2024 Annual Report of Zhejiang Supor Co. Ltd.
Zhejiang Supor Co. Ltd.2024 Annual Report
[March 2025]
12024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION I IMPORTANT NOTES TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor
Co. Ltd (hereinafter referred to as the "Company") and all its directors
supervisors and senior executives warrant that this annual report is true
accurate and complete and does not contain any fictitious statements
misleading information or significant omissions; all directors supervisors and
senior executives of the Company undertake separately and jointly all
responsibilities in relation to the truth accuracy and completeness hereof.Mr. Thierry de LA TOUR D'ARTAISE person in charge of the Company
and Mr. Xu Bo person in charge of accounting and person in charge of
accounting department (accountant in charge) hereby confirm that the
financial statement enclosed in this Annual Report is true accurate and
complete.All directors have attended the Board Meeting in person.It is of great uncertainty for whether it can be realized or not depends on
multiple factors including market change and effort of management team.Please be careful of investment risks.As for the risk factors confronted by the Company see Part 11
"Prospects for Future Development" of Section III "DISCUSSION AND
ANALYSIS OF THE MANAGEMENT" for details.The profit distribution plan adopted at this Board Meeting specifies that:
based on the 796692233 shares at the end of 2024 (total capital stock of
801538407 shares at the end of 2024 deducted by 4667500 shares of
repurchased shares in the Company’s special stock repurchase account and
178674 shares of Restricted Stock repurchased and canceled on January 17
2025) the Company distributes cash dividend of RMB 28.10 per 10 shares
(tax-inclusive) to all shareholders and total amount of cash dividends is RMB
2238705174.73 issues 0 bonus shares (tax-inclusive) and will not convert
capital reserves to capital..
22024 Annual Report of Zhejiang Supor Co. Ltd.
Table of Contents
SECTION I IMPORTANT NOTES TABLE OF CONTENTS AND DE... 2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICA... 6
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEM.. 10
SECTION IV CORPORATION GOVERNANCE .................. 29
SECTION V SOCIAL AND ENVIRONMENTAL RESPONSIBILITIE.. 57
SECTION VI SIGNIFICANT EVENTS ...................... 62
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULA.. 73
SECTION VIII INFORMATION ON PREFERRED SHARE ........ 83
SECTION IX BONDS ................................... 84
SECTION X FINANCIAL STATEMENT ...................... 85
32024 Annual Report of Zhejiang Supor Co. Ltd.
CATALOG OF REFERENCE DOCUMENTS
I. 2024 Annual Report of the Company and Abstract with signature of legal representative;
II. Financial statements with signature of legal representative person in charge of accounting and person in charge of
accounting department and seal of the Company;
III. Original of audit report with seal of accounting firm and signature of certified public accountants (CPA);
IV. Original of all documents and announcements published in newspapers designated by CSRC during the reporting period.Reference documents above archived at the Securities Department of the Company: Securities Department of the Company
42024 Annual Report of Zhejiang Supor Co. Ltd.
Definitions
Items to be Defined means Definitions
SZSE means Shenzhen Stock Exchange
CSRC means China Securities Regulatory Commission
Shenzhen Branch of China Securities Depository and Clearing Corporation
CSDCC means
Limited
The Company/this Company/the Group means Zhejiang Supor Co. Ltd.SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliances Manufacturing Co. Ltd.Shaoxing Supor means Zhejiang Shaoxing Supor Domestic Electrical Appliances Co. Ltd.Supor Vietnam means Supor (Vietnam) Co. Ltd.Wuhan Recycling means Wuhan Supor Recycling Co. Ltd.Wuhan Supor Cookware means Wuhan Supor Cookware Co. Ltd.Wuhan Supor Pressure Cooker means Wuhan Supor Pressure Cooker Co. Ltd.Omegna means Hangzhou Omegna Commercial Trade Co. Ltd.Shanghai Marketing means Shanghai Supor Cookware Marketing Co. Ltd.P&R Products means Zhejiang Supor Plastic & Rubber Co. Ltd.Yuhuan Sales Company means Yuhuan Supor Cookware Sales Co. Ltd.SEADA means SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD.AFS means AFS VIETNAM MANAGEMENT CO.LTD.Shanghai WMF means Shanghai WMF Enterprise Development Co. Ltd.Zhejiang WMF means Zhejiang WMF Housewares Co. Ltd.Shaoxing Supor Housewares means Zhejiang Shaoxing Supor Household Products Co. Ltd.Zhejiang Supor LKA means Zhejiang Supor Large Kitchen Appliance Co. Ltd.Supor Water Heater means Zhejiang Supor Water Heater Co. Ltd.GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Hainan Supor E-commerce Company means Hainan Supor E-Commerce Co. Ltd.Hainan Tefal Trading Company means Hainan Tefal Trading Co. Ltd
2021 Equity Incentive Plan means 2021 Restricted Stock Incentive Plan (Draft)
2022 Equity Incentive Plan means 2022 Restricted Stock Incentive Plan (Draft)
2023 Equity Incentive Plan means 2023 Stock Option Incentive Plan (Draft)
2024 Equity Incentive Plan means 2024 Stock Option Incentive Plan (Draft)
Performance Incentive Fund means Administration Measures for the Performance Incentive Fund
Second Performance Incentive Fund means Administration Measures for the Second Performance Incentive Fund
52024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION II COMPANY FILE AND MAJOR FINANCIAL
INDICATORS
I. Company Information
Short Form of the Stock Supor Stock Code 002032
Short Form of the Original Stock (if
None
any)
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company Zhejiang Supor Co. Ltd.Short Form of Chinese Name of the
Supor
Company
English Name of the Company (if
ZHEJIANG SUPOR CO. LTD.any)
Short Form of English Name of the
SUPOR
Company (if any)
Legal Representative Thierry de LA TOUR D’ARTAISE
Registration Place Damaiyu Economic Development Zone Yuhuan Zhejiang
Postal Code 317604
Historical Change Records of the
None
Company's Registered Address
15F of Supor Building No.1772 Jianghui Road New & High Tech Development Zone
Office Address
Hangzhou China
Postal Code 310051
Website www.supor.com.cn
Email 002032@supor.com
II. Contact Person and Contact Information
Board Secretary Representative of Securities Affairs
Name Ye Jide Fang Lin
Securities Department at 23F of Supor Building Securities Department at 23F of Supor Building
Address No.1772 Jianghui Road New & High Tech No.1772 Jianghui Road New & High Tech
Development Zone Hangzhou China Development Zone Hangzhou China
Tel. 0571-86858778 0571-86858778
Fax 0571-86858678 0571-86858678
Email yjd@supor.com flin@supor.com
62024 Annual Report of Zhejiang Supor Co. Ltd.
III. Place for Information Disclosure and Archiving
Securities exchange websites where the Company discloses the
Securities Times Securities Daily and China Securities Journal
annual report
Names and websites of medias where the Company discloses the
www.cninfo.com.cn
annual report
Place for archiving of the Company's annual report: Securities Department of the Company
IV. Changes of Registration
Unified social credit code 913300007046976861
Change of main business since listing of the Company (if any) No change during the reporting period
Change of controlling shareholders (if any) No change during the reporting period
V. Other Relevant Information
Certified Public Accountants engaged by the Company
Name of the Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
8F East 2 Office Building Dongfang Square No.1 East Chang'an
Office Address of the Certified Public Accountants:
Avenue Dongcheng District Beijing City
Name of the Signatory Accountants Huang Feng Jin Yang
Sponsor institution engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable ? Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties during the reporting period
□ Applicable ? Not applicable
VI. Major Accounting Data and Financial Indicators
Does the Company need to retroactively adjust or restate previous year's accounting data
□Yes ? No
Retrospective adjustment or restatement reason
Cumulative changes of accounting policies
Increase/
202420232022
decrease
Operating income (RMB) 22427337986.38 21303948642.66 5.27% 20170527516.66
Net profit attributable to shareholders of listed
2244444529.352179798147.272.97%2067659526.97
company (RMB)
Net profit attributable to shareholders of listed
company with non-recurring profit or loss 2064698793.08 1994465695.85 3.52% 1888197965.28
deducted (RMB)
Net cash flows from operating activities (RMB) 2583502138.20 2034909336.20 26.96% 3159955245.84
Basic earnings per share (RMB/share) 2.820 2.719 3.71% 2.565
72024 Annual Report of Zhejiang Supor Co. Ltd.
Diluted earnings per share (RMB/share) 2.819 2.719 3.68% 2.564
Increased by 2.65
Weighted average return on net assets 37.27% 34.62% 27.89%
percentage points
Increase/
End of 2024 End of 2023 End of 2022
decrease
Total assets (RMB) 13265856724.52 13106703607.00 1.21% 12952655903.47
Net asset attributable to shareholders of listed
6424414343.696345333020.111.25%7036084863.54
company (RMB)
The Company's net profit before or after non-recurring profit and loss are deducted for the last three fiscal years whichever is
lower is negative and the audit report for the latest year indicates uncertainty about its continuing operation ability
□ Yes ? No
Net profit before or after non-recurring profit and loss are deducted whichever is lower is negative
□ Yes ? No
VII. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable ? Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards
and Chinese Accounting Standards existed during the reporting period.
2. Net profit and net assets discrepancies in financial statements disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable ? Not applicable
No net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting Standards and
Chinese Accounting Standards existed during the reporting period.VIII. Quarter-based Major Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 5378308516.37 5586469452.08 5547582884.99 5914977132.94
Net profit attributable to shareholders of
469544886.20471048231.45492259234.08811592177.62
listed company
Net profit attributable to shareholders of
listed company with non-recurring profit 460726002.76 461929957.89 481873660.48 660169171.95
or loss deducted
Net cash flows from operating activities 1043028242.95 -494503778.14 611630586.55 1423347086.84
Any difference between financial indicators or the total and relevant financial indicators disclosed in quarter-based report or
semiannual report
□ Yes ? No
82024 Annual Report of Zhejiang Supor Co. Ltd.
IX. Non-recurring Profit or Loss Items and Amount
? Applicable □ Not applicable
Unit: RMB
Item Amount of 2024 Amount of 2023 Amount of 2022 Notes
Profit and loss on disposal of non-current assets
-6241682.47-6956266.86-1189107.57
(including the write-off of asset impairment provision)
Government subsidies recognized through current
profits and losses (except those that are closely related
to the Company's normal business operations comply
195545431.63196125471.29199599828.51
with national policies and regulations and available
according to certain standard quota or continuously
affect the Company's profits and losses)
Except the effective hedging business related to the
normal operation of the Company profits and losses
from fair value changes caused by the finance assets
33497663.1943047593.8824264345.88
and financial liabilities held by non-financial
enterprises and profits and losses from disposal of
financial assets and financial liabilities
Reversal of impairment provision for accounts
1187578.89
receivable made on an individual basis
Nonrecurring expenses incurred by the enterprise due
to the discontinuation of related operating activities -527780.73
such as expenses for employee placement.Other non-operating incomes or expenditures except
5649279.246289885.379796376.97
for the foregoing items
Minus: influenced amount of income tax 49576326.72 52980777.54 52414885.25
Influenced amount of minority shareholders'
316207.49193454.7267216.12
equities (after tax)
Total 179745736.27 185332451.42 179461561.69 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable ? Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-
recurring profits or losses.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the
Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable ? Not applicable
The Company does not have the description of defining non-recurring profits or losses items listed in the Explanatory
Announcement No.1 on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring
Profit or Loss as recurring profits and losses.
92024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENT
I. Industrial Situation of the Company in the Reporting Period
In 2024 the domestic consumer market exhibited a polarizing trend of rational consumption and premiumization. On one
hand consumer demand for high-quality high-value products continued to rise. On the other hand more consumers favored good-
value-for-money products offering. Facing this complex market environment and the growing rationality of consumer demand the
Company gained the market shares of core categories on both online and offline with continuous innovation and strong channel
competitive advantage.In the open fire cookware segment live-streaming e-commerce and social e-commerce platforms maintained rapid growth
while traditional e-commerce experienced a slight decline. Overall the online retail market saw modest growth while offline
channels continued to face pressure. As a leading brand in the industry Supor actively addressed the differentiated consumer
demands and outperformed the industry in both online and offline by leveraging exceptional omni-channel operational capabilities.According to monitoring data of AVC the online cookware market share of Supor continued to grow in 2024 and for offline
Supor firmly solidified its position as the market leader. By category products associated with health concepts such as pressure
cookers and steamers achieved stable growth. Materials emphasizing health benefits such as titanium and cast iron also gained
increasing consumer preference.The small domestic appliance market faced intensified competition in 2024. Supor has achieved a good result that the
comprehensive market share of traditional e-commerce and the Tiktok channel ranks the first. According to the overall monitoring
data of AVC in 2024 the sales performance of Supor's small domestic appliances (including the following categories: rice cookers
induction hobs electric pressure cookers soymilk makers high-speed blenders blenders juicers kettles steamers health pot
baking pan small desktop single function ovens and air fryers) is outperforming the industry average and their shares in the
online and offline markets have improved ranking first in the industry. From the perspective of category performance the rigid-
demand categories such as electric rice cookers have a stable market and the categories related to health concepts such as electric
steamers slow cookers health kettle and soymilk makers continue with the growth momentum.II. Main Business during the Reporting Period
As China's famous cookware and small domestic appliance R&D and manufacturing company and leading brand the
Company is also the first listed company in China's cookware industry. Established in 1994 the headquarters of the Company is
located in Hangzhou and it owns seven R&D and manufacture bases located in Yuhuan City Hangzhou City Shaoxing City
(Binhai New Area and Keqiao District) in Zhejiang Province Wuhan City in Hubei Province and Ho Chi Minh City Vietnam.
Supor's main businesses include open fire cookware and kitchen tools small domestic appliances large kitchen appliances
and H&PC appliances.
(1) Open fire cookware and kitchen tools mainly include wok pressure cooker frying pan sauce pan steamer ceramic slow
cooker kettle knife spatula thermal pot thermos & flask kitchen gadgets crisper etc.;
(2) The small domestic appliances mainly include rice cooker electric pressure cooker induction hob soymilk maker kettle
juicer slow cooker steamer electric hotpot food processor baking pan air fryer desktop electric oven desktop water purifier
etc.;
102024 Annual Report of Zhejiang Supor Co. Ltd.
(3) The large kitchen appliances mainly include range hood gas stove disinfection cabinet water purifier embedded
steaming oven integrated stove water heater etc.;
(4) The H&PC appliances mainly include air purifier garment steamers vacuum cleaner floor washer and electric iron
electric heater air-circulating fans etc.;
The Company's cookware and electrical products have been exported to more than 50 countries and regions such as Japan
European and American countries mainly through SEB Group.III. Core Competitiveness Analysis
(I) Superior product innovation capacity
Supor has been upholding the design philosophy of "People Orientation Design Driven Product Innovation" over the years
with the adherence on technological leading design innovation drive and internal-external innovation synergy. The Company
continuously introduces healthier smarter and more diversified products to meet the needs of diverse consumer groups and usage
scenarios.The Company’s headquarters innovation center through strategic planning and collaboration with R&D teams across
business units and manufacturing bases has established a unique innovation system and mechanism. This ensures a focus on
disruptive innovation in core product categories while consistently delivering application-driven innovation and product upgrades
to swiftly respond to market competition. By fully leveraging internal and external innovation resources Supor has built an open
innovation platform to stay abreast of emerging technologies and product categories both within and outside the industry. The
Company continuously integrates new processes and materials to drive business growth. Additionally Supor has strengthened its
innovation synergy with the SEB Group introducing new product categories and technologies to further enrich its product
portfolio.In terms of the design modules for unfinished products the Company integrates industrial design user experience and
consumption trend into product innovation to further enhance the visual aesthetic feeling form and experience of products
address user pain points and bring consumers a better product experience. In 2024 several Supor products received iF Design
Awards including the Visible Air Fryer KJ50DQ821 Large-capacity Anytime Sharing Thermos Bottles Dual-drinking Thermal
Coffee Cup & Plastic Infuser Cup and the Ultra-Slim Extractor Hood AI60 Series.(II) Steady distribution network
Supor has a reliable distribution team and maintains long-term and sound cooperative relationships with distributors and
operators. In terms of online channels the Company continuously promotes the direct sales distrobution and “one-basket” model
collaborating with distributors and operators to build a comprehensive e-commerce store matrix that provides consumers with an
exceptional online shopping experience. In terms of offline channels the Company has established a great number of point-of-sale
terminals and service outlets and has entered large-scale mainstream supermarkets and stores in the primary and secondary
markets; in addition to a high coverage rate in the O2O channels in the third and fourth markets ensuring that consumers can
purchase the Company's products more conveniently.(III) Strong R&D and manufacturing capacity
Supor has built up seven R&D production bases respectively in Yuhuan City Hangzhou City Shaoxing City (Binhai New
Area and Keqiao) in Zhejiang Province Wuhan City in Hubei Province and Ho Chi Minh City Vietnam. In particular the annual
production scale of Wuhan Base and Shaoxing Base ranked the top in the industry. Over the years the Company has been
continuously improving industrial efficiency and the strong R&D and manufacturing capabilities in the base and the superior
R&D team of the Company have robustly supported the product competitiveness of Supor.Guided by its distinctive innovation system Supor continuously refines its innovation tools and methodologies. By starting
from consumer needs the Company maps out technological development pathways and defines innovation directions ensuring a
solid technical foundation to meet intense market competition.
112024 Annual Report of Zhejiang Supor Co. Ltd.
(IV) Synergistic effect of integration with SEB
The SEB Group a global leader in cookware and small appliances with over 160 years of history has been a strategic partner
of Supor since 2006. The powerful cooperation between Supor and SEB Group has brought stable export orders to the Company
and increased its overall businesss ize and manufacturing capacity. Meanwhile the Company strengthens cooperation with SEB
Group in varied fields such as production R&D IT and management and providing comprehensive support for the Company's
development continuously.(V) Advantage of multiple brands and categories
In terms of the multi-brand operation in addition to Supor brand the Company also introduced a lot of high-end brands under
SEB Group such as WMF LAGOSTINA KRUPS and TEFAL so as to fully cover the high-end brands in small domestic
appliances and kitchen cookware fields. In terms of the category expansion the Company actively explores new product
categories for kitchen appliances H&PC appliances personal care appliances and others on the basis of the existing advantageous
categories such as open fire cookware and small domestic appliances. Supor’s multi-brand multi-category strategy has established
a strong competitive advantage in the domestic market positioning the company to evolve into a comprehensive home lifestyle
brand.IV. Main Business Analysis
During the reporting period the Company achieved an operating income of CNY22427337986.38 a year-on-year increase
of 5.27%. The domestic sales declined slightly compared with that last year among the complex market environment and more
rational consumer demands. However the Company gained the market shares of core categories on both online and offline
channels with continuous innovation and strong channel competitive advantage. The export sales achieved good growth during
reporting period compared with that last year benefited from the sales to the Company's key export customer which increased
quickly. The net profit attributable to shareholders of listed company was CNY2244444529.35 a year-on-year increase of 2.97%;
and the earnings per share were CNY2.820 a year-on-year increase of 3.71%. Among them the realized revenue from the main
business of cookware was CNY6836158028.21 a year-on-year increase of 12.88%; the realized revenue from the main business
of electric appliances was CNY15300420337.16 a year-on-year increase of 2.25%; the realized revenue from the main business
of domestic sales was CNY14757349421.40 a year-on-year decrease of 1.20%; and the realized revenue from the main business
of export business was CNY7410670975.50 a year-on-year increase of 21.28%.
1. Overview
(I) Domestic sales during the reporting period
(1) Product strategy
During the reporting period Supor continued the "consumer-centric" strategy guiding its innovation and development of new
products and deeply explored the needs of segmented consumers under different scenarios by means of internet data so as to
constant provide smart and ingenious product solutions that meet diversified consumer needs and offer intimate comprehensive
consumer experiences.In the business of open fire cookware Supor actively responds to the needs of online and offline target consumers through
continuous product innovation with a focus on making breakthroughs in the key categories. For example in 2024 Supor launched
the ‘Titanium No Coating Non-stick Iron Wok’ with patented technology after breaking through the non-stick technology for iron
woks; Supor has also launched the highly-designed and user-friendly Clipso FAST pressure cooker leading the industry in the
upgrade and replacement of pressure cooker categories. In the business of drinkware Supor continues to refine its hero product
strategy driving category growth with multi-functional differentiated hero products. The anytime sharing series thermos bottles
have been a best-seller since its launch.
122024 Annual Report of Zhejiang Supor Co. Ltd.
In the business of small domestic appliances Supor adheres to the differentiated product innovation strategy at all times and
continuously rolls out innovative and intelligent products which provide creative functions for healthy and nutritious cooking. The
Company's leading position in core rigid-demand categories such as electric rice cookers and electric pressure cookers has been
further solidified during the reporting period. In 2024 the Company launched the FIR steam IH rice cooker which integrates four
cutting-edge technologies: far-spin flame conduction technology steam-assisted cooking technology far infrared heating
technology and fresh cooking technology. These multiple innovative technologies aim to deliver the perfect bowl of rice to
consumers. Meanwhile the Company actively expanded into new sub-categories such as desktop water purifiers ice makers and
tea bar machines.In the business of H&PC appliances Supor persistently promotes the development of the H&PC appliance category and
continues to strengthen the cleaning appliance category with the market share of vacuum cleaners reached to the second place
among all domestic brands and to the third place in the industry. In terms of the garment steamer category Supor continues to
keep the leading position in the industry. According to the monitoring data of AVC the online market share of Supor's garment
steamer category ranks second in the industry. Meanwhile the Company's channel competitiveness in the H&PC appliance
category continues to improve by optimizing online channels and store structures operational efficiency has been significantly
enhanced especially with the retail scale of the TikTok channel growing nearly 50% YoY. During the reporting period Supor
actively expanded its personal care business injecting new vitality into the development of the H&PC appliance category.In the business of large kitchen appliances Supor insists on focusing on its key categories rapidly develops and cultivates
distinct categories solidifies foothold in the existing renovation market and constantly seeks breakthroughs. During the reporting
period the Company's shatter-proof stove with safe and shatter-proof as the core differentiated technology leads the industry
through safety technologies such as " shatter-proof panel energy-focusing insulation and gas leakage alarm" meeting consumers'
cooking needs for safe and reliable cooking solutions. According to the monitoring data of AVC the overall online market share
of Supor's gas stove category achieved leading position in the industry in 2024.
(2) Channel strategy
With the accelerating integration of online and offline markets Supor remained "consumer-centric" and kept optimizing its
channels management based on the changes in consumers' purchase path thereby meeting the needs of various consumers through
a multi-channel and multi-mode layout. The Company insisted on winning consumers' trust with high-quality products and
winning distributors' and retailers' support with excellent services.In 2024 the overall competition in online retail has intensified. As a leading brand in the industry Supor's online sales still
maintain a favorable momentum. In terms of traditional e-commerce the Company continuously expands the mix of medium and
high-end products through the combination and optimization of product and store matrix which has further improved the shares in
the medium and high-priced markets. Meanwhile on social e-commerce like TikTok Supor improved marketing efficiency and
sales contributions through a combination of in-store and influencer live streaming. On Pinduoduo the Company enhanced store
matrix expanded product categories and introduced high-value-for-money exclusive products. In the operation of private domain
Supor continuously enhances user engagement and repeat purchase rate by building WeChat mini-program malls and loyalty
program.In terms of first and second-tier markets the Company's cooperation with platforms such as Meituan Flash Sale JD.com
Home and Ele.me has been further enhanced which injects new vitality into the offline ecosystem further narrows the gap
between products and consumers achieves the integration of consumption scenes with household scenes and drives rapid sales
growth. In terms of third and fourth-tier markets the Company continues to improve refined operations with the continued growth
of the O2O business further improves store operation capabilities and average output per store and optimizes the sales structure.In terms of B2B business the Company has expanded the loyalty program business with large-scale banks airlines and other
large- and medium-sized enterprises further expanding the sales channels. Meanwhile Supor continues to strengthen the
cooperation with regional property developers and renovation companies expanding the engineering-based kitchen appliance
business.
132024 Annual Report of Zhejiang Supor Co. Ltd.
(3) Brand building
In 2024 Supor continued to strengthen its brand awareness with the first-mention rate of the brand increasing by more than
30%. The thermos bottle category also significantly boosted the brand’s recognition among younger demographics. In 2024
marking the Company’s 30th anniversary the Company launched a series of consumers engagement initiatives such as the "My
First Supor Product" story campaign and the manufacturing tour which brought the brand closer to its consumers. It also
integrated marketing campaigns such as “30-Year Life Recipes” and “30 Years A New Journey” were executed both online and
offline reinforcing brand communication and solidifying brand image. In addition the Company organized a 360-kilometer
employee relay run from its birthplace in Yuhuan to Hangzhou and donated children's thermos bottles and other materials to
remote areas. While enhancing brand cohesion it also fulfilled its social responsibilities.The Company also intensified its user-centric brand strategy by establishing a comprehensive consumer asset management
system. The Company strengthened the integration between public and private domains leveraging multiple channels to reach
consumers and improve engagement and loyalty. Supor fully utilized its Voice of Customer System (VOC) and implemented a
robust NPS (Net Promoter Score) framework to gain deeper insights into consumer feedback and suggestions. These efforts
enabled continuous improvements in products and services fostering consumer loyalty and empowering the brand’s long-term
healthy development.(II) Export sales during the reporting period
During the reporting period the Company’s export business experienced rapid growth driven by increased demand from the
SEB Group and other overseas customers.
2. Revenues and costs
(1) Structure of operating incomes
Unit: RMB
20242023
Increase/decrease
Percentage to total Percentage to total YoY (%)
Amount Amount
operating income operating income
Total operating income 22427337986.38 100% 21303948642.66 100% 5.27%
By industry
Cookware 6836158028.21 30.48% 6056346176.44 28.43% 12.88%
Electric appliances 15300420337.16 68.22% 14963200632.70 70.24% 2.25%
Others 290759621.01 1.30% 284401833.52 1.33% 2.24%
By products
Cooking appliances 8664233813.16 38.63% 8892495620.60 41.74% -2.57%
Food processor
3800440237.4616.95%3483787979.0616.35%9.09%
appliances
Cookware and utensils 6836158028.21 30.48% 6056346176.44 28.43% 12.88%
Other household
3126505907.5513.94%2871318866.5613.48%8.89%
electric appliances
By areas
Domestic sales 14925276046.94 66.55% 15107615309.80 70.91% -1.21%
Export sales 7502061939.44 33.45% 6196333332.86 29.09% 21.07%
142024 Annual Report of Zhejiang Supor Co. Ltd.
By sales mode
Direct sales 2966844020.12 13.23% 2491265297.18 11.69% 19.09%
Distribution 11962803740.44 53.34% 12627187506.73 59.27% -5.26%
OEM 7497690225.82 33.43% 6185495838.75 29.04% 21.21%
Remarks: "Others" by industry "Other domestic electric appliances" by product and region-based and sales-based modes
exceptionally include other business incomes the same below.
(2) Industry product area or sales mode that accounts for more than 10% of the Company's operating income or
operating profit
? Applicable □ Not applicable
Unit: RMB
Increase/decrease Increase/decreas Increase/decrease
Gross
Operating income Operating cost YoY (%) for e YoY (%) for YoY (%) for
margin
operating income operating cost gross margin
By industry
Cookware 6836158028.21 4991414008.19 26.99% 12.88% 15.00% -1.35%
Electric appliances 15300420337.16 11659834449.07 23.79% 2.25% 2.82% -0.42%
By products
Cooking
8664233813.166557282413.0124.32%-2.57%-1.95%-0.48%
appliances
Food processor
3800440237.462984366423.0521.47%9.09%9.30%-0.15%
appliances
Cookware and
6836158028.214991414008.1926.99%12.88%15.00%-1.35%
utensils
Other household
3126505907.552365210694.3724.35%8.89%9.49%-0.42%
electric appliances
By areas
Domestic sales 14925276046.94 10793097788.53 27.69% -1.21% -1.79% 0.43%
Export sales 7502061939.44 6105175750.09 18.62% 21.07% 23.88% -1.84%
By sales mode
Direct sales 2966844020.12 1761385341.86 40.63% 19.09% 20.59% -0.74%
Distribution 11962803740.44 9035871664.64 24.47% -5.26% -5.22% -0.03%
OEM 7497690225.82 6101016532.12 18.63% 21.21% 23.91% -1.77%
If the statistical caliber of the Company's operation business data is adjusted during the reporting period the main business data for
the latest year after the statistical caliber is adjusted.□ Applicable ? Not applicable
(3) Practical sales revenue greater than labor income
? Yes □ No
Industrial Increase/decrease
Item Unit 2024 2023
classification YoY (%)
152024 Annual Report of Zhejiang Supor Co. Ltd.
Sales volume pcs/set 85724597 76737832 11.71%
Cookware Output pcs/set 52796956 43455407 21.50%
Stock pcs/set 11542016 9247340 24.81%
Sales volume pcs/set 94206520 90512223 4.08%
Electrical products Output pcs/set 63657876 59397238 7.17%
Stock pcs/set 12553340 10372883 21.02%
Sales volume pcs/set 179931117 167250055 7.58%
Total Output pcs/set 116454832 102852645 13.22%
Stock pcs/set 24095356 19620223 22.81%
Descriptions of cause with above 30% change of relevant data on a YoY basis
□ Applicable ? Not applicable
(4) Performance of important sales contracts and purchase contracts signed till this reporting period
□ Applicable ? Not applicable
(5) Structure of operating costs
Category of industry and product
Unit: RMB
2024 2023 Increase/
Industrial
Item
classification Proportion of Proportion of
decrease YoY
Amount Amount
operating cost operating cost (%)
Cookware Operating cost 4991414008.19 29.54% 4340225032.27 27.26% 15.00%
Electric
Operating cost 11659834449.07 69.00% 11340027946.44 71.24% 2.82%
appliances
Others Operating cost 247025081.36 1.46% 238192121.39 1.50% 3.71%
Unit: RMB
2024 2023 Increase/
Category of
Item Proportion of Proportion of decrease YoY product Amount Amount
operating cost operating cost (%)
Cooking Operating
6557282413.0138.80%6687702349.2542.01%-1.95%
appliances cost
Food processor Operating
2984366423.0517.66%2730408350.9817.15%9.30%
appliances cost
Cookware and Operating
4991414008.1929.54%4340225032.2727.27%15.00%
utensils cost
Other household
Operating
electric 2365210694.37 14.00% 2160109367.60 13.57% 9.49%
cost
appliances
162024 Annual Report of Zhejiang Supor Co. Ltd.
(6) Change of merger scope during the reporting period
□ Yes ? No
(7) Important change or adjustment for the Company's businesses products or services during the reporting period
□ Applicable ? Not applicable
(8) Main sales customers and suppliers
Main sales customers
Total amount of sales to top 5 customers (RMB) 10025933772.53
Proportion of total amount of sales of top 5 customers in the year's total sales (%) 44.71%
Proportion for related party's sales amount of sales amount of top 5 customers in annual
31.42%
total sales amount
Information on the Company's top 5 major customers
Proportion in the total sales amount of
SN Customer Sales amount (RMB)
the year (%)
1 SEB S.A. and its subsidiaries 7045615671.19 31.42%
2 Customer 1 1376908441.57 6.14%
3 Customer 2 901416789.20 4.02%
4 Customer 3 378504281.98 1.69%
5 Customer 4 323488588.59 1.44%
Total -- 10025933772.53 44.71%
Instruction for main customers' other cases
□ Applicable ? Not applicable
The Company's main supplier
Total purchasing value from top 5 suppliers (RMB) 1562419919.67
Proportion of total purchase amount of top 5 suppliers in the year's total purchasing value 10.64%
Proportion for related party's purchase amount of purchase amount of top 5 suppliers in
0.00%
annual total purchase amount
Information on the Company's top 5 suppliers
Proportion in the total purchase
SN Supplier Purchasing value (RMB)
amount of the year (%)
1 Supplier 1 425540939.61 2.90%
2 Supplier 2 378594535.38 2.58%
3 Supplier 3 299780473.74 2.04%
4 Supplier 4 241146681.33 1.64%
5 Supplier 5 217357289.61 1.48%
Total -- 1562419919.67 10.64%
172024 Annual Report of Zhejiang Supor Co. Ltd.
Instruction for main suppliers' other cases
□ Applicable ? Not applicable
3. Costs
Unit: RMB
Increase/decrease YoY Descriptions of major
20242023
(%) changes
Sales expenses 2181958549.81 2079531174.95 4.93%
Administrative expenses 396033243.50 393597966.82 0.62%
Financial expenses -72445787.56 -67629941.36 -7.12%
R&D expenses 469662999.96 431288536.29 8.90%
4. R&D input
? Applicable □ Not applicable
Oriented by consumers' demand the Company engages in R&D of the differential products that meet kitchen demand and local
eating and life habits. The Company lays emphasis on R&D investment boosts technical innovation actively further explores
product category and adds product additional value; respects customer's experience and focuses on all details of consumer use in
order to realize safe environmentally friendly convenient and fashionable products. R&D expenditure in this year accounts for 7.31%
and 2.09% of net assets and operating income audited in the recent period.R&D personnel of the Company
2024 2023 Change proportion
Quantity of R&D personnel (person) 1405 1372 2.41%
Proportion of R&D personnel 12.44% 12.76% -0.32%
Educational background structure of R&D personnel
Bachelor's degree 643 605 6.28%
Master's degree 76 60 26.67%
Doctor's degree 2 2 0.00%
Age composition of R&D personnel
＜ 30 years old 353 358 -1.40%
30-40 years old 669 669 0.00%
R&D investment of the Company
2024 2023 Change proportion
Amount of R&D input (RMB) 469662999.96 431288536.29 8.90%
Proportion of R&D input in total operating income 2.09% 2.02% 0.07%
Capitalization amount of R&D input (RMB) 0.00 0.00 0.00%
Proportion of Capitalization R&D input in R&D
0.00%0.00%0.00%
input
182024 Annual Report of Zhejiang Supor Co. Ltd.
Cause and influence of major changes of the Company's R&D personnel composition
□ Applicable ? Not applicable
Reason for large change for proportion of total R&D input in operating income compared with that of last year
□ Applicable ? Not applicable
Reason and rational introduction for large capitalization change of R&D input
□ Applicable ? Not applicable
5. Cash flow
Unit: RMB
Increase/decrease
Item 2024 2023
YoY (%)
Subtotal of cash inflows from operating activities 26973707427.89 22567791526.90 19.52%
Subtotal of cash outflows from operating activities 24390205289.69 20532882190.70 18.79%
Net cash flows from operating activities 2583502138.20 2034909336.20 26.96%
Subtotal of cash inflows from investing activities 4055306480.04 2816155174.07 44.00%
Subtotal of cash outflows from investing activities 4060465690.80 3060601235.74 32.67%
Net cash flows from investing activities -5159210.76 -244446061.67 97.89%
Subtotal of cash inflows from financing activities 198860697.83 198583388.57 0.14%
Subtotal of cash outflows from financing activities 2632796589.59 2980245622.68 -11.66%
Net cash flows from financing activities -2433935891.76 -2781662234.11 12.50%
Net increase in cash and cash equivalents 163366036.42 -990179816.02 116.50%
Instruction for main influence factors of relevant data with YoY (%) changed seriously
? Applicable □ Not applicable
1. The net cash flows from investing activities increased by 97.89% year-on-year mainly due to the cash inflow increase in
investing activities during the reporting period in term deposits and financial products settlement for a period of more than 3
months.
2. The net increase in cash and cash equivalents increased by 116.50% year-on-year mainly due to the cash inflow increase in
operating activities during the reporting period.Reason for great change between net cash flow caused by operating activities and annual net profits during the reporting period
□ Applicable ? Not applicable
V. Analysis on Non-main Business
□ Applicable ? Not applicable
VI. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
192024 Annual Report of Zhejiang Supor Co. Ltd.
End of 2024 Beginning of 2024 Increase/
decrease
Percentage Percentage Descriptions of major changes
in
Amount to total Amount to total
proportion
assets assets
Mainly due to cash outflow
increase from the Company's
Monetary capital 2480007318.69 18.69% 3548277442.44 27.07% -8.38%
financing activities during the
reporting period.Mainly due to the domestic sales
Accounts receivable 2690049028.80 20.28% 2858247356.03 21.81% -1.53% accounts receivable decrease at
the end of the reporting period.Mainly due to sales scale growth
Inventories 2565958108.47 19.34% 2262683387.31 17.26% 2.08%
and increased stock
Long-term equity No significant change during the
60739389.710.46%61678984.350.47%-0.01%
investment reporting period.No significant change during the
Fixed assets 1265771512.34 9.54% 1243210689.64 9.49% 0.05%
reporting period.Construction in No significant change during the
13026975.920.10%26862380.610.20%-0.10%
progress reporting period.No significant change during the
Right-of-use assets 226926299.47 1.71% 223503573.14 1.71% 0.00%
reporting period.Mainly due to the maturity of
bank acceptance bills discounted
Short-term borrowings 199741167.36 1.52% -1.52%
by subsidiaries during the
reporting period.Mainly due to the increase in
advance payments from some
Contract liabilities 1088405139.86 8.20% 862706076.18 6.58% 1.62%
distributors by subsidiaries during
the reporting period.No significant change during the
Lease obligation 188428980.22 1.42% 177281125.36 1.35% 0.07%
reporting period.No significant change during the
Advance payment 272876022.08 2.06% 193169455.51 1.47% 0.59%
reporting period.Mainly due to the increase in
Non-current assets due negotiable certificates of deposit
1558446438.3411.75%285783958.922.18%9.57%
within one year due within one year at the end of
the reporting period.Mainly due to an increase in VAT
input tax credits awaiting
Other current assets 287995915.36 2.17% 142423696.22 1.09% 1.08%
deduction at the end of the
reporting period.Mainly due to the decrease in
negotiable certificates of deposit
Other debt investment 279210191.78 2.10% 665522383.56 5.08% -2.98%
due over one year at the end of the
reporting period.High proportion of overseas assets
□ Applicable ? Not applicable
2. Assets and liabilities measured at the fair value
? Applicable □ Not applicable
Unit: RMB
202024 Annual Report of Zhejiang Supor Co. Ltd.
Profit and loss Accumulated Amount of
Impairment Amount of
Opening from fair value fair value purchasing of Closing
Item loss of the selling of the Other changes
balance changes in the changes the current balance
current period current period
current period through equity period
Financial assets
1.
