclosure by ageing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Ageing Closing book balance Opening book balance
Within 1 year
Including: Sub-item within one year
Within 1 year 25275081.63 9593092.28
Subtotal within one year 25275081.63 9593092.28
1 to 2 years 6594481.49 8653582.27
2 to 3 years 7026040.86 8035975.34
More than 3 years
3 to 4 years 2015733.83 3578982.42
4 to 5 years 1025689.21 424404.91
More than 5 years 2280869.13 1570369.13
Total Amount 44217896.15 31856406.35
(14).By nature of amount
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Nature of payment Closing book balance Opening book balance
Deposit Guarantee 11955098.00 13476907.00
Temporary borrowings by 10598000.00 10418000.00
employees
Temporary payments receivable 20511518.02 6977392.35
Other 353280.13 984107.00
Total Amount 43417896.15 31856406.35
(15).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Phase I Phase II Phase III
Expected credit
Provision for bad Expected credit Expected credit losses for the entire Total Amount
debts losses for the entirelosses for the duration (credit
duration (no credit
next 12 months impairment
impairment)
occurred)
Balance as of January
479654.61865358.236382855.407727868.24
12024
Balance January 1
2024 during the
period
-- Transferred to -329724.07 329724.07
302 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Phase II
-- Transferred to
-702604.09702604.09
Phase III
-- Reversed to Phase
II
-- Reversed to Phase I
Provision during the 1113823.54 166969.94 -1176066.58 104726.90
period
Reversal during the
period
Write-offs in the
current period
Write-offs during the
period
Other changes
Balance as of 1263754.08 659448.15 5909392.91 7832595.14
December 31 2024
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of other receivables with provision for bad debts
during the period
"□ Applicable" "√ Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments
"□ Applicable" "√ Not applicable"
(16).Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of change during the period
Opening Recovery ClosingCategory balance Make Write-off or Otheror balanceprovision Cancellation changes
reversal
Provision for 800000.00 800000.00
Individual bad debt
Provision made on a 6927868.24 104726.90 7032595.14
portfolio basis
Total Amount 7727868.24 104726.90 7832595.14
Of which the amount of provisions for bad debt reversed or recovered during the period is significant:
"□ Applicable" "√ Not applicable"
Other notes:
None
(17).Other receivables actually written off during the period
"□ Applicable" "√ Not applicable"
303 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Of which significant write-offs of other receivables:
"□ Applicable" "√ Not applicable"
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(18).Other receivables of the top 5 in ending balance of the debtor
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percentage of Provision for
total closing Nature of
Unit name Closing balance Ageing bad debts
balance of other payments
Closing balance
receivables (%)
Unit I Temporary Within 1
20229797.41 45.75 payments 1011489.87
year
receivable
Unit II Deposit
4250000.00 9.61 2-3 years 1275000.00
Guarantee
Unit III 1400000.00 3.17 Deposit 1-2 years 140000.00
Guarantee
Unit IV Deposit More than
800000.001.81800000.00
Guarantee 5 years
Entity 5 430000.00 0.97 Deposit Within 1 21500.00
Guarantee year
Total 27109797.41 61.31 / / 3247989.87
Amount
(19).Listed as other receivables due to centralized management of funds
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
1、 Long-term equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Investment in 1451397642.85 1451397642.85 1107585032.85 1107585032.85
subsidiaries
Investment in
joint ventures and 2358236456.57 2358236456.57 1977070202.91 1977070202.91
associated
enterprises
Total Amount 3809634099.42 3809634099.42 3084655235.76 3084655235.76
(1). Investment in subsidiaries
"√ Applicable" "□ Not applicable"
304 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Unit: Yuan Currency: CNY
Closing
balance of
Beginning Increase and decrease during the period provisionOpening Closing for
Invested units balance (book Balance of balance (book
Impairment impairmentvalue) value)
Provision
Additional Decrease in Provision Other
investments investments for accrual
impairment
Hangzhou Hangcha
Aerial Equipment Co. 8765123.09 31548860.00 40313983.09
Ltd.Hangzhou Forklift Sheet 23290211.05 23290211.05
Metal Welding Co. Ltd.Hangzhou Forklift Mast
18944100.0018944100.00
Co. Ltd.Zhejiang Hangcha Import 16592000.00 16592000.00
and Export Co. Ltd.Hangzhou Hangcha
9350000.009350000.00
Bridge Box Co. Ltd.Hangzhou Hangcha 29942890.73 29942890.73
Electrical Co. Ltd.Hangzhou Hangcha 1693914.95 1693914.95
Machining Co. Ltd.Hangzhou Hangcha 35000000.00 35000000.00
Foundry Co. Ltd.Hangzhou Hangcha
Kangli Forklift 5795480.34 5795480.34
Attachments Co. Ltd.Hangzhou Hangcha Cab
2740500.002740500.00
Co. Ltd.Hangzhou Hangcha
Materials Trading Co. 80000000.00 80000000.00
Ltd.Hangcha Group Leasing 248304547.78 155000000.00 403304547.78
Co. Ltd.Baoji Hangcha
Engineering Machinery 20868932.61 20868932.61
Co. Ltd.Taizhou Hangcha Forklift 560000.00 560000.00
Sales Co. Ltd.Beijing Hangcha Forklift 1448000.00 1448000.00
Co. Ltd.Heilongjiang Hangcha 700000.00 700000.00
Forklift Sales Co. Ltd.Changchun Hangcha 702813.73 702813.73
Forklift Sales Co. Ltd.Tangshan Hangcha 420000.00 420000.00
Forklift Sales Co. Ltd.Henan Zhehang Forklift 2213524.75 2213524.75
Sales Co. Ltd.Jinan Hangcha Forklift 2288461.54 2288461.54
Sales Co. Ltd.Yantai Hangcha Forklift 718117.65 718117.65
Sales Co. Ltd.Qingdao Hangcha Forklift 1021854.17 1021854.17
Sales Co. Ltd.
305 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Rizhao Hangcha Forklift 1158705.88 1158705.88
Sales Co. Ltd.Xi'an Hangcha Forklift 1109500.00 1109500.00
Co. Ltd.Gansu Hangcha Forklift 1009149.25 1009149.25
Co. Ltd.Suzhou Hangcha Forklift 593055.56 593055.56
Sales Co. Ltd.Wuxi Hangcha Forklift 2978422.71 2978422.71
Sales Co. Ltd.Kunshan Hangcha 743448.28 743448.28
Forklift Sales Co. Ltd.Xuzhou Hangcha Forklift 2277814.51 2277814.51
Sales Co. Ltd.Taixing Hangcha Forklift 841494.12 630000.00 1471494.12
Sales Co. Ltd.Nantong Hangcha Forklift 1170258.81 1170258.81
Sales Co. Ltd.Yancheng Hangcha 1193292.45 1193292.45
Forklift Sales Co. Ltd.Wuhan Hangcha Forklift 1679884.41 1679884.41
Sales Co. Ltd.Xiangyang Hangcha 586184.21 586184.21
Forklift Sales Co. Ltd.Fujian Hangcha Forklift 1203200.00 1203200.00
Co. Ltd.Nanning Hangcha Forklift 1066800.00 1066800.00
Sales Co. Ltd.Guiyang Hangcha Forklift 907290.00 907290.00
Sales Co. Ltd.Shanghai Hangcha 4550000.00 4550000.00
Forklift Sales Co. Ltd.Guangzhou Zhehang 4283333.33 4283333.33
Forklift Co. Ltd.Dongguan Hangcha 1238608.70 1238608.70
Forklift Co. Ltd.Foshan Hangcha Forklift 2194087.50 2194087.50
Sales Co. Ltd.Shenzhen Hangcha 1739077.84 1739077.84
Forklift Co. Ltd.Zhongshan Hangcha 1372000.00 1372000.00
Forklift Co. Ltd.Huizhou Hangcha Forklift 1089358.95 1089358.95
Co. Ltd.Qingyuan Hangcha 786678.26 786678.26
Forklift Co. Ltd.Zhanjiang Hangcha 772790.85 772790.85
Forklift Co. Ltd.Yichang Hangcha Forklift 350000.00 350000.00 700000.00
Sales Co. Ltd.Inner Mongolia Hangcha 1050000.00 1050000.00
Forklift Sales Co. Ltd.Zhangjiagang Hangcha 999519.23 999519.23
Forklift Sales Co. Ltd.Ningxia Hangcha Forklift 390000.00 390000.00
Sales Co. Ltd.Lianyungang Hangcha 525000.00 525000.00