Transactional
financial assets
(excluding 351137787.54 4087939.16 380000000.00 453991491.45 281234235.25
derivative
financial
assets)
2. Receivables
363532765.355243769.58368776534.93
financing
3. Other debt 1199567431. 1837656630.
951306342.48342626868.0329409724.24
investments 43 12
1665976895.1579567431.2487667400.
Total 4087939.16 796618359.48 34653493.82
374330
Financial
0.000.00
liabilities
Content of other changes
Receivables financing: As the demand of daily fund management the Company will discount or transfer an endorsed bill the
business mode of related bank acceptance bill including not only collect contractual cash flow but sales as the target so reclass the
bank acceptance bill as financial assets at fair value through other comprehensive incomes.Other debt investment: Supor's business model of managing negotiable large deposit certificates is both to collect the contractual
cash flow and to sell the negotiable certificates of deposit which are classified as financial assets at fair value through other
comprehensive incomes. Interest revenue is accrued according to the effective interest rate method during the expected duration.Are there any major changes about the valuation attribute of Company's main assets during the reporting period
□ Yes ? No
3. Restrictions of assets and rights by the end of reporting period
See 18. "Assets with title or use right restrictions" VII "Notes to items of consolidated financial statements" SECTION X
"FINANCIAL REPORT" for details.VII. Investment Situation Analysis
1. General condition
□ Applicable ? Not applicable
2. Significant equity investment to be acquired during the reporting period
□ Applicable ? Not applicable
3. Significant non-equity investment to be handled during the reporting period
□ Applicable ? Not applicable
212024 Annual Report of Zhejiang Supor Co. Ltd.
4. Investments in financial assets
(1) Conditions of the securities investment
□ Applicable ? Not applicable
The Company involves no securities investment during the reporting period.
(2) Derivative investment
? Applicable □ Not applicable
1) Hedging derivative investment during the reporting period
? Applicable □ Not applicable
Unit: RMB 10000
Proportion of
investment
amount at the
Profit and loss Accumulated Purchase
Sales amount end of the
Initial from fair fair value amount
Derivative investment Opening during the Closing period in the
investment value changes changes during the
type balance reporting amount Company's net
amount in the current through reporting
period assets at the
period equity period
end of the
reporting
period
Foreign exchange
17602.9017602.90-298.61099303.4697677.2219229.142.99%
derivatives
Total 17602.90 17602.90 -298.61 0 99303.46 97677.22 19229.14 2.99%
Explanation on whether
the Company's
accounting policies and
specific accounting
The Company recognizes measures and presents in accordance with Accounting Standards for Business Enterprises No. 22
principles of hedging
-- Recognition and Measurement of Financial Instruments Accounting Standards for Business Enterprises No. 24 -
business have
Hedging and Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments. There are no
significantly changed
significant changes compared to the previous reporting period.during the reporting
period compared with
the previous reporting
period
During the reporting period the Company conducted derivative transactions and fair value hedging in accordance with the
variety and duration determined by the Board of Directors. During the reporting period the amount recognized through
Explanation on realized
current profits and losses was RMB -844800 and the amount recognized through equity was RMB 0. The amount of profit
gains and losses during
or loss is entirely derived from the net fair value change formed by the forward settlement of foreign exchange and the
the reporting period
hedged item. During the reporting period the Company did not engage in foreign exchange swap business with no profit or
loss or equity impact.The value of hedging tools of the Company changed inversely to that of hedged foreign exchange accounts receivable and
payable effectively achieving the risk management objectives.During the reporting period the Company conducted assessment on the fluctuation of the value of foreign exchange
Explanation on hedging
accounts receivable and payable and signed forward exchange contracts with banks in the same currency. Such hedging
effect
tool was one of those approved by the Board of Directors.The execution complied with the internal control requirements and operated within the approved quota to ensure that the
hedging tools match the hedged items in the scale term and currency.
222024 Annual Report of Zhejiang Supor Co. Ltd.
Capital source of
Self-owned capital
derivative investment
In order to hedge the foreign exchange risk in operating activities reduce the impact of exchange rate fluctuations and give
full play to the hedging function of foreign exchange derivative transaction the Company implemented foreign exchange
derivative transaction business consistent with its business scale term and currency.(I) Risks of conducting foreign exchange derivative transactions
1. Market risks: market risks such as losses resulted from changes in the price of foreign exchange derivatives due to the
fluctuated underlying interest rate exchange rate or other market price may arise.
2. Internal control risks: considering the specialty and complexity of foreign exchange derivative transaction business
inadequate internal control mechanisms may lead to risks.
3. Liquidity risks: risk of failure to complete transactions due to lack of market liquidity.
4. Performance risks: foreign exchange derivatives business faces the risk of default due to failed contract fulfillment when
the contract expires.Risk analysis and 5. Legal risks: changes in relevant laws or violations of the relevant legal system by counterparty resulting the contract
control measure cannot be executed properly may cause losses to the Company.explanation for (II) Risk response measures
derivative holding a 1. Clarify the principles of foreign exchange derivative transaction: foreign exchange derivative transaction is based on the
position during the hedging principle to avoid risks from exchange rate fluctuations to the greatest extent and based on market conditions
reporting period operation strategies shall be adjusted in time to improve hedging effects.(including but not 2. System construction: the Company has established the Management Measures for Foreign Exchange Derivative
limited to market risk Transactions in which the scope of authorization approval procedures key operation points risk management and
liquidity risk credit information disclosure concerning foreign exchange derivative transactions are well defined so that the conduct and risks
risk operation risk and of foreign exchange derivative transactions can be effectively regulated.law risk) 3. Product selection: prior to any foreign exchange derivative transaction it's necessary to select an FX derivative that suits
the Company's business context best and is highly liquid and risk through a comparative analysis of various counterparties
and products before conducting business. The Company used forward instruments for general hedge and swap contracts for
rolling hedge.
4. Counterparty management: be prudent when selecting counterparties for foreign exchange derivatives business. The
Company only conducts foreign exchange derivative transaction business with large commercial banks and other foreign
exchange organization with legal qualifications thus avoiding potential default and legal risks.
5. Management by specially-assigned persons: a special working group set up by the Company's management
representatives Fund Department Financial Sharing Center Audit Department Securities Department and other
departments concerned is responsible for the risk assessment operation recording and supervision of foreign exchange
derivative transactions. The working group is supposed to decide on emergency mitigations in case of any significant
changes in the market.Changes in market
prices or product fair
values of invested
derivatives during the
The delivered foreign exchange derivatives were recorded as the profit and loss with instruments by our Company. Changes
reporting period
in the fair value of undelivered foreign exchange derivatives were evaluated by the comparison between the exchange rate
specific methods used
of the derivative contract and the corresponding forward foreign exchange quotation provided by the contracting bank at the
for analysis of the fair
end of the period.value of derivatives and
the setting of related
assumptions and
parameters
Litigation-related
Not applicable
situation (if applicable)
As for approval of
derivative investment
the Board of Directors March 30 2024
will announce
disclosure date (if any)
232024 Annual Report of Zhejiang Supor Co. Ltd.
2) Speculation derivative investment during the reporting period
□ Applicable ? Not applicable
During the reporting period there was no speculative investment on derivatives.
5. Application of capital raised
□ Applicable ? Not applicable
No capital raised was used in reporting period
VIII. Sales for major assets and equity
1. Sales for major assets
□ Applicable ? Not applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□ Applicable ? Not applicable
IX. Analysis for Main Holding Companies and Joint Stock Companies
? Applicable □ Not applicable
Status of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit
Wuhan Supor Cookware RMB 91.16
Subsidiary Cookware 1224756403.30 488534665.47 3577038361.81 129737192.10 98149022.23
Co. Ltd. million
Zhejiang Supor
Electrical RMB 133.6971
Electrical Appliances Subsidiary 1501320356.40 625750035.87 3927194695.87 136402725.56 101859082.40
products million
Manufacturing Co. Ltd.Zhejiang Shaoxing
Small domestic
Supor Domestic
Subsidiary appliances RMB 610 million 2995606066.86 2025360322.84 6843720466.83 1216202831.45 1063597818.38
Electrical Appliances
kitchen appliances
Co. Ltd.Subsidiary obtaining and disposal details during the reporting period
□ Applicable ? Not applicable
Main controlling and shareholding companies
X. Structural Subject under the Company's Control
□ Applicable ? Not applicable
XI. Prospects for Future Development
1. Future development strategy and operation plan of the Company
242024 Annual Report of Zhejiang Supor Co. Ltd.
With the construction of a new development pattern with the domestic cycle as the main body and the domestic and
international double cycle promoting each other the policy of expanding domestic demand and promoting consumption will
continue to take effect and the strong magnetic attraction of China's large domestic demand market remains unchanged and the
middle class and young people continue to promote the growth of consumption. At the same time the continuation of the ‘trade-in’
policy for consumer goods in the field of home appliances and support for the renovation of old houses partial renovation of
kitchens and bathrooms and ageing of homes and other favorable policies will stimulate the consumption demand of the domestic
kitchen appliance market to a certain extent. The Company will unswervingly implement the established strategic routes take
consumer demand as the guide continuously promote the product innovation strategy and high-quality product strategy further
give full play to the Company's competitive advantages of multi-brands and multi-categories in the field of small domestic
appliances and kitchens cultivate new businesses and new categories promote the development of sub-categories and satisfy the
diversified consumer demand.In terms of channels the Company will strengthen the refined management of online business and continuously improve the
precise operation with the help of digitalization. In terms of traditional e-commerce platforms the Company will actively
cooperate with the development strategy of each platform manage the category and price system among the platforms and
continue to increase the market share and sales scale of traditional e-commerce. In terms of social and live-streaming e-commerce
the Company will focus on short videos and high-quality content output to create core category hits gain more traffic
opportunities continue to increase the conversion rate and repeat purchase rate and enhance marketing efficiency. In terms of
offline business on the basis of the original tens of thousands of sales terminals across the country the Company continues to
improve and optimize its sales network and continues to plough into channels such as Internet sinking traditional distribution
home decoration market and instant retail. Through the distribution platforms of JD Alibaba and Suning the Company has
accelerated its penetration in the third- and fourth-tier and even township markets. In addition the Company makes full use of its
good distributor network coverage capacity to seize business opportunities such as instant retail and community; further
strengthening its cooperation with major outlets to consolidate the dominant position of SUPOR brand in major retail channels.In terms of brand building the Company will further strengthen its brand building and consolidate its brand equity. On the
product side the Company continues to focus on innovation and quality to enhance the product's ‘appearance value influence’. On
the brand side the Company uses the consumer scene and lifestyle as an entry point and are taken on by core categories the
Company creates emotional value for consumers and continues to renew the brand impression consolidating the user's mind. The
Company will continue to deepen user insights and enhance the conversion effect of the insights on the ground; optimize the user
experience and provide quality products content and services around the user's whole life cycle journey with the private domain as
the main position; deepen the mining of user assets and further enhance the marketing efficiency by relying on the efficient
conversion of the private domain to the public domain.In terms of export business although there are certain uncertainties in the international situation the Company relies on the
advantages of Groupe SEB's export orders and continues to promote cooperation with Groupe SEB in research and development
design manufacturing and other aspects to expand the scale of the order to obtain the scale of the cost competitive advantage
and to enhance the core competitiveness of the export business.In terms of industrial development the Company will further carry out cost optimization and lean saving projects strengthen
R&D base management promote the market rapid response capability of the industrial system and continue to enhance cost
competitiveness. On the other hand under the guidance of the national ‘dual-carbon’ strategy the Company practices green
production green procurement green products and green services. The Company further promotes energy saving and emission
reduction through photovoltaic power generation DSM (Digital Energy Management System) process and procedure
improvement etc. For example the rooftop photovoltaic of the Yuhuan WMF site and Vietnam site have reduced carbon
emissions by more than 4000 tons per annum and the Wuhan site has launched the DSM digital energy management system in
2024 which had reduced carbon emissions by 836 tons.
252024 Annual Report of Zhejiang Supor Co. Ltd.
In terms of talent cultivation the Company will continue to strengthen the construction of talent pipeline continue to promote
and improve the long-term incentive mechanism to stimulate the vitality of talents; build an efficient talent management
mechanism to create a positive and efficient working atmosphere for employees and further promote the high degree of
compatibility between talent strategy and corporate strategy.
2. Possible risks and countermeasures
(1) Risk from macroeconomic fluctuation
In 2025 the domestic cookware and small domestic appliance industry coexist with both opportunities and risks. The
domestic appliance market has evolved with polarizing of demands. Supor will continuously adhere to established strategies. On
one hand it will stimulate demand for renewing traditional products and to look for new growth point through exploration of new
categories and new scenes on the other hand. In addition the state's continued implementation of the "trade-in" policy is expected
to stimulate new demand for home appliances.In terms of exports in 2025 the export business is expected to keep growing steadily. The Company will work with foreign
trade customers to R&D products enhance efficiency cut costs and boost the competitiveness of its foreign-trade business.
(2) Risk from production element price change
The prices of major bulk raw materials for cooking utensils and small domestic appliance may fluctuate due to geopolitical
and economic factors. Supor will continue to implement cost-reduction lean projects to improve the internal labor productivity so
that the cost competitiveness of the Company's internal and external sales business can be enhanced. Besides the Company is
actively boosting the automation of production line improving the per capita labor output and reduce the impact caused by rise in
labor cost.
(3) Risk of intensifying market competitiveness
With the grading of consumption in the cookware and domestic appliance market on the one hand high-end brands continue
to sink their channels and adjust their product and price strategies in order to take up more market share and on the other hand the
sales impact brought by competitions between platforms and is expected to intensify the cost performance battle in the coming
year.The Company will continue to adhere to the strategy of product innovation as its core and launch more high value-added and
high margin products through continuous improvement of innovation capacity in order to gain a leading sales position and a
leading market share in the mid to high price range. Meanwhile the Company will also increase the product marketing through
online terminal traffic appropriately take advantage of its comprehensive competitive advantage in terms of multiple brands and
categories and continuously input marketing resources to obtain incremental sales and improve market shares. In addition the
Company will actively invest in the markets in lower-tier cities in order to reach more consumer groups. The Company will
continue to strengthen and expand its core categories expedite the product layout in emerging categories and segment markets
and to maintain a steady and sustainable growth for the Company in the future.
(4) Product export and exchange loss caused by exchange rate fluctuation
The Company has adopted RMB settlement for main export customer SEB Group with low exchange rate risk.XII. Investigation & Research Communication and Interview Activities During the
Reporting Period
? Applicable □ Not applicable
Type of Main content talked
Reception Reception Index for basic condition of investigation
Reception time reception Reception object about and materials
place manner and survey
object provided
Analysts and Performance and See the Management Information for
January 11 2024 Company Field survey Organization institutional operating conditions in Investor Relations of Supor on January
investors the first three quarters of 12 2024 disclosed by the Company in
262024 Annual Report of Zhejiang Supor Co. Ltd.
2023 http://www.cninfo.com.cn on January 12
2024 for details.
See the Management Information for
Analysts and Annual performance and Investor Relations of Supor on January
January 31 2024 Company Conference call Organization institutional operating conditions in 31 2024 disclosed by the Company in
investors 2023 http://www.cninfo.com.cn on January 31
2024 for details.
See the Management Information for
Analysts and Annual performance and Investor Relations of Supor on February
February 23 2024 Company Conference call Organization institutional operating conditions in 23 2024 disclosed by the Company in
investors 2023 http://www.cninfo.com.cn on February 23
2024 for details.
See the Management Information for
Online
Investor Relations of Supor on April 1
communication Individuals Investors of the Annual performance
April 1 2024 Company 2024 disclosed by the Company in
on network organizations Company presentation session
http://www.cninfo.com.cn on April 1
platforms
2024 for details.
See the Management Information for
Analysts and Annual performance and Investor Relations of Supor on April 2
April 1 2024 Company Conference call Organization institutional operating conditions in 2024 disclosed by the Company in
investors 2023 http://www.cninfo.com.cn on April 2
2024 for details.
See the Management Information for
The
Analysts and Annual performance and Investor Relations of Supor on April 7
Company's
April 3 2024 Field survey Organization institutional operating conditions in 2024 disclosed by the Company in
Shaoxing
investors 2023 http://www.cninfo.com.cn on April 7
Base
2024 for details.
See the Management Information for
Analysts and Performance and Investor Relations of Supor on April 28
April 26 2024 Company Conference call Organization institutional operating conditions in 2024 disclosed by the Company in
investors the Q1 of 2024 http://www.cninfo.com.cn on April 28
2024 for details.
See the Management Information for
Semiannual
Analysts and Investor Relations of Supor on July 25
performance and
July 25 2024 Company Conference call Organization institutional 2024 disclosed by the Company in
operating conditions in
investors http://www.cninfo.com.cn on July 25
2024
2024 for details.
See the Management Information for
Semiannual
Analysts and Investor Relations of Supor on September
performance and
August 30 2024 Company Conference call Organization institutional 2 2024 disclosed by the Company in
operating conditions in
investors http://www.cninfo.com.cn on September
2024
2 2024 for details.
See the Management Information for
Analysts and Performance and Investor Relations of Supor on October
October 25 2024 Company Conference call Organization institutional operating conditions in 28 2024 disclosed by the Company in
investors Q3 of 2024 http://www.cninfo.com.cn on October 28
2024 for details.
The See the Management Information for
Company's Analysts and Performance and Investor Relations of Supor on November
November 15
Yuhuan Field survey Organization institutional operating conditions in 18 2024 disclosed by the Company in
2024
Base WMF investors Q3 of 2024 http://www.cninfo.com.cn on November
Base 18 2024 for details.
272024 Annual Report of Zhejiang Supor Co. Ltd.
XIII . Implementation of the Formulation of the Market Value Management System and the
Valuation Improvement Plan
Has the Company formulated a market value management system
□ Yes ? No
Has the Company disclosed a plan for improving its valuation
□ Yes ? No
XIV. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed an action plan for "Dual Improvement of Quality and Return"
□ Yes ? No
282024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION IV CORPORATION GOVERNANCE
I. Basic Situation
During the reporting period the Company further standardized the operation of the Company and improved the governance
by continuously building up and strengthening the corporate governance system improving the internal control and management
system and deepening the governing process strictly in accordance with the Company Law the Securities Law and the Rules on
the Corporate Governance of Listed Companies Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and the
Shenzhen Stock Exchange Regulatory Guidelines for Listed Companies No. 1-Standardized Operation of Listed Companies as well
as other regulations of CSRC. By the end of the reporting period the actual governance of the Company was basically in
compliance with the relevant regulations of corporate governance of listed companies issued by the CSRC and Shenzhen Stock
Exchange and with the rules of established systems of the Company. No administrative regulation measures were taken by
regulatory department upon the Company.(I) Relating to Shareholders and the General Meeting of Shareholders
During the reporting period the Company has convened and held the general meetings of shareholders strictly according to
the Rules for the General Meetings of Shareholders of Listed Companies Rules and Procedures for the Shareholders' Meeting and
other rules and requirements and ensured the legality and validity of the convening. According to the Implementing Rules for the
Online Voting at the Shareholders' Assembly of Listed Companies of Shenzhen Stock Exchange the Company clearly defined the
specific process of online voting and completely implemented online voting of general meeting of shareholders in order to involve
medium and small investors in the online voting more effectively and guarantee the legitimate rights and interests of all
shareholders especially of the minority shareholders.During the reporting period six General Meetings of Shareholders were held. The convening and holding procedures
qualifications of attended persons voting procedures voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.(II) Relating to the Company and the Controlling Shareholder
During the reporting period the Company was autonomous in business and operation and kept independent of its controlling
shareholder in terms of assets business personnel organization and finance. The Board of Directors the Board of Supervisors and
other internal organizations operate independently. The Controlling Shareholder of the Company exercised its rights through the
General Meeting of Shareholders and did not directly or indirectly intervene with the Company's decision-making or operating
activities. The related transaction between the Company and its Controlling Shareholder was fair and reasonable; the decision-
making rules were in compliance with the relevant provisions; no fund occupation by the Controlling Shareholder existed.(III) Relating to Directors and the Board of Directors
The Company elected directors strictly according to the procedures stipulated in the Company Law and the Articles of
Association and ensured the open fair equitable and independent appointment and election of directors and the number and
composition of the Board of Directors follow relevant laws and regulations. All directors have actively participated in the
Company's operation and decision-making activities performed their duties attended the relevant training sessions organized by
supervisory departments pursuant to the Company Law the Shenzhen Stock Exchange Regulatory Guidelines for Listed
Companies No. 1-Standardized Operation of Listed Companies the Articles of Association and the Rules and Procedures for the
Board of Directors. The Board of Directors consists of Strategy Committee Audit Committee Compensation and Appraisal
Committee with independent directors fully exerting their specialties which further improves the working efficiency and decision-
making level of the Board of Directors and plays significant roles in the Company's normative operation.
292024 Annual Report of Zhejiang Supor Co. Ltd.
During the reporting period seven Board of Directors meetings were held. The convening and holding procedures
qualifications of attended persons voting procedures voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.(IV) Regarding Independent Directors and Their Special Meetings
The Company currently has three independent directors representing 1/3 of its directors. All independent directors of the
Company strictly abide by relevant laws and regulations such as the Company Law the Corporate Governance of Listed
Companies and the Measures for the Administration of Independent Directors of Listed Companies as well as the provisions of
the Company's Articles of Association. They are loyal to their duties give full play to the role of independent directors and
safeguard the legitimate rights and interests of the Company and all shareholders especially the rights and interests of minority
shareholders.During the reporting period the Company convened four Special Meetings of Independent Directors focusing on and
deliberating key matters such as connected transaction to disclosed periodic reports continuing engagement of the accounting
firm and the equity incentive plan. During on-site attendance at the Company's board of directors independent directors visited
Hangzhou and Shaoxing bases communicated with management and business heads to gain a deeper understanding of operating
condition. Aside from attending the Board of Directors Shareholders' Meetings and Special Meetings of Independent Directors
independent directors also closely connect with other directors executives and staff via calls emails and WeChat groups. They
stay updated on the Company's operations and market trends by reading materials from the Securities Department of the Company
including legal updates violation cases internal rule changes analyst reports and compliance training content. This approach
enhances their legal and regulatory awareness and improves their ability to perform their duties.(V) Relating to Supervisors and the Board of Supervisors
The Company elected supervisors strictly according to the provisions under the Company Law and the Articles of
Association. The number of supervisors and composition of the Board of Supervisors met the requirement of relevant laws and
regulations. All supervisors have performed their duties as required by the Regulations of Procedure of the Board of Supervisors
effectively supervised the legality and regulatory compliance of important matters related transactions financial conditions and
duty fulfillment of directors and senior executives of the Company and maintained the legitimate rights and interests of the
Company and its shareholders.During the reporting period seven Board of Supervisors meetings were held. The convening and holding procedures
qualifications of attended persons voting procedures voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.(VI) Relating to Performance Appraisal and the Incentive and Restraining Mechanism
The Company established and constantly improved the performance appraisal system and the incentive restraining
mechanism for supervisors directors and senior executives who work in the Company and receive remuneration. The appointment
and remuneration for directors supervisors and senior executives of the Company are open clear and in line with relevant laws
and regulations. During the reporting period the Company successfully completed several key tasks. First it facilitated the listing
and circulation of unrestricted shares for the first releasing period of both the 2021 Restricted Stock Incentive Plan (Draft) and the
2022 Restricted Stock Incentive Plan (Draft). Second it finished the registration of stock options granted under the 2024 Stock
Option Incentive Plan (Draft). Furthermore the Company reviewed and approved the Administration Measures for the Second
Performance Incentive Fund which is aimed at effectively incentivizing senior executive management.(VII) Relating to Information Disclosure and Transparency
The Securities Department of the Company is responsible for information disclosure. Abiding by requirements of the CSRC
and Shenzhen Stock Exchange and provisions on compilation of periodic reports in good faith the department in association with
the Financial Department of the Company has timely and accurately compiled and submitted the 2023 Annual Report 2024 First
Quarterly Report 2024 Semiannual Report and 2024 Third Quarterly Report based on the strict compliance with the non-
disclosure rules before the disclosure of the reports.
302024 Annual Report of Zhejiang Supor Co. Ltd.
In accordance with the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange the Securities Department of the
Company disclosed after review and adoption by the Board of Directors or the General Meeting of Shareholders the routine
information (board meetings and meetings of Board of Supervisors) fatal information (external investments related transactions)
and significant events truly accurately completely timely and fairly. During the reporting period the Company disclosed 130
announcements and documents and fulfilled the filing management of information disclosure documents and compliance with the
non-disclosure rules before the disclosure of the reports. In particular the Company prepared process memorandums of important
matter and management files of insider personnel before planned and implemented important matters which made the information
disclosure timely true accurate complete and fair. There was no irregular or untimely information disclosure and the Company
has not been penalized by regulatory authorities.(VIII) Relating to investor relationship management
The Securities Department of the Company carries out investor relations management as required by the Investor Relations
Management System. It standardizes the reception process for investors and maintains a transparent two-way communication
mechanism. And it also offers investors diverse communication channels such as a hotline and email. In investor relations
activities the Company is dedicated to enhancing communication efficiency and quality with both domestic and foreign investors
and interacting through more diverse channels and means. In the reporting period the Company hosted 20 periodic report
conference calls and on-site performance presentations with over 1500 participants in investor activities throughout the year.Additionally a total of 11 Investor Relations Activity Records of Zhejiang Supor Co. Ltd. were disclosed on the Interactive
platform. In 2024 the Company organized a variety of investor relation activities including periodic report conference calls
annual performance presentations site visits channel research broker strategy meetings one-on-one investor meetings and larger
scaled investor meeting ensuring ongoing interaction with investors and timely information updates. On April 3 and November 15
2024 the Company organized investor meetings at its Shaoxing and Yuhuan bases. The management team participated in both
events engaging in thorough communication with investors and bolstering trust with them. The Company remains dedicated to
improving communication efficiency with investors and continuously providing them with opportunities to gain deeper insights
into its operations and strategic direction.In 2024 the Company was honored with the “26th Listed Company Golden Bull Award - Most Valuable Investment Award”
and the “18th China Listed Company Value Evaluation – Top 100 Main Board Listed Companies by Value.”
(IX) Relating to the progress of revisions to the Company's internal control system
In August 2023 the CSRC issued the Measures for the Administration of Independent Directors of Listed Companies and in
December 2023 revised and issued the Guidelines for Articles of Association of Listed Companies. In order to further enhance the
Company's internal governance the Company upon approval at the 7th Session of the Eighth Board of Directors and the Annual
General Meeting of Shareholders for 2023 Fiscal Year revised the Articles of Association the Rules and Procedures for the Board
of Directors of Zhejiang Supor Co. Ltd. and the Working System for Independent Directors of Zhejiang Supor Co. Ltd. and
redrafted both the Working Rules for the Audit Committee of the Board of Directors of Zhejiang Supor Co. Ltd. and the Working
Rules for the Compensation and Appraisal Committee of the Board of Directors of Zhejiang Supor Co. Ltd. Furthermore to
further improve the Company's governance structure standardize the procedures for selecting accounting firms and enhance the
quality of financial information the Company in accordance with the Company Law the Administration Measures for the
Selection and Engagement of Accounting Firms by State-owned Enterprises and Listed Companies and other regulatory
documents formulated the Selection and Engagement System of Accounting Firm of Zhejiang Supor Co. Ltd. based on its actual
circumstances.Subsequently the Company will sort out and update the internal control systems issued by the Company in a timely manner
in accordance with the current laws and regulations and will continuously establish and improve the internal control systems to
make them work more efficiently.Is there any major variation between the actual situation of the Company's corporate governance and laws administrative
regulations and stipulations issued by the CSRC concerning the governance of listed companies
312024 Annual Report of Zhejiang Supor Co. Ltd.
□ Yes ? No
There is no major variation between the actual situation of the Company's corporate governance and laws administrative
regulations and stipulations issued by the CSRC concerning the governance of listed companies.II. Independence of the Company Relative to the Controlling Shareholders and the Actual
Controllers in Ensuring the Company's Assets Personnel Finance Organization Business
etc.(I) Independent and complete assets structure
The Company had its production and business operation place independent from that of the controlling shareholder and had
independent and complete assets structure independent production system auxiliary production system and supporting facilities
land use right housing ownership as well as independent purchasing and selling systems.(II) Independence of personnel
In terms of personnel labor personnel and remuneration management the Company was completely independent. Such
senior executives as the General Manager Vice General Manager Board Secretary of Directors and Chief Financial Officer did
not hold any position concurrently in controlling shareholder or other subsidiaries excepting director and supervisors nor receive
any remuneration from the controlling shareholder or other subsidiaries.(III) Independence of finance
The Company has an independent financial department has established independent accounting system and financial
management system and makes financial decisions independently. It has opened independent bank accounts and pays taxes
independently.(IV) Independence of organizations
The Company has set up the organization independent from the controlling shareholder completely and there exists no mixed
operation or management. It adopts a BU management system and has departments directly under the Head Office and three BUs
(cookware small domestic appliances and large kitchen appliances) and high-end business modules. Neither controlling
shareholder nor any other company or individual has intervened with the organization structuring of the Company. No "superior
and subordinate relationship" exists between the controlling shareholder and its functional departments on the one hand and the
Company and its functional departments on the other hand.(V) Independence of business operation from shareholders or other related parties
The Company is mainly engaged in designing producing and selling cookware small domestic appliances large kitchen
appliances and H&PC products which are not produced by the controlling shareholder or any of its subsidiaries for the Chinese
market. The Company has an independent "procurement production and sales" system. It operates business independently from
shareholders or any other related party.III. Horizontal Competition
□ Applicable ? Not applicable
IV. General Meetings of Shareholders and Interim General Meeting of Shareholders Held
during the Reporting Period
1. General meetings of shareholders during the reporting period
Proportion of
Session Meeting type Convening date Date of disclosure Meeting resolution
participated
322024 Annual Report of Zhejiang Supor Co. Ltd.
investors
See Announcement on Resolutions
of the First Interim General
Interim
The First Interim Meeting of Shareholders 2024
General
General Meeting of 7.71% January 10 2024 January 11 2024 Fiscal Year (Announcement No.:
Meeting of
Shareholders 2024 2024-002) disclosed on
Shareholders
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Annual General Meeting of
Annual General Annual
Shareholders for 2023 Fiscal Year
Meeting of General
7.10% April 25 2024 April 26 2024 (Announcement No.: 2024-026)
Shareholders for Meeting of
disclosed on
2023 Fiscal Year Shareholders
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Second Interim General
Interim
The Second Interim Meeting of Shareholders 2024
General
General Meeting of 6.76% May 13 2024 May 14 2024 Fiscal Year (Announcement No.:
Meeting of
Shareholders 2024 2024-032) disclosed on
Shareholders
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Third Interim General
Interim
The Third Interim Meeting of Shareholders 2024
General
General Meeting of 6.85% September 20 2024 September 21 2024 Fiscal Year (Announcement No.:
Meeting of
Shareholders 2024 2024-046) disclosed on
Shareholders
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Fourth Interim General
Interim
The Fourth Interim Meeting of Shareholders 2024
General
General Meeting of 7.23% November 11 2024 November 12 2024 Fiscal Year (Announcement No.:
Meeting of
Shareholders 2024 2024-060) disclosed on
Shareholders
http://www.cninfo.com.cn for
details
See Announcement on Resolutions
of the Fifth Interim General
Interim
The Fifth Interim Meeting of Shareholders 2024
General
General Meeting of 5.47% December 30 2024 December 31 2024 Fiscal Year (Announcement No.:
Meeting of
Shareholders 2024 2024-067) disclosed on
Shareholders
http://www.cninfo.com.cn for
details
2. Interim General Meeting of Shareholders held at the request of preferred shareholders with restored
voting right
□ Applicable ? Not applicable
V. Directors supervisors and senior executives
1. Basic information
Position Commence Expiry date Number of Quantity of Quantity of Quantity of Number of Reasons for
Name Gender Age Position
status ment date of of term of shares held increased decreased other shares shares held the increase
332024 Annual Report of Zhejiang Supor Co. Ltd.
term of office at the shares in this shares in this increased or at the end or decrease of
office beginning of period period reduced of the shares
the period period
Thierry de LA TOUR January 28 April 24
Male 70 Chairman Present 0 0 0 0 0 None
D'ARTAISE 2008 2026
Reducing
shareholding
is the legal
shareholding
October 25 April 24
Su Xianze Male 57 Director Present 273451 0 68363 0 205088 reduction of
20002026
25% of the
annual
shareholding
quantity
Stanislas de January 3 April 24
Male 60 Director Present 0 0 0 0 0 None
GRAMONT 2019 2026
November April 24
Olivier CASANOVA Male 59 Director Present 0 0 0 0 0 None
1420232026
Delphine SEGURA Resigne April 22 February 28
Female 55 Director 0 0 0 0 0 None
VAYLET d 2021 2025
April 19 April 24
Tai Wai Chung Male 65 Director Present 0 0 0 0 0 None
20182026
Independent May 20 April 24
Chen Jun Male 48 Present 0 0 0 0 0 None
director 2020 2026
Independent April 19 April 24
Hervé MACHENAUD Male 78 Present 0 0 0 0 0 None
director 2019 2026
Jean-Michel Independent April 19 April 24
Male 78 Present 0 0 0 0 0 None
PIVETEAU director 2019 2026
Chairman of
April 1 April 24
Philippe SUMEIRE Male 65 Board of Present 0 0 0 0 0 None
20092026
Supervisors
April 20 April 16
Zhang Junfa Male 48 Supervisor Present 0 0 0 0 0 None
20112026
March 17 April 16
Lu Lanhua Female 47 Supervisor Present 0 0 0 0 0 None
20162026
General Resigne March 31 January 23
Cheung Kwok Wah Male 59 142000 0 0 0 142000 None
Manager d 2021 2025
Reducing
shareholding
is the legal
Chief shareholding
October 20 April 24
Xu Bo Male 57 Financial Present 189615 0 47404 0 142211 reduction of
20092026
Officer 25% of the
annual
shareholding
quantity
Reducing
shareholding
is the legal
Vice General
shareholding
Manager October 25 April 24
Ye Jide Male 49 Present 65357 0 16339 0 49018 reduction of
Board 2000 2026
25% of the
Secretary
annual
shareholding
quantity
Total -- -- -- -- -- -- 670423 0 132106 0 538317 --
342024 Annual Report of Zhejiang Supor Co. Ltd.
If there is any separation of directors and supervisors and dismissal of senior executives during the reporting period
□ Yes ? No
Change of Directors Supervisors and Senior Executives
? Applicable □ Not applicable
Name Position Type Date Reason
Resignation for
Cheung Kwok Wah General Manager Resigned January 23 2025
personal reasons
Delphine SEGURA Resignation for
Director Resigned February 28 2025
VAYLET personal reasons
2. Position information
Professional backgrounds main working experiences and main responsibilities in the Company of present directors supervisors
and senior executives
1. Directors
Mr. Thierry de LA TOUR D ARTAISE: Chairman Master of Management of Paris ESCP; Chartered Accountant; Chairman
of SEB Group; former CEO and Vice President of SEB Group Chairman of CALOR CFO and CEO of CROISIERES PAQUET
audit manager of Coopers & Lybrand.Mr. Stanislas de GRAMONT: Director graduated from ESSEC Business School (Paris); CEO of SEB Group and former
Chief Operating Officer of SEB Group executive management positions at Danone and CEO of Suntory Beverage & Food Europe.Mr. Olivier CASANOVA: Director graduated from HEC Paris. Chief Financial Officer of SEB S.A.. He formerly served as
Deputy CFO of CMA CGM CEO of CMA CGM Air Cargo and CFO of CEVA Logistics CFO of Tereos Head of Financing &
Treasury and Corporate Finance for PSA Peugeot Citro?n and Head of Group Strategy Marketing and M&A for Thomson etc..Ms. Delphine SEGURA VAYLET (resigned on February 28 2025): Director holds Master degree in International Labor
Law of University Paris 1 Panthéon Sorbonne; Senior Executive Vice President of Human Resources of SEB Group and held
various executive management positions at TOTAL Group as Vice-President of Group Human Resources and Zodiac Aerospace
as Group Human Resources Director and COMEX member and STMicroelectronics as Group Human Resources Director at
Digital Consumer Division.Mr. Su Xianze: Director CEIBS EMBA Senior Economist; Chairman and General Manager of Supor Group Co. Ltd.Chairman of Taizhou Supor Real Estate Development Co. Ltd. and Chairman of Zhejiang Supor Water Heater Co. Ltd.. He has
severed as Chairman of the Company from 2001 to April 2014 and General Manager from 2001 to March 2010.Mr. Tai Wai Chung: Director graduated from the Industrial Engineering Major of University of Hong Kong; President of
Asian Division of SEB S.A. had served as Executive Vice-President of Asian Division of SEB S.A. the director and general
manager of Apple (Great China) Company marketing director of Electrolux Appliances Company director and general manager
of Shanghai SEB Electric Appliances Co. Ltd and general manager of the Company before.Mr. Hervé MACHENAUD: independent director graduated from école Polytechnique; President of Hong Ma Consulting
Services (Beijing) Co. Ltd.. He formerly served as Leader of EDF Group Delegation to China Senior Executive Vice President of
EDF Group Director in charge of EDF Generation and Engineering (DPI) and Asia-Pacific Director.Mr. Jean-Michel PIVETEAU: independent director doctor of business administration and master of political science. He is
Senior Consultant of CFI Financial Consultant Chairman of the Board of Supervisors of MicroCred China Vice-Chairman of the
Board of Supervisors of BAOBAB and member of the Board of Directors of French Foreign Trade Advisors. He formerly served
as Adviser for China to BNP Paribas Chairman Senior Adviser to BNP Paribas for China Country Head of Paribas Bank in
numerous Asian countries and Middle East countries.Mr. Chen Jun: independent director doctor of accounting of Xiamen University post-doctor of business administration
(accounting) of Zhejiang University. He is now the Chairman Professor Doctoral Tutor of the Department of Finance and
352024 Annual Report of Zhejiang Supor Co. Ltd.
Accounting of Zhejiang University. He is the Director of the Institute of Finance and Accounting of Zhejiang University Deputy
Director of the Global Entrepreneurship Research Center of Zhejiang University Director of the Research Center of Listed
Companies of Zhejiang Business Research Institute of Zhejiang University. He also serves as Vice President of Zhejiang
Association of Chief Accountants and independent director of the listing company.
2. Supervisors
Mr. Philippe SUMEIRE: Supervisor graduated from Aix-en-Provence Law School with PHD's degree of Private Law and
Comparative Law; Vice President Legal Affairs of Groupe SEB and Board Secretary. He has worked first for PEUGEOT S.A and
ATOCHEM (chemical industry) and then held the position of General Counsel and Company Secretary for CLUB MED GIAT
INDUSTRIES and MOULINEX S.A.Mr. Zhang Junfa: Supervisor graduated from Northwestern Polytechnical University; Chairman of the Trade Union of the
Company and deputy director of Administration Department of Yuhuan Site he was working for Security Department and then
worked in Legal Affairs Department and office.Ms. Lu Lanhua: Supervisor graduated from Shanghai University of Finance and Economics and MBA of University of
Manchester member of ACCA. Currently the financial director of Cookware Business Unit of the Company; she previously
worked as the Company’s Financial planning & analysis manager worked for Greif Flexible Products& Service (China) as
accounting manager UNSA (Hangzhou) Packaging Manufacturing Ltd. as financial manager.
3. Senior executives
Mr. Cheung Kwok Wah: General Manager of the Company (resigned on January 23 2025) Bachelor of Economics Chinese
University of Hong Kong MBA of Kelly School of Business Indiana University former Chairman and President of the
International Business Department of China Feihe Co. Ltd. and former Chairman and CEO of Nestlé Greater China.Mr. Xu Bo: Chief Financial Officer graduated from Central University of Finance and Economics; member of CICPA and
ACCA; former Senior Auditing Manager of Shenzhen Zhonghua Certified Public Accountants Chief Financial Officer of Yue Sai
Kan Cosmetics Limited Chief Financial Officer of Molex Interconnect (Shanghai) Co. Ltd. Chief Financial Officer of Microsoft
China.Mr. Ye Jide: Board Secretary Vice General Manager and Director of Securities Department CEIBS EMBA. He is
Independent Director of Beijing DeepZero Intelligent Technology Co. Ltd. has worked successively as the chief of equipment
sector office head and assistant to the general manager of the Company.Position information in shareholders' companies
? Applicable □ Not applicable
Payment or
Positions in
Shareholding Commencement date Expiry date of term allowance from the
Name shareholders'
company of term of office of office shareholding
companies
company
Thierry de LA
SEB Group Chairman May 1 2000 Yes
TOUR D'ARTAISE
Vice President Legal
Affairs of Groupe
Philippe SUMEIRE SEB Group December 10 2001 Yes
SEB and Board
Secretary
Stanislas de
SEB Group CEO December 3 2018 Yes
GRAMONT
Chief Financial
Olivier CASANOVA SEB Group September 15 2023 Yes
Officer
Delphine SEGURA Senior Executive
SEB Group January 1 2021 February 28 2025 Yes
VAYLET Vice President of HR
Chairman of Asian
Tai Wai Chung SEB Group January 18 2024 Yes
Division
362024 Annual Report of Zhejiang Supor Co. Ltd.
Description of the
position in
None
shareholders'
companies
Position information in other companies
? Applicable □ Not applicable
Payment or
Positions in other Commencement date Expiry date of term of allowance
Name Name of other unit
companies of term of office office from other
companies
Chairman and General
Su Xianze Supor Group Co. Ltd. March 8 2018 Yes
Manager
Taizhou Supor Real
Su Xianze Estate Development Chairman May 16 2018 No
Co. Ltd.Zhejiang Supor Water
Su Xianze Chairman November 15 2019 No
Heater Co. Ltd.Dean of the Department
of Finance and
Chen Jun Zhejiang University March 01 2019 Yes
Accounting Professor
and Doctoral Supervisor
Hangzhou EZVIZ
Chen Jun Independent director June 23 2021 May 08 2027 Yes
Network Co. Ltd.Hongma Consulting
Hervé
Services (Beijing) Co. President January 1 2017 Yes
MACHENAUD
Ltd.Beijing DeepZero
Ye Jide Intelligent Technology Independent director October 20 2021 October 19 2027 No
Co. Ltd.Description of the
position in other None
entities
Penalties imposed by securities regulatory authorities on the Company’s current and former directors supervisors and senior
executives in the past three years
□ Applicable ? Not applicable
3. Remuneration of directors supervisors and senior executives
Decision-making procedures determination basis of remuneration and actual payment for directors supervisors and senior
executives
Decision-making The remuneration for the Company's directors supervisors and senior executives is strictly
procedures of implemented in accordance with the Working Rules for the Compensation and Appraisal Committee of
remuneration for directors the Board of Directors the Rules and Procedures for the Board of Directors and the Rules and
supervisors and senior Procedures for the General Meeting of Shareholders. This ensures full compliance with the relevant
executives provisions of the Articles of Association and the Company Law.Remuneration basis for The directors supervisors and senior executives of Company are paid according to their positions
directors supervisors and and corresponding responsibilities and the Company's salary system with an annual bonus based on the
senior executives performance evaluated.Remuneration for Directors Supervisors and Senior Executives during the reporting period
Unit: RMB 10000
372024 Annual Report of Zhejiang Supor Co. Ltd.
Whether the
remuneration
Remuneration is gained
Name Gender Age Position Position status receivable from from the
the Company related party
of the
Company
Thierry de LA TOUR D'ARTAISE Male 70 Chairman Present Yes
Su Xianze Male 57 Director Present Yes
Stanislas de GRAMONT Male 60 Director Present Yes
Olivier CASANOVA Male 59 Director Present Yes
Delphine SEGURA VAYLET Female 55 Director Resigned Yes
Tai Wai Chung Male 65 Director Present Yes
Chen Jun Male 48 Independent director Present 25 No
Hervé MACHENAUD Male 78 Independent director Present 25 No
Jean-Michel PIVETEAU Male 78 Independent director Present 25 No
Chairman of Board of
Philippe SUMEIRE Male 65 Present Yes
Supervisors
Zhang Junfa Male 48 Supervisor Present 55.61 No
Lu Lanhua Female 47 Supervisor Present 124.73 No
Cheung Kwok Wah Male 59 General Manager Resigned 907.17 No
Xu Bo Male 57 Chief Financial Officer Present 324.27 No
Vice General Manager
Ye Jide Male 49 Present 122.92 No
Board Secretary
Total -- -- -- -- 1609.70 --
Description of other situations
□ Applicable ? Not applicable
VI. Duty Performance of Directors during the Reporting Period
1. Board of Directors during the reporting period
Session Convening date Date of disclosure Meeting resolution
See Announcement of Resolution of the 6th Session of the
The 6th Session of the Eighth
January 26 2024 January 27 2024 Eighth Board of Directors (Announcement No.: 2024-
Board of Directors
003) disclosed on http://www.cninfo.com.cn for details
See Announcement of Resolution of the 7th Session of the
The 7th Session of the Eighth
March 29 2024 March 30 2024 Eighth Board of Directors (Announcement No.: 2024-
Board of Directors
011) disclosed on http://www.cninfo.com.cn for details
See Announcement of Resolution of the 8th Session of the
The 8th Session of the Eighth
April 25 2024 April 26 2024 Eighth Board of Directors (Announcement No.: 2024-
Board of Directors
027) disclosed on http://www.cninfo.com.cn for details
382024 Annual Report of Zhejiang Supor Co. Ltd.
See Announcement of Resolution of the 9th Session of the
The 9th Session of the Eighth
August 29 2024 August 30 2024 Eighth Board of Directors (Announcement No.: 2024-
Board of Directors
041) disclosed on http://www.cninfo.com.cn for details
See Announcement of Resolution of the 10th Session of
The 10th Session of the Eighth the Eighth Board of Directors (Announcement No.:
September 27 2024 September 28 2024
Board of Directors 2024-048) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolution of the 11th Session of
The 11th Session of the Eighth the Eighth Board of Directors (Announcement No.:
October 24 2024 October 25 2024
Board of Directors 2024-053) disclosed on http://www.cninfo.com.cn for
details
See Announcement of Resolution of the 12th Session of
The 12th Session of the Eighth the Eighth Board of Directors (Announcement No.:
December 13 2024 December 14 2024
Board of Directors 2024-063) disclosed on http://www.cninfo.com.cn for
details
2. Attendance of board meeting and general meeting of shareholders by directors
Attendance of board meeting and general meeting of shareholders by directors
Due attendance
Presence via
of board Presence in on- Entrusted Absence on Absent for twice Attendance of
communication
Name of directors meetings during site board presence in board board meetings continuously on general meeting
on board
the reporting meetings (times) meetings (times) (times) board meetings of shareholders
meetings (times)
period (times)
Thierry de LA TOUR D'ARTAISE 7 2 5 0 0 No 0
Stanislas de GRAMONT 7 2 5 0 0 No 0
Olivier CASANOVA 7 2 5 0 0 No 0
Delphine SEGURA VAYLET 7 2 5 0 0 No 0
Su Xianze 7 2 5 0 0 No 1
Tai Wai Chung 7 2 5 0 0 No 0
Hervé MACHENAUD 7 2 5 0 0 No 4
Jean-Michel PIVETEAU 7 2 5 0 0 No 3
Chen Jun 7 1 6 0 0 No 5
Explanation on absence for twice continuously
None
3. Objections by directors to company issue
Were there any objections raised by directors to company issues
□ Yes ? No
There was no objection raised by any director to company issues during the reporting period.
4. Other explanations of duty performance of directors
Was there any advice raised by directors to company issues adopted by the Company
? Yes □ No
392024 Annual Report of Zhejiang Supor Co. Ltd.
Explanation on adoption or non-adoption of the advice from directors
During the reporting period all directors of the Company were responsible and diligent. They paid close attention to the
reports about Company news by press and on the Internet and understood progress of the Company's important matters timely.They reviewed the information reports provided by the Company periodically and gave relevant comments and advices. They
exerted their specialties fully performed the duties as directors actively and maintained the legitimate rights and interests of the
Company and minority shareholders.VII. Situation of Special Committees under the Board of Directors during the Reporting
Period
Other Specific
Important opinions circumstances circumstances
Name of the Meeting Convening
Members Content of the meeting and suggestions put relating to the of disputed
Committee times date
forward performance of matters (if
duties any)
Deliberate the Proposal on
The Compensation
Unlocking of Restricted Stock
January 26 and Appraisal
within the First Unlock Period None None
2024 Committee agreed to
of 2021 Restricted Stock
the proposal.Incentive Plan
The Compensation and
Appraisal Committee reviewed
and discussed
1. The Company's employment The Compensation
conditions for 2023; and Appraisal
2. Annual labor cost and Committee agreed to
remuneration of senior the proposal and
executives and employee recognized the
March 28 supervisors in 2023; Company's efforts in
None None
2024 3. The Proposal on Accrual and employment
Allocation Scheme of management
Performance Incentive Fund in organizational talent
Hervé MACHENAUD 2023; strategy and
Compensation and
Jean-Michel 4. Performance of corporate remuneration
Appraisal 5
PIVETEAU Delphine social responsibilities; strategy.Committee
SEGURA VAYLET 5. Organization and talent
development and position
information of core executives.The Compensation and
Appraisal Committee reviewed
The Compensation
and discussed
and Appraisal
1. Employment situation of the
Committee agreed to
Company in the first six
the proposal and
months of 1.2024;
recognized the
2. Labor costs in the first six
August 28 Company's efforts in
months of 2024; None None
2024 employment
3. The Proposal on 2024 Stock
management
Option Incentive Plan (Draft)
organizational talent
and its Abstract; the Proposal
strategy and
on Assessment Measures for the
remuneration
Implementation of the 2024
strategy.Stock Option Incentive Plan;
the Proposal on Administration
402024 Annual Report of Zhejiang Supor Co. Ltd.
Measures for the Second
Performance Incentive Fund;
4. Performance of corporate
social responsibilities;
5. Organization and talent
development and position
information of core executives.The Compensation
Deliberating the Proposal on
September 27 and Appraisal
Grant of Stock Options to None None
2024 Committee agreed to
Incentive Employees
the proposal.Deliberate the Unlocking of The Compensation
October 24 Restricted Stock within the and Appraisal
None None
2024 First Unlock Period of 2022 Committee agreed to
Restricted Stock Incentive Plan the proposal.
1. The Audit
Committee approved
the 2024 audit plan.
2. The Audit
The Audit Committee reviewed
Committee advised
and discussed
to strengthen risk
1. External audit opinions;
management in key
2. Key data of the 2023
risk areas and for the
financial statement;
corresponding risks.
3. 2023 internal control
3. The Audit
outcomes and 2024 internal
Committee reviewed
control plan;
the performance of
4. Performance of internal audit
March 28 the external auditor's
projects in 2023 and 2024 None None
2024 audit work in 2023.
audit plan and key audit
4. The Audit
findings rectification and
Committee reviewed
follow-up plan;
and discussed the
5. Main conclusions of external
qualifications of the
audit;
external auditor and
6. The performance of the
proposed the Board
Chen Jun external auditor in 2023 and
of Directors to
Jean-Michel matters of audit organization
Audit Committee 4 review and approve
PIVETEAU Olivier renewal in 2024.KPMG as the audit
CASANOVA
service provider of
the Company in
2024.
The Audit Committee reviewed
and discussed
1. Progress of internal control
projects in 2024;
2. Progress of the
June 28 2024 None None
implementation of internal
audit projects and rectification
of key audit findings in 2024;
3. Results of external audit and
review.The Audit Committee reviewed 1. The Audit
and discussed Committee
1. External audit opinions; recommends
August 28
2. Key data in the semiannual defining clear audit None None
2024
financial statement of 2023; objectives for each
3. Progress of internal control audit project and
projects in 2024; prioritizing the
412024 Annual Report of Zhejiang Supor Co. Ltd.
4. Progress of the identification of
implementation of internal significant risks in
audit projects and rectification business operations
of key audit findings in 2024; to allocate more
5. Progress of external audit; audit resources to
6. The Audit Committee key issues and high-
consulted with the external risk areas.auditor regarding the impact of 2. The Audit
changes in International Committee
Accounting Standards on the recommends
audit of Supor's financial conducting a
statement. systematic analysis
of the trend in the
number of reported
cases since the
establishment of the
supervision system.The Audit Committee reviewed
and discussed
1. Progress of internal control
projects in 2024;
December 19 2. Progress of the
None None
2024 implementation of internal
audit projects and rectification
of key audit findings in 2024;
3. Results of external audit and
review.VIII. Work of the Board of Supervisors
During the reporting period did the Board of Supervisors find any risk about the Company
□ Yes ? No
The Board of Supervisors held no objection to the issues supervised during the reporting period.IX. Employees of the Company
1. Number of Employees professional and education conditions
Number of in-service employees of the parent company at the end
2001
of the reporting period (person)
Number of in-service employees of the main subsidiaries at the
9297
end of the reporting period (person)
Total number of in-service employees at the end of the reporting
11298
period (person)
Total number of employees paid during current period (person) 11298
Retired employees for whom the parent company and major
10
subsidiaries should cover expenses (person)
Profession composition
Job description Quantity (person)
Production personnel 6884
422024 Annual Report of Zhejiang Supor Co. Ltd.
Sales personnel 1505
Technician 1933
Financial personnel 182
Administrative personnel 794
Total 11298
Education
Education category Quantity (person)
Postgraduate and above 205
Junior college or university 3919
Technical secondary school or high school 3295
Others 3879
Total 11298
2. Remuneration policy
The Company adopts floating salary system for all employees. Salary that we provide to employees includes pre-tax basic
salary performance salary and various incentive bonuses in the form of currency; we also offer various non-monetary welfares
such as commercial insurance internal and external training internal development and comfortable working environment.We provide employees with competitive salary and welfare to keep a certain degree of competitiveness and absorb talents;
while in the Company to stabilize those key employees embody the Company's value orientation motivate self-improvement of
employee and create high performance.
3. Training plan
1) Training system:
Guided by strategic planning and business development needs Supor is committed to expanding employees' career path and
professional ability. The Company actively organizes diverse training on professional and technical sequences and management
sequences aiming to comprehensively improve employee skills. According to the Company's planning of talent development
strategy and coordinating with talent echelon construction the Supor designs learning projects systematically and at different
levels to ensure the continuity and effectiveness of talent cultivation.Training type Training hours Actual Number of Trainees Average (H)
Online trainings in 2024 36188.4 3609 10.03
Offline trainings in 2024 263249.1 10315 25.52
The detailed offline training data in 2024 are as follows:
Position level Training hours (H)
Senior management 2083.6
Middle level 15503.3
432024 Annual Report of Zhejiang Supor Co. Ltd.
General employees 73891.3
Front-line employees 171770.9
Total training hours 263249.1
Type Actual Number of Trainees
Number of male employees trained 6719
Number of female employees trained 3596
Total number of participants 10315
2) Various forms
Supor lays emphasis on the innovation of employee training adopts a diverse range of training models; including online
learning platforms live streaming courses offline learning project workshops internal and external thematic exchange sessions
and benchmark visits. These innovative learning approaches not only enhance engagement and the overall training experience but
also significantly improve the efficiency of knowledge transfer and skill application.
3) Internal inheritance
According to the planning of talent development strategy and coordinating with talent echelon construction the Company
irregularly organizes professional personnel in relevant fields to extract knowledge develop courses and impart their
organizational and personal experience. We also provide instructor and tutor resources which are mainly from internal managers to
employees to improve the competence and speed up the growth of employees and practice our talent building and development
policies.
4. Labor outsourcing
? Applicable □ Not applicable
Total hours of labor outsourcing (Hours) 12205624.45
Total remuneration paid for labor outsourcing (RMB) 280062624.97
X. Profit distribution and conversion from capital reserves to share capital
Formulation implementation or adjustment of profit distribution policies especially cash dividend policies during the reporting
period
? Applicable □ Not applicable
During the reporting period the Company implemented the profit distribution plan in strict accordance with the Articles of
Association and other relevant provisions where the dividend distribution standard and proportion were clear and definite and the
relevant decision-making procedures and mechanisms were complete. The Company held the 7th Session of the Eighth Board of
Directors and the 7th Session of the Eighth Board of Supervisors on March 29 2024 and held the Annual General Meeting of
Shareholders for 2023 Fiscal Year on April 25 2024 which reviewed and approved the Proposal on Profit Distribution Plan 2023.The Company's Profit Distribution Plan 2023 is: based on 796891157 shares at the end of 2023 (total capital stock of
806708657 shares at the end of 2023 deducted by 9817500 shares of repurchased shares in the Company’s special stock
repurchase account) the Company will distribute all shareholders cash dividends of CNY27.30 per 10 shares (tax included) and
total amount of cash dividends is CNY2175512858.61. No bonus share will be distributed or conversion from capital reserves to
share capital is made this year. On May 28 2024 the profit distribution plan of the Company for 2023 Fiscal Year was completed.Special description of cash dividend policy
Whether it meets the requirements in Articles of Associations or resolutions of the Shareholders' Meeting: Yes
Whether the dividend standard and proportion are definite and clear: Yes
442024 Annual Report of Zhejiang Supor Co. Ltd.
Whether the relevant decision procedure and mechanism are complete: Yes
Whether the independent director performs obligations and plays roles: Yes
If without distribution of cash dividends the Company shall disclose the specific reasons of non-
Yes
distribution as well as the subsequent measures to be taken to enhance investor returns:
Whether the minority shareholders have opportunity in giving opinions and claims and whether the legal
Yes
interests of minority shareholders are protected sufficiently:
Where the cash dividend policy is adjusted or changed and whether the conditions and procedures are
Yes
compliant and transparent:
Information on profit-making during the reporting period and positive undistributed profit of parent company for shareholders but
without cash dividend distribution plan
□ Applicable ? Not applicable
Profit distribution and conversion from capital reserves to share capital during the reporting period
? Applicable □ Not applicable
Number of bonus stock per 10 shares (shares) 0
Amount of dividend (RMB) per 10 shares (tax-inclusive) 28.10
Equity base in distribution plan (shares) 796692233
Amount of cash dividends (tax-inclusive) 2238705174.73
Amount of cash dividends realized in other modes (e.g repurchased shares) (RMB) 0
Total cash dividends (including other modes) (RMB) 2238705174.73
Distributable profits (RMB) 3278810132.94
Proportion of total cash dividends (including other modes) in total distribution of profits 100%
Cash Dividends of This Time
Others
Detailed information on profit distribution and conversion of capital reserve to capital pre-proposal
In accordance with the standard unqualified audit report provided by KPMG Huazhen LLP (Special General Partnership) the
parent company of Zhejiang Supor Co. Ltd. realized the net profits of RMB 1857515056.12 in 2024 (note: including subsidiary
dividends of RMB 1644040517.75) and could distribute profits of RMB 3278810132.94 to shareholders at the end of the year
based on relevant provisions of Company Law and the Articles of Association after allocating RMB 185751505.61 as legal surplus
reserve plus the undistributed profit of RMB 3782559441.04 at the beginning of this reporting period deducting the annual cash
dividends for 2023 fiscal year of RMB 2175512858.61 distributed on May 28 2024.The profit distribution plan 2024 is detailed as follows: based on 796692233 shares at the end of 2024 (total capital stock of
801359733 shares at the end of 2024 (after deducted by 178674 shares of Restricted Stock repurchased and canceled on January
17 2025) deducted by 4667500 shares of repurchased shares in the Company’s special stock repurchase account) the Company
will distribute all shareholders cash dividends of RMB 28.10 per 10 shares (tax-inclusive) and the total cash dividend was RMB
2238705174.73. No bonus share will be distributed or conversion from capital reserves to share capital is made this year.
During the period from the disclosure of this profit distribution plan to the actual implementation date if the Company's share
capital changes due to conversion of convertible bonds into stocks share repurchases equity incentive exercise and refinancing and
new share listing it will be executed based on the changed share capital and the above distribution ratio remains unchanged.
452024 Annual Report of Zhejiang Supor Co. Ltd.
XI. Implementation of Company's Equity Incentive Plan Employee Equity Holding Plan or
Other Employee Incentive Measures
? Applicable □ Not applicable
1. Equity incentive
(I) 2021 Equity Incentive Plan
1. On January 26 2024 the 6th Session of the Eighth Board of Directors and 6th Session of the Eighth Board of Supervisors
reviewed and adopted the Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted Stock
Incentive Plan agreeing to unlock the Restricted Stock for 270 qualified Incentive Employees in the first unlock period. The
number of Restricted Stock unlocked is 555750 shares. The date of circulation of the Restricted Stock unlockable during the first
unlock period is February 2 2024.For detailed contents see Announcement of Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted
Stock Incentive Plan and the Suggestive Announcement on Listing of Restricted Stock Unlockable during the First Unlock Period
of 2021 Restricted Stock Incentive Plan disclosed on Securities Times China Securities Journal Securities Daily and
http://www.cninfo.com.cn.on January 27 and 31 2024 (Announcement No.: 2024-005 2024-007).
2. On August 30 2023 the 2nd Session of the Eighth Board of Directors and the 2nd Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 2
incentive employees due to their resignation the Company decided to repurchase and cancel 2000 shares of restricted stock. In
addition on March 29 2024 the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of
2 incentive employees due to their resignation the Company decided to repurchase and cancel 5500 shares of restricted stock. The
Proposal on Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting of
Shareholders for 2023 Fiscal Year held on April 25 2024. The Company repurchased and canceled 7500 shares of restricted stock
of 2021 Equity Incentive Plan at the price of RMB 1 per share and paid totally RMB 7500 to the above resigned incentive
employees. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited the Company
completed repurchase and cancellation on August 7 2024.For detailed contents see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times China Securities Journal
Securities Daily and http://www.cninfo.com.cn on August 31 2023 March 30 2024 and August 8 2024 (Announcement No.:
2023-063 2024-021 and 2024-039).
3. On January 10 2025 the 13th Session of the Eighth Board of Directors and the 13th Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Unlocking of Restricted Stock within the Second Unlock Period of 2021 Restricted
Stock Incentive Plan agreeing to unlock the Restricted Stock for 266 qualified Incentive Employees in the second unlock period.The number of Restricted Stock unlocked is 548250 shares. The date of circulation of the Restricted Stock unlockable during the
first unlock period is February 11 2025.Please refer to the Announcement of Unlocking of Restricted Stock within the Second Unlock Period of 2021 Restricted Stock
Incentive Plan and the Suggestive Announcement on Listing of Restricted Stock Unlockable during the Second Unlock Period of
2021 Restricted Stock Incentive Plan disclosed on Securities Times China Securities Journal Securities Daily and
http://www.cninfo.com.cn on January 11 2025 and February 10 2025 (Announcement No.: 2025-004 2025-010).(II) 2022 Equity Incentive Plan
1. On August 30 2023 the 2nd Session of the Eighth Board of Directors and the 2nd Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of 3
incentive employees due to their resignation the Company decided to repurchase and cancel 3250 shares of restricted stock. In
462024 Annual Report of Zhejiang Supor Co. Ltd.
addition on March 29 2024 the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock. For the disqualification of
4 incentive employees due to their resignation the Company decided to repurchase and cancel 9500 shares of restricted stock. The
Proposal on Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting of
Shareholders for 2023 Fiscal Year held on April 25 2024. The Company repurchased and canceled 12750 shares of restricted
stock of 2022 Equity Incentive Plan at the price of RMB 1 per share and paid totally RMB 12750 to the above resigned incentive
employees. After confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited the Company
completed repurchase and cancellation on August 7 2024.For detailed contents see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times China Securities Journal
Securities Daily and http://www.cninfo.com.cn on August 31 2023 March 30 2024 and August 8 2024 (Announcement No.:
2023-063 2024-021 and 2024-039).
2. On October 24 2024 the 11th Session of the Eighth Board of Directors and the 11th Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2022 Restricted
Stock Incentive Plan and Proposal on Repurchasing and Canceling a Part of Restricted Stock agreeing to unlock the Restricted
Stock for 286 qualified Incentive Employees in the first unlock period. The number of Restricted Stock unlocked is 456201 shares.The date of circulation of the Restricted Stock unlockable during the first unlock period is November 19 2024. Since the
performance assessment of business units that incentive employees serve did not achieve the 100% unlocking target under the first
unlock period the Company decided to repurchase and cancel Restricted Stock amounting to 178674 shares in accordance with
the 2022 Restricted Stock Incentive Plan at the price of RMB 1 per share. The Proposal on Repurchasing and Canceling a Part of
Restricted Stock has been adopted by the Fourth Interim General Meeting of Shareholders 2024 held on November 11 2024. The
Company repurchased and canceled 178674 shares of restricted stock of 2022 Equity Incentive Plan at the price of RMB 1 per
share and paid totally RMB 178674 to the above incentive employees. After confirmed by Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited the Company completed repurchase and cancellation on January 17 2025.For detailed contents see Announcement of Unlocking of Restricted Stock within the First Unlock Period of 2022 Restricted
Stock Incentive Plan Announcement of Repurchasing and Canceling a Part of Restricted Stock Suggestive Announcement on
Listing of Restricted Stock Unlockable during the First Unlock Period of 2022 Restricted Stock Incentive Plan and Announcement
of Completion of Repurchase and Cancellation of Restricted Stock disclosed on Securities Times China Securities Journal
Securities Daily and http://www.cninfo.com.cn on October 25 2024 November 14 2024 and January 21 2025 (Announcement
No.: 2024-057 2024-058 2024-062 and 2025-006).
3. On January 10 2025 the 13th Session of the Eighth Board of Directors and the 13th Session of the Eighth Board of
Supervisors reviewed and adopted Proposal on Unlocking of Postponed Portion of Restricted Stock within the First Unlock Period
of 2022 Restricted Stock Incentive Plan agreeing to unlock the postponed portion of Restricted Stock for 2 qualified Incentive
Employees in the first unlock period. The number of Restricted Stock unlocked is 29625 shares. The date of circulation of the
postponed portion of Restricted Stock unlockable during the first unlock period is March 3 2025 (since the 2 incentive employees
in the postponed portion are top management of the Company those unlocked shares have been locked as locked stocks of top
management).For detailed contents see Announcement of Unlocking of Postponded Portion of Restricted Stock within the First Unlock
Period of 2022 Restricted Stock Incentive Plan and Suggestive Announcement on Listing of Postponed Portion of Restricted Stock
Unlockable during the First Unlock Period of 2022 Restricted Stock Incentive Plan disclosed on Securities Times China
Securities Journal Securities Daily and http://www.cninfo.com.cn on January 11 2025 and February 28 2025 (Announcement
No.: 2025-005 and 2025-012).(III) 2023 Equity Incentive Plan
472024 Annual Report of Zhejiang Supor Co. Ltd.
During the reporting period there were no updates regarding the implementation of the Company’s 2023 Equity Incentive
Plan.(IV) 2024 Equity Incentive Plan
1. On August 29 2024 the 9th Session of the Eighth Board of Directors and the 9th Session of the Eighth Board of
Supervisors reviewed and adopted the Proposal on 2024 Stock Option Incentive Plan (Draft) and its Abstract. The Board of
Supervisors have conducted preliminary verifications on the List of Incentive Employees.For detailed contents see 2024 Stock Option Incentive Plan (Draft) and its Abstract of Zhejiang Supor Co. Ltd. disclosed on
Cninfo (http://www.cninfo.com.cn) on August 30 2024.
2. On September 14 2024 the Company disclosed Verification Opinions on List of Incentive Employees for 2024 Stock
Option Incentive Plan. The Board of Supervisors has verified the Incentive Employees of 2024 Stock Option Incentive Plan and
concluded that the subjective qualifications of the Incentive Employees involved in this plan are legal and valid.For detailed contents see Verification Opinions on List of Incentive Employees for 2024 Stock Option Incentive Plan
disclosed on Securities Times China Securities Journal Securities Daily and http://www.cninfo.com.cn on September 14 2024
(Announcement No.: 2024-045).
3. On September 20 2024 the Third Interim General Meeting of Shareholders 2024 reviewed and adopted the Proposal on
2024 Stock Option Incentive Plan (Draft) and its Abstract Proposal on Assessment Measures for the Implementation of the 2024
Stock Option Incentive Plan and Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors
to Deal with Issues Related to the Company's 2024 Stock Option Incentive Plan.For detailed contents see Announcement on Resolutions of the Third Interim General Meeting of Shareholders 2024
disclosed on Securities Times China Securities Journal Securities Daily and http://www.cninfo.com.cn on September 21 2024
(Announcement No.: 2024-046).
4. On September 21 2024 the Company disclosed Self-verification on Buying or Selling the Company's Shares by Insiders
and Incentive Employees of 2024 Stock Option Incentive Plan. The Company’s insiders did not trade the Company’s shares or
involved in insider trading during the process of planning. In addition the Company’s insiders and Incentive Employees did not
trade the Company’s shares or involved in insider trading within six months before the publication of the Incentive Plan.For detailed contents see Self-verification on Buying or Selling the Company's Shares by Insiders and Incentive Employees of
2024 Stock Option Incentive Plan disclosed on Securities Times China Securities Journal Securities Daily and
http://www.cninfo.com.cn on September 21 2024 (Announcement No.: 2024-047).
5. On September 27 2024 the 10th Session of the Eighth Board of Directors and the 10th Session of the Eighth Board of
Supervisors reviewed and adopted the Proposal on Grant of Stock Options to Incentive Employees. The Company planned to grant
1131000 Stock Options to totally 57 Incentive Employees. The Company completed the registration of stock option on October
142024.
For detailed contents see Announcement of Grant of Stock Option to Incentive Employees and the Announcement of
Completion of Registration for Grant of Restricted Stock of 2024 disclosed on Securities Times China Securities Journal
Securities Daily and http://www.cninfo.com.cn on September 28 2024 and October 15 2024 (Announcement No.: 2024-050
2024-052).
Equity incentives received by the Company's directors and senior executives
? Applicable □ Not applicable
Unit: share
Number of Number of Shares Shares Exercise Number of Market Restricted Restricted Granting Restricted
Shares
stock newly- which can which have price of stock price at the stock held stock newly price of stock held
unlocked in
Name Position options granted be been exercised options end of at the granted restricted at the end
current
held at the stock exercised exercised shares held at the reporting beginning during the stock of the
period
beginning options during the during the during the end of the period of the reporting (RMB/ period
482024 Annual Report of Zhejiang Supor Co. Ltd.
of the year during the reporting reporting reporting period (RMB/ period period share)
reporting period period period share)
period (RMB/shar
e)
Cheung General
960009600000019200053.21142000607500181250
Kwok Wah Manager
Chief
Xu Bo Financial 68000 68000 0 0 0 136000 53.21 103000 22500 0 1 80500
Officer
Vice
General
Ye Jide Manager 25000 25000 0 0 0 50000 53.21 41000 10000 0 1 31000
Board
Secretary
Total -- 189000 189000 0 0 -- 378000 -- 286000 93250 0 -- 192750
Mr. Cheung Kwok Wah the General Manager was granted 60000 and 82000 restricted stocks of the 2021 and 2022 Equity Incentive Plans
respectively for a total of 142000 shares. The shares unlocked in the current period as shown in the above table include 30000 shares of restricted stocks
from the first unlock period of the 2021 Equity Incentive Plan (listed and circulated on February 2 2024) and 30750 shares of restricted stocks from the first
unlock period of the 2022 Equity Incentive Plan (listed and circulated on November 19 2024). During the reporting period the business unit where these
shares were held did not achieve the 100% performance assessment target for the unlocking conditions. The Company repurchased and canceled 10250
shares of restricted stocks held by him. The repurchase and cancellation were completed on January 17 2025. In addition Mr. Cheung Kwok Wah was
granted 96000 stock options under both the 2023 Equity Incentive Plan and the 2024 Equity Incentive Plan totaling 192000 stock options.Mr. Xu Bo the Chief Financial Officer was granted 45000 and 58000 restricted stocks of the 2021 and 2022 Equity Incentive Plans respectively for a
total of 103000 shares. The shares unlocked in the current period as shown in the table include 22500 shares of restricted stocks from the first unlock period
Remarks (if any) of the 2021 Equity Incentive Plan (listed and circulated on February 2 2024). During the reporting period the business unit where these shares were held did
not achieve the 100% performance assessment target for the unlocking conditions. The Company repurchased and canceled 7250 shares of restricted stocks
held by him. The repurchase and cancellation were completed on January 17 2025. In addition Mr. Xu Bo was granted 68000 stock options under both the
2023 Equity Incentive Plan and the 2024 Equity Incentive Plan totaling 136000 stock options.
Mr. Ye Jide the Vice General Manager and Board Secretary was granted 20000 and 21000 restricted stocks of the 2021 and 2022 Equity Incentive
Plans respectively for a total of 41000 shares. The unlocked shares in the current period in the table above include 10000 shares of restricted stocks in the
first unlock period of the 2021 Equity Incentive Plan had been listed and circulated in the market on February 2 2024. During the reporting period the
business unit where these shares were held did not achieve the 100% performance assessment target for the unlocking conditions. The Company repurchased
and canceled 2625 shares of restricted stocks held by him. The repurchase and cancellation were completed on January 17 2025. In addition Mr. Ye Jide
was granted 25000 stock options under both the 2023 Equity Incentive Plan and the 2024 Equity Incentive Plan totaling 50000 stock options.Evaluation mechanism and incentive of senior executives
The Company has established a perfect performance appraisal system and salary system for senior executives which directly
connects the work performance of senior executives with their salary. Based on the indicators of the KPI system established at the
beginning of 2024 the Company has conducted the year-end appraisal in January 2025 of senior executives of their working
abilities duty performance and target fulfillment meanwhile distributed annual performance salary. During the reporting period
the Company implemented the 2024 Stock Option Incentive Plan (Draft) and reviewed and approved the Administration
Measures for the Second Performance Incentive Fund with a view to achieving effective motivation of the senior executives. The
Company held the 11th Session of the Eighth Board of Directors on October 24 2024 and agreed to unlock the restricted stocks
granted to the senior executives in the first unlock period of the 2022 Restricted Stock Incentive Plan (Draft). The 13th Session of
the Eighth Board of Directors of the Company was held on January 10 2025 the Company agreed to unlock the restricted stocks
granted to the senior executives in the second unlock period of the 2021 Restricted Stock Incentive Plan (Draft) and the postponed
portion of restricted stocks granted to the senior executives in the first unlock period of the 2022 Restricted Stock Incentive Plan
(Draft) The Compensation and Appraisal Committee of the Board of Directors reviewed the appraisal result.
492024 Annual Report of Zhejiang Supor Co. Ltd.
2. Implementation of the employee stock ownership plan
□ Applicable ? Not applicable
3. Other employee incentive measures
? Applicable □ Not applicable
(I) Administration Measures for the Performance Incentive Fund
On March 29 2024 the 7th Session of the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors
reviewed and adopted the Proposal on Accrual and Allocation Scheme of Performance Incentive Fund in 2023. According to the
Administration Measures for the Performance Incentive Fund the accrual condition of the Performance Incentive Fund in 2023 is
satisfied the Company plans to accrue RMB22903379 incentive funds and distribute to 285 eligible reward employees.For detailed contents see Announcement of Accrual and Allocation Scheme of Performance Incentive Fund in 2023 disclosed
on Securities Times China Securities Journal Securities Daily and http://www.cninfo.com.cn on March 30 2024 (Announcement
No.:2024-020).(II) Administration Measures for the Second Performance Incentive Fund
On August 29 2024 the 9th Session of the Eighth Board of Directors and the 9th Session of the Eighth Board of Supervisors
reviewed and adopted Proposal on the Administration Measures for the Second Performance Incentive Fund.For detailed contents see the Administration Measures for the Second Performance Incentive Fund disclosed on Cninfo
(http://www.cninfo.com.cn) on August 30 2024.XII. Development and implementation of internal control systems during the reporting
period
1. Development and implementation of internal controls
In accordance with the requirements of the Basic Standards for Internal Control of Enterprises its supporting guidelines as
well as other requirements for internal control supervision and based on the principles of comprehensiveness significance balance
adaptability and cost-effectiveness the Company establishes and improves the internal control system implemented by the Board
of Directors Board of Supervisors managers and all employees to achieve the Company's strategic development goals with a
view to reasonably ensuring the legal compliance of the Company's operation and management asset security and authenticity
and integrity of financial statements and related information and to improving business efficiency and effectiveness.
1. Control environment
(1) Governance structure
In accordance with the provisions of national laws and regulations resolutions of the General Meeting of Shareholders and
the Articles of Association the Company defines the duties and authorities rules of procedure and working procedures of the
General Meeting of Shareholders Board of Directors Board of Supervisors and managers so as to form a governance mechanism
for the separation of decision-making implementation and supervision. The Board of Directors is accountable for the General
Meeting of Shareholders and exercises the business decision-making power of the Company according to law and shall be
accountable for the establishment improvement and effective implementation of internal control. The special committees
pertaining to strategy audit and remuneration set up under the Board of Directors provide support for scientific decision-making
in which the Audit Committee is responsible for reviewing and supervising the effective implementation of internal controls and
the self-evaluation on internal controls. The Board of Supervisors is accountable for the General Meeting of Shareholders and
supervises the Board of Directors and senior executives of the Company to perform their duties according to law. The senior
502024 Annual Report of Zhejiang Supor Co. Ltd.
management composed of the President and the Chief Financial Officer are accountable for the Board of Directors and take
charge of the daily operation and management activities of the Company.
(2) Organizational structure and division of authorities and responsibilities
In view of the business characteristics and internal control requirements the Company reasonably sets up internal
organizations at all levels such as the functional departments of the headquarters business departments production bases
marketing centers and other internal institutions and defines the division of authorities and responsibilities in the organization
structure chart job descriptions business flow charts authorization system documents and other internal management documents
so as to form a working mechanism that allows performance of corresponding duties with mutual restriction and coordination.
(3) Internal audit
The Company has set up an audit department which reports to the Audit Committee of the Board of Directors. The audit
department evaluates the level of internal control and the efficiency of process control and organization by means of internal audit
internal control consultation and organizational risk assessment and timely reports to the management and the Audit Committee
for the internal control defects and potential risks detected in the process of supervision and inspection and promotes relevant
departments to formulate action plans and follow up the corresponding rectification performance to ensure the effective
implementation of internal controls.
(4) Human resource policies
In accordance with the development strategy current situation of human resources and future demand forecast the Company
formulates and implements human resources policies conducive to the sustainable development of the Company. The Personnel
Management System Recruitment Management System Remuneration Management System Training Management System
Attendance Management System and Employee Manual formulated by the Company clearly define the principles and processes
for the employees in aspects of selection and appointment dimission and transfer remuneration assessment training rewards and
punishments labor disciplines information confidentiality etc.
(5) Enterprise culture
The Company adheres to the enterprise spirit of "With Pressure Face Pressure Overcome pressure" sets up the enterprise
style of "Patriotism Integrity Modesty Pragmatism Innovation and Transcendence and devotes to improving the living quality
of thousands upon thousands of families in their kitchens and homes so that "Where there is a home there is Supor" can become
the consensus of more and more consumers. Through the establishment of a series of internal norms such as the Basic Law of
Supor the Code of Professional Ethics of Employees and the Rules for Anti-spam the Company integrates the efficient and
pragmatic corporate culture into all aspects of daily production and operating activities and enhances the employees' sense of
responsibility and sense of mission normalizes employee behaviors enhances corporate cohesion and coagulation and constantly
improves the overall image of the Company.
2. Risk assessment
According to the established control objectives and the characteristics of business development in different stages the
Company introduces different forms of measures such as risk self-assessment risk mapping and tax risk matrix to carry out
comprehensive systematic and continuous collection of relevant information with the method combining both quantitative and
qualitative measures in order to timely identify and systematically analyze the internal risks in the production and operating
processes in terms of human resources management innovation finance assets health safety environmental protection data
confidentiality business loss and continuing operation and the external risks in the production and operating processes in terms
of politics economy law taxation science and technology natural environment social environment etc. and to determine the
risk response strategy that matches the Company's risk bearing capacity and take appropriate control measures to achieve effective
risk control on the basis of weighing the principle of cost-benefit.
3. Control activity
In the course of daily operation the Company continuously establishes and improves various management systems covering
financial accounting internal control human resources material procurement inventory management asset management
512024 Annual Report of Zhejiang Supor Co. Ltd.
technological R&D production process quality control product sales and after-sales service health safety and environment
information system management and security comprehensive management etc. to ensure the compliance of all work aspects.Under the various institutional frameworks the Company reasonably ensures the realization of business objectives through the
implementation of key control measures and procedures.Key controls must include: separated control for incompatible posts approval control for authorization accounting system
control property protection and control budget control operational analysis control performance assessment control and other
controls.
(1) Approval control for authorization: the Company defines the scope authority procedure responsibility and other relevant
aspects of authorization and approval and the management staff at all levels of the Company must exercise the corresponding
functions and powers within the scope of authorization and the handling personnel must also handle economic transactions within
the scope of authorization and bear corresponding liabilities.
(2) Separated control for incompatible posts: the Company sets up a reasonable division of labor scientifically divides
responsibilities and powers and formulates the System of Separation of Responsibilities and Powers in accordance with the
principle of separation of incompatible duties so as to form a mechanism of mutual checks and balances. Incompatible duties
mainly include: feasibility study and decision approval decision approval and implementation implementation and supervision &
inspection.
(3) Accounting system control: in strict accordance with the provisions of the Accounting Standards for Business Enterprises
the Company formulates the financial policies and processes such as the Accounting Preconditions and Basic Principles
Accounting System of Accounting Subjects Revenue Recognition System Consolidated Statement System and Account
Settlement Process clearly defines the handling procedures for accounting vouchers accounting books and financial statements
so as to ensure the authenticity and integrity of accounting data.
(4) Property protection and control: the Company strictly restricts unauthorized personnel from accessing and disposing
assets and adopts measures such as regular stock-taking asset records account verification and property insurance to ensure the
safety of all kinds of assets in accordance with the requirements of the Inventory Taking and Regulation System and Fixed Assets
Management System formulated by the Company.
(5) Budget control: the Company implements comprehensive budget management in accordance with the Budget System and
the responsible departments at all levels prepare their budgets in accordance with their responsibilities and powers and regularly
follow up the implementation of their budgets after being reviewed and approved by the management.
(6) Operational analysis control: the Company has established a regular operation analysis mechanism with which the
management can utilize the data and information acquired in the production procurement sales finance and other systems to
comprehensively analyze and evaluate the Company's operating risks and market situations timely detect any problems identify
the causes and formulate effective rectification plans for improvement.
(7) Performance assessment control: according to the requirements of the Company's Remuneration Management System the
Company's organizations at all levels have established and implemented a comprehensive and systematic performance assessment
system to scientifically set up performance assessment indicators of various individuals/groups regularly organize assessment and
objective evaluation and take the assessment results as the basis for employee remuneration adjustment job promotion reward
and punishment post transfer dismissal etc.
4. Information and communication
According to the requirements of development strategy risk control and performance assessment the Company has
established different levels of internal reporting indicator systems in order to enable the management at all levels to timely and
comprehensively access all kinds of internal and external information pertaining to production and management and promptly
formulate business principles and policies adaptive to business and environmental changes. The internal reporting systems make
full use of information technology to build a scientific internal reporting network based on reliable information systems such as
SAP BI CRM SRM consolidated statements and management statements.
522024 Annual Report of Zhejiang Supor Co. Ltd.
The Company has established a special anti-fraud mechanism clearly defined the key areas and key links of anti-fraud efforts
and the anti-fraud responsibilities and powers of relevant departments and set up the solely-designated supervision channel to
standardize the whistleblowing investigation handling reporting and follow-up processes of fraud cases. Besides through e-mail
official website WeChat official account contracts training meetings and other forms of measures the Company publicizes the
anti-fraud policies and supervision channels to employees suppliers distributors and other stakeholders from time to time so as to
form an anti-fraud atmosphere which emphasizes on prevention and combines both punishment and prevention.
5. Supervision on control
The Company has established an internal control and supervision mechanism with which the independent directors and the
Board of Supervisors can fully and independently perform supervisory duties for the management of the Company and carry out
independent evaluation and provide independent suggestions. The Company has formulated the Internal Audit System and the
special internal audit department under the leadership of the Audit Committee of the Board of Directors can independently carry
out internal audit implement effective supervision over the management and promote the effective implementation of internal
controls. In the light of the situation of internal supervision the Company regularly carries out self-evaluation on the effectiveness
of internal controls and issues Self-Evaluation Report on Internal Control System.
2. Significant internal control defects of internal control found during the reporting period
□ Yes ? No
XIII. Company's Management and Control of Subsidiaries during the Reporting Period
The headquarters of listed companies effectively monitors the subsidiaries through the following measures:
(1) Delegate and appoint senior executives of subordinate subsidiaries at the beginning of each year and clearly define their
terms of reference and report objects.
(2) Supervise subordinate subsidiaries to formulate detailed management processes and risk control procedures for various
business sectors and functional areas under the principle frameworks of management systems of the headquarters and business
divisions.
(3) Convene a monthly operating and financial meeting to review and follow up the implementation of the subsidiaries'
business plans and the completion of various performance evaluation indicators in a timely manner in accordance with the
Company's development and business objectives specified in the annual budget planning meeting. Besides various functional
committees such as product committee and procurement committee also carry out effective monitoring over the daily operation
and operating activities of the subsidiaries.
(4) The main financial and business information systems including SAP CRM SRM BI OMS and BPM are centrally
managed in the headquarters of listed companies which is convenient for the headquarters to access and manage the production
sales and procurement of the subsidiaries through system reports in real time. In addition all subsidiaries are also required to
submit management reports in respect of operation finance industry human resources etc. to the headquarters on a monthly
basis.
(5) The receipts and payments of major subsidiaries are subject to centralized allocation and disbursement of the Financial
Sharing Center of the headquarters of the listed companies and the Financial Sharing Center is responsible for the preparation
and reporting of the monthly balance sheets profit statements and cash flow statements of the subordinate subsidiaries and
convening regular meetings with subordinate subsidiaries to analyze and follow up the changes of various financial data.
532024 Annual Report of Zhejiang Supor Co. Ltd.
(6) In accordance with the requirements of the Company's Management System for Information Disclosure Affairs each
subsidiary shall promptly report to the headquarters of the listed companies relevant information pertaining to major
business/financial and other matters and provide timely feedback on the progress or changes of major matters and if necessary
go through the review and approval procedures of the Board of Directors and General Meeting of Shareholders.
(7) Timely identify the potential risks and major issues inside and outside the subsidiaries by means of internal audit risk self-
assessment anti-corruption questionnaire management statement and anti-fraud investigation etc. draw the management's
attention to key areas and vulnerable links and promptly take measures to reduce relevant risks.XIV. Evaluation Report of Internal Control or Internal Control Audit Report
1. Evaluation Report of Internal Control
Date of disclosure of full text of
Evaluation Report of Internal March 28 2025
Control
Reference for disclosure of full text
Reference can be made to Evaluation Report on Internal Control 2024 disclosed on Securities
of Evaluation Report of Internal
Times China Securities Journal Securities Daily and http://www.cninfo.com.cn.Control
The proportion of total unit assets
involved in evaluation scope in total
100.00%
assets of the consolidated financial
statement
The proportion of operating income
involved in evaluation scope in
100.00%
operating income of the consolidated
financial statement
Defect Identification Standard
Category Financial statement Non-financial statement
1) Identification standard of significant defects: 1) Identification standard of significant
fraud of directors supervisors and senior defects: unscientific decision procedure of
executives of the Company; modification of the Company such as significant decision-
financial statement having been published; any making mistakes which cause the M&A of
material misstatement of the current period significant enterprise project to fail in
financial statement found by CPA but having reaching expected objectives; violation of
not been found during internal control; and national laws and regulations such as heavy
invalid supervision by the Audit Committee the losses of enterprise caused by non-
Board of Supervisors and internal audit conforming products; significant adverse
organization for internal control. influence existing in the production and
2) Identification standard of important defects: operation of enterprise caused by severe loss
Qualitative standard
selection and application of accounting policies of medium and senior management persons
violating accepted accounting criteria; one or and senior technicians; and lack of system
several defect(s) on the control of closing control or systematic invalidation for
financial statement and failure of reasonably important business.guarantee the prepared financial statement is 2) Identification standard of important
true and accurate; no check-and-balance system defects: defects on important business
and control measures preventing fraud systems; failure of rectification for important
established. defects found during internal control and
3) General defects refer to other internal control internal supervision; and severe loss of
defects not constituting the standards of business persons on key posts.significant defects and important defects. 3) Identification standard of general defects:
542024 Annual Report of Zhejiang Supor Co. Ltd.
defects on general business systems; failure
of rectification for general defects found
during internal control and internal
supervision; and severe loss of business
persons on general posts.
1) Identification standard of significant defects:
potential misstatement of total profit≥5% of
total profit; potential misstatement of total 1) Identification standard of significant
operating income≥2% of total operating defects: direct property loss amount taking
income; and potential misstatement of total above (inclusive) 0.5% in total assets and
assets≥2% of total assets. causing significant adverse influence on the
2) Identification standard of important defects: Company.
3% of total profit≤potential misstatement of 2) Identification standard of important
total profit＜5% of total profit; 1% of total defects: direct property loss amount taking
Quantitative standard operating income≤potential misstatement of above (inclusive) 0.1% but no more than
total operating income＜2% of total operating 0.5% in total assets and causing no
income; and 1% of total assets≤potential significant adverse influence on the
misstatement of total assets＜2% of total assets. Company.
3) Identification standard of general defects: 3) Identification standard of general defects:
potential misstatement of total profit ＜ 3% of direct property loss amount taking below
total profit; potential misstatement of total 0.1% in total assets and causing significant
operating income ＜ 1% of total operating adverse influence on the Company.income; and potential misstatement of total
assets ＜ 1% of total assets.Quantity of significant defects in
0
financial statement (pcs)
Quantity of significant defects in
0
non-financial statement (pcs)
Quantity of important defects in
0
financial statement (pcs)
Quantity of important defects in non-
0
financial statement (pcs)
2. Audit report of internal control
? Applicable □ Not applicable
Deliberations in the audit report of internal control
We believe that your company has maintained effective internal control over financial reporting in all major aspects in accordance
with the Basic Standards for Internal Control of Enterprises and relevant regulations on December 31 2024.Disclosure of audit report of internal control Disclosed
Date of disclosure of full text of Audit Report of Internal
March 28 2025
Control
Reference can be made to Audit Report on Internal Control
Reference for disclosure of full text of Audit Report of Internal
2024 disclosed on Securities Times China Securities Journal
Control
Securities Daily and http://www.cninfo.com.cn.Type of audit report opinion of internal control Standard opinions with no reservation
Significant defect in non-financial statements No
Did the accounting firm issue the audit report of internal control with non-standard opinions
□ Yes ? No
Is the audit report of internal control issued by the accounting firm consistent with the opinions in self-evaluation report of the
552024 Annual Report of Zhejiang Supor Co. Ltd.
Board of Directors
? Yes □ No
XV. Rectification of Self-inspected Problems in the Special Action on Governance of Listed
Companies
Not applicable
562024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION V SOCIAL AND ENVIRONMENTAL
RESPONSIBILITIES
I. Major Environmental Issues
Do the listed company and its subsidiary belong to key pollutant discharging unit posted by the environmental protection
department
? Yes □ No
Policies and industrial standards related to environmental protection
The Company strictly adheres to relevant laws administrative regulations and normative documents including the
Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and
Control of Water Pollution the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
the Law of the People's Republic of China on the Prevention and Control of Noise Pollution the Law of the People's Republic of
China on the Prevention and Control of Environmental Pollution by Solid Waste the Environmental Impact Assessment Law of
the People's Republic of China. It systematically establishes an environmental management system comprehensively implements
pollution prevention measures improves environmental risk control mechanisms prioritizes public health and fulfills corporate
responsibilities in ecological and environmental protection.The Company adheres to the following laws regulations and standards in implementing pollution control measures:
Wastewater treatment: Comply with the following standards for pollutant treatment: Emission Limitation of Nitrogen and
Phosphorus for Indirect Discharge of Industrial Wastewater (DB 33/887-2013) Emission Standard of Water Pollutants for
Electroplating (DB 33/2260-2020) Integrated Wastewater Discharge Standard (GB 8978-1996) and Emission Standard of
Pollutants for Electroplating (GB 21900-2008).Exhaust gas treatment: Standards of Emission Standard of Air Pollutants for Industrial Surface Coating (DB 33/ 2146-2018)
Integrated Emission Standard of Air Pollutants (GB 16297-1996) Emission Standard of Pollutants for Electroplating (GB 21900-
2008) Emission Standard for Odor Pollutants (GB 14554-93) Standard for Fugitive Emission of Volatile Organic Compounds
(GB 37822-2019) Emission Standard of Air Pollutants for Industrial Kiln and Furnace (GB 9078-1996) and Emission Standard
of Air Pollutants for Boiler (GB 13271-2014) etc. shall be adhered to in implementation.Solid waste treatment: strict adherence to the relevant stipulations of the Law of the People's Republic of China on Prevention
and Control of Environment Pollution Caused by Solid Wastes is required.Noise control: subject to Emission Standard for Industrial Enterprises Noise at Boundary GB 12348-2008.Administrative permissions for environmental protection
The Company and its subsidiaries have obtained the following administrative permits for environmental protection:
Name of the related companies Validity period
The Company June 30 2023 - June 29 2028
Zhejiang Supor Electrical April 3 2024 - April 2 2029
Shaoxing Supor July 10 2023 - July 9 2028
Wuhan Supor Cookware November 29 2024 - November 28 2029
572024 Annual Report of Zhejiang Supor Co. Ltd.
Industrial emission standard and pollutant discharge in production and operating activities
Name of the Type of main Name of main Number of Discharge Total
Distribution of Executive pollutant discharge Total discharge Excessive
Company or pollutant or pollutant or Discharge mode discharge concentration/ discharge
discharge ports standard amount checked discharge
subsidiary specific pollutant specific pollutant ports intensity amount
Entering the urban Integrated Wastewater
Chemical oxygen
sewage treatment 1 30mg/L Discharge Standard (GB8978- 5.67579t 8.662t/a None
demand
plant 1996)
Wastewater discharge
Emission Limitation of
Water pollutants port of the wastewater
Entering the urban Nitrogen and Phosphorus for
Ammoniacal station in plant area
sewage treatment 1 1.5mg/L Indirect Discharge of 0.282663t 0.433t/a None
nitrogen
plant Industrial Wastewater (DB
33/887-2013)
Emission Standard of Air
Pollutants for Industrial
Surface Coating (DB33/2146-
2018) Integrated Emission
Organized
Sulfur dioxide 39 ＜200 mg/m3 Standard of Air Pollutants 0.993t 3.06t/a None
The Company emission
(GB16297-1996) and
Emission Standard of Air
Pollutants for Industrial Kiln
No.1 No.2 and No.6 and Furnace (GB9078-1996)
Air pollutants
plants Emission Standard of Air
Pollutants for Industrial
Surface Coating (DB33/2146-
2018) Integrated Emission
Organized
Oxynitride 39 ＜300 mg/m3 Standard of Air Pollutants 9.282t 14.66t/a None
emission
(GB16297-1996) and
Emission Standard of Air
Pollutants for Industrial Kiln
and Furnace (GB9078-1996)
Integrated Wastewater
Chemical oxygen
Indirect discharge 1 118.175mg/l Discharge Standard (GB8978- 10.89t 111.1348t/a None
demand
1996)
Emission Limitation of
Nitrogen and Phosphorus for
Zhejiang Supor Water pollutants Ammoniacal General outlets of
Indirect discharge 1 10.841 mg/l Indirect Discharge of 0.91t 7.7794t/a None
Electrical nitrogen wastewater (DW001)
Industrial Wastewater
(DB33/887-2013)
Wastewater Quality Standards
Total nitrogen
Indirect discharge 1 13.748mg/l for Discharge to Municipal 1.1315t 15.5589t/a None
(calculated in N)
Sewers (GB/T 31962-2015)
Integrated Wastewater
Chemical oxygen
Indirect discharge 1 ＜150mg/L Discharge Standard (GB8978- 90.409t 224.657t/a None
demand
1996)
Emission Limitation of
Nitrogen and Phosphorus for
Ammoniacal Comprehensive
Shaoxing Supor Water pollutants Indirect discharge 1 ＜15mg/L Indirect Discharge of 6.977t 9.363t/a None
nitrogen sewage discharge port
Industrial Wastewater
(DB33/887-2013)
Wastewater Quality Standards
Total nitrogen
Indirect discharge 1 ＜15mg/L for Discharge to Municipal 10.034t 33.447t/a None
(calculated in N)
Sewers (GB/T 31962-2015)
Integrated Wastewater
Chemical oxygen General discharge port
Indirect discharge 1 ＜500mg/L Discharge Standard (GB8978- 10.212t 19.38t/a None
Wuhan Supor demand of the sewage
Water pollutants 1996)
Cookware treatment station to the
Ammoniacal Wastewater Quality Standards
Indirect discharge 1 north of the plant area ＜45mg/L 0.667t 1.94t/a None
nitrogen for Discharge to Municipal
582024 Annual Report of Zhejiang Supor Co. Ltd.
Sewers (GB/T 31962-2015)
Treatment of pollutants
Upholding the concept of sustainable development the Company has established and continuously improved its
environmental protection system fully committed to establishing a green factory and actively adopted advanced processes for
pollution prevention and control to achieve whole process management and resource utilization of pollutants.In the field of water pollution prevention and control the Company is equipped with specialized wastewater treatment
facilities. Industrial wastewater is treated through processes such as chemical precipitation and contact oxidation ensuring it meets
quality standards before being discharged into the municipal pipe network. Meanwhile the Company has established the reclaimed
water system implementing a tiered utilization scheme based on water quality characteristics to ensure that treated wastewater is
effectively reused.In terms of atmospheric pollution prevention and control the Company has implemented a differentiated treatment process
based on waste gas characteristics. The Company has adhered to the cleaner production and fully implemented a water-based
coating substitution project significantly improving the status of air pollutant control.In terms of solid waste management the Company has strictly adhered to the principles of "reduction resource utilization
and harmless disposal" establishing a full-process management system for classified collection regulated storage and compliant
disposal. The non-cyclable waste shall be entrusted to qualified third-party organizations for harmless disposal.During the reporting period if the Company does not exceed the standard discharge it will meet the relevant requirements of
the competent department for ecological environment.Environmental monitoring scheme
The Company has formulated an environmental monitoring scheme in accordance with relevant national laws and regulations
and entrusted a qualified third party to carry out environmental monitoring.Environmental emergency plan
The Company has completed the emergency plan for environmental emergencies and conducted regular emergency drills.Environmental governance and protection input and payment of environmental protection tax
During the reporting period the Company's total investment in environmental governance and protection was RMB 31.44
million including RMB 0.078 million of environmental protection tax.Measures and effects taken to reduce carbon emissions during the reporting period
? Applicable □ Not applicable
Supor actively responds to China's "carbon peaking and carbon neutrality" goals by consistently implementing the new
development philosophy striving to deploy distributed photovoltaic projects across its production bases and accelerating the
adoption of clean energy and smart energy management systems in production activities. By fully supporting market-oriented
reforms in environmental resource elements such as carbon trading and leveraging green finance initiatives the Company has
embraced a low-carbon economy and empowered green development.The Company adheres to the corporate value of sustainable operations closely monitors climate and environmental changes
and continuously promotes carbon reduction across all business areas including green design regenerative procurement cleaner
production paperless office operations eco-friendly packaging and trade-in recycling programs. To reduce carbon emissions
throughout the value chain of primary mineral resource exploration mining transportation and smelting Supor advocates and
encourages its customers to use recycled raw materials such as recycled aluminium and recycled stainless steel achieving carbon
592024 Annual Report of Zhejiang Supor Co. Ltd.
footprint reduction at the source. In the future the Company will recommend the use of recycled materials and other
environmentally friendly products to more customers and consumers.Additionally following the photovoltaic power generation project at Longshan plant in the Yuhuan Base the Company's
second distributed photovoltaic power station at the Vietnam Base achieved grid connection and power generation during the
reporting period. Currently the Company's projects including recycled raw material initiative clean energy self-generation project
and smart energy management systems have all entered normalized operation.During the reporting period the Company implemented 82 technological upgrade and carbon reduction projects with
production bases actively promoting the replacement of high-efficiency motors and the renovation of high-energy-consuming
equipment. Projects including the transformation of high-efficiency variable-frequency air compressors the renovation of internal
and external single coating equipment and the upgrade of pure electric energy-saving injection molding machines resulted in a
total carbon reduction of 8250 tons.Administrative penalties for environmental problems during the reporting period
None
Other environmental information that shall be made public
None
Other environmental protection related information
None
II. Social Responsibilities
For details please refer to the Environmental Social and Governance Report 2024 released by the Company.III. Consolidate and expand the achievement of poverty alleviation and the implementation
of rural revitalization
During the reporting period the Company actively supported the national policy of rural revitalization and common
prosperity adhered to the vision and mission of the enterprise supporting community services around enterprises and rural
revitalization work in remote areas in central and western China and donating funds to improve the conditions of basic education
in the mountainous areas of central and western China to support the urban and rural schools to promote the education of life
literacy and to cultivate future-oriented life-loving and healthy children and teenagers of the new era.By the end of the reporting period the Company has donated for the construction of 29 Supor Primary Schools in remote
mountainous areas of central and western China as well as in the Company’s birthplace with cumulative donations close to RMB
40 million. Following the completion of poverty alleviation and the development of urban and rural societies the Company
adjusted its project strategy to focus on enhancing the living and educational functions of town boarding schools while continuing
to deepen its support for rural education. In 2024 in collaboration with its public welfare partners Supor continued to provide
online livestreaming courses in art foreign languages and science to 16 Supor Primary Schools. It also supplied volunteer
teachers to 4 rural schools facing faculty shortages ensuring that children in remote villages have access to quality educational
resources. The Company has long been committed to broadening the educational horizons of teachers in mountainous areas
through training and incentive programs. In 2024 with Supor's support 25 teachers from rural areas participated in study tours and
training programs in cities such as Wuhan and Shanghai enhancing their educational perspectives.In the first half of 2024 Supor signed a strategic cooperation agreement with the Zhejiang Youth Development Foundation
pledging to donate no less than RMB 3 million in funds and materials from 2024 to 2027. Together they implemented the "Hope
Project - Little Artists of Life " supporting urban and rural schools in building living and educational spaces conducting life skill
classes and enhancing life literacy education enabling children to grow through practical experiences. By the end of the reporting
602024 Annual Report of Zhejiang Supor Co. Ltd.
period totally 50 urban and rural schools including schools in cities such as Hangzhou Shaoxing Huzhou Lishui Wuhan
Changsha Enshi Xingyi Zunyi Ji'an and Qinhuangdao have received support. In 2024 the Company donated funds and
materials worth over RMB 1.6 million to the project. On the occasion of its 30th anniversary Supor through the Zhejiang Youth
Development Foundation donated 10000 thermo bottles for children (valued at RMB 1.29 million). These bottles were distributed
to children in over 60 rural schools across more than 10 provinces at the start of the new term in September 2024. In addition the
Company also actively donated useful supplies for rural revitalization and earthquake rescue bringing warmth to rural children
and victims. In January 2025 the Company urgently coordinated 1300 electric heaters (valued more than RMB 500000) which
were donated to earthquake-affected residents in Xiqin Township Lazi County Xigaze Xizang Autonomous Region through the
Xizang rescue team formed by the Zhejiang Youth Development Foundation and Hangzhou Dishui Charity.While fulfilling its social responsibilities Supor employees enthusiastically participated in the Company's public welfare
projects through volunteer services contributing a total of over 800 volunteer hours. Product engineers from Supor's Shaoxing
Base leveraged their professional expertise to visit surrounding community schools educating children on the scientific principles
and proper usage of small domestic appliances. During Public Welfare Week Supor employee volunteers visited rural schools in
Honghe Yunnan bringing companionship and innovative knowledge to the children.In the future the Company will continue to actively respond to the national policy of rural revitalization and common
prosperity give full play to the advantages of Supor's business capabilities and resources actively promote various charity
programs and activities in terms of literacy education for children in rural villages and broadening their horizons and work with
more like-minded charity partners to contribute to a better life and better society in rural areas.Indicator Measurement unit Quantity/fulfillment
Rural revitalization and common prosperity —— ——
Including: Investment amounts for funding poor students RMB 10000
Number of benefited rural students Person 30000
Amount invested to improve the education resources in rural
RMB 10000 339
areas (material value)
Awards received (content grade) —— ——
Ranked 39th in the Zhejiang Province Listed Companies ESG
Strategic Charitable Impact List in 2024
Ranked 45th in the Top 100 Zhejiang Listed Companies for Best
Social Responsibility Performance in 2024
Awarded the CSR Impact Award of 8th CSR China Education
List in 2024
612024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION VI SIGNIFICANT EVENTS
I. Fulfillment of Commitments
1. Commitments that were fulfilled during the reporting period and had not been fulfilled till the end of
reporting period by actual controller shareholder related party acquirer and other commitment parties
of the Company
□ Applicable ? Not applicable
There were no commitments that were fulfilled during the reporting period and had not been fulfilled till the end of reporting
period by actual controller shareholder related party acquirer and other commitment parties of the Company.
2. Where assets or projects of the Company are expected to make profit and the expected profiting
period is during the reporting period the Company hereby explains.□ Applicable ? Not applicable
II. Occupied Non-business Capital of Listed Company for Controlling Shareholders and
Related Parties
□ Applicable ? Not applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their related parties of the
Company during the reporting period.III. Illegal External Guarantee
□ Applicable ? Not applicable
There was no illegal external guarantee of the Company during the reporting period.IV. Explanation on the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable ? Not applicable
V. Explanation on the Board of Directors the Board of Supervisors and Independent
Directors (If Any) on the "Non-standard Audit Report" during the Reporting Period
□ Applicable ? Not applicable
VI. Representation of Changes in Accounting Policies and Accounting Estimates or
Correction of Important Accounting Errors Compared with the Financial Statements of the
Previous Year
□ Applicable ? Not applicable
During the reporting period there was no change in accounting policies accounting estimates or correction of important
accounting errors.
622024 Annual Report of Zhejiang Supor Co. Ltd.
VII. Information on Change of the Scope of Consolidated Statement Compared with the
Previous Year's Financial Statements
□ Applicable ? Not applicable
There was no change in the scope of consolidated statements during the reporting period.VIII. Employment and Disengagement of Certified Public Accountants
Certified public accountants engaged at the moment
Name of the Chinese Certified Public Accountants KPMG Huazhen LLP (Special General Partnership)
Reward for domestic certified public accountants (RMB 10000) 301.00
Service years of audit services provided by domestic accounting
4
firms
Names of CPAs from domestic certified public accountants Huang Feng Jin Yang
Service years of audit of Chinese CPAs Huang Feng (four years) Jin Yang (four years)
Intension of changing certified public accountants
□ Yes ? No
Employment of internal control counting firm financial consultant or sponsor
? Applicable □ Not applicable
Same accounting firm for internal control audit
IX. Delisting after Disclosure of Annual Report
□ Applicable ? Not applicable
X. Bankruptcy or Reorganization
□ Applicable ? Not applicable
There was no bankruptcy reorganization or related matters in the Company during the reporting period.XI. Important Matters of Lawsuit and Arbitration
□ Applicable ? Not applicable
There was no significant litigation and arbitration occurred during the reporting period.XII. Punishment and Rectification
□ Applicable ? Not applicable
There was no punishment and rectification during the reporting period.XIII. Integrity of the Company Its Controlling Shareholders and Actual Controllers
□ Applicable ? Not applicable
632024 Annual Report of Zhejiang Supor Co. Ltd.
XIV. Major Related Transactions
1. Related transaction related to daily business
? Applicable □ Not applicable
Approv
Percent Market
Pricing Amount of ed Exceed Means of
Type of Contents Price of age to price of Refere
Association principle related transact ing payments Date of
related of related related amount availabl nce for
Related party relationship of related transaction ion approv of related disclos
transactio transactio transact of same e same disclos
s transactio (RMB limit ed limit transactio ure
n n ion transact transact ure
n 10000) (RMB or not n
ion ion
10000)
Purchase
Wuhan Anzai Bank
Associated of Finished Contract
Cookware Co. - 15404.34 1.05% No transfer -
enterprise commodit products price
Ltd. or notes
y
Purchase
Wuhan Anzai Bank
Associated of Accessori Market
Cookware Co. - 3097.25 0.21% No transfer -
enterprise commodit es price
Ltd. or notes
y
Same
controlling Purchase
Bank
GROUPE SEB shareholder of Finished Contract
- 28.99 0.00% No transfer -
EXPORT with the commodit products price
or notes
controlling y
shareholder
Same
controlling Purchase
Bank
GROUPE SEB shareholder of Accessori Market
- 14.76 0.00% No transfer -
EXPORT with the commodit es price
or notes
controlling y
shareholder
Same
controlling Purchase
Bank
GROUPE SEB shareholder of Accessori Market
- 87.81 0.01% No transfer -
MOULINEX with the commodit es price
or notes
controlling y
shareholder
Purchase
Same Bank
LAGOSTINA of Finished Contract
controlling - 249.56 0.02% No transfer -
S.P.A. commodit products price
shareholder or notes
y
Same
controlling Purchase
Bank
shareholder of Accessori Market
TEFAL S.A.S. - 2646.33 0.18% No transfer -
with the commodit es price
or notes
controlling y
shareholder
Purchase
Same Bank
SEB ASIA of Finished Contract
controlling - 104.32 0.01% No transfer -
LTD. commodit products price
shareholder or notes
y
Purchase
Heshan Demei Same Bank
of Finished Contract
Tableware Co. controlling - 7.90 0.00% No transfer -
commodit products price
Ltd. shareholder or notes
y
642024 Annual Report of Zhejiang Supor Co. Ltd.
Purchase
WMF Same Bank
of Finished Contract
GROUPE controlling - 5544.61 0.38% No transfer -
commodit products price
GMBH shareholder or notes
y
WMF
Purchase
Consumer Same Bank
of Finished Contract
Goods controlling - 9.72 0.00% No transfer -
commodit products price
(Shanghai) Co shareholder or notes
y
Ltd.Same
SEB
controlling Purchase
INTERNATIO Bank
shareholder of Finished Contract
NAL - 25.97 0.00% No transfer -
with the commodit products price
SERVICE or notes
controlling y
S.A.S.shareholder
Same
SEB
controlling Purchase
INTERNATIO Bank
shareholder of Accessori Market
NAL - 11.56 0.00% No transfer -
with the commodit es price
SERVICE or notes
controlling y
S.A.S.shareholder
Same
controlling Purchase
Bank
shareholder of Accessori Market
ETHERA - 8.53 0.00% No transfer -
with the commodit es price
or notes
controlling y
shareholder
Purchase
Same Bank
GROUPE SEB of Finished Contract
controlling - 6.39 0.00% No transfer -
KOREA LTD. commodit products price
shareholder or notes
y
GROUPE SEB
Purchase
VIETNAM Same Bank
of Finished Contract
JOINT controlling price - 16.06 0.00% No transfer - commodit products
STOCK shareholder or notes
y
COMPANY
Same Sale of Bank
SEB ASIA Finished Contract
controlling commodit - 693300.63 30.91% No transfer -
LTD. products price
shareholder ies or notes
Same Sale of Bank
SEB ASIA Accessori Contract
controlling commodit - 456.97 0.02% No transfer -
LTD. es price
shareholder ies or notes
Same
controlling
Sale of Bank
shareholder Finished Contract
S.A.S. SEB commodit - 177.97 0.01% No transfer -
with the products price
ies or notes
controlling
shareholder
Same
controlling
Sale of Bank
shareholder Accessori Contract
S.A.S. SEB commodit - 75.93 0.00% No transfer -
with the es price
ies or notes
controlling
shareholder
Same Sale of Bank
Finished Contract
TEFAL S.A.S. controlling commodit - 377.1 0.02% No transfer -
products price
shareholder ies or notes
652024 Annual Report of Zhejiang Supor Co. Ltd.
with the
controlling
shareholder
Same
controlling
Sale of Bank
shareholder Accessori Contract
TEFAL S.A.S. commodit - 1882.96 0.08% No transfer -
with the es price
ies or notes
controlling
shareholder
Same
controlling
Sale of Bank
GROUPE SEB shareholder Finished Contract
commodit - 1714.85 0.08% No transfer -
MOULINEX with the products price
ies or notes
controlling
shareholder
Company
controlled Sale of Bank
Supor Group Finished Market
by related commodit - 361.69 0.02% No transfer -
Co. Ltd. products price
natural ies or notes
person
Same
SEB
controlling
INTERNATIO Sale of Bank
shareholder Accessori Contract
NAL commodit - 2545.05 0.11% No transfer -
with the es price
SERVICE ies or notes
controlling
S.A.S.shareholder
Same Sale of Bank
LAGOSTINA Accessori Contract
controlling commodit - 78.50 0.00% No transfer -
S.P.A. es price
shareholder ies or notes
Same Sale of Bank
GROUPE SEB Finished Contract
controlling commodit - 1277.60 0.06% No transfer -
CANADA products price
shareholder ies or notes
Same Sale of Bank
IMUSA USA Finished Contract
controlling commodit - 357.51 0.02% No transfer -
LLC products price
shareholder ies or notes
Same Sale of Bank
IMUSA USA Accessori Contract
controlling commodit - 1.95 0.00% No transfer -
LLC es price
shareholder ies or notes
WMF
Consumer Same Sale of Bank
Finished Contract
Goods controlling commodit - 22.41 0.00% No transfer -
products price
(Shanghai) Co shareholder ies or notes
Ltd.GROUPE SEB
VIETNAM Same Sale of Bank
Finished Contract
JOINT controlling commodit - 1512.97 0.07% No transfer -
products price
STOCK shareholder ies or notes
COMPANY
GROUPE SEB Same Sale of Bank
Accessori Contract
ANDEAN controlling commodit - 779.18 0.03% No transfer -
es price
S.A. shareholder ies or notes
Total -- -- 732187.37 -- -- -- -- -- --
Details of large sales return Not applicable
Actual implementation of estimated total amount In 2024 the estimated amount of daily connected transactions between the Company and SEB
of related transaction by category incurred during Group and its related parties was RMB 7135.66 million while the actual amount of daily
the period in the reporting period (if any) connected transactions was RMB 7133.24 million which is RMB 2.42 million less compared
662024 Annual Report of Zhejiang Supor Co. Ltd.
with the estimated amount announced. (See details in the Announcement of the Additional
Amount Increase of Daily Connected Transactions in 2024 (No.: 2025-003) disclosed by the
Company on January 11 2025 on http://www.cninfo.com.cn).Reason for the big difference between transacted
Not applicable
price and market reference price (if applicable)
2. Related transactions from purchase and sales for assets or equity
□ Applicable ? Not applicable
There were no related transactions from purchase and sales for assets or equity during the reporting period.
3. Related transaction for co-investment abroad
□ Applicable ? Not applicable
There was no related transaction involving joint external investment during the reporting period.
4. Connected creditor's rights and debts
□ Applicable ? Not applicable
There were no related creditor's rights and debts during the reporting period
5. Dealings with associated financial companies
□ Applicable ? Not applicable
There was no deposit loan credit or other financial business between the Company and associated financial companies and their
related parties.
6. Dealings between the financial companies controlled by the Company and their related parties
□ Applicable ? Not applicable
There was no deposit loan credit or other financial business between the Company and holding financial companies and their
related parties.
7. Other important related transactions
□ Applicable ? Not applicable
There were no significant related transactions during the reporting period.XV. Significant Contracts and Performance
1. Custody contracting and leasing
(1) Custody
□ Applicable ? Not applicable
No custody was made during the reporting period.
672024 Annual Report of Zhejiang Supor Co. Ltd.
(2) Contracting
□ Applicable ? Not applicable
No contracting was made during the reporting period.
(3) Leasing
? Applicable □ Not applicable
Circumstances of leasing
Please refer to 15 "Right-of-use assets" and 28 "lease obligation" in Section X "Financial Statement" - VII. "Notes to items of
consolidated financial statements".The profit and loss brought to the Company reaches more than 10% of the total profit of the Company during the reporting period.□ Applicable ? Not applicable
During the reporting period there are no leasing items that bring profits and losses of the Company to more than 10% of the total
profits of the Company during the reporting period.
2. Major guarantee
? Applicable □ Not applicable
Unit: RMB 10000
External guarantee of the Company and its subsidiaries (excluding the guarantee to subsidiaries)
Disclosure
date of Whether it
Name of announceme Actual Actual Counter- is
Guaranteed Guarantee Collateral Guarantee Fulfilled or
guaranteed nt related to occurring guaranteed guarantee (if guaranteed
amount type (if any) period not
object the date amount any) by related
guaranteed parties
amount
Supor's
distributors General July 2023 -
March 31 July 2023 -
who meet 140000.00 75318.01 guarantee Cash Yes October Yes No
2023 April 2024
certain pledge 2024
conditions
Supor's
distributors General May 2024 -
March 30 May 2024 -
who meet 140000.00 8193.19 guarantee Cash Yes December Yes No
2024 June 2024
certain pledge 2024
conditions
Supor's
distributors July 2024 - General
March 30 July 2024 -
who meet 140000.00 December 49930.10 guarantee Cash Yes No No
2024 June 2025
certain 2024 pledge
conditions
Total external guaranteed Total actual amount of
amount approved during 140000.00 external guarantee during 133441.30
the reporting period (A1) the reporting period (A2)
Total external guaranteed Total actual external
amount approved at the guarantee balance at the
280000.0036551.64
end of the reporting end of the reporting
period (A3) period (A4)
682024 Annual Report of Zhejiang Supor Co. Ltd.
Guarantee of the Company to subsidiaries
Disclosure
date of Whether it
Name of announceme Actual Actual Counter- is
Guaranteed Guarantee Collateral Guarantee Fulfilled or
guaranteed nt related to occurring guaranteed guarantee (if guaranteed
amount type (if any) period not
object the date amount any) by related
guaranteed parties
amount
Zhejiang
Shaoxing
July 2023 - Joint
Supor March 31 July 2023 -
260000.00 December 85627.50 liability None None Yes No
Household 2023 June 2024
2023 guarantee
Products
Co. Ltd.Wuhan
July 2023 -
Supor March 31 General July 2023 -
30000.00 December 4885.00 None None Yes No
Cookware 2023 guarantee June 2024
2023
Co. Ltd.Zhejiang
Shaoxing January
January Joint
Supor March 31 2024 -
260000.00 2024 - 29103.20 liability None None Yes No
Household 2023 September
March 2024 guarantee
Products 2024
Co. Ltd.Wuhan January
January
Supor March 31 General 2024-
30000.00 2024 - 2245.00 None None Yes No
Cookware 2023 guarantee September
March 2024
Co. Ltd. 2024
Zhejiang
Shaoxing
Joint April 2024-
Supor March 30 April 2024-
260000.00 88810.00 liability None None December Yes No
Household 2024 June 2024
guarantee 2024
Products
Co. Ltd.Zhejiang
Shaoxing
July 2024 - Joint
Supor March 30 July 2024 -
260000.00 December 109307.20 liability None None No No
Household 2024 June 2025
2024 guarantee
Products
Co. Ltd.Approved total
Total actual amount of
guaranteed amount
guarantee to subsidiaries
towards the subsidiaries 400000.00 319977.90
during the reporting
during the reporting
period (B2)
period (B1)
Total guaranteed amounts Total actual guarantee
to subsidiaries approved balance for subsidiaries at
700000.00109307.20
at the end of the reporting the end of the reporting
period (B3) period (B4)
Guarantee of the subsidiaries to subsidiaries
Disclosure
Whether it
date of
Name of Actual Actual Counter- is
announceme Guaranteed Guarantee Collateral Guarantee Fulfilled or
guaranteed occurring guaranteed guarantee (if guaranteed
nt related to amount type (if any) period not
object date amount any) by related
the
parties
guaranteed
692024 Annual Report of Zhejiang Supor Co. Ltd.
amount
Zhejiang
Shaoxing
July 2023 -
Supor March 31 General July 2023 -
260000.00 December 16306.50 None None Yes No
Household 2023 guarantee June 2024
2023
Products
Co. Ltd.Zhejiang
Shaoxing January
January
Supor March 31 General 2024-
260000.00 2024- 13650.00 None None Yes No
Household 2023 guarantee September
March 2024
Products 2024
Co. Ltd.Zhejiang
Shaoxing
April 2024-
Supor March 30 April 2024- General
260000.00 6349.00 None None December Yes No
Household 2024 June 2024 guarantee
2024
Products
Co. Ltd.Approved total
Total actual amount of
guaranteed amount
guarantee to subsidiaries
towards the subsidiaries 0 36305.50
during the reporting
during the reporting
period (C2)
period (C1)
Total guaranteed amounts Total actual guarantee
to subsidiaries approved balance for subsidiaries at
00
at the end of the reporting the end of the reporting
period (C3) period (C4)
Total guaranteed amount of the Company (namely the total of the first three items)
Total approved Total guaranteed actual
guaranteed amount during amount during the
540000.00489724.70
the reporting period reporting period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual guarantee
guaranteed amount at the balance at the end of the
980000.00145858.84
end of the reporting reporting period
period (A3+B3+C3) (A4+B4+C4)
Proportion of the total amount of actual guarantee (i.e
22.70%
A4+B4+C4) to the net assets of the Company
Including:
Total guaranteed amount towards shareholders actual
0
controllers and related parties (D)
Balance of debt guarantee directly or indirectly
provided to the guaranteed object with an asset- 0
liability ratio exceeding 70% (E)
Amount of the total guarantee exceeding 50% of the
0
net assets (F)
Total amount of the above three guarantees (D+E+F) 0
Description of the guarantee liability occurred during
the reporting period or there is evidence that it is
possible to bear joint and several liability for Not applicable
settlement for the unexpired guarantee contract (if
any)
702024 Annual Report of Zhejiang Supor Co. Ltd.
Descriptions for external guarantee provided against
Not applicable
the established procedures (if any)
Note: The 7th Session of the Eighth Board of Directors and the Annual General Meeting of Shareholders for 2023 Fiscal Year of
the Company reviewed and approved the Guarantee for Wholly-owned Subsidiaries and Mutual Guarantee among Wholly-owned
Subsidiaries and agreed that the Company and its wholly-owned subsidiaries would provide guarantees up to RMB 4 billion for
the wholly-owned subsidiaries in the year of 2024. Among them the guaranteed amount for companies with 70% (inclusive) asset-
liability ratio or over is RMB2.65 billion and RMB 1.35 billion for companies with a asset-liability ratio below 70%.Specific description for using the composite guarantee situation
None
3. Entrusting others for cash asset management
(1) Entrustment for financial management
? Applicable □ Not applicable
Overview of entrusted financing during the reporting period
Unit: RMB 10000
The amount of
impairment accrued
Source of fund for Amount incurred of Overdue amount
Specific type Undue balance from overdue
entrusted financing entrusted financing unclaimed
financial investment
products
Bank financial
Self-owned capital 30000 20000 0 0
products
Financial products of
Self-owned capital 5000 0 0 0
securities trader
Other categories Self-owned capital 8000 8000 0 0
Total 43000 28000 0 0
Note: Details about the short-term financial products newly-purchased within first half year of 2024 can be found in the
Announcement of Short-term Investment Using Excessive Cash (Announcement No.: 2024-016) and Announcement of Progress of
Using Excessive Cash to Purchase Financial Products (Announcement No.: 2024-036) disclosed on the http://www.cninfo.com.cn.Specific situation of high-risk entrusted finance with significant single amount low security and poor liquidity
□ Applicable ? Not applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□ Applicable ? Not applicable
(2) Entrustment for loan
□ Applicable ? Not applicable
No entrustment for loan was made during the reporting period.
4. Other significant contracts
□ Applicable ? Not applicable
There were no other significant contracts involved in the Company during the reporting period.
712024 Annual Report of Zhejiang Supor Co. Ltd.
XVI. Instructions for Other Important Matters
□ Applicable ? Not applicable
The Company has no other important matters to be explained during the reporting period.XVII. Important Matters of Subsidiaries
□ Applicable ? Not applicable
722024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERS
I. Changes of Shares
1. Changes of shares
Unit: share
Before change Increase/decrease in the period (+ -) After change
New Shares Converted
Share number Proportion Others Subtotal Share number Proportion
shares bonus capital
I. Restricted Shares 2826535 0.35% -1106419 -1106419 1720116 0.21%
1. Shares held by the state 0 0.00% 0 0 0 0.00%
2. Stated-owned legal
00.00%0000.00%
person shares
3. Other domestic
28265350.35%-1106419-110641917201160.21%
shareholdings
Including: Shares held by
00.00%0000.00%
domestic legal entities
Shares held by domestic
28265350.35%-1106419-110641917201160.21%
natural persons
4. Shares held by foreign
00.00%0000.00%
capitals
Including: Shares held by
00.00%0000.00%
foreign legal entities
Shares held by foreign
00.00%0000.00%
natural persons
II. Non-restricted Shares 803882122 99.65% -4063831 -4063831 799818291 99.79%
1. Common shares in RMB 803882122 99.65% -4063831 -4063831 799818291 99.79%
2. Domestically listed
00.00%0000.00%
foreign shares
3. Overseas listed foreign
00.00%0000.00%
shares
4. Others 0 0.00% 0 0 0 0.00%
III. Sum of Shares 806708657 100.00% -5170250 -5170250 801538407 100.00%
Reasons for the change of shares
? Applicable □ Not applicable
1. Top management of the Company unlocked 25% of the shares registered under their names based on holding shares at last
transaction date of the last year.
2. On February 2 2024 totally 555750 shares of Restricted Stock in the first unlock period under the 2021 Restricted Stock
Incentive Plan were unlocked and circulated on the market.
732024 Annual Report of Zhejiang Supor Co. Ltd.
3. On April 30 2024 totally 5150000 shares of repurchased shares held in the Company’s special stock repurchase account were
canceled. Following the completion of cancellation the Company's total capital stock was reduced from 806708657 shares to
801558657 shares.
4. On August 7 2024 totally 20250 shares of restricted stock granted to the resigned incentive employees under Restricted Stock
Incentive Plan 2021 and 2022 were repurchased and canceled by the Company. Following the completion of repurchase and
cancellation the Company's total capital stock was reduced from 801558657 shares to 801538407 shares.
5. On November 19 2024 totally 456201 shares of Restricted Stock in the first unlock period under the 2022 Restricted Stock
Incentive Plan were unlocked and circulated on the market. Since the performance assessment of business units that incentive
employees serve did not achieve the 100% unlocking target under the first unlock period the Company repurchased and canceled
a total of 178674 shares of restricted stock that did not satisfy the unlocking conditions on January 17 2025. Following the
completion of repurchase and cancellation the Company's total capital stock was reduced from 801538407 shares to 801359733
shares.Approval of change in share
? Applicable □ Not applicable
1. The Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2021 Restricted Stock Incentive Plan was
reviewed and adopted by the 6th Session of the Eighth Board of Directors and 6th Session of the Eighth Board of Supervisors held
on January 26 2024 agreeing to unlock the Restricted Stock for 270 qualified Incentive Employees in the first unlock period. The
number of Restricted Stock unlocked is 555750 shares. The date of circulation of the Restricted Stock unlockable during the first
unlock period is February 2. 2024.
2. The Proposal on Public Shares Repurchase Plan was reviewed and adopted by the 19th Session of the Seventh Board of
Directors held on March 29 2023 and the Annual General Meeting of Shareholders for 2022 Fiscal Year held on April 25 2023.The above share repurchase plan was completed on April 24 2024 and then the Company canceled 5150000 shares held in the
Company’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting of
Shareholders for 2022 Fiscal Year. The Company completed the cancellation of repurchased stock on April 30 2024 after it was
reviewed and confirmed by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
3. The Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted by the 2nd Session of the
Eighth Board of Directors and the 2nd Session of the Eighth Board of Supervisors held on August 30 2023 and the 7th Session of
the Eighth Board of Directors and the 7th Session of the Eighth Board of Supervisors held on March 29 2024 totally seven
incentive employees did not meet the incentive requirements due to resignation. The Company plans to repurchase and cancel
20250 shares of Restricted Stock not meeting the unlocking condition at the price of RMB1.00 per share. The above proposal was
reviewed and adopted by the Annual General Meeting of Shareholders for 2023 Fiscal Year on April 25 2024. The Company
completed repurchase and cancellation on August 7 2024.
4. The Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2022 Restricted Stock Incentive Plan and
Proposal on Repurchasing and Canceling a Part of Restricted Stock was reviewed and adopted by the 11th Session of the Eighth
Board of Directors and the 11th Session of the Eighth Board of Supervisors the Company agreed to unlock the Restricted Stock
granted to 286 qualified Incentive Employees in the first unlock period. The number of Restricted Stock unlocked is 456201
shares. The date of circulation of the Restricted Stock unlockable during the first unlock period is November 19 2024. Since the
performance assessment of business units that incentive employees serve did not achieve the 100% unlocking target under the first
unlock period the Company decided to repurchase and cancel Restricted Stock amounting to 178674 shares in accordance with
the 2022 Restricted Stock Incentive Plan at the price of RMB 1 per share. The Proposal on Repurchasing and Canceling a Part of
Restricted Stock has been adopted by the Fourth Interim General Meeting of Shareholders 2024 held on November 11 2024. The
Company completed the cancellation of repurchased stock on April 30 2024 after it was reviewed and confirmed by Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
742024 Annual Report of Zhejiang Supor Co. Ltd.
Transfer of shares changed
□ Applicable ? Not applicable
Influence of shares change on basic earnings per share and diluted earnings per share in latest year and period net assets per share
owned by the Company's ordinary shareholder and other financial indexes.? Applicable □ Not applicable
There are 5150000 public shares repurchased and cancelled and 20250 restricted stocks repurchased and cancelled in the period
in total which creates a minor impact on the earnings per share and dilution of earnings per share and creates no impact on other
financial indicators such as the net asset per share attributable to common share shareholders of the Company.The other contents the Company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable ? Not applicable
2. Changes of restricted shares
? Applicable □ Not applicable
Unit: share
Restricted Restricted
Restricted Restricted
outstanding outstanding
outstanding outstanding Restriction
Shareholder name stocks at the stocks at the Date of unlocking restriction
stocks increased stocks released reason
beginning of end of the
in current period in current period
the period year
Locked stocks Unlock 25% of the shares registered under
Su Xianze 273451 0 68363 205088 of top their names on the last transaction date of the
management last year.Unlock 25% of the shares registered under
Locked stocks their names on the last transaction date of the
Cheung Kwok Wah 0 25250 0 25250 of top last year. During the reporting period the
management quota of restricted stocks was readjusted based
on the lastest total shareholding amount.Unlock 25% of the shares registered under
Locked stocks their names on the last transaction date of the
Xu Bo 86477 22500 47266 61711 of top last year. During the reporting period the
management quota of restricted stocks was readjusted based
on the lastest total shareholding amount.Unlock 25% of the shares registered under
Locked stocks their names on the last transaction date of the
Ye Jide 24357 10000 16339 18018 of top last year. During the reporting period the
management quota of restricted stocks was readjusted based
on the lastest total shareholding amount.Regarding the
restricted shares
A total of 1209500 shares of restricted stocks
under the equity
under 2021 Restricted Stock Incentive Plan
incentive plan
were transferred to 293 incentive employees
the Company
Incentive on January 27 2022. The above restricted
repurchased and
Employees of 2021 stocks were unlocked in two periods each
1111500 0 563250 548250 canceled 7500
Equity Incentive with a 50% unlocking ratio 24 months after
shares of
Plan the completion of the grant registration. The
restricted stock
first period was unlocked and circulated on
during the year
February 2 2024; The second period was
as these shares
unlocked and circulated on February 10 2025.were held by
resigned
752024 Annual Report of Zhejiang Supor Co. Ltd.
incentive
employees who
had not met the
conditions for
lifting the
restrictions.Regarding the
A total of 1253500 restricted shares under the
restricted shares
Company's 2022 Restricted Stock Incentive
under the equity
Plan were transferred to 288 incentive
incentive plan
employees on November 10 2022 while the
the Company
postponed portion of 79000 shares was
repurchased and
transferred to 2 incentive employees on
canceled 12750
February 24 2023. The above restricted
shares of
Incentive stocks were unlocked in two periods each
restricted stock
Employees of 2022 with a 50% unlocking ratio 24 months after
1330750 0 468951 861799 during the year
Equity Incentive the completion of the grant registration. The
as these shares
Plan first period was unlocked and circulated on
were held by
November 19 2024 while the first period of
resigned
the postponed portion was unlocked and
incentive
circulated on March 3 2025. The second
employees who
period is expected to be unlocked after
had not met the
November 10 2025 and the second period of
conditions for
the postponed portion is expected to be
lifting the
unlocked after February 24 2026.restrictions.Total 2826535 57750 1164169 1720116 -- --
II. Security Offering and Listing Information
1. Security offering (excluding preferred share) during the reporting period
□ Applicable ? Not applicable
2. Total shares of the Company change of shareholder structure and changes of the Company's assets
and liabilities structure
? Applicable □ Not applicable
During the reporting period the Company cancelled 5150000 public shares repurchased and 20250 restricted stocks
granted to resigned incentive employees under the 2021 Restricted Stock Incentive Plan and 2022 Restricted Stock Incentive Plan
but not unlocked which in combination are 5170250 shares in total. Upon the cancellation the Company's total share capital
decreased from 806708657 shares to 801538407 shares.
3. Staff shares
□ Applicable ? Not applicable
III. Shareholders and the Actual Controllers
1. Number of shareholders of the Company and share-holding conditions
Unit: share
762024 Annual Report of Zhejiang Supor Co. Ltd.
Total number
Number of of preferred
common shareholder
Total number Total number of preferred
shareholders whose voting
of common shareholders with restored
at the end of right is
shareholders at voting right at the end of last
16774 last month 17206 recovered at 0 0
the end of the month before the disclosure
before the the end of
reporting date of the annual report (if
disclosure reporting
period any) (see Note 8)
date of the period (if
annual report any) (refer to
Note 8)
Shareholding of shareholders holding more than 5% shares or top 10 shareholders (excluding shares lent out through securities
financing)
Number of Increase/ Pledge marking or freezing
shares held at decrease Number of Number of
Shareholder Shareholding
Nature the end of the during the restricted non-restricted
name ratio Status of
reporting reporting shares shares Share number share
period period
SEB
INTERNATIO Foreign Not
83.18%666681904006666819040
NALE legal entity applicable
S.A.S
Hong Kong
Securities Foreign Not
5.67%45462211-232667210454622110
Clearing legal entity applicable
Company Ltd.Ningbo Bank-
Zhongtai
Xingyuan
Value-selected
Not
Flexible Others 0.78% 6264378 -649262 0 6264378 0
applicable
Complex
Securities
Investment
Funds
China
Construction
Bank－Huatai-
Pinebridge CSI
Dividend Low Not
Others 0.70% 5578114 5578114 0 5578114 0
Volatility applicable
Traded Open-
end Securities
Investment
Funds
China
State-
Merchants Not
owned legal 0.32% 2549695 2507995 0 2549695 0
Securities Co. applicable
entity
Ltd.ABC-Southern
Asset
Management
Not
S&P China A- Others 0.31% 2521176 2521176 0 2521176 0
applicable
Share Large-
Cap Dividend
Low Volatility
772024 Annual Report of Zhejiang Supor Co. Ltd.
50 Index
Traded Open-
end Securities
Investment
Funds
China
Merchants
Bank-Zhongtai
Yuheng Value-
selected Not
Others 0.27% 2125197 -265751 0 2125197 0
Flexible applicable
Complex
Securities
Investment
Funds
Bank of
Communicatio
ns-Invesco
Great Wall CSI
Dividend Low
Not
Volatility 100 Others 0.21% 1708326 1708326 0 1708326 0
applicable
Index Traded
Open-end
Securities
Investment
Funds
China
Construction
Bank- Yinhua
Fund Wealth-
Not
Themed Others 0.20% 1599986 1599986 0 1599986 0
applicable
Complex
Securities
Investment
Funds
Industrial
Bank-Zhongtai
Xingwei Value-
selected Not
Others 0.18% 1404727 -198000 0 1404727 0
Complex applicable
Securities
Investment
Funds
Strategic investor or general
corporate investor who
becomes top 10 shareholder None
as a result of rights issue (if
any) (see Note 3)
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds
Explanation on the above- China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment
mentioned shareholder Funds and Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds
relationships or concerted belong to Zhongtai Fund. It is unknown whether other shareholders are associated with each other and
actions whether they are persons acting in concert as stipulated in the Measures for the Administration of the
Acquisition of Listed Companies.Explanation on the above
shareholders on None
entrusting/entrusted voting
782024 Annual Report of Zhejiang Supor Co. Ltd.
rights and abstaining from
voting rights
Special instructions on the
existence of repurchase
At the end of the reporting period the Company held a total of 4667500 shares in the Company's
special accounts of the top
special stock repurchase account.
10 shareholders (if any) (see
Note 10)
Shareholdings of top 10 shareholders holding non-restricted shares (excluding those borrowing shares through securities lending and
shares held by senior management)
Number of non-restricted Type of share
outstanding shares held at
Name
the end of the reporting Type of share Share number
period
Common shares in
SEB INTERNATIONALE S.A.S 666681904 666681904
RMB
Common shares in
Hong Kong Securities Clearing Company Ltd. 45462211 45462211
RMB
Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Common shares in
62643786264378
Complex Securities Investment Funds RMB
China Construction Bank－Huatai-Pinebridge CSI Dividend Common shares in
55781145578114
Low Volatility Traded Open-end Securities Investment Funds RMB
Common shares in
China Merchants Securities Co. Ltd. 2549695 2549695
RMB
ABC-Southern Asset Management S&P China A-Share Large-
Common shares in
Cap Dividend Low Volatility 50 Index Traded Open-end 2521176 2521176
RMB
Securities Investment Funds
China Merchants Bank-Zhongtai Yuheng Value-selected Common shares in
21251972125197
Flexible Complex Securities Investment Funds RMB
Bank of Communications-Invesco Great Wall CSI Dividend
Common shares in
Low Volatility 100 Index Traded Open-end Securities 1708326 1708326
RMB
Investment Funds
China Construction Bank- Yinhua Fund Wealth-Themed Common shares in
15999861599986
Complex Securities Investment Funds RMB
Industrial Bank-Zhongtai Xingwei Value-selected Complex Common shares in
14047271404727
Securities Investment Funds RMB
Explanation on connected relationship or concerted parties
among the top 10 shareholders holding non-restricted
outstanding shares and between the top 10 shareholders Same as above
holding non-restricted outstanding shares and top 10
shareholders
Information on top 10 common shareholders involved in
None
securities margin trading business (if any) (see Note 4)
Shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unrestricted shares
participating in the refinancing business to lend shares
□ Applicable ? Not applicable
Top 10 shareholders and the top 10 shareholders with non-restricted shares changed from the previous period due to
lending/returning of refinancing
□ Applicable ? Not applicable
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted shares conduct the agreed
repurchase transaction during the reporting period
□ Yes ? No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted shares did not conduct the agreed
repurchase transaction during the reporting period.
792024 Annual Report of Zhejiang Supor Co. Ltd.
2. Controlling shareholders
Property of controlling shareholder: foreign-controlled shareholding
Type of controlling shareholder: legal entity
Legal
Name of controlling Date of Organization
representative/person in Main business operation
shareholder establishment code
charge
Financial participation for all kinds of French
and overseas enterprises i.e. purchasing and
subscribing stock bond share and interests
securities and negotiable securities transfer of
such securities participation in all financial
activities related to the aforesaid financial
SEB
Thierry de LA TOUR December 26 participation purchasing manufacturing and
INTERNATIONALE None
D'ARTAISE 1978 sales of all kinds of household devices for the
S.A.S
purpose of marketing and involvement in
related service; all activities for helping realize
the Company's operation either directly or
indirectly particularly the activities in personal
estate real estate finance commerce and
industrial field.Shareholding of other
overseas listed companies
by the Company's
None
controlling shareholder
during the reporting
period
Change of controlling shareholder during the reporting period
□ Applicable ? Not applicable
No change of controlling shareholder occurred during the reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller: other foreign organization
Type of actual controller: legal entity
Legal
Name of the actual
representative/person in Date of establishment Organization code Main business operation
controller
charge
Holding or equity
Thierry de LA TOUR participation and
SEB S.A. December 28 1973 None
D'ARTAISE management for various
enterprises
Holding of other overseas
listed companies by the
Company's actual None
controller during the
reporting period
Change of actual controller during the reporting period
□ Applicable ? Not applicable
No change of actual controller occurred during the reporting period.Property right and controlling relationship diagram between the Company and the actual controller
802024 Annual Report of Zhejiang Supor Co. Ltd.
Zhejiang Supor Co. Ltd.Actual controller controlling the Company by trust or other assets management types
□ Applicable ? Not applicable
4. The number of shares accumulatively pledged by the controlling shareholder or first majority
shareholder of the Company and its persons acting in concert account for 80% of the total number of
shares held by it or them.□ Applicable ? Not applicable
5. Other corporate shareholders holding more than 10% shares
□ Applicable ? Not applicable
6. Share restriction reduction of commitment subjects such as controlling shareholder actual controller
and the restructuring party
□ Applicable ? Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting Period
Progress in the implementation of share repurchase
? Applicable □ Not applicable
(I) Repurchase scheme of some public shares in 2023
The 19th Session of the Seventh Board of Directors held on March 29 2023 and the Annual General Meeting of Shareholders
for 2022 Fiscal Year held on April 25 2023 reviewed and adopted the Proposal on Public Shares Repurchase Plan according to
which the Company shall repurchase its own shares from the secondary market through concentrated bidding at the maximum
price of no more than RMB 60.93 per share and the top limitation of shares to be repurchased shall not exceed 16134174 shares
and the bottom limitation of shares shall not lower than 8067087 shares. The time limit for shares repurchase shall not be more
than 12 months from the date of the adoption of the plan by the general meeting of shareholders. The Company first implemented
this shares repurchase plan on June 2 2023 and completed it on April 24 2024. The number of shares actually repurchased by the
Company was 8150000 shares accounting for 1.01% of the total shares of the Company (total capital stock before the
cancellation). In specific the highest price is RMB 53.14 yuan per share and the lowest price is RMB 44.37 yuan per share with
total payment of RMB 400080700 (excluding the transaction fee). The Company canceled 5150000 shares held in the
Company’s special stock repurchase account to reduce registered capital as authorized by the Annual General Meeting of
Shareholders for 2022 Fiscal Year on April 30 2024. Following the completion of cancellation the Company's total capital stock
was reduced from 806708657 shares to 801558657 shares. There are 4667500 shares remaining in the Company’s special
812024 Annual Report of Zhejiang Supor Co. Ltd.
stock repurchase account upon completion of the repurchased shares cancellation which include the 3000000 repurchased shares
remained from the above-mentioned Public Shares Repurchase Plan and the 1667500 repurchased shares remained from previous
Public Shares Repurchase Plan and these remaining repurchased shares will be used for implementing future equity incentive
plans and if the Company fails to do so within three years after the completion of the Public Shares Repurchase Plan those
repurchased shares will be canceled accordingly. Before completion of cancellations and implementation of equity incentive plans
the repurchased shares are deposited in the Company’s special stock repurchase account. Above repurchased shares are not
entitled to profit distribution capitalization of provident fund issuance of new shares and allotment of shares pledge voting rights
at shareholders' meetings and other related rights.For detailed contents see Announcement on Completion of Cancellation of Repurchased Shares from Public Shares
Repurchase Plan disclosed on Securities Times China Securities Journal Securities Daily and http://www.cninfo.com.cn on May
7 2024 (Announcement No.: 2024-031).
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable ? Not applicable
822024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION VIII INFORMATION ON PREFERRED SHARE
□ Applicable ? Not applicable
No preferred share existed during the reporting period.
832024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION IX BONDS
□ Applicable ? Not applicable
842024 Annual Report of Zhejiang Supor Co. Ltd.
SECTION X FINANCIAL STATEMENT
I. Audit Report
Type of audit opinion Standard opinions with no reservation
Date of signature of audit report March 27 2025
Name of audit organization KPMG Huazhen LLP (Special General Partnership)
Audit report document No. BMWHZS Zi No. 2507063
Names of CPAs Huang Feng Jin Yang
Main Text of Audit Report
All shareholders of Zhejiang Supor Co. Ltd.I. Opinions
We audited the attached financial statements of Zhejiang Supor Co. Ltd (hereinafter referred to as "Supor") including the
consolidated and parent company balance sheet as of December 31 2024 and the consolidated and parent company profit
statement consolidated and parent company cash flow statement consolidated and parent company statement of changes in
shareholders' equities and notes to relevant financial statements in 2024.We think that the attached financial statements have been prepared in accordance with the provisions of the Accounting
Standards for Business Enterprises issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as
"Accounting Standards for Business Enterprises") in all major aspects and fairly reflect Supor's consolidated and parent company
financial condition as of December 31 2024 as well as the consolidated and parent company operating results and cash flows in
2024.
II. Basis of Forming Audit Opinions
We implemented our audit work strictly according to the stipulations of Auditing Standard for Chinese Certified Public
Accountants (hereinafter referred to as "Auditing Standard"). The content of "Responsibility of CPA for financial statement audit"
in the Audit Report further describes our responsibility under these standards. According to the Codes of Professional Ethics for
Certified Public Accountants in China we are independent of Supor and we have fulfilled the other responsibilities on the aspects
of professional ethics. We believe the audit evidences acquired by us are sufficient and appropriate and provide a basis for
expressing our audit opinions.III. Key Audit Matters
The key audit items are from our professional judgment; from our perspective the key audit items are most important to the
financial statement audit in the current period. The key audit items will be audited under the background that the financial
statement will be wholly audited to form audit opinions; we do not express independent opinions on these items.Revenue recognition
Please refer to the accounting policies described in Note 27 to "V. Important Accounting Policies and Estimates" and Note 37 to
"VII. Notes to items of consolidated financial statements" (Notes to the financial statements)
Key Audit Matters Countermeasures
852024 Annual Report of Zhejiang Supor Co. Ltd.
Please refer to the accounting policies described in Note 27 to "V. Important Accounting Policies and Estimates" and Note 37 to
"VII. Notes to items of consolidated financial statements" (Notes to the financial statements)
Key Audit Matters Countermeasures
Supor and its subsidiaries (hereinafter referred to as The audit procedures related to revenue recognition include the
"Supor") are mainly engaged in the R&D production following:
and distribution of kitchen tools stainless steel products * Understand and evaluate the design and operation effectiveness of
daily hardware small domestic appliances and key internal control related to the revenue recognition made by the
cookware; its products are cookware and small domestic management;
* Select sales contracts check major terms governing the transfer of
appliances. In 2024 Supor's operating income reached
commodity control right and review if the accounting policies for
RMB 22427337986.38.Supor revenue recognition is in conformity with the requirements in
Accounting Standards for Business Enterprises; Check if there are
Supor recognizes the revenue when the control right abnormal trading terms and conditions that indicate potential
of relevant commodity is transferred to the customer. undisclosed relations or transactions with related parties;
Supor assesses the contract and business arrangement of * Use data analysis tools on Supor's transaction information to
the customer and recognizes the commodity sales identify those with abnormal revenues and check if there are any
revenue after such commodity has left Supor's own potential undisclosed relations or major transactions with related
warehouse or its specified warehouse or such parties;
commodity has been delivered to the customer with the * Select major third-party customers and use enterprise information
query tool on their background information to identify if they have
acceptance receipt issued or such commodity has been
any relation with Supor;
delivered on board to the sea transport carrier with the
* For offline revenue verify the consistency between the revenue
customs declaration for export and bill of lading
records in the financial system and the order and shipping
obtained.information in the business system identify and investigate any
abnormal transaction records (if any); at the same time on a
Revenue is one of the key performance indicators sampling basis check the consistency between the order and
(KPIs) and Supor has implemented incentive plans in shipping information in the business system and original documents
recent years including restricted stock incentive plans in such as sales orders acceptance confirmation vouchers export
2021 and 2022 as well as stock option incentive plans customs declarations and freight bills;
and performance incentive fund plans in 2023 and 2024. * For online revenue verify the consistency between the revenue
Since the achievement of performance targets is a records in the financial system and the transaction records on third-
prerequisite for these incentive plans there exists a risk party platforms identify and investigate any abnormal transaction
records (if any);
that management may manipulate revenue to meet these
* Based on audit sampling carry out the external confirmation
targets. We include the conformation and recognition of
procedure for the balance of accounts receivable of relevant
Supor's revenue as key auditing items.customers on the balance sheet date and the amount of sales
transactions in the current year;
* Select transactions of which the revenue is accrued around the
balance sheet date and refer to supporting documents such as the
delivery notices bills of lading or receipts of the goods to check if
the revenue is included in the right accounting period;
* Check whether there are sales returns following the balance sheet
date and check the relevant supporting documents (if any) for
significant sales returns so as to evaluate whether the revenue is
recorded in the appropriate accounting period; and
* Select revenue-related entries in the current year that meet specific
risk criteria inquire the management about the reasons for making
these entries and review relevant supporting documents.IV. Other Information
The management of Supor is responsible for other information. Other information includes the information covered by the
2024 Supor Annual Report but excludes the financial statement and our audit report.
Our audit opinions on financial statement do not cover other information and we do not express any authentication
conclusions on other information.
862024 Annual Report of Zhejiang Supor Co. Ltd.
Integrated with our audit on financial statement our responsibility is to read other information. In this process we consider
whether the other information is significantly different from the information we will acquire from our audit or whether the other
information has significant error.Based on the work we have already executed if we confirm the other information has significant error we should report the
fact. On this aspect we do not need to report any items.V. Responsibilities of Management and Governance on Financial Statement
The management of Supor (hereinafter referred to as the "management") is responsible for preparing financial statement
according to the stipulations of Accounting Standards for Business Enterprises to enable fair presentation and designing
executing and maintaining the required internal control to keep the financial statement free of material misstatement caused by
fraudulent practice or error.When preparing the financial statement the management is responsible for evaluating the continuing operation ability of
Supor disclosing the items related to continuing operation (if any) and using going-concern assumption. Unless otherwise that
Supor plans to liquidate terminates its operation or has no other realistic choice.The governance is responsible for supervising the financial statement process of Supor.VI. Responsibility of CPA for Financial Statement Audit
Our objective is to acquire rational guarantee for keeping the financial statement free of material misstatement caused by
fraudulent practice or error and providing the audit report containing audit opinions. The rational guarantee is a high-level
guarantee but it cannot guarantee that a materials misstatement can be found if it exists when we audit according to the auditing
standard. The misstatement may be caused by fraudulent practice or error. If a single or summarized rational expectation on
misstatement may cause certain influence when financial statement user makes economic decision in accordance with the financial
statement the misstatement will be deemed as "significant".In the process of our audit according to the auditing standards we used our professional judgment and retained our
professional skepticism. Meanwhile we executed the following work:
(1) Identify and evaluate material misstatement risk of financial statement caused by fraudulent practice or error design and
implement audit procedures to cope with these risks and obtain sufficient and appropriate audit evidence as the basis for issuing
audit opinions. A fraudulent practice may involve in collusion counterfeit deliberate omission false statement or may be above
the internal control so the risk that material misstatement caused by fraudulent practice may not be found is higher than the risk
that material misstatement caused by error may not be found.
(2) Learn internal control related to the audit for the purpose of designing proper audit procedures.
(3) Evaluate the appropriateness of the accounting policy selected by management and the rationality of the accounting
estimate and related disclosure made by the management.
(4) Make conclusion for the appropriateness of the continuing operation assumption used by management. Meanwhile make
conclusions for the one whether there is significant uncertainty in the issue or item which may result in substantive doubt on the
continuing operation ability of Supor in accordance with the acquired audit evidences. If our conclusion thinks that there is
significant uncertainty the auditing standard requires us to remind financial statement user in our audit report of paying attention
to the related disclosure in the financial statement. If the disclosure is not sufficient we should present modified audit report. Our
conclusion is based on the information that is available by the audit report date. However future issue or circumstance may result
in discontinuing operation to Supor.
(5) Evaluate the overall presentation (including disclosure) structure and contents of financial statement and evaluate
whether financial statement presents related transactions and items fairly.
(6) Acquire sufficient and appropriate audit evidences for financial information of entity activity or business activity of
Supor and express opinions on audit financial statement. We are responsible for guiding supervising and executing the audit of
the Group and bear full responsibility for audit opinions.
872024 Annual Report of Zhejiang Supor Co. Ltd.
We communicated audit scope time schedule and significant audit finding and other issues with governance including the
internal control defect that is worthy of noting in the audit process.We have provided a declaration to the governance that we have abided by the professional ethics requirements related to
independency and have communicated with the governance all relationships and other issues those are thought to affect our
independency as well as the related precautionary measures (if applicable).In the issue we communicated with the governance we determined which issues are most important to the financial
statement audit in the current period so which constitutes the key audit items. We described these items in our audit report unless
otherwise these items are prohibited to openly disclose by law and regulation or under few circumstances if according to an
rational expectation when negative consequence of communicating an issue in the audit report may exceed its benefit on the
aspect of public benefit we confirm that we will not communicate the issue in our audit report.KPMG Huazhen LLP (Special General Partnership) Chinese CPA:
(Project partner): ________________
Huang Feng
Beijing China Chinese CPA: ________________
Jin Yang
Date: March 27 2025
882024 Annual Report of Zhejiang Supor Co. Ltd.
II. Financial Statements
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co. Ltd.December 31 2024
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary capital 2480007318.69 3548277442.44
Settlement reserve
Loans to other banks
Transactional financial assets 281234235.25 351137787.54
Derivative financial assets
Notes receivable 4036734.84 15311935.98
Accounts receivable 2690049028.80 2858247356.03
Receivables financing 368776534.93 363532765.35
Advance payment 272876022.08 193169455.51
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 94546924.00 16126721.38
Including: Interest receivable
Dividend receivable
Reverse-REPO financial assets
Inventories 2565958108.47 2262683387.31
Including: Data resource
Contract assets
Held-for-sale assets
Non-current assets due within one year 1558446438.34 285783958.92
Other current assets 287995915.36 142423696.22
Total current assets 10603927260.76 10036694506.68
Non-current assets:
Loans and advances granted
Debt investment
892024 Annual Report of Zhejiang Supor Co. Ltd.
Other debt investment 279210191.78 665522383.56
Long-term receivables
Long-term equity investment 60739389.71 61678984.35
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 1265771512.34 1243210689.64
Construction in progress 13026975.92 26862380.61
Productive biological assets
Oil and gas assets
Right-of-use assets 226926299.47 223503573.14
Intangible assets 408007646.66 428978842.72
Including: Data resource
Development expenditures
Including: Data resource
Goodwill
Long-term unamortized expenses
Deferred income tax assets 408247447.88 420252246.30
Other non-current assets
Total non-current assets 2661929463.76 3070009100.32
Total assets 13265856724.52 13106703607.00
Current liabilities:
Short-term borrowings 199741167.36
Central bank loan
Borrowing fund
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1282200000.00 1235000000.00
Accounts payable 3161736072.40 3165691101.96
Advance receipt
Contract liabilities 1088405139.86 862706076.18
Proceeds from sale of repurchase financial assets
Deposit taken and interbank deposit
Proceeds from security transaction agency
902024 Annual Report of Zhejiang Supor Co. Ltd.
Proceeds from security underwriting agency
Employee remuneration payable 357563855.07 332138705.28
Taxes payable 284299883.91 346462733.51
Other payables 135584472.49 147617550.27
Including: Interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 41987421.60 47568255.43
Other current liabilities 172075402.77 147652214.40
Total current liabilities 6523852248.10 6484577804.39
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 188428980.22 177281125.36
Long-term payables
Long-term employee remuneration payable 39199438.59 15836573.16
Estimated liabilities 52848734.33 47175046.72
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 280477153.14 240292745.24
Total liabilities 6804329401.24 6724870549.63
Owners' equities:
Share capital 801359733.00 806708657.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 191294609.67 173110627.02
Minus: Treasury share 234497705.25 488057333.76
912024 Annual Report of Zhejiang Supor Co. Ltd.
Other comprehensive incomes -28222735.40 -19176454.59
Special reserve
Surplus reserve 294492653.92 355939901.82
General risk reserve
Undistributed profit 5399987787.75 5516807622.62
Total owners' equities belonging to parent company 6424414343.69 6345333020.11
Minority shareholders' equities 37112979.59 36500037.26
Total owners' equities 6461527323.28 6381833057.37
Total liabilities and owners' equities 13265856724.52 13106703607.00
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting
department: Xu Bo
2. Balance sheet of parent company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary capital 748311712.70 1992971901.60
Transactional financial assets 250544611.01
Derivative financial assets
Notes receivable 400000.00
Accounts receivable 682534678.42 624130389.56
Receivables financing
Advance payment 16122846.23 16615946.99
Other receivables 505784147.11 674127502.50
Including: Interest receivable
Dividend receivable
Inventories 128970803.25 145018340.32
Including: Data resource
Contract assets
Held-for-sale assets
Non-current assets due within one year 111824575.34 208315863.02
Other current assets 37656555.24 19163058.36
Total current assets 2231205318.29 3931287613.36
Non-current assets:
Debt investment
922024 Annual Report of Zhejiang Supor Co. Ltd.
Other debt investment 217857260.27
Long-term receivables
Long-term equity investment 2860985202.54 2848631066.61
Other equity instrument investments
Other non-current financial assets
Investment properties
Fixed assets 128714726.20 142355870.24
Construction in progress 2574841.73 973451.33
Productive biological assets
Oil and gas assets
Right-of-use assets 1948264.71 3583014.87
Intangible assets 63599380.61 72474395.25
Including: Data resource
Development expenditures
Including: Data resource
Goodwill
Long-term unamortized expenses
Deferred income tax assets 27648932.96 25592220.27
Other non-current assets
Total non-current assets 3303328609.02 3093610018.57
Total assets 5534533927.31 7024897631.93
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Derivative financial liabilities
Notes payable 33950000.00
Accounts payable 211251634.27 211009320.51
Advance receipt
Contract liabilities 2321881.15 1702589.31
Employee remuneration payable 63078502.91 52532428.56
Taxes payable 31210194.65 54783273.55
Other payables 751756230.39 1905723034.41
Including: Interest payable
Dividend payable
932024 Annual Report of Zhejiang Supor Co. Ltd.
Held-for-sale liabilities
Non-current liabilities due within one year 586811.04 965476.36
Other current liabilities 62056.02 462826.72
Total current liabilities 1060267310.43 2261128949.42
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred share
Perpetual bond
Lease obligation 1336858.43 2369608.01
Long-term payables
Long-term employee remuneration payable 17745958.51 7212613.48
Estimated liabilities
Deferred incomes
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 19082816.94 9582221.49
Total liabilities 1079350127.37 2270711170.91
Owners' equities:
Share capital 801359733.00 806708657.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 267604558.65 249621368.24
Minus: Treasury share 234497705.25 488057333.76
Other comprehensive incomes
Special reserve
Surplus reserve 341907080.60 403354328.50
Undistributed profit 3278810132.94 3782559441.04
Total owners' equities 4455183799.94 4754186461.02
Total liabilities and owners' equities 5534533927.31 7024897631.93
3. Consolidated profit statement
Unit: RMB
942024 Annual Report of Zhejiang Supor Co. Ltd.
Item 2024 2023
I. Total Operating Income 22427337986.38 21303948642.66
Including: Operating income 22427337986.38 21303948642.66
Interest revenues
Premium earned
Revenue from handling fees and commission
II. Total Operating Costs 20021689781.47 18897483488.23
Including: Operating cost 16898273538.62 15918445100.10
Interest expense
Expense of handling fees and commission
Surrender value
Net payments for insurance claims
Net amount of withdrawn reserve fund for insured liability
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 148207237.14 142250651.43
Sales expenses 2181958549.81 2079531174.95
Administrative expenses 396033243.50 393597966.82
R&D expenses 469662999.96 431288536.29
Financial expenses -72445787.56 -67629941.36
Including: interest expenses 12026213.39 14343311.85
Interest revenues 70813837.27 80404233.22
Plus: Other incomes 285670854.20 248917540.31
Investment income ("-" for loss) 31326489.87 48812244.43
Including: investment income on associated enterprise and
-936938.07-529681.40
joint venture
Income from derecognition of financial assets
measured by amortized cost
Exchange gain ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 1234235.25 1137787.54
Credit impairment loss ("-" for loss) 17018202.32 -26219380.58
Asset impairment loss ("-" for loss) -7948487.46 6271490.06
Assets disposal income ("-" for loss) -678882.74 -4061512.01
III. Operating Profit ("-" for loss) 2732270616.35 2681323324.18
952024 Annual Report of Zhejiang Supor Co. Ltd.
Plus: Non-operating income 10277695.66 15268837.43
Minus: non-operating expense 10191216.15 11873706.91
IV. Total Profit ("-" for total loss) 2732357095.86 2684718454.70
Minus: income tax expenses 487113115.06 505298017.49
V. Net Profit ("-" for net loss) 2245243980.80 2179420437.21
(I) By business continuity
1. Net profit under continuing operation ("-" for net loss) 2245243980.80 2179420437.21
2. Net profit under discontinuing operation ("-" for net loss)
(II) By ownership
1. Net profit belonging to the shareholders of parent company 2244444529.35 2179798147.27
2. Minority shareholders' profit and loss 799451.45 -377710.06
VI. After-tax Net Amount of Other Comprehensive Income -9232789.93 1550791.25
After-tax net amount of other comprehensive income belonging to the
-9046280.811278368.67
owners of parent company
(I) Other comprehensive incomes that can not be reclassified into
profit and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that cannot be transferred to
gain and loss under the equity method
3. Changes in the fair value of other equity instrument
investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into
-9046280.811278368.67
profit and loss
1. Other comprehensive income that cannot be transferred to
gain and loss under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement -9046280.81 1278368.67
7. Others
After-tax net amount of other comprehensive income belonging to
-186509.12272422.58
minority shareholder
VII. Total Comprehensive Income 2236011190.87 2180971228.46
Total comprehensive income attributed to owners of parent company 2235398248.54 2181076515.94
Total comprehensive income attributed to minority shareholders 612942.33 -105287.48
VIII. Earnings per Share
(I) Basic earnings per share (EPS) 2.820 2.719
962024 Annual Report of Zhejiang Supor Co. Ltd.
(II) Diluted earnings per share (EPS) 2.819 2.719
If the enterprise under the same control is merged the net profit realized by the merged party before merger was RMB 0 and the
net profit realized by the merged party during the prior period was RMB 0.Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accounting
department: Xu Bo
4. Profit statement of the parent company
Unit: RMB
Item 2024 2023
I. Operating Income 3253171571.70 2800805334.77
Minus: Operating cost 2846477034.58 2370968026.25
Taxes and surcharges 10087501.19 11856409.25
Sales expenses 46553822.08 38814845.01
Administrative expenses 152261869.45 142007126.23
R&D expenses 9708491.51 8598131.92
Financial expenses -44142026.65 -51724651.97
Including: interest expenses 11510373.27 14377169.62
Interest revenues 53168689.48 70180881.22
Plus: Other incomes 20915942.18 19729508.39
Investment income ("-" for loss) 1649806411.87 1766607997.40
Including: investment income on associated enterprise and
-936938.07-529681.40
joint venture
Income from derecognition of financial assets
measured by amortized cost ("-" for loss)
Net exposure hedging gains ("-" for loss)
Gains from changes in fair value ("-" for loss) 544611.01
Credit impairment loss ("-" for loss) 2190808.49 -5681450.92
Asset impairment loss ("-" for loss) -317664.22 682560.59
Assets disposal income ("-" for loss) 290347.30 -33004.39
II. Operating Profit ("-" for loss) 1905110725.16 2062135670.16
Plus: Non-operating income 2215504.47 5940618.29
Minus: non-operating expense 3117718.78 5350542.11
III. Total Profit ("-" for total loss) 1904208510.85 2062725746.34
Minus: income tax expenses 46693454.73 83072248.78
IV. Net Profit ("-" for net loss) 1857515056.12 1979653497.56
(I) Net profit under continuing operation ("-" for net loss) 1857515056.12 1979653497.56
(II) Net profit under discontinuing operation ("-" for net loss)
972024 Annual Report of Zhejiang Supor Co. Ltd.
V. After-tax Net Amount of Other Comprehensive Income
(I) Other comprehensive incomes that can not be reclassified into
profit and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that cannot be transferred to
gain and loss under the equity method
3. Changes in the fair value of other equity instrument
investments
4. Changes in the fair value of the Company's own credit risk
5. Others
(II) Other comprehensive incomes that can be reclassified into
profit and loss
1. Other comprehensive income that cannot be transferred to
gain and loss under the equity method
2. Changes in the fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Credit impairment provision for other debt investments
5. Cash flow hedging reserve
6. Conversion difference in foreign currency financial statement
7. Others
VI. Total Comprehensive Income 1857515056.12 1979653497.56
VII. Earnings per Share
(I) Basic earnings per share (EPS)
(II) Diluted earnings per share (EPS)
5. Consolidated cash flow statement
Unit: RMB
Item 2024 2023
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 26230527558.74 21943107463.51
Net increase of customer deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash received from original insurance contract premium
Net cash received from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest handling fees and commission
Net increase of loans from others
982024 Annual Report of Zhejiang Supor Co. Ltd.
Net increment of repurchase capital
Net cash from security transaction agency
Tax refund received 480075936.29 356790351.15
Other cash received relating to operating activities 263103932.86 267893712.24
Subtotal of cash inflows from operating activities 26973707427.89 22567791526.90
Cash payments for purchasing commodities and receiving services 19042418299.48 15769508361.73
Net increment of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance
contracts
Net increase of loans to other banks
Cash for interest handling fees and commission
Cash payment of policy dividend
Cash paid to and for employees 1990490337.49 1779509629.09
Taxes paid 1247877282.05 1028954311.82
Other cash expenses related to operating activities 2109419370.67 1954909888.06
Subtotal of cash outflows from operating activities 24390205289.69 20532882190.70
Net cash flows from operating activities 2583502138.20 2034909336.20
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment income 63798416.92 75313420.68
Net cash received from disposal of fixed assets intangible assets and
9372792.032626672.37
other long-term assets
Net cash receipts from disposal of subsidiaries and other business
units
Other cash received relating to investing activities 3982135271.09 2738215081.02
Subtotal of cash inflows from investing activities 4055306480.04 2816155174.07
Net cash paid for the construction of fixed assets intangible assets
208214259.37137477524.11
and other long-term assets
Cash paid for investment
Net increase of pledge loans
Net cash paid for acquiring subsidiaries and other business units
Other cash expenses related to investing activities 3852251431.43 2923123711.63
Subtotal of cash outflows from investing activities 4060465690.80 3060601235.74
Net cash flows from investing activities -5159210.76 -244446061.67
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
992024 Annual Report of Zhejiang Supor Co. Ltd.
Including: cash received by subsidiaries from minority shareholder
investment
Cash received from obtaining borrowings 198860697.83 198504388.57
Other cash receipts related to financing activities 79000.00
Subtotal of cash inflows from financing activities 198860697.83 198583388.57
Cash paid for debt repayment 400000000.00
Cash paid for distribution of dividends or profits or for payment of
2175512858.612439504228.21
interest
Including: dividends or profits paid by subsidiaries to minority
shareholders
Other cash payments related to financing activities 57283730.98 540741394.47
Subtotal of cash outflows from financing activities 2632796589.59 2980245622.68
Net cash flows from financing activities -2433935891.76 -2781662234.11
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents 18959000.74 1019143.56
V. Net Increase in Cash and Cash Equivalents 163366036.42 -990179816.02
Plus: Balance of cash and cash equivalents at the beginning of the
1405752936.362395932752.38
period
VI. Balance of Cash and Cash Equivalents at the End of the Period 1569118972.78 1405752936.36
6. Cash flow statement of parent company
Unit: RMB
Item 2024 2023
I. Cash Flows from Operating Activities:
Cash received from sales of commodities or rendering of services 3308998535.67 2675975306.62
Tax refund received 216396412.91 154933316.86
Other cash received relating to operating activities 61040653.24 70788457.00
Subtotal of cash inflows from operating activities 3586435601.82 2901697080.48
Cash payments for purchasing commodities and receiving services 3052086770.67 2448288210.73
Cash paid to and for employees 224773494.44 170100393.05
Taxes paid 81943109.74 72211600.02
Other cash expenses related to operating activities 108988676.38 72825973.49
Subtotal of cash outflows from operating activities 3467792051.23 2763426177.29
Net cash flows from operating activities 118643550.59 138270903.19
II. Net Cash Flows from Investing Activities:
Cash received from return of investments
Cash received from investment income 1670046037.34 1788640317.70
Net cash received from disposal of fixed assets intangible assets and
612696.07603663.57
other long-term assets
1002024 Annual Report of Zhejiang Supor Co. Ltd.
Net cash receipts from disposal of subsidiaries and other business units
Other cash received relating to investing activities 1708104501.40 1105049702.00
Subtotal of cash inflows from investing activities 3378763234.81 2894293683.27
Net cash paid for the construction of fixed assets intangible assets and
18366862.9123182198.26
other long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries and other business units
Other cash expenses related to investing activities 1846208777.83 1465412274.03
Subtotal of cash outflows from investing activities 1864575640.74 1488594472.29
Net cash flows from investing activities 1514187594.07 1405699210.98
III. Net Cash Flows from Financing Activities:
Cash from absorbing investments
Cash received from obtaining borrowings
Other cash receipts related to financing activities 309899781.79 1297348085.21
Subtotal of cash inflows from financing activities 309899781.79 1297348085.21
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of
2187199900.852454574408.09
interest
Other cash payments related to financing activities 866913.55 480891856.13
Subtotal of cash outflows from financing activities 2188066814.40 2935466264.22
Net cash flows from financing activities -1878167032.61 -1638118179.01
IV. Impact of Exchange Rate Changes on Cash and Cash Equivalents 6077068.92 -2235360.05
V. Net Increase in Cash and Cash Equivalents -239258819.03 -96383424.89
Plus: Balance of cash and cash equivalents at the beginning of the
987570531.731083953956.62
period
VI. Balance of Cash and Cash Equivalents at the End of the Period 748311712.70 987570531.73
7. Statement of changes in consolidated owners' equities
Amount of this period
Unit: RMB
2024
Owners' equities belonging to parent company
Minorit
Item Other equity instruments Total Other y
Minus: General Undistri sharehol owners'
Share Capital compre Special Surplus
Preferr Treasur risk buted Others Subtotal ders'
capital Perpetu
equities
reserves hensive reserve reserve
ed Others equities y share reserve profit
al bond incomes
share
I. Closing 80670 - 55168 63818
173110488057355939634533336500
Balance of 8657.0 19176 07622. 33057.
627.02333.76901.82020.11037.26
the Last 0 454.59 62 37
1012024 Annual Report of Zhejiang Supor Co. Ltd.
Year
Plus:
cumulative
changes of
accounting
policies
E
rror
correction
of prior
period
O
thers
II.Opening
80670-5516863818
Balance of 173110 488057 355939 6345333 36500
8657.01917607622.33057.
the 627.02 333.76 901.82 020.11 037.26
0454.596237
Current
Year
III.Changes
of the - - - - -
18183790813261294279694
Current 53489 253559 90462 61447 116819
982.653.58.33265.91
Period ("-" 24.00 628.51 80.81 247.90 834.87
for
Decrease)
(I) Total of
-2244422360
comprehen 2235398 612942
9046244529.11190.
sive 248.54 .33
80.813587
incomes
(II)
Capital
---
invested 18183 1919593 19195
53489253559247198
and 982.65 3.65 933.65
24.00628.51753.51
reduced by
the owner
1.
Common
shares
invested
by owners
2. Capital
invested
by other
equity
instrument
holders
3. Amount
of share-
--
based 18183 1919593 19195
1989212108
payment 982.65 3.65 933.65
4.0075.00
through
owners'
1022024 Annual Report of Zhejiang Supor Co. Ltd.
equities
---
4. Others 51500 252348 247198
00.00753.51753.51
--
(III) Profit -
1857512361221755
distributio 2175512
505.6164364.12858.
n 858.61
2261
1.
Appropriat -
185751
ion of 185751
505.61
surplus 505.61
reserve
2.
Appropriat
ion of
general
risk
reserve
3.
Appropriat
--
ion of -
2175521755
profit to 2175512
12858.12858.
owners (or 858.61
6161
shareholde
rs)
4. Others
(IV)
Internal
carry-over
within
owners'
equities
1. Transfer
of capital
reserve to
capital (or
share
capital)
2. Transfer
of surplus
reserve to
capital (or
share
capital)
3. Surplus
reserve to
cover
losses
4.
Retained
earnings
after
carrying
1032024 Annual Report of Zhejiang Supor Co. Ltd.
over
amount of
changes in
defined
benefit
plan
5.
Retained
earnings
after
carrying
over other
comprehen
sive
incomes
6. Others
(V)
Special
reserve
1.
Appropriat
ion of
current
period
2.
Applicatio
n of
current
period
(VI)
Others
IV.Closing
80135-5399964615
Balance of 191294 234497 294492 6424414 371129
9733.02822287787.27323.
the 609.67 705.25 653.92 343.69 79.59
0735.407528
Current
Period
Amount of the prior period
Unit: RMB
2023
Owners' equities belonging to parent company
Minorit
Other equity
Other y Total Item instruments Minus: General Undistrib
Share Capital compre Special Surplus sharehol owners'
Preferr Perpe Treasur risk uted Others Subtotal
capital reserves hensive reserve reserve ders' equities
ed tual Others y share reserve profit
incomes equities
share bond
I. Closing
-7036070726
Balance of 8086544 125368 99724 356924 586531 36605
2045484863.90188.
the Last 76.00 989.44 823.49 811.32 6233.53 324.74
823.265428
Year
Plus:
cumulative
1042024 Annual Report of Zhejiang Supor Co. Ltd.
changes of
accounting
policies
E
rror
correction
of prior
period
O
thers
II.Opening
-7036070726
Balance of 8086544 125368 99724 356924 586531 36605
2045484863.90188.
the 76.00 989.44 823.49 811.32 6233.53 324.74
823.265428
Current
Year
III.Changes
of the - - - - - -
4774138833212783
Current 1945819 984909 348508 690751 105287 690857
637.58510.2768.67
Period ("-" .00 .50 610.91 843.43 .48 130.91
for
Decrease)
(I) Total of
21810-21809
comprehen 12783 217979
76515.10528771228.
sive 68.67 8147.27
94.4846
incomes
(II)
Capital
----
invested 47741 47741 47741
19458199173386136365059
and 637.58 637.58 637.58.00258.47849.470.00
reduced by
the owner
1.
Common
shares
invested
by owners
2. Capital
invested
by other
equity
instrument
holders
3. Amount
of share-
based - -
-477414774147741
payment 37263 365059
75750.00637.58637.58637.58
through 40.00 0.00
owners'
equities
---
4. Others 1870069 88006 86136.00918.47849.47
1052024 Annual Report of Zhejiang Supor Co. Ltd.
--
(III) Profit -
851512439524395
distributio 252465
939.9704228.04228.
n 6168.18
2121
1.
Appropriat -
85151
ion of 851519
939.97
surplus 39.97
reserve
2.
Appropriat
ion of
general
risk
reserve
3.
Appropriat
--
ion of -
2439524395
profit to 243950
04228.04228.
owners (or 4228.21
2121
shareholde
rs)
4. Others
(IV)
Internal
carry-over
within
owners'
equities
1. Transfer
of capital
reserve to
capital (or
share
capital)
2. Transfer
of surplus
reserve to
capital (or
share
capital)
3. Surplus
reserve to
cover
losses
4.
Retained
earnings
after
carrying
over
amount of
changes in
defined
benefit
1062024 Annual Report of Zhejiang Supor Co. Ltd.
plan
5.
Retained
earnings
after
carrying
over other
comprehen
sive
incomes
6. Others
(V)
Special
reserve
1.
Appropriat
ion of
current
period
2.
Applicatio
n of
current
period
--
(VI) 480065
480065480065
Others 768.74
768.74768.74
IV.Closing
-6345363818
Balance of 8067086 173110 488057 355939 551680 36500
1917633020.33057.
the 57.00 627.02 333.76 901.82 7622.62 037.26
454.591137
Current
Period
8. Statement of changes in owners' equities of the parent company
Amount of this period
Unit: RMB
2024
Other equity instruments Other
Item Minus: Total
Share Capital comprehe Special Surplus Undistribu
Preferr Treasury Others owners'
capital Perpetu reserves nsive reserve reserve ted profit
ed Others share equities
al bond incomes
share
I. Closing
80670865249621364880573403354337825594754186
Balance of the
7.008.2433.7628.50441.04461.02
Last Year
Plus:
cumulative
changes of
accounting
policies
1072024 Annual Report of Zhejiang Supor Co. Ltd.
Error
correction of
prior period
Others
II. Opening
80670865249621364880573403354337825594754186
Balance of the
7.008.2433.7628.50441.04461.02
Current Year
III. Changes of
-----
the Current 17983190.
5348924.02535596614472450374932990026
Period ("-" for 41
028.517.9008.1061.08
Decrease)
(I) Total of
18575151857515
comprehensive
056.12056.12
incomes
(II) Capital
---
invested and 17983190. 1899514
5348924.025355962471987
reduced by the 41 1.41
028.5153.51
owner
1. Common
shares invested
by owners
2. Capital
invested by other
equity instrument
holders
3. Amount of
-
share-based 17983190. 1899514
-198924.001210875
payment through 41 1.41.00
owners' equities
---
4. Others 5150000.0 2523487 2471987
053.5153.51
--
(III) Profit 1857515
23612642175512
distribution 05.61
364.22858.61
-
1. Appropriation 1857515
1857515
of surplus reserve 05.61
05.61
2. Appropriation
--
of profit to
21755122175512
owners (or
858.61858.61
shareholders)
3. Others
(IV) Internal
carry-over within
owners' equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve to
1082024 Annual Report of Zhejiang Supor Co. Ltd.
capital (or share
capital)
3. Surplus
reserve to cover
losses
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
2. Application of
current period
(VI) Others
IV. Closing
80135973267604552344977341907032788104455183
Balance of the
3.008.6505.2580.60132.94799.94
Current Period
Amount of the prior period
Unit: RMB
2023
Other equity instruments Other
Item Minus: Total
Share Capital compreh Special Surplus Undistribu
Preferr Treasury Others owners'
capital Perpetu reserves ensive reserve reserve ted profit
ed Others share equities
al bond incomes
share
I. Closing
80865447202697749972482404339243312125647179
Balance of the
6.001.403.4938.00701.66333.57
Last Year
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
1092024 Annual Report of Zhejiang Supor Co. Ltd.
II. Opening
80865447202697749972482404339243312125647179
Balance of the
6.001.403.4938.00701.66333.57
Current Year
III. Changes of
----
the Current 46923626. 3883325
1945819.0984909.554865328929928
Period ("-" for 84 10.27
0060.6272.55
Decrease)
(I) Total of
19796531979653
comprehensive
497.56497.56
incomes
(II) Capital
----
invested and 46923626. 4692362
1945819.0917332586136843650590.
reduced by the 84 6.84
08.479.4700
owner
1. Common
shares invested
by owners
2. Capital
invested by other
equity instrument
holders
3. Amount of
--
share-based 46923626. 4692362
-75750.0037263403650590.payment through 84 6.84.0000
owners' equities
---
4. Others 1870069.0 8800691 8613684
08.479.47
--
(III) Profit 8515193
25246562439504
distribution 9.97
168.18228.21
-
1. Appropriation 8515193
8515193
of surplus reserve 9.97
9.97
2. Appropriation
--
of profit to
24395042439504
owners (or
228.21228.21
shareholders)
3. Others
(IV) Internal
carry-over within
owners' equities
1. Transfer of
capital reserve to
capital (or share
capital)
2. Transfer of
surplus reserve to
capital (or share
capital)
3. Surplus
reserve to cover
losses
1102024 Annual Report of Zhejiang Supor Co. Ltd.
4. Retained
earnings after
carrying over
amount of
changes in
defined benefit
plan
5. Retained
earnings after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
2. Application of
current period
-
4800657
(VI) Others 4800657
68.74
68.74
IV. Closing
80670865249621364880573403354337825594754186
Balance of the
7.008.2433.7628.50441.04461.02
Current Period
III. Company Profile
Zhejiang Supor Co. Ltd (hereinafter referred to as "the Company") is a limited liability company (by shares) transformed on
an integral basis from Zhejiang Supor Cookware Co. Ltd under the approval of Leading Group for Enterprise Listing of the
People's Government of Zhejiang Province with No. ZSS [2000] 24 approval document. On November 10 2000 the Company
registered at Zhejiang Administration for Industry and Commerce. Registered address: Yuhuan City Zhejiang Province; head
office address: Hangzhou City Zhejiang Province. The Company's parent company is SEB INTERNATIONALE S.A.S whose
final parent company is SEB S.A. The Company has a corporate business license numbered 913300007046976861.The Company and its subsidiaries (hereinafter referred to as "Supor") are mainly engaged in the R&D production and
distribution of kitchen tools stainless steel products daily hardware small domestic appliances and cookware; its products are
cookware and small domestic appliances.The financial statement was released after the approval of the Company's Board of Directors on March 27 2025.By December 31 2024 there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See
Note X "Equity in Other Entities" for details.IV. Preparation Basis of the Financial Statements
1. Preparation basis
The financial statements of the Group are prepared based on the assumption of continuing operation and actual transactions
and items and in accordance with the Accounting Standards for Business Enterprises - Basic Standard (Released CZBL No.33
1112024 Annual Report of Zhejiang Supor Co. Ltd.
Revised CZBL No.76) issued by the Ministry of Finance of the People's Republic of China (hereinafter referred to as the "Ministry
of Finance") and 42 specific accounting standards guidelines for the application of accounting standards for business enterprises
interpretations to the accounting standards for business enterprises and other provisions released and revised on and after February
15 2006 (hereinafter referred to as accounting standards for business enterprises) and the disclosure provisions of the Regulations
of Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities No.15 - General Provisions on
Financial Reporting (Revised in 2023) of the China Securities Regulatory Commission.According to the relevant regulations of the accounting standards for business enterprises the Group's accounting is made on
accrual basis. Except for certain financial instruments measurements in these financial statements are made on the basis of
historical cost. If an asset is impaired corresponding impairment provision will be made in accordance with relevant regulations.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of the reporting period and there are
no major issues affecting the ability to continue operations.V. Important Accounting Policies and Estimates
Prompt for specific accounting policies and estimates:
The Group has formulated several specific accounting policies and estimates based on the actual production and operation
characteristics and relevant accounting standards for business enterprises.When preparing financial statements the Group's management needs to use estimates and assumptions which will affect the
application of accounting policies and the amounts of assets liabilities income and expenses. The actual situation may differ from
these estimates. The management of the Group continuously evaluates the key assumptions and uncertainties involved in the
estimation and recognizes the impact of changes in accounting estimates in the current and future periods of the change. The
Group 's main accounting estimates include depreciation and amortization of fixed assets and intangible assets (see notes V 17
and 20) impairment of various assets (see notes VII 4 6 8 13 and XIX 1 and 2) recognition of deferred tax assets and
liabilities (see notes VII 17) disclosure of fair value (see note XIII) and share-based payments (see note XV).
1. Abidance of the statement of Accounting Standards for Business Enterprises
The financial statement conforms to the requirements of Accounting Standards for Business Enterprises promulgated by the
Ministry of Finance and has reflected relevant information such as the financial condition and consolidated financial condition as
at December 31 2024 and the operating result consolidated operating result cash flow and consolidated cash flow for the year of
2024 of the Company and Supor. In addition the financial statements of the Company and the Group conform to the disclosure
requirements of the Regulations of Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities
No. 15 - General Provisions on Financial Reporting revised by the China Securities Regulatory Commission (CSRC) in 2023 and
related financial statements and their notes.
2. Accounting period
The accounting period of the Group is divided into annual period and interim period; an interim period refers to a reporting
period which is shorter than a whole fiscal year. The Group takes calendar year as the fiscal year i.e. from January 1 to December
31.
1122024 Annual Report of Zhejiang Supor Co. Ltd.
3. Operating cycle
The normal operating cycle means the period from the time when the Group purchases the assets used for processing to the
time of realizing cash or cash equivalents. The Group takes 12 months as an operating cycle and uses it as a standard for
classifying the liquidity of assets and liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the
Company and its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the
Company is determined as VND SGD and IDR separately based on the currency in main economic environment in which they
operate. The Group uses RMB as the recording currency to prepare the financial statement.
5. Determination method and selection basis of significance standards
? Applicable □ Not applicable
Item Significant standard
Significant accounts receivable written off
Important other debt investments
Significant construction in progress 5% of the total profit
Important accounts payable with aging over one year:
Significant not wholly-owned subsidiaries
Significant joint venture or associated enterprises
6. Accounting treatment method for the enterprise merger under and not under the same control
Enterprise merger refers to the transaction or events of two or more separate enterprises combing into a reporting entity.Enterprise merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.For transactions not under the same control the purchasing party will consider whether to choose the simplified judgment
method of "concentration test" when judging whether the acquired asset portfolio constitutes a business. If the portfolio passes the
concentration test it is judged that it does not constitute a business. Otherwise it shall still be judged in line with business
conditions.When the Group acquires a group of assets or net assets that do not constitute a business the purchase cost shall be allocated
on the basis of the relative fair value of the identifiable assets and liabilities acquired on the purchase date and shall not be treated
as per the following accounting treatment methods for enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after
merger and for a non-temporary period then it belongs to an enterprise merger under the same control. In a business merger the
Company measures the acquired assets and liabilities at the book values for the merged party as recorded in the consolidated
financial statements of the ultimate controller on the merger date. As to the difference between the book value of net assets
acquired and the book value of merger consideration paid by it (or total amount of the book value of shares issued) the capital
1132024 Annual Report of Zhejiang Supor Co. Ltd.
reserve (share capital premium) shall be adjusted correspondingly; If the share capital premium in the capital reserve is insufficient
to be deducted the surplus reserve and undistributed profits shall be deducted in turn. The direct expenses incurred from enterprise
merger shall be recognized through current profits and losses at the time of occurrence. The merger date refers to the day when the
merging party actually obtains the control rights of the merged party.
(2) Enterprise merger not under the same control
If enterprises involved with merger are not under the final control of the same party or same multiple parties before and after
merger then it belongs to an enterprise merger not under the same control. For enterprise merger not under the same control the
party which has obtained the control rights for other combining enterprises on the purchase date will be considered as the
purchasing party and other participating enterprise is the purchased party. The purchase date refers to the day when the purchasing
party obtains the control right over the purchased party.As for enterprise merger not under the same control the merger costs include the assets paid by the purchasing party the
liabilities accrued and assumed as well as the fair value of equity securities issued for obtaining purchased party's control right on
the purchase date; the intermediary fees such as auditing legal service and evaluation and consulting and other related
administrative expenses for the enterprise merger shall be recognized through current profits and losses at the time of occurrence.Transaction cost of equity securities or debt securities issued by the purchasing party as merger consideration shall be recognized
through initial recognition amount of the equity securities or debt securities. Contingent consideration involved shall be recognized
through merger cost according to the fair value at the purchase date; if new or further proofs appearing within 12 months after the
purchase date show that the contingent consideration needs to be adjusted the merger goodwill shall be adjusted correspondingly.The merger costs incurred by the purchasing party and the identifiable net assets obtained in the merger shall be measured at the
fair value on the purchase date. The amount of the merger cost larger than the fair value of identifiable net assets of the purchased
party acquired by it on the purchase date shall be recognized as goodwill after considering the impact of related deferred taxes. If
the merger cost is lower than the fair value of identifiable net assets of the purchased party obtained during merging the
measurement of the identifiable assets of the purchased party obtained liabilities or fair value of contingent liabilities and the
merger costs shall be reviewed firstly. If the merger cost is still lower than the fair value of identifiable net assets of the purchased
party obtained during merger the difference shall be recognized through current profits and losses.If the deductible temporary difference of the purchased party gained by purchasing party fails to be confirmed on the
purchase date due to the inconformity of the recognition condition of deferred income tax assets and in case new or further
information obtained indicates that the relevant conditions on the purchase date have existed within 12 months after the purchase
date and it is predicted that the economic benefits brought by the purchased party from deductible temporary differences can be
realized on the purchase date relevant deferred income tax assets shall be confirmed at the same time the goodwill shall be
reduced; if the goodwill is insufficient for offset the differential part shall be confirmed as the current profits and losses; except
for above conditions in case the deferred income tax assets are confirmed to be related to the enterprise merger they shall be
recognized through current profits and losses.As for the enterprise merger not under the same control realized step by step through multiple transactions it shall judge
whether the multiple transactions belong to the "package deal" according to No. 5 Notice About Printing and Issuing Accounting
Standards for Business Enterprises Explanation in Ministry of Finance (CK [2012] No. 19) and the judgment standard (refer to the
Note V. 7 "Judgment Criteria for Control and Preparation Method for Consolidated Financial Statements" (2)) about "package
deal" in Article 51 of the Accounting Standards for Business Enterprises No. 33 -- Consolidated Financial Statement. If the
multiple transactions belong to the "package deal" refer to the above descriptions of the part and Note V. 16 "Long-term Equity
Investment" to conduct the accounting treatment; for those not belonging to "package deal" it shall distinguish individual financial
statements and consolidated financial statements to conduct relevant accounting treatment.
1142024 Annual Report of Zhejiang Supor Co. Ltd.
The sum of book value of the purchased party's equity investment held prior to the purchase date and the newly investment
cost on the purchase date in individual financial statements shall be regarded as the initial investment cost of such investment; in
case that the equity of the purchased party held before the purchase date is involved in other comprehensive incomes when
disposing of the investment other comprehensive income related shall be transferred to the current investment income.In consolidated financial statements the equity of the purchased party held before the purchase date shall be measured again
according to the fair value of the equity at the purchase date and the difference between fair value and its book value shall be
recognized through current investment income; in case that equity of the purchased party held before the purchase date is involved
in other comprehensive incomes other comprehensive income related shall be transferred to the current investment income on the
purchase date.
7. Judgment criteria of control and preparation method for consolidated financial statements
(1) Principles for defining the scope of consolidated financial statement
The scope of the consolidated financial statements is control-based. Control refers to that Supor has the right in an investee
which allows it to enjoy variable returns by participating relevant activities of such investee and to use such right to influence the
amount of such returns. In determining whether the Group has control over an investee the Group considers substantive rights
related to the investee (including substantive rights held by the Group itself and those held by other parties). The financial
condition operating results and cash flows of the subsidiaries are included in the consolidated financial statements from the date
control commences to the date control ceases. The consolidation scope shall include the Company and all its subsidiaries and
"subsidiaries" refers to the bodies under the control of Supor.Supor will re-evaluate the situation once the change in relevant facts and circumstances affects the factors involved in the
above definition of control.
(2) Preparation method for consolidated financial statements
From the date of obtaining actual control right of the subsidiaries' net assets and production operation decision the Group will
begin to bring it into the merger scope; subsidiaries will not be included into the merger scope from the date when the Company
loses its actual control right. As for the disposed subsidiaries the operating results and cash flow before disposal date have been
properly included into the consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the
current period the opening balance of the consolidated balance sheet will not be adjusted. As for the subsidiary increased due to
the enterprise merger not under the same control its operating results and cash flow after the purchase date have been properly
included into the consolidated profit statement and consolidated cash flow statement and the opening balance and contrast balance
of the consolidated financial statement shall not be adjusted. As for the subsidiary increased due to the enterprise merger under the
same control and the merged party under consolidation by merger the operating results and cash flow from the beginning of the
current period of the merger to the merger date have been properly included into the consolidated profit statement and the
consolidated cash flow statement and the contrast balance of the consolidated financial statement shall be adjusted simultaneously.When consolidated financial statements are prepared in case the accounting policies or accounting periods employed by the
subsidiary and the Company are different it's required to make necessary adjustment on the subsidiary's financial statements
according to the Company's accounting policy and accounting period. As to the subsidiary acquired by the enterprise merger not
under the same control it's required to adjust its financial statements on the basis of fair value of identifiable net assets at the
purchase date.All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidated
financial statement.
1152024 Annual Report of Zhejiang Supor Co. Ltd.
The shareholders' equities and current net profits or losses of subsidiaries that do not belong to the part owned by the
Company shall be separately listed in the shareholders' equities and minority shareholders' profit and loss in the consolidated
financial statement as the minority shareholders' equities and profits and losses. The share in the current net profit or loss of the
subsidiary that belongs to minority shareholders' equities shall be set out as "minority shareholders' profit and loss" under net
profit in the consolidated profit statement. In case the losses of the subsidiary shared by minority shareholders exceed the share
that shall be enjoyed by minority shareholders in the subsidiary's shareholders' equities at the beginning of period they shall be
offset with minority shareholders' equities.In case of losing the control right for the original subsidiary due to disposal of partial equity investment or other reasons the
residual equity shall be measured again according to the fair value at the date when the control right is lost. The difference
between the sum of the consideration acquired by equity disposal and the fair value of residual equity and the share of net assets of
the original subsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the original
shareholding ratio shall be recognized through investment income of the current period when the control right is lost. As for other
comprehensive income which relate to the equity investment of the original subsidiaries when the control right is lost the
accounting treatment shall be carried out on the same basis as the subsidiary's direct disposal of relevant assets or liabilities.Thereafter the residual equity of this part shall be further measured in accordance with Accounting Standards for Business
Enterprises No. 2 -- Long-term Equity Investment or Accounting Standards for Business Enterprises No. 22 -- Recognition and
Measurement of Financial Instruments. See Note V 16 "Long-term Equity Investment" or Note V. 10 "Financial Instruments" for
details.If the Group disposes the equity investment of subsidiary step by step via multiple transactions until losing the control right it
is necessary to distinguish whether transactions for disposal to the equity investment of subsidiary until losing the control right
belong to the package deal. When the disposal of the articles conditions and the economic impact of various transactions for the
equity investment of the subsidiary is subject to one or more of the following conditions it generally indicates that it shall conduct
accounting treatment by taking the multiple transactions as a package deal: * These transactions are considered to be concluded
at the same time or made in the case of considering mutual influence; * These transactions as a whole can reach a complete
business result; * The occurrence of a transaction depends on the occurrence of at least one other transaction; * One transaction
alone is not economical but when being considered together with other transactions it is economical. If it is not package deal
every transaction will be conducted by the accounting treatment according to the following suitable principles namely "partially
dispose the long-term equity investment of subsidiary when the control right is not lost" (See Note V 16 "Long-term Equity
Investment" (2) (d)) and "lose the control right for the original subsidiary due to disposal of partial equity investment or other
reasons" (see previous paragraph) for details. If the disposal of transactions on subsidiaries' equity investments until loss of control
right is a package deal they are regarded as a transaction that disposes the subsidiary and loses the control right; however the
difference between each disposal price and the subsidiary's net asset share enjoyed corresponding to disposing investment before
loss of control right shall be recognized as other comprehensive incomes in the consolidated financial statements which will be
transferred into the current investment profits and losses on investments of losing the control right when the control right is lost.
8. Determining standards for cash and cash equivalents
Cash and cash equivalents of the Group includes cash on hand and the deposit that can be used for making payment at any
time as well as investments that are held by the Group have a short term (generally mature within 3 months since the purchase
date) and strong liquidity can be converted into the cash of known amount easily and have small risks in value change.
9. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transactions
1162024 Annual Report of Zhejiang Supor Co. Ltd.
After initial recognition the foreign currency transactions occurring in the Group are converted into recording currency
amounts at the spot rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of
issuance by the People's Bank of China the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date the spot rate on the balance sheet date will be adopted in the conversion of the foreign currency
monetary items. In terms of the resulting exchange differences: * The exchange difference of special foreign currency borrowings
related to acquiring and constructing assets which meet capitalization conditions is disposed on the principle of the capitalization
of borrowing expense; and * foreign currency monetary items measured at fair value through other comprehensive incomes
except that the exchange difference created by other book balance changes other than by amortized costs (including decrease in
value) is recognized through other comprehensive incomes are recognized through current profits and losses.As to foreign currency non-monetary items measured by historical cost the amount in the recording currency converted at the
spot rate on the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fair
value it's required to employ the spot rate at the fair value confirmation date for conversion and the resulting exchange difference
belongs to the difference of equity instrument investment at fair value through other comprehensive incomes and is recognized
through other comprehensive income or recognized through other comprehensive incomes; other differences are recognized
through current profits and losses.
(3) Conversion of foreign currency financial statement
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: the
assets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders'
equities except the "undistributed profits" other items shall be converted by the spot rate on the date of occurrence. Items under
income and expense in the profit statement shall be translated according to the spot rate at the transaction date. The undistributed
profits at the beginning of the year is the year-end undistributed profit after conversion of last year; the period-end undistributed
profit is calculated and presented according to the profit distribution of each item after conversion; the balance of the total amount
among the assets and liabilities as well as shareholders' equities after conversion serves as "conversion difference in foreign
currency statement" and is recognized as other comprehensive income; For disposal of overseas business and the loss of control
right the conversion difference in foreign currency statement related to the overseas business and presented under the
shareholders' equities in the balance sheet is transferred wholly or according to the disposal ratio of the overseas business into the
current disposal profits and losses.Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash
flows. The influenced amount of changes in the exchange rate on cash is listed separately in the cash flow statement as an
adjustment item.The beginning amount and actual amount of the year shall be presented according to the amount after conversion of financial
statement of last year.In case of loss of control right of overseas business due to disposal of the Group's entire owners' equities in overseas business
or the disposal of partial equity investment or other reasons the foreign currency conversion difference listed in the shareholders'
equities items in the balance sheet related to the overseas business and attributable to owners' equities belonging to parent
company shall be totally converted into the current disposal profits and losses.In case of decrease of the ratio of overseas business but no loss of control right due to disposal of partial equity investment or
other reasons the conversion difference related to the disposal of part of related currency in the overseas business shall be
attributable to the minority shareholders' equities and not converted into the current profits and losses.
1172024 Annual Report of Zhejiang Supor Co. Ltd.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses the
exchange difference generated due to the exchange rate change in the consolidated financial statements shall be determined to
other comprehensive incomes as "conversion difference in foreign currency statements"; when disposing overseas business it shall
be recognized through current disposal profits and losses.
10. Financial instruments
When the Group becomes one party of financial instrument contract it's required to recognize financial assets or financial
liabilities.
(1) Classification recognition and measurement of financial assets
Based on the business mode for managing financial assets and the contracted cash flow features of financial assets the Group
divides the financial assets into: financial assets measured by amortized cost financial assets at fair value through other
comprehensive incomes financial assets measured at the fair value with their changes included into the current profits and losses.The business mode of the Company's management of financial assets means that how the Group manages its financial assets
so as to generate cash flows. Through business mode it can be determined that whether the cash flow of financial assets managed
by the Group is from the collection of contractual cash flow sales of financial assets or both. The Group based on the objective
fact and specific business objective of financial asset management determined by key management personnel makes decisions on
the business mode for managing financial assets.The Group evaluates the contractual cash flow characteristic of financial assets to determine whether the contractual cash
flow generated by the relevant financial assets on the specific date is only payment of principal and interests for outstanding
principal amount. Wherein the principal refers to the fair value of financial assets at initial recognition; interest includes
consideration of the time value of money the credit risk related to the outstanding principal amount for a specific period and other
basic borrowing risks costs and profits. Furthermore the Group evaluates the contract terms that are likely to cause changes in
the distribution of time or amount of the contractual cash flow of financial assets to determine whether the terms satisfy the
requirements of the above contractual cash flow characteristics.Unless the Group changes its business mode for managing financial assets all affected related financial assets are reclassified
on the first day of the first reporting period after the change of business mode otherwise financial assets cannot be reclassified
after initial recognition.Financial assets shall be measured by fair value during initial recognition. As to financial assets at fair value through current
profits and losses related transaction cost shall be recognized through current profits and losses directly; as to other categories of
financial assets related transaction cost shall be recognized through initial recognition amount. Accounts receivable or notes
receivable that are from sale of products or rendering of labors and do not include or take into account significant financing parts
are taken as initial recognition amount by the Group based on the consideration amount that the Group is entitled to receive.(a) Financial assets measured by amortized cost
The business mode of the Group to manage financial assets measured by amortized cost is aimed at receiving contracted cash
flows; the contracted cash flow features of such financial assets are consistent with basic loan arrangements that is cash flows
generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest method is
used by the Group to carry out subsequent measurement of such financial asset according to the amortized cost and the gains or
losses arising from amortization and impairment are recognized through current profits and losses.(b) Financial assets at fair value through other comprehensive incomes
The business mode of the Group to manage such financial assets is aimed at receiving contracted cash flows as well as sales;
the contractual cash flow features of such financial assets are consistent with basic loan arrangements. The Group measures such
financial assets at fair value through other comprehensive incomes but impairment losses or gains exchange profits and losses
1182024 Annual Report of Zhejiang Supor Co. Ltd.
and interest revenue calculated based on effective interest method are recognized through current profits and losses. When the
financial asset is derecognized the accumulated gains or losses previously recognized through other comprehensive income shall
be transferred out of other comprehensive income and recognized through current profits and losses.In addition for investments in non-transactional equity instruments the Group can irrevocably designate them as financial
assets at fair value through other comprehensive incomes upon initial recognition. The designation is made on a single investment
basis and the relevant investment meets the definition of equity instrument from the issuer's point of view. The Group includes the
related dividend income of such financial assets into the current profits and losses with the change in fair value recognized through
other comprehensive income. When the financial asset is derecognized the accumulated gains or losses previously recognized
through other comprehensive income shall be transferred into retained earnings and recognized through current profits and losses.(c) Financial assets at fair value through current profits and losses
The Group recognizes foregoing financial assets measured by amortized cost and that are not financial assets at fair value
through other comprehensive incomes as financial assets at fair value through current profits and losses. In addition during initial
recognition in order to eliminate or significantly reduce accounting mismatches the Group designates part of the financial assets
at fair value through current profits and losses. As to such financial assets subsequent measurement shall be carried out by the
Group based on fair value and the resulting gains or losses (including interest and dividend income) are recognized through
current profits and losses unless the financial asset is part of the hedging relationship.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities are classified as financial liabilities at fair value through current profits and losses financial guarantee
liabilities and other financial liabilities upon initial recognition. As to financial liabilities at fair value through current profits and
losses related transaction cost shall be recognized through current profits and losses directly; as to other financial liabilities
related transaction cost shall be recognized through initial recognition amount.(a) Financial liabilities at fair value through current profits and losses
financial liabilities at fair value through current profits and losses include transactional financial liabilities (including
derivatives belonging to financial liabilities) and financial liabilities that are designated to be measured at fair value with changes
recognized through current profits and losses during initial recognition.Transactional financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair
value and except for those related to hedge accounting changes in fair value are recognized through current profits and losses.For financial liabilities at fair value through current profits and losses changes in their fair value caused by changes in the
Group's own credit risk are recognized through other comprehensive income and when such liabilities are stopped to be
recognized accumulated changes in their fair value caused by changes in the Group's own credit risk that is recognized through
other comprehensive income are transferred to retained earnings. Other changes in fair value are recognized through current profits
and losses. If the treatment of impact of changes in credit risk of these financial liabilities in the above manner will cause or
expand accounting mismatches in profit or loss the Group will include all gains or losses of such financial liabilities (including
impact of changes in the Company's own credit risk) into the current profits and losses.(b) Financial guarantee liabilities
A financial guarantee contract refers to a contract that requires the Group to pay a specific amount to the contract holder who
has suffered a loss when the specific debtor fails to pay the debt in accordance with the original or modified terms of the debt
instrument at maturity.After initial recognition the income related to the financial guarantee contract is apportioned and recognized through current
profits and losses in accordance with the accounting policies mentioned in Note V. 27 "Revenue". Financial guarantee liabilities
are subsequently measured according to the higher of the loss provision amount determined according to the impairment principle
1192024 Annual Report of Zhejiang Supor Co. Ltd.
of financial instruments and the balance of its initial recognition amount after deducting the accumulated amortization amount of
income related to financial guarantee contracts.(c) Other financial liabilities
In addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line
with derecognition condition or continuous involvement in transferred financial asset other financial liabilities are classified as
financial liabilities measured at amortized cost and measured subsequently at amortized cost and gains or losses arising from
derecognition or amortization of such liabilities are recognized through current profits and losses
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions derecognition of such financial assets will be carried out: * the
contractual right to receive cash flow from the financial assets is terminated; * the financial assets have been transferred and
almost all the risks and rewards in the ownership of the financial assets are transferred to the transferee; * the financial assets
have been transferred and although the Group has neither transferred nor retained almost all risks and rewards in the ownership of
the financial assets it has waived its control over the financial assets.If the Group neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does not
relinquish control over the financial assets the financial assets shall be recognized according to the degree of continuous
involvement of the financial assets transferred and the relevant liabilities shall be recognized accordingly. Degree of continuous
involvement of the financial assets transferred is the risk level of the Group due to changes in value of such financial assets.In case whole transfer of financial assets satisfies the derecognition condition the difference between the sum of the book
value of financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original
recognized through other comprehensive income shall be recognized through current profits and losses.In case partial transfer of financial assets satisfies the derecognition condition book value of the financial assets transferred
shall be amortized between the derecognition part and the part without derecognition according to their own fair value and the
difference between the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be
amortized to derecognition part and originally recognized through other comprehensive income and the foregoing book value
amortized shall be recognized through current profits and losses.For financial assets sold with right of recourse or to transfer financial assets by endorsement the Group needs to determine
whether almost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and
rewards related to the ownership of such financial assets are transferred to the transferee derecognition of such financial assets
shall be conducted; derecognition of such financial assets should not be conducted if the risks and rewards related to the ownership
of such financial assets are reserved; if the risks and rewards related to the ownership of such financial assets are not transferred
nor reserved it needs to determine whether the Company keeps its control over such assets and make accounting treatment based
on principles as described in the foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated the Group will
carry out derecognition of such financial liabilities or part of them. In case the Group (borrower) signs an agreement with the
debtor to replace the original financial liabilities by means of bearing new financial liabilities and contract clauses related to the
new financial liabilities and original financial liabilities are different in essence it's required to carry out derecognition of original
financial liabilities and recognize the new financial liabilities simultaneously. If the Group substantially modifies the contract
terms of the original financial liability (or part of it) the original financial liability is derecognized and a new financial liability is
recognized in accordance with the revised terms.
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In case derecognition is carried out for the whole or part of financial liabilities the difference between their book value and
the consideration paid (including non-cash assets transferred out or liabilities assumed) shall be included by the Group in the
current profits and losses.
(5) Offset of financial assets and financial liabilities
In case the Group has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right
is executable now and the Group plans to carry out settlement by net amount or realize the financial assets and pay off the
financial liabilities simultaneously the net amount after mutual offset of such financial assets and financial liabilities shall be set
out in the balance sheet. Otherwise financial assets and financial liabilities shall be set out in the balance sheet respectively and
will not be offset mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after the Group deducts all
liabilities. The Group's issuing (including refinancing) repurchase sale or cancellation of equity instruments are treated as
changes in equity and transaction costs associated with equity transactions are deducted from equity (capital reserve). If the
capital reserve is insufficient to offset the costs the surplus reserve and retained earnings are sequentially reduced. The Group
does not determine changes in fair value of equity instruments.Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instruments
during the duration of the Group is treated as profit distribution.
11. Financial assets impairment
Supor needs to recognize the financial assets with impairment losses as financial asset measured at amortized costs and debt
tools at fair value through other comprehensive incomes including mainly notes receivable accounts receivable receivables
financing other receivables and other debt investments. Moreover for contract assets and some financial guarantee contracts the
impairment provision shall be accrued and the credit impairment loss shall be recognized pursuant to the accounting policy set
forth herein.
(1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by the Group in accordance with
applicable expected credit loss measure methods (general or simplified) based on the expected credit loss.Expected credit loss refers to the weighted average of credit losses of financial instruments with the respective risks of default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows discounted as per the original
effective interest rate and receivable from the contract and all cash flows expected to be received by the Group namely the
present value of a shortage of cash. Wherein the purchased or underlying financial assets with credit impairment of the Group
shall be discounted as per effective interest rate based on credit adjustment.The general method for measuring expected credit loss is as follows the Group evaluates whether credit risk of financial
assets (including contract assets and other applicable items the same below) has remarkably increased after initial recognition on
each balance sheet date. In case of credit risk having remarkably increased after initial recognition the Group will measure loss
provision as per the amount equivalent to expected credit loss in the entire duration; in case of credit risk failing to remarkably
increase after initial recognition the Group will measure loss provision as per the amount equivalent to expected credit loss in the
1212024 Annual Report of Zhejiang Supor Co. Ltd.
next 12 months. At the time of evaluating expected credit loss the Group considers all reasonable and well-founded information
including forward-looking information.When the expected credit loss is measured the longest period to be considered by the Group is the longest contract period
when the enterprise faces the credit risk (including considering the renewal option). The expected credit loss of the entire duration
refers to the expected credit loss arising from all possible events of default regarding financial instrument occurring during the
entire expected duration. Expected credit loss in the next 12 months refers to expected credit loss resulting from default of
financial instruments likely occurring within 12 months after the balance sheet date (expected duration if the expected duration of
financial instruments is less than 12 months) which is part of expected credit loss during the entire duration.For the financial instrument with a lower credit risk on the balance sheet date the Group assumes that its credit risks have not
increased significantly since the initial recognition and measures the loss provisions according to the expected credit losses of the
future 12 months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition.
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected duration is
obviously higher than that confirmed at the moment of initial recognition in the expected duration it means credit risk of such
financial asset remarkably increases. The changes of default risk within the next 12 months are adopted by the Group other than
special cases as reasonable estimate in the entire duration ensuring whether the credit risk has increased significantly since the
initial recognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
the Group appraises the credit risk of the financial asset item of significantly different credit risks such as: receivables from
the related parties; receivables disputed with the opposite side or involving litigation or arbitration; there have been obvious signs
showing that the debtor possibly is not able to perform the repayment obligations of receivable amounts etc.Except financial assets of individual credit risk assessment the Group divides financial assets into different groups based on
the common risk characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by the Group at the end of the duration. If the
estimated credit loss is greater than the book value of the current impairment provision the difference is recognized as impairment
loss; if not it is recognized as impairment profits.
(5) Determination method of credit losses of all kinds of financial assets
(a) Accounts receivable and contract assets
For accounts receivable and contract asset not involving significant financing part Supor always calculates the loss provision
as the amount of expected credit loss within the entire duration.For accounts receivable and contract asset involving significant financing part Supor always calculates the loss provision as
the amount of expected credit loss within the duration.The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on their
credit risk characteristics:
Item Basis for determination of portfolio
1222024 Annual Report of Zhejiang Supor Co. Ltd.
Accounts receivable:
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.The portfolio includes very low-risk amounts such as the payment of export third-party Portfolio 2: low-risk portfolio
goods.Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.(b) Other receivables
The impairment loss is measured by the Group in accordance with the amount of expected credit loss equivalent to that
within the next 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly
since the initial recognition. The other receivables other than individual credit risk assessment are divided into different portfolios
based on their credit risk characteristics:
Item Basis for determination of portfolio
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.The portfolio consists of interests receivable dividends receivable receivables from Portfolio 2: low-risk portfolio
government departments with very low risk.Portfolio 3: merged related parties This portfolio includes current amount between related parties within the merger scope of
portfolio amounts receivable.(c) Notes receivable and receivables financing
Item Basis for determination of portfolio
The Group's notes receivable are all bank acceptance bills and the Group combines all
Notes receivable
notes receivable into one portfolio.The receivables financing of the Group is for bank acceptance bills with dual holding
Receivables financing purposes. Due to the fact that the acceptance banks are all banks with higher credit ratings
the Group considers all receivables financing as a portfolio.
12. Receivables financing
The notes receivable and accounts receivable at fair value through other comprehensive incomes are listed as receivables
financing with a term of less than one year (including one year) from the initial recognition; See the Note V. 10 "Financial
Instruments" and 11 "Financial Assets Impairments" for relevant accounting policies.
13. Inventories
(1) Classification
Inventory mainly includes raw materials unfinished products finished products low value consumables and packing
materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired they are priced at actual costs. Inventory costs include procurement costs processing costs
and other costs. When inventories are used and distributed the price is calculated by the one-off weighted average method at the
end of a month.
(3) Inventory system is perpetual inventory system
1232024 Annual Report of Zhejiang Supor Co. Ltd.
(4) Amortization method for low value consumables and packing materials
Low value consumables are amortized by the one-off write-off method or amortized over two years; packaging materials are
amortized using a one-time write off method.
(5) Method of recognizing net realizable value and accruing depreciation reserve of inventories
At the balance sheet date the inventory shall be measured according to the cost or net realizable value subject to the lower
one.Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be
incurred upon completion estimated sales expenses and related taxes in daily activities. For the raw materials held for production
the net realizable value shall be measured based on the net realizable value of the finished products they produce. For the
inventories held for executing the sales contract or labor contract the net realizable value shall be measured based on the contract
price. When the amount of holding inventory is more than the ordering amount in sales contract the net realizable value of the
excess inventory shall be measured based on general sales price.The difference between the cost calculated by the individual inventory item and the net realizable value of the inventory is
recognized through current profits and losses.Inventory Category Basis for determining net realizable value
Finished products Estimated selling price minus estimated selling expenses and related taxes and fees
Raw materials
Estimated selling price minus estimated costs to be incurred until completion estimated sales
expenses and related taxes and fees Low value consumables
14. Contract assets
The Group lists the customer's unpaid contract consideration as contract assets in the balance sheet under which the Group
has fulfilled its performance obligations in accordance with the contract and it does not have the right to collect payments from
customers unconditionally (that is only depending on the passage of time). Contract assets and liabilities under the same contract
are listed in net amount and those under different contracts shall not be offset.For the determination and accounting treatment methods of expected credit losses of contract assets please refer to Note V.
11 "Financial Assets Impairment".
15. Held-for-sale assets and disposal groups
(1) Non-current assets held for sale or disposal groups
In case the Group mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence
the same below) rather than using a non-current asset or disposal group continuously it will be classified as held-for-sale category.Specific standard refers to meeting the following conditions at the same time: one non-current asset or disposal group can be
immediately sold under the current situation pursuant to the convention for selling such asset or disposal group in similar
transaction; the Group has made a resolution about sale plan and got certain of purchase commitment; it's predicted that the sale
will be completed within one year. Disposal group refers to a group of assets that will be disposed together as a whole by selling or
other means in a transaction and the liabilities directly related to these assets and transferred in the transaction. In case the asset
group or asset group portfolio where the disposal group belongs has amortized the goodwill acquired in enterprise merger
1242024 Annual Report of Zhejiang Supor Co. Ltd.
according to Accounting Standards for Business Enterprises No. 8 -- Impairment of Assets the disposal group shall include the
goodwill amortized to it.If there are non-current assets or disposal groups purchased to resell during initial measurement or on the balance sheet date
based on remeasurement of the Group if the book value is higher than the net amount by deducting the selling expenses with the
fair value the book value shall be written down and be equal to the net amount by deducting the selling expenses with the fair
value. The write-down amount shall be confirmed as the asset impairment loss and recognized through current profits and losses.At the same time the impairment provision of the held-for-sale assets shall be calculated and withdrawn. For the disposal group it
shall deduct the book value of the goodwill in the disposal group with the asset impairment loss confirmed then deduct in
proportion the book value of each non-current asset in the disposal group conforming to the measurement provisions on
Accounting Standards for Business Enterprises No. 42 - Held-for-sale Non-current Assets Disposal Group and Discontinuing
Operation (hereinafter referred to as "the Standard for Held-for-sale Non-current Assets"). For the held-for-sale disposal group if
the net amount after deducting the selling expenses from the fair value on the subsequent balance sheet date increases the previous
write-down amount shall be recovered and shall be reversed from the confirmed amount of asset impairment loss amount of the
non-current asset as per the measurement provisions on the Standard for Held-for-sale Non-current Assets after the assets are
classified as held-for-sale category. The reverse amount shall be recognized through current profits and losses and the book value
shall be added in proportion of the book value of each non-current asset in the disposal group applicable to the measurement
provisions on the Standard for Held-for-sale Non-current Assets except for the goodwill; Book value of the goodwill that has been
offset and asset impairment loss recognized before the non-current assets applying to the measurement provisions on the Standard
for Held-for-sale Non-current Assets are classified as held-for-sale category shall not be reversed.Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposal
group and the interest of liabilities in held-for-sale disposal group and other expenses shall be recognized continuously.When the non-current assets or disposal group can't be classified as held-for-sale category the Group will no longer continue
to classify them as held-for-sale or remove non-current assets from the held-for-sale disposal group and measure them according to
the following two items subject to the lower one: * book value before the assets are classified as held-for-sale category namely
the amount after the adjustment is carried out according to the depreciation amortization or impairment etc. that shall be
recognized in the condition that the assets are supposed not to be classified as held-for-sale category; * recoverable amount.
(2) Termination of operations
The Group will define the termination of operations as a separately identifiable component that meets one of the following
conditions and has been disposed of by the Group or classified as held for sale:
- This component represents an independent main business or a separate main operating area;
- This component is part of a related plan to dispose of an independent main business or a separate main operating area;
- This component is a subsidiary acquired specifically for resale.The Group separately presents the continuing operations profit and loss and the termination operations profit and loss in the
current profit and loss statement and re-presents the information previously reported as continuing operations profit and loss as
the termination operations profit and loss for comparable accounting periods in the profit and loss statement for the comparative
period.
16. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which the Group has
control right common control right or significant impact on the invested units. Long-term equity investments that the Group does
not have control common control or significant impact on the invested unit are accounted for as financial assets at fair value
through current profits and losses. If such assets are not non-transactional the Group may specify these capitals as measured at the
1252024 Annual Report of Zhejiang Supor Co. Ltd.
financial assets at fair value through other comprehensive incomes at the initial recognition. See Note V. 10 "Financial
Instruments" for details.Common control refers to common control on a certain arrangement according to related provisions by the Group and related
activities of the arrangement can be decided only after the consent of the participant sharing the control right. Significant impact
refers to the Group's power on participating in the decision-making of financial and operating policies of the invested unit but it
can't control the formulation of these policies or control the formulation commonly with other party.