306 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Forklift Sales Co. Ltd.Yiwu Hangcha Forklift
959134.62959134.62
Sales Co. Ltd.Anhui Hangcha Forklift 1999900.00 1999900.00
Sales Co. Ltd.HANGCHA EUROPE
35480838.0035480838.00
GMBH
Dalian Zhehang Forklift 700000.00 700000.00
Sales Co. Ltd.Zhejiang Asteroid
Investment Management 5000000.00 5000000.00
Co. Ltd.HC FORKLIFT
AMERICA 33066839.81 33066839.81
CORPORATION
Guigang Hangcha Forklift 700000.00 700000.00
Sales Co. Ltd.Zhejiang Hangcha
Intelligent Technology 49500000.00 49500000.00
Co. Ltd.Hangzhou Hangzhong
Engineering Machinery 1.00 1.00
Co. Ltd.Wuhu Hangcha Forklift 700000.00 700000.00
Sales Co. Ltd.Hangzhou Hangcha
Machinery Equipment 10350000.00 10000000.00 20350000.00
Manufacturing Co. Ltd.Hefei Hanhe Intelligent
Logistics Technology 2037886.18 2037886.18
Co. Ltd.Zibo Hangcha Forklift
700000.00700000.00
Sales Co. Ltd.Hangcha Group (Tianjin)
New Energy Forklift Co. 15000000.00 15000000.00
Ltd.Hangcha Group (Tianjin) 1050000.00 1050000.00
Forklift Sales Co. Ltd.Hangcha Group (Tianjin)
Financing Leasing Co. 170000000.00 80000000.00 250000000.00
Ltd.Hangcha Forklift Canada 7090100.00 7090100.00
Inc.Zhumadian Hangcha 840000.00 118800.00 958800.00
Forklift Co. Ltd.HANGCHA 15750000.00 15750000.00
NETHERLANDS B.V.Zhejiang Hangcha Parts 40000000.00 40000000.00
Sales Co. Ltd.Zhejiang Hangcha Occam
Intelligent Technology 51000000.00 51000000.00
Co. Ltd.HANGCHA 21424000.00 21424000.00
(THAILAND) CO.LTD.HC FORKLIFT
35932500.0035932500.00
AUSTRALIA PTY. LTD.Zhejiang Hangcha Siweis 10200000.00 10200000.00
307 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
International Trade Co.Ltd.Hangzhou Hangcha
Precision Manufacturing 23040000.00 23040000.00
Co. Ltd.Hangzhou Hangcha 2295000.00 2295000.00
E-commerce Co. Ltd.Hangcha New Energy
Forklift (Wenzhou) Co. 1000000.00 1000000.00
Ltd.HANGCHA BRASIL
20549406.0020549406.00
LTDA.Hangzhou Hangcha
Yunrui Technology Co. 10200000.00 10200000.00
Ltd.Zhejiang Hangbo 27500000.00 27500000.00
Electrical Drive Co. Ltd.PT HANGCHA 7105600.00 7105600.00
INDONESIA FORKLIFT
HANGCHA JAPAN Co. 14967000.00 14967000.00
Ltd.HANGCHA EUROPE 7736600.00 7736600.00
RENTAL & SALES
HANGCHA
(MALAYSIA) 3655750.00 3655750.00
SDN.BHD.Total Amount 1107585032.85 348812610.00 5000000.00 1451397642.85
308 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(2). Investment in joint ventures and associated enterprises
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Increase and decrease during the period
Gains and ClosingDeclaration
Investments Opening losses on Adjustment to Closing balance of
Account Other of issuing ProvisionUnit Additional Decrease in investments other Account provision
Balance changes in cash for accrual Otherinvestments investments recognised comprehensive Balance for
income equity dividends or impairmentunder the impairmentprofits
equity method
I. Joint ventures
Subtotal
II. Associated enterprises
HANGCHA
SOUTHEAST ASIA 1548958.19 204490.24 50438.88 1803887.31
CO. LTD.Zhejiang Huachang
Hydraulic 92931504.38 13743415.72 532407.76 23868000.00 83339327.86
Machinery Co. Ltd.Hangzhou Gangcun
Transmission Co. 30205453.27 945726.00 31151179.27
Ltd.Hangzhou
Pengcheng New 35600570.73 -1645099.96 33955470.77
Energy Technology
Co. Ltd.Hangzhou Zhongce
Haichao Enterprise 1670401382.16 353709550.58 18016561.25 5679831.15 2047807325.14
Management Co.Ltd.Henan Jiachen
Intelligent Control 110654999.46 12748414.77 53902.93 123457317.16
Co. Ltd.Changsha 10237058.66 384403.68 198233.36 10819695.70
309 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
Zhongchuan
Transmission Co.Ltd.Nanjing Hangcha
Logistics Equipment 2667963.84 574839.78 560000.00 2682803.62
Co. Ltd.Nanchang Hangcha 4134295.76 557335.41 630000.00 4061631.17
Forklift Co. Ltd.Changsha Hangcha
Forklift Sales Co. 2650713.16 678044.79 562000.00 2766757.95
Ltd.Shijiazhuang
Hangcha Forklift 4736008.07 592981.81 840000.00 4488989.88
Sales Co. Ltd.Taiyuan Hangcha 2390871.90 488052.80 525000.00 2353924.70
Lift Truck Co. Ltd.Chongqing Hangcha
Forklift Truck Sales 3402652.56 868691.45 455000.00 3816344.01
Co. Ltd.Yunnan Hangcha 2678523.08 651607.78 420000.00 2910130.86
Lift Truck Co. Ltd.Shenyang Hangcha
Lift Truck Sales Co. 2829247.69 622423.48 630000.00 2821671.17
Ltd.Subtotal 1977070202.91 385124878.33 18067000.13 6464375.20 28490000.00 2358236456.57
Total Amount 1977070202.91 385124878.33 18067000.13 6464375.20 28490000.00 2358236456.57
310 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
(3).Impairment testing of long-term equity investments
"□ Applicable" "√ Not applicable"
Other notes:
None
4. Operating revenue and cost
(1). Operating revenue and cost Description
"√ Applicable" "□ Not applicable"
Unit: YuanCurrency:CNY
Jan.-Sept. 2023 Jan.-Sept. 2022
Item
Revenue Cost Revenue Cost
Operating 13322693337.86 11149653367.21 13350418986.30 11413188702.65
Non-operating 205678328.68 153339514.89 216356156.97 165972809.74
Total Amount 13528371666.54 11302992882.10 13566775143.27 11579161512.39
(2). Breakdown of operating revenue and cost
"√ Applicable" "□ Not applicable"
Unit: YuanCurrency:CNY
Total Amount
Contract category
Operating income Operating cost
Goods category
Forklift trucks accessories and others 13484317468.76 11276359039.64
Categorization by time of goods transfer
Revenue is recognized at a point in time 13484317468.76 11276359039.64
Total Amount 13484317468.76 11276359039.64
Other notes:
"□ Applicable" "√ Not applicable"
(3). Description of performance obligations
"□ Applicable" "√ Not applicable"
(4). Description of apportionment to remaining performance obligations
"□ Applicable" "√ Not applicable"
(5). Material contract changes or material transaction price adjustments
"□ Applicable" "√ Not applicable"
Other notes:
None
5. Income from investment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Jan.-Sept. 2023 Jan.-Sept. 2022
Income from long-term equity investments 134313581.30 66723741.70
311 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
accounted for under the cost method
Income from long-term equity investments
385124878.33289070371.77
recognised under the equity method
Investment income from disposal of long-term
-4999999.00822705.96
equity investments
Investment income from held-for-trading financial
assets during the holding period
Dividend income from investments in other equity
instruments during the holding period
Interest income from debt investments during the
holding period
Interest income from other debt investments during
the holding period
Investment income from disposal of held-for-trading
financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt
investments
Investment income from disposal of other debt
investments
Revenue from debt restructuring
Investment income from holding financial
2205479.45
instruments
Financial assets measured at fair value and the
changes thereof are included in current profits and 2205479.45
losses
Total Amount 514438460.63 358822298.88
Other notes:
None
6. Other
"□ Applicable" "√ Not applicable"
XX. Additional information
1. Current non-recurring profit and loss statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount Note
Gains or losses on disposal of non-current assets including write-off
989100.45
of provision for assets impairment
Government grants included in profit or loss excluding those closely
related to operating activities of the Company and granted constantly
45521493.77
affecting the Company's profits or losses in accordance with certain