(1) Determination of investment costs
For the long-term equity investment obtained from the enterprise merger under the same control the initial investment cost of
the long-term equity investment shall be taken as the share of the book value of the merged party's shareholders' equities/owners'
equities in the final controlling party's consolidated financial statements on the merger date. As to the difference between initial
investment cost of long-term equity investments and the book value of the cash paid non-cash assets transferred and liabilities
assumed it's required to adjust the capital reserve correspondingly. If the capital reserve is insufficient to be deducted the surplus
reserve and undistributed profits shall be deducted in turn. In the case of treating issued equity securities as the merger
consideration the share of the book value of the merged party's shareholders' equities/owners' equities in the consolidated financial
statement of the final controlling party is regarded as the initial investment cost of long-term equity investment on the merger date;
the capital reserves shall be adjusted in accordance with taking the total book value of shares issued as share capital and the
difference between the initial investment cost of long-term equity investment and the total book value of shares issued; If the
capital reserve is insufficient to be deducted the surplus reserve and undistributed profits shall be deducted in turn. The equity of
the merged party obtained step by step through several transactions which finally forms enterprise merger under the same control
shall be handled separately according to whether it belongs to "package deal": if it belongs to the "package deal" the accounting
treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to "package deal" the
share of the book value of the merged party's shareholders' equities/owners' equities in the final controlling party's consolidated
financial statement on the merger date will be taken as the initial investment cost of long-term equity investment and the capital
reserves will be adjusted according to the difference between the initial investment cost of long-term equity investment and the
sum of book value of long-term equity investment before combination and book value of consideration newly paid for acquiring
the share; If the capital reserve is insufficient to be deducted the surplus reserve and undistributed profits shall be deducted in turn.Other comprehensive income of equity investment held before the merger date which is accounted by equity method or
recognized as financial assets at fair value through other comprehensive incomes is temporarily not subject to the accounting
treatment.The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initial
investment cost of long-term equity investment according to the merger cost on the purchase date. The merger cost includes the
sum of assets paid by the purchasing party liabilities incurred or assumed and fair value of issued equity securities. The equity of
the purchased party held obtained step by step through several transactions which finally forms enterprise merger not under the
same control shall be handled separately according to whether it belongs to "package deal": if it belongs to the "package deal" the
accounting treatment will be carried out by taking transactions as a certain one with control right. If it does not belong to "package
deal" it shall take the sum of the book value of the original equity investment held by the original purchased party and the newly
investment cost as the initial investment cost of the long-term equity investments under the cost method. If the equity originally
held is accounted for by equity method the relevant other comprehensive incomes will not be accounted for the time being.The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise
merger shall be carried out according to the costs; in consideration of the different acquisition modes of long-term equity
investment such costs shall be determined respectively by the cash purchase price actually paid by the Group the fair value of
equity securities issued by the Group value agreed in the investment contract or agreement the fair value or original book value of
1262024 Annual Report of Zhejiang Supor Co. Ltd.
assets surrendered in the non-monetary assets exchange transaction the fair value of the long-term equity investment etc. The
expenses taxes and other necessary expenditures directly related to the acquisition of the long-term equity investment shall also be
recognized through investment cost. If the significant impact or common control is implemented on the invested unit due to the
additional investment but it does not constitute the control the long-term equity investment cost is the sum of fair value of the
originally held equity investment determined according to Accounting Standards for Business Enterprises No. 22 -- Recognition
and Measurement of Financial Instruments and newly investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
Long-term equity investments that have common control (except for joint operators) or significant impact on the invested unit
are accounted by equity method. Besides the Company's financial statement adopts the cost method to account the long-term
equity investment that can be controlled by the invested unit.(a) Long-term equity investments under the cost method
When the cost method is adopted for accounting long-term equity investment is priced at the initial investment cost and the
cost of long-term equity investment shall be adjusted when the investment is added or recovered. The current investment incomes
shall be recognized by the cash dividends or profits announced and issued by the invested unit except for the actual price paid
when the investment is obtained or the cash dividends or profits which have been declared but not issued in the consideration.(b) Long-term equity investments under the equity method
As to long-term equity investments checked by equity method in case the initial investment cost is more than the shares of
fair value of identifiable net assets of the invested unit that shall be enjoyed during the investment initial investment cost of the
long-term equity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of
identifiable net assets of the invested unit that shall be enjoyed during the investment the difference shall be recognized through
current profits and losses and the cost of long-term equity investments shall be adjusted simultaneously.When the equity method is adopted for accounting it's required to recognize the investment income and other comprehensive
income respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and other
comprehensive income and book value of the long-term equity investment shall be adjusted simultaneously. As to the part that
shall be enjoyed and calculated according to the profits or cash dividends announced and distributed by the invested unit it's
required to reduce the book value of long-term equity investment correspondingly. As to other changes in owners' equities of the
invested unit except for net profits and losses other comprehensive incomes and profit distribution book value of the long-term
equity investment shall be adjusted and recognized through capital reserve. When the shares of net profit or loss of the invested
unit that shall be enjoyed are recognized it shall be based on fair value of each identifiable net asset of the invested unit when the
investment is acquired and after the adjustment is made on net profit of the invested unit. In case the accounting policy and
accounting period employed by the invested unit are different from those employed by the Group financial statements of the
invested unit shall be adjusted according to the Group's accounting policy and accounting period. Besides investment income
other comprehensive income etc. shall be recognized on this basis. For transactions between the Group and associated enterprise
or joint venture if the assets launched or sold do not constitute the business the unrealized internal trading profits and losses shall
be offset according to the proportion attributable to the Group and the investment profits and losses shall be confirmed on this
basis. In case the part incurred between the Group and the invested unit without internal transaction loss belongs to the asset
impairment loss it shall not be offset. If the assets invested by the Group to the joint venture or associated enterprise constitute the
business and the investor thereupon obtains the long-term equity investment but fails to obtain the control right the fair value of
business launched is taken as the initial investment cost of newly long-term equity investment and the difference between the
initial investment cost and book value of business launched shall be recognized through current profits and losses in full. If the
assets sold by the Group to the joint venture or associated enterprise constitute the business the difference between the
consideration acquired and the book value of business shall be fully recognized through current profits and losses. If the Group's
1272024 Annual Report of Zhejiang Supor Co. Ltd.
assets purchased from the joint venture or associated enterprise constitute the business accounting treatment shall be conducted in
accordance with the provisions of the Accounting Standards for Business Enterprises No. 20 - Enterprise Merger and the gains or
losses related to the transaction shall be fully recognized.When the net loss of the invested unit that shall be shared is recognized the book value of the long-term equity investment
and other long-term equity that actually constitute the net investment of the investee shall be written down to zero. Besides if the
Group has the obligation to bear the additional loss for the invested unit the estimated liabilities will be recognized according to
the estimated obligation that shall be assumed and recognized through current investment losses. In case the net profit is realized
by the invested unit later after the Group makes up the unrecognized loss amount shared by the income amount shared it's
required to recover the revenue recognition amount shared.(c) Acquisition of minority shareholders' equities
When compiling the consolidated financial statements the Company shall adjust the capital reserve due to the difference
between the newly-increased long-term equity investment from the purchase of the minority interest and the net asset shares
enjoyed according to the new shareholding proportion of the subsidiary continuously calculated from the purchase date (or the
merger date); in case that the capital reserves are not sufficient to offset the surplus reserve and undistributed profits shall be
deducted in turn.(d) Disposal of the long-term equity investment
The parent company partially disposes the long-term equity investment of subsidiary when the control right is not lost in
consolidated financial statement. The difference between disposal price and subsidiaries' net assets enjoyed corresponding to the
disposal of long-term equity investment will be recognized through shareholders' equities; supposing that the parent company loses
the control right for the subsidiary due to the partial disposal of the long-term equity investment for the subsidiary it shall be dealt
with in accordance with the relevant accounting policies as specified in the Note V. 7 "Judgment Criteria for Control and
Preparation Method for Consolidated Financial Statements" (2).As for the disposal of the long-term equity investment under other circumstances the difference between the book value of
the disposed equity and the actually-obtained price shall be recognized through current profits and losses.For long-term equity investments under the equity method if the residual equities after disposal shall still be accounted by the
equity method upon the disposal the part of other comprehensive income that was originally recognized through shareholders'
equities shall be accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities in a
corresponding proportion. However the owners' equities that are recognized based on the changes in other owners' equities shall
be carried forward to the current profits and losses in proportion except for the net profits and losses other comprehensive
incomes and profit distribution of investees.For the long-term equity investments under the cost method if the residual equities after disposal are still under the cost
method the accounting treatment of other comprehensive incomes confirmed under the equity method or standards of recognition
and measurement of financial instruments before obtaining control of the invested unit shall be conducted on the same basis of the
invested unit's directly disposal of the relevant assets or liabilities and it shall be carried forwarded to the current profits and losses
in proportion; except for the net profits and losses other comprehensive incomes and profit distribution the changes in other
owners' equities in the invested unit's net assets which are accounted and recognized by the equity method shall be carried forward
to the current profits and losses in proportion.If the Group loses control of the invested unit due to disposal of partial equity investment and the residual equities after
disposal may exert common control or significant impact on the invested unit while preparing individual financial statements the
equity method will be adopted for accounting and it will be measured by the equity method and adjusted with equity method since
obtaining; if the residual equities after disposal cannot implement the common control or exert significant impact on the invested
unit the relevant provisions in respect of the standards of recognition and measurement of financial instruments shall be
referenced for the accounting treatment and the difference between the fair value and book value shall be recognized through
current profits and losses on the date of losing control. Before the Group acquires the control of the invested unit for other
1282024 Annual Report of Zhejiang Supor Co. Ltd.
comprehensive incomes confirmed under the equity method or standards of recognition and measurement of financial instruments
when the control of the invested unit is lost the accounting treatment shall be conducted on the same basis of the invested unit's
direct disposal of relevant assets or liabilities; the changes in the other owners' equities of the invested unit's net assets other than
the net profits and losses other comprehensive incomes and profit distribution calculated and confirmed by the equity method
shall be settled and transferred to the current profits and losses in proportion. Among which if the residual equities after disposal
are calculated by the equity method other comprehensive incomes and other owners' equities shall be carried forward in
proportion; if the residual equities after disposal are to be conducted with accounting treatment in accordance with the standards of
recognition and measurement of financial instruments other comprehensive incomes and other owners' equities shall be carried
forward.If the Group loses the common control or significant impact on the invested unit due to disposal of partial equity investment
the residual equities after disposal shall be accounted according to the standards of recognition and measurement of financial
instruments. The difference between the fair value and book value shall be recognized through current profits and losses on the
date of losing common control or significant impact. As for other comprehensive incomes as recognized when the original equity
investment is under the equity method it shall be subject to the accounting treatment on the same basis of the assets or liabilities
which are directly disposed by the invested unit when the equity method is abandoned. The owners' equities which are recognized
by the invested unit due to the changes in other owners' equities except for the net profits and losses other comprehensive
incomes and profit distribution of investees will be reckoned in the current investment incomes when the equity method is
abandoned.The Group will take the multiple transactions to dispose the subsidiaries' equity investment step by step until lose its control
right. When the above-mentioned transactions belong to the package deal the transactions will be subject to the accounting
treatment as an equity investment of subsidiaries and transaction which has lost the control right. The difference between the
disposal price and the corresponding book value of long-term equity investment will be recognized as the other comprehensive
incomes before losing the control right which will be reckoned in the current profits and losses when the control right is lost.
17. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing commodities providing labor service leasing or operation
management with service life of more than 1 fiscal year. The fixed assets can be confirmed only when the relevant economic
interests are possible to flow into the Group and its costs can be measured reliably. The initial measurement of fixed assets shall be
carried out according to the cost and considering the expected influence of the discard expenses.
(2) Depreciation method
Category Depreciation method Depreciation life Residual rate Annual depreciation rate
Buildings and structures Composite life method 20-30 0%-10% 3.00%-5.00%
General equipment Composite life method 3-7 0%-10% 12.86%-33.33%
Special equipment Composite life method 3-10 3%-10% 9.00%-32.33%
Transport facilities Composite life method 4-10 3%-10% 9.00%-24.25%
The expected net residual value refers to the expected amount that the Group may obtain from the current disposal of fixed
assets after deducting the expected disposal expenses at the expiration of its expected service life.
1292024 Annual Report of Zhejiang Supor Co. Ltd.
(3) Impairment testing method and provision for impairment of fixed assets
See more details about the impairment testing method and the provision for impairment of fixed assets in Note V. 22
"Impairment of Long-term Assets".
(4) Other remarks
The subsequent expenditures related to fixed assets shall be recognized through fixed assets cost and the derecognition of the
book value of the substitution part shall be carried out if economic benefits related to such fixed assets may flow in and its cost can
be reliably measured. Other subsequent expenditures except for this shall be recognized through current profits and losses once
occurred.As for each component constituting fixed assets in case that they have different service life or provide economic interest for
the group by different ways and apply to different rates of depreciation and depreciation methods the Group confirms each
component as single fixed asset respectively.When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or
disposal such fixed asset is confirmed to be derecognized. The difference of the amount left as the book value and relevant taxes
are deducted from the disposal income obtained from the sale transfer discard or damage of the fixed asset shall be recognized
through current profits and losses.The Group shall review the service life expected net residual value and depreciation method of the fixed assets at least by the
end of the year. In case of any change it shall be deemed as changes in accounting estimate.
18. Construction in progress
The cost of construction in progress shall be confirmed as per actual engineering expenditures including various project
expenditures under construction capitalized borrowing expense for making the project reach the expected serviceable condition
and other relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected
serviceable condition.Standard and time spot of converting construction in progress disclosed per category to fixed assets:
Standard and time point of carrying forward construction in Category
progress to fixed assets
Meeting the completion standard specified in the contract or
Buildings and structures
project plan
Installation and commissioning meeting the design standard and
General/special equipment
contract standard
See more details about the impairment testing method and the provision for impairment of construction in progress in Note V.
21 "Impairment of Long-term Assets".
The income and cost of the Group's external sales of products or by-products produced before the fixed assets reach the
expected serviceable condition the Company should carry out accounting treatment separately according to Accounting Standards
for Business Enterprises No. 14 - Revenue and Accounting Standards for Business Enterprises No.1 - Inventory which shall be
recognized through current profits and losses.
19. Borrowing expenses
Borrowing expenses include interest on borrowings amortization of discounts or premiums auxiliary costs and exchange
differences arising from foreign currency borrowings etc. For the borrowing expense generated from the acquisition and
construction or production that can be directly attributable to the assets that meet capitalization conditions the capitalization shall
1302024 Annual Report of Zhejiang Supor Co. Ltd.
be started when the asset expenditure or the borrowing expense has incurred or the acquisition and construction or production
activities necessary for making the assets available for expected serviceable or marketable state have been started; capitalization
shall be stopped when the assets under acquisition and construction or production that meet capitalization conditions reach the
expected serviceable condition or marketable state. Other borrowing expenses are recognized as those in the current period.The amount can be capitalized after the actual interest expense generated from the specific borrowing deducting the interest
revenue from the unused loan funds deposited in the bank or investment income obtained from the temporary investment in the
current period; for the general borrowing the capitalized amount will be determined after the weighted average of excessive part
of accumulative asset expenditures compared to the asset expenditure of special borrowing multiplied by the capitalization rate of
the general borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of general
borrowing.When determining the effective interest rate for borrowings the Group uses the rate that discounts the future cash flows of
the borrowing over its expected life or a shorter applicable period to the amount initially recognized for the borrowing.In the capitalization period all exchange differences of special foreign currency borrowings shall be capitalized; exchange
difference of general foreign currency borrowing shall be recognized through current profits and losses.Assets meeting capitalization conditions refer to the fixed assets investment properties inventories etc. which can reach the
expected serviceable state or marketable state after quite a long time of acquisition and construction or production.If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or
production and the interruption lasts for more than 3 months the capitalization of borrowing expense shall be suspended till the
asset acquisition and construction or production restarts.
20. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that have been owned or controlled by the Group and have no
physical form.The initial measurement of intangible assets shall be conducted according to its costs. Expenditures related to intangible
assets shall be recognized through cost of intangible assets if the relevant economic benefits may flow in the Group and its cost
can be reliably measured. Other projects' expenditures except for this shall be recognized through current profits and losses once
occurred.Land use right acquired is usually calculated as an intangible assets. As for buildings such as self-developed and constructed
workshops the related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets and
fixed assets respectively. As for purchased buildings and structures the related prices are distributed between land use right and
the buildings. If it is difficult to distribute them reasonably all of them shall be disposed as fixed asset.As for intangible assets with a limited service life the accumulative amount after deducting the expected net residual value
and the accrued impairment provisions with original value since the serviceable date it is amortized within the expected service
life. Intangible assets with undetermined service life will not be amortized.The service life of each intangible asset and its determination are based on the amortization method:
Amortization period Item Determination basis Amortization method (years)
Land use right 43-50 Legal term Straight-line method
The duration that can bring economic Software 2-10 Straight-line method benefits to the Company
Trademark use right 10 Legal term Straight-line method
Dumping right 5 Contract term Straight-line method
1312024 Annual Report of Zhejiang Supor Co. Ltd.
At the end of each period the service life of intangible assets with limited service life and the amortization method for them
will be rechecked. Changes of them will be regarded as changes of accounting estimate. In addition the service life of intangible
assets with undetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring
economic benefits for the enterprise within a foreseeable period then its service life will be estimated and it will be amortized
according to the amortization policy for intangible assets with limited service life.
(2) R&D expenditure
Expenditures on the internal R&D items of the Group are divided into research expenditure and development expenditure.Research expenditure is recognized through current profits and losses at the time of occurrence.Development expenditure that can meet the following conditions will be recognized as intangible assets while those cannot
meet will be recognized through current profits and losses.-Complete the intangible asset so as to make the use or sale of it technically feasible;
- Have the intention to complete the intangible asset and use or sell it;
-The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset
has market or the intangible asset itself has market or to certify its usability when it will be used internally;
-There are enough technology financial resources and other resources to support finishing the development of an intangible
asset and it is capable of using or selling this intangible asset;
-Expenditure within the development stage of this intangible asset can be measured reliably.If it is unable to distinguish the research expenditure from development expenditure both R&D expenditures will be
recognized through current profits and losses.
(3) Impairment testing method and provision for impairment of intangible assets
See more details about the impairment testing method and the provision for impairment of intangible assets in Note V. 22
"Impairment of Long-term Assets".
21. Long-term unamortized expense
Long-term unamortized expenses are expenses that have occurred but shall be borne during the reporting period and
subsequent periods with a sharing period of more than one year. Long-term unamortized expenses of the Group mainly include
improvement expenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized on a straight-line
basis over the expected benefit period.
22. Impairment of long-term assets
As for fixed assets construction in progress right-of-use assets intangible assets with a limited service life investment
properties measured by cost measurement long-term unamortized expenses and non-current and non-financial assets such as the
long-term equity investment and goodwill of subsidiaries joint ventures and associated enterprises the Group shall determine
whether there is any sign of impairment on the balance sheet date. If there are signs of impairment the recoverable amount shall
be estimated and impairment test shall be carried out. Goodwill intangible assets with undetermined service life and intangible
assets that have not reached the serviceable state whether there is any sign of impairment shall be subject to impairment test
every year.If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof impairment
provision shall be accrued according to the difference and recognized through impairment losses. The recoverable amount shall be
1322024 Annual Report of Zhejiang Supor Co. Ltd.
determined as the net amount obtained by the fair value of asset - disposal expense or as the present value of the estimated future
cash flow of assets whichever is higher. The fair value of the asset is determined according to the price in the sales agreement in
the fair transaction; if there is no sales agreement but there is an active market of assets the fair value is determined according to
buyer's price of the asset; if there is no sales agreement and an active market of assets does not exist the fair value of assets shall
be estimated based on the best information obtained. The disposal expenses include the legal fees related to the asset disposal
relevant taxes carriage expenses as well as direct expenses for achieving the marketable state status. The present value of the
estimated future cash flow of assets shall be determined by the discounted amount by an appropriate discount rate on the basis of
the estimated future cash flow generated during the continuous usage and final disposal of assets. The impairment provision shall
be calculated and recognized on the basis of the single asset. If it is hard to estimate the recoverable amount of the single asset the
recoverable amount of the asset group shall be determined according to the asset group by the asset group to which the asset
belongs. Asset group refers to the minimum asset portfolio that is capable of generating cash inflow independently.For the goodwill separately presented in the financial statements during the impairment test the book value of goodwill shall
be apportioned to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger.If the test results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill
is lower than its book value the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsets
the book value of goodwill apportioned to the asset group or asset group portfolio and then offsets the book value of other assets
in proportion according to the proportion of the book value other than goodwill in the asset group or asset group portfolio.Once the above-mentioned asset impairment losses are recognized the part of which can be recovered shall not be reversed in
subsequent periods.
23. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer commodities to customers for the received or receivable
consideration from customers. In the event that the customer has paid the contractual consideration or the Group has obtained the
unconditional collection right before it transfers the commodities to customers the Group shall present the received or receivable
account as contract liabilities with regard to the actual payment by customers and the due payment whichever happens earlier.Contract assets and liabilities under the same contract are listed in net amount and those under different contracts shall not be
offset.
24. Employee remuneration
The Group's employee remuneration mainly includes short-term employee remuneration post-employment benefits
termination benefits and other long-term employee benefits. Including:
Short-term employee remuneration mainly includes salary bonus allowance and subsidy employee benefits expense
medicare premium maternity premium occupational injuries premium housing accumulation fund labor union expenditure
personnel education fund non-monetary benefit etc. During the accounting period in which the Group's employees provide
services for the Group actual short-term employee remuneration incurred shall be recognized as the liabilities and recognized
through current profits and losses or relevant asset costs. And the non-monetary benefits shall be measured at fair value.Post-employment benefit mainly includes basic endowment insurance unemployment insurance and annuity. The plan of
post-employment benefit includes the defined contribution plan. In case that the defined contribution plan is adopted
corresponding amount which shall be deposited will be recognized through relevant asset costs or current profits and losses at the
time of occurrence.Labor relation with employees shall be cancelled before the employee's labor contract expires or suggestion on giving
compensation shall be proposed for the purpose of encouraging employees to voluntarily accept downsizing. When the Group
cannot unilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on
1332024 Annual Report of Zhejiang Supor Co. Ltd.
the date when the Group confirms the cost related to restructuring involving payment of termination benefits whichever is the
earlier the employee remuneration liabilities caused by termination benefits shall be recognized through current profits and losses.However if it is expected that the termination benefits cannot be fully paid within twelve months after the annual reporting period
is over it shall be handled according to other long-term employee remuneration.The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement.Staff salary and social insurance premium to be paid by the Group for the early retired employee from the date of stopping
providing services to the date of normal retirement are recognized through current profits and losses (termination benefit) if the
estimated liabilities recognition conditions are met.
25. Estimated liabilities
If the obligation related to contingencies satisfies the following conditions at the same time the Group shall recognize it as
the estimated liabilities: * This obligation is the current obligation undertaken by the Group; * Performance of this obligation
may make economic benefits flow out of the enterprise; * Amount of this obligation can be reliably measured.The estimated liabilities are initially measured based on the best estimate of the expenses required to fulfill the relevant
current obligations. For those with significant impact on the time value of currency estimated liabilities are determined based on
the discounted amount of expected future cash flows. When determining the best estimate the Group comprehensively considers
factors such as risk uncertainty and time value of money related to contingencies. The necessary expenditure has a contiguous
range and within this range all kinds of results have the same possibility to occur. The optimal estimate is determined according
to the median of this range. In other circumstances the optimal estimate is treated as below:
- If the contingency involves with a single item then the optimal estimate will be determined based on the amount that is most
likely to occur.- If the contingency involves with several items then the optimal estimate will be determined based on all possible results and
their probabilities.The Group reviews the book value of estimated liabilities on the balance sheet date and adjusts the book value based on the
current best estimate.
(1) Loss contract
The loss contract refers to a contract whose performance of the contractual obligations will inevitably incur costs in excess of
the expected economic benefits. When an enforceable contract becomes a loss contract for which the liability can conform to the
aforesaid estimated liabilities confirmation conditions confirm the part the estimated losses of the contract surpass the confirmed
impairment loss (if any) of the underlying asset in the contract as estimated liability.
(2) Restructuring obligations
It shall determine the estimated liabilities amount according to the direct expenditures related to the restructuring which has
detailed formal and publicly stated restructuring plan and which are in line with the confirmation conditions of the aforesaid
estimated liabilities. The restructuring obligation related to partially-sold business will be recognized to be the associated
obligation only when the Group promises to sell partial businesses (namely signs the binding-force sales agreement).
(3) Product quality assurance
In accordance with the terms of the contract existing knowledge and historical experience the Group makes appropriate
provisions for product quality assurance. When the contingent event has given rise to a present obligation and it is probable that
1342024 Annual Report of Zhejiang Supor Co. Ltd.
the fulfillment of this obligation will result in an outflow of economic benefits the contingent event is recognized as a provision
measured at the best estimate of the expenditure required to settle the present obligation.
26. Share-based payment
(1) Accounting treatment of share-based payment
A share-based payment is a transaction that grants the equity instruments or assumes a liability determined on the basis of the
equity instruments in order to obtain services from employees or other parties. Share-based payments are divided into share-based
payments settled with equity and cash-settled share-based payments.(a) Share-based payments settled with equity
share-based payments settled with equity in exchange for services provided by employees are measured at the fair value with
the equity instruments granted to the employees at the grant date. The amount of the fair value is recognized through relevant cost
or expense based on the optimal estimate of the number of vesting equity instruments in case of completing the service within the
waiting period or meeting the required performance conditions; when the vesting right is granted immediately the relevant cost or
expense is included on the grant date according to the straight-line method and the capital reserves shall be increased accordingly.On each balance sheet date during the waiting period the Group makes the optimal estimate based on the latest information
such as the change in the number of employees with vesting rights and corrects the number of equity instruments that are expected
to be vested. The impact of the above estimates is recognized through current relevant cost or expense and the capital reserves
shall be adjusted accordingly.In the case of share-based payments settled with equity in exchange for other parties' services if the fair value of other
parties' services can be reliably measured the fair value of other parties' services is measured at the fair value on the date of
acquisition; if the fair value of other parties' services cannot be reliably measured but the fair value of equity instruments can be
measured reliably it shall be measured at the fair value of the equity instrument on the acquisition date and is recognized through
relevant cost or expense and increases the shareholders' equities accordingly.(b) Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities determined by the Group based on shares
or other equity instruments. If the vesting right is granted immediately after the grant the relevant cost or expense will be included
on the grant date and the liabilities increased accordingly; if the service within the waiting period must be completed or the
required performance conditions are met the fair value of the liabilities assumed by the Group is based on the optimal estimate of
the vesting rights on each balance sheet date of the waiting period. The services obtained in the current period are recognized
through cost or expense and the liabilities are increased accordingly.The fair value of the liability is re-measured at the balance sheet date and the settlement day before the settlement of the
relevant liabilities and the change shall be recognized through current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment plan
When the Group modifies the share-based payment plan if the modification increases the fair value of the equity instruments
granted the increase in the fair value of the equity instruments is recognized accordingly. The increase of the fair value of equity
instruments refers to the difference between the fair value of the equity instruments before and after the modification on the
modification day. If the modification reduces the total fair value of the share-based payment or adopts other methods that are not
conducive to the employee the service obtained will continue to be accounted for as if the change has never occurred unless the
Group cancels some or all of the equity instruments granted.During the waiting period if the granted equity instrument is cancelled the Group will cancel the granted equity instrument
as an accelerated exercise and the amount to be recognized in the remaining waiting period will be immediately recognized
1352024 Annual Report of Zhejiang Supor Co. Ltd.
through current profits and losses and the capital reserves shall be recognized at the same time. If the employee or other party can
choose to meet the non-vesting conditions but fails to meet in the waiting period the Group will treat it as a cancellation of the
equity instrument.
(3) Accounting treatment of the share-based payment transactions involving the Group and the shareholders or actual
controllers of the Company
For share-based payment transaction involving the Group or the Company's shareholders or actual controller if either
settlement enterprise or enterprise accepting service is inside the Group or outside the Group the accounting treatment shall be
conducted in the consolidated financial statements of the Group according to the following regulations:
-Where the settlement enterprise makes calculation by its own equity instruments the share-based payment transaction shall
be treated as the share-based payments settled with equity; in addition it shall be handled as a cash-settled share-based payment.-If the settlement enterprise is an investor of a service enterprise it shall be recognized as the long-term equity investment of
the service enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to be
assumed and the capital reserves (other capital reserves) or liabilities shall be recognized.-If the enterprise accepting service does not have a settlement obligation or the equity instruments granted to the enterprise
employees are its own equity instrument such share-based payment transaction shall be treated as the share-based payments
settled with equity. If the enterprise accepting service has a settlement obligation and the equity instruments granted to the
enterprise employees are not its own equity instrument such share-based payment transaction shall be treated as the cash-settled
share-based payment.The share-based payment transactions between the enterprises within the Group if the acceptance services enterprise and the
settlement enterprise are not the same enterprise and the confirmation and measurement of the share-based payment transaction in
individual financial statements of the acceptance service enterprise and the settlement enterprise shall be compared with the above
principles.
27. Revenues
Accounting policy adopted for recognition and measurement of revenues disclosed per business type
Revenue is the total inflow of economic benefits that the Group has formed in its daily activities that will result in an increase
in shareholders' equities and has nothing to do with the capital invested by shareholders. Where the contract between the Group
and its customers can meet the following conditions at the same time the revenue shall be confirmed when the customer owns the
relevant control right of the commodity (including labor service the same below): all concerned parties have approved the contract
and promised to fulfill their respective obligations; the contract has specified rights and obligations of each concerned party related
to commodity transfer or labor provision; the contract has clear payment terms related to the transferred commodities; the contract
is of the commercial essence which means that performance of the contract will change the risk time distribution or amount of
future cash flow of the Group; the consideration that the Group is entitled to obtain due to the transfer of commodities to
customers is likely to be recovered. To obtain the control right of relevant commodities means to be able to lead the use of the
commodities and obtain almost all economic benefits therefrom.On the beginning date of the contract the Group identifies the individual performance obligation specified in the contract and
amortizes the transaction price to each individual performance obligation based on the relative proportion of the individual sales
price of the commodity guaranteed in individual performance obligation. Variable consideration significant financing part in the
contract non-cash consideration customer consideration payable etc. have been taken into account the transaction price.For the consideration payable to customers the payable consideration should be offset against the transaction price and the
current income should be offset at the later of the recognition of relevant income and the payment (or commitment to pay) of
1362024 Annual Report of Zhejiang Supor Co. Ltd.
customer consideration except for the consideration payable to customers for the purpose of obtaining other clearly
distinguishable goods from customers.For contracts with quality assurance clauses the Group analyzes the nature of the quality assurance provided by them. If the
quality assurance provides a separate service in addition to assuring customers that the commodities sold meet the established
standards the Group regards it as a single performance obligation.Transaction price is the consideration amount the Group is expected to be entitled to receive for the transfer of commodities
or services to customers excluding payments received on behalf of third parties. The transaction price recognized by the Group
does not exceed the amount for which it is highly probable that the accumulated recognized revenue will not be reversed
significantly when the relevant uncertainty is eliminated.As for each individual performance obligation in the contract if one of the following conditions is met the Group shall
confirm the transaction price which is amortized into the individual performance obligation based on the performance progress
within a relevant performance period as the revenue: the customer obtains and consumes the economic benefits while the Group
fulfills the performance obligation; the customer manages to control the commodities in process while the Group fulfills the
performance obligation. Commodities produced during the performance period have irreplaceable purposes and the Group has the
right to receive payment for the performance part which has been completed so far during the entire contract period. The
performance progress shall be confirmed based on the nature of commodities transferred by virtue of the input method or the
output method. When the performance progress cannot be confirmed reasonably if it is predicted that the incurred cost of the
Group can be compensated the revenue shall be confirmed based on the incurred cost amount until the performance progress can
be confirmed reasonably.If one of the above conditions cannot be met the Group confirms the transaction price amortized to the individual
performance obligation at the time when the customer obtains the control right of relevant commodities as the revenue. When
judging whether the customer has obtained the control right of the commodity the Group can consider the following signs: the
enterprise has the current collection right of the commodity namely the customer is responsible for current payment obligation of
the commodity; the enterprise has transferred the legal ownership of the commodity to the customer namely the customer has
possessed the legal ownership of the commodity; the enterprise has transferred the real commodity to the customer namely the
customer has possessed the real commodity; the enterprise has transferred main risks and rewards of the commodity to the
customer namely the customer has obtained the main risks and rewards related to the ownership of the commodity; the customer
has accepted the commodity; other signs indicating that the customer has obtained the control right of the commodity.For sales with sales return clauses when customers obtain control over related commodities the Group recognizes revenue
according to the consideration amount expected to be received due to the transfer of commodities to customers (i.e. excluding the
amount expected to be refunded due to sales return) and recognizes liabilities as per the amount expected to be refunded due to
sales return. Simultaneously according to the expected book value of the returned commodities at the time of transfer the balance
after deducting the expected cost of recovering the commodities (including the impairment of the value of the returned
commodities) is recognized as an asset and the net cost of the above assets is carried forward according to the book value of the
transferred commodities at the time of transfer. On each balance sheet date the Group re-estimates the future sales returns and if
there is any change it will be treated as a change in accounting estimates.Supor's selling of commodities such as cookware and small domestic appliances is a type of performance obligation at a
certain time point of which the revenue is recognized when the control over the commodities has been transferred to the customer.According to the agreement in the sales contract Supor mainly recognizes the control over commodity as having been transferred
to the customer and recognizes relevant commodity revenue when such commodity has left Supor's warehouses or its specified
warehouses delivered to the customer with acceptance receipt issued or such commodity has been delivered on board to the sea
transport carrier with the customs declaration for export and bill of lading obtained.
1372024 Annual Report of Zhejiang Supor Co. Ltd.
28. Contract costs
The incremental cost incurred by the Group to obtain the contract and expected to be recovered shall be recognized as an
asset as the contract acquisition cost. However if the amortization period of the asset does not exceed one year it shall be
recognized through current profits and losses at the time of occurrence.In the event that the cost incurred for the performance of the contract does not fall within the scope of the Accounting
Standards for Business Enterprises No. 14 - Revenue (Revised in 2017) and meets the following conditions at the same time it
shall be recognized as an asset as the contract performance cost: * The cost is directly related to a current or expected contract
including direct labor direct materials manufacturing expenses (or similar expenses) costs borne by the customer and other costs
only incurred by the contract; * The cost increases the Group's resources to fulfill its performance obligations in the future; *
The cost is expected to be recovered.Assets recognized for contract acquisition cost and assets recognized for contract performance cost (hereinafter referred to as
"assets related to contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services related
to such assets and recognized through current profits and losses.Where the book value of assets related to contract costs is higher than the difference between the following two items the
Group shall withdraw the impairment provisions of the excess part and recognize it as the asset impairment loss:
-Residual consideration expected to be obtained arising from the transfer of commodities or services related to the assets by
the Group;
-Cost estimated to be occurred for the transfer of the relevant commodities or services.
29. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by the Group from the government
excluding the capital invested by the government as the investor with enjoying corresponding owners' equities. Government
subsidies are divided into government subsidies concerning assets and government subsidies concerning benefits. The government
subsidy that is obtained by the Group used for purchasing or acquisition and construction or forming the long-term assets by other
ways which is confirmed the government subsidies concerning assets; Other government subsidies shall be defined as the
government subsidies concerning benefits. If the government document does not clear the subsidy object the subsidies will be
divided based on the following modes into government subsidies concerning benefits and government subsidies concerning assets:
* If the particular item of the subsidies is clear in the government document it shall make a division according to the relative
proportion of expense amount of the formed assets in the budget of the particular item and the expense amount recognized through
cost review the division ratio at each balance sheet date and make changes if necessary; * In the government document for
general terms only for the purpose without specifying the particular item it will be used as the government subsidies concerning
benefits. If government subsidies are monetary assets they shall be measured according to the amount received or receivable. If
not they shall be measured according to their fair value; if their fair value cannot be reliably obtained they shall be measured
according to their nominal amount. The government subsidies measured by the nominal amount shall be directly recognized
through current profits and losses.When the Group actually receives the government subsidies it shall be recognized and measured as the amount received.However for the end of the period there are conclusive evidences that it can meet the relevant conditions stipulated by the
financial support policy and it is expected that the financial support funds can be received it shall be measured according to the
amount receivable. The government subsidies measured as the amount receivable shall comply with the following conditions: *
The subsidy receivable has been recognized by the competent government department or may be reasonably calculated according
to the relevant provisions of the formally published financial fund management method and the estimated amount is free of
significant uncertainty; * It is based on the initiatively published financial support project by the local financial department and
its financial fund management method in accordance with the regulations of the Decree of Government Information Openness and
1382024 Annual Report of Zhejiang Supor Co. Ltd.
this management method shall be favorable to the public (any enterprise qualified can apply) not just to the specified companies;
* The relevant subsidy documents have clearly promised the appropriation period and the appropriation of this fund shall be
safeguarded by the relevant financial budget so it can be reasonably guaranteed that it can be received within the specified period;
* Other relevant conditions that shall be satisfied (if any) based on the specific circumstances of the Group and the grant.If the government subsidies concerning assets are recognized as deferred incomes and are recognized through current profits
and losses by installments in a reasonable and systematic way within the service life of underlying assets. Government subsidies
concerning benefits used to compensate future relevant costs or losses will be recognized as deferred income and recognized
through current profits and losses during the period when the related costs or losses are recognized; those used to compensate
relevant costs or losses that have occurred will be recognized through current profits and losses directly.At the same time it includes the government subsidies related to assets and incomes and separates different parts for
accounting treatment; for those hard to be differentiated it shall be taken as government subsidies concerning benefits as a whole.The government subsidies concerning daily activities of the Group shall be recognized through other incomes or used to
offset the relevant costs according to the economic business nature. government subsidies not concerning daily activities will be
recognized through non-operating income and expenditure.If the government subsidies confirmed need to be returned and there is the deferred income balance concerned the book
balance of relevant deferred incomes shall be offset against but the excessive part shall be recognized through current profits and
losses; In other circumstances they shall be recognized through current profits and losses directly.
30. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
On the balance sheet date the current income tax liabilities (or assets) formed in the current period and previous periods shall
be measured by the expected amount of income tax payable (or returnable) calculated in accordance with the provisions of the tax
law. The taxable income on which the current income tax expenses are calculated shall be calculated after the corresponding
adjustment of the pre-tax accounting profit in the current reporting period in accordance with the relevant tax law.
(2) Deferred income tax assets/deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases and the temporary difference caused
by the difference between the book value of the items that are not recognized as assets and liabilities but whose tax bases can be
determined according to the tax law shall be used to recognize deferred income tax assets and deferred income tax liabilities with
the balance sheet liability method.For taxable temporary differences related to the initial recognition of goodwill and the initial recognition of assets or
liabilities arising from transactions that are neither enterprise merger nor affect accounting profit and taxable income (or
deductible loss) at the time of occurrence the relevant deferred income tax liabilities shall not be recognized. In addition for
taxable temporary differences related to the investments of subsidiaries associated enterprises and joint ventures if the Group can
control the time of reversal of the temporary differences and the temporary differences are likely not to be reversed in the
foreseeable future the relevant deferred income tax liabilities shall not be recognized. Except for the above exceptions the Group
shall recognize all other deferred income tax liabilities incurred in the taxable temporary differences.Taxable temporary differences and deductible temporary differences related to the initial recognition of assets or liabilities
arising from a single transaction that is neither a enterprise merger nor affects accounting profits and taxable incomes (or
deductible losses) shall be respectively recognized as deferred income tax liabilities and deferred income tax assets at the time of
transaction. In addition for the deductible temporary differences related to the investment of subsidiaries associated enterprises
and joint ventures if the temporary differences are not likely to be reversed in the foreseeable future or it is not likely to obtain the
1392024 Annual Report of Zhejiang Supor Co. Ltd.
taxable income used to offset the deductible temporary differences in the future the relevant deferred income tax assets shall not
be recognized. Except for the above exceptions the Group shall recognize the deferred income tax assets arising from other
deductible temporary differences to the extent that taxable income is likely to be obtained