standards based on state policies
Gains or losses from changes in fair value of value and disposal of -799155.95
financial assets and liabilities held by non-financial enterprises
312 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
excluding those arising from hedging business related to the
Company's normal operating activities
Fund occupancy fees collected from non-financial enterprises and
recognized in current gains or losses
Profit or loss on entrusted investment or management of assets 41881.97
Gains or losses from external entrusted loans
Loss on assets due to force majeure factors including natural disasters
Reversal of impairment provision for accounts receivable subject to
612384.24
separate impairment testing
Gains arising from the investment cost in acquiring subsidiaries
associates and joint ventures being lower than the fair value of the
invested entities' identifiable net assets entitled upon investment
Net profit or loss of subsidiaries from the beginning of the period to
the date of consolidation arising from a business combination under -1983591.63
the same control
Gains or losses from exchange of non-monetary assets
Gains or losses from debt restructuring
Non-recurring expenses incurred by the Company including
compensation for employee relocation due to the discontinuation of its
related business activities
One-off impact on current profit or loss due to adjustments to the laws
and regulations relating to taxation or accounting
One-off recognition of share-based payment expenses due to
cancellation or modification of equity incentive plans
For cash-settled share-based payments gains or losses arising from
changes in the fair value of employee benefits payable after the vesting
date
Gains or losses arising from changes in fair value of investment
property subsequently measured using the fair value model
Gains arising from non-arm’s length transactions
Gains or losses arising from contingencies not related to the
company’s normal business operations
Income from trustee fees for entrusted operations
Other non-operating income and expenses except the aforementioned
1613499.24
items
Other gains or losses in compliance with the definition of
non-recurring gains or losses
Less: Impact of income tax 7373343.17
Impact of minority equity (after tax) 5451243.93
Total Amount 33171024.99
For items of non-recurring gains and losses defined by the Company that are of a significant amount and
not listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Shares to the Public—Non-recurring Gains and Losses" as well as for items of recurring gains and
losses defined by the Company that are listed in the "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Shares to the Public—Non-recurring Gains and Losses" as
non-recurring gains and losses reasons shall be specified.
313 / 314The 2024 Annual Report of Hangcha Group Co. Ltd.
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Return on equity and earnings per share
"√ Applicable" "□ Not applicable"
Profit for the reporting period Weighted average
Earnings per share (RMB/ share)
ROE (%) Basic EPS (yuan per Diluted EPS
share) (yuan per share)
Net profit attributable to ordinary
shareholders of the Company 21.64 1.54 1.54
Net profit attributable to ordinary
shareholders of the Company after
deduction of non-recurring gains and 21.29 1.52 1.52
losses
3. Differences in Accounting Data under Domestic and Overseas Accounting Standards
"□ Applicable" "√ Not applicable"
4. Other
"□ Applicable" "√ Not applicable"
Chairman: Zhao Limin
Date of submission to the Board of Directors for approval April 17 2025
Revision
"□ Applicable" "√ Not applicable"
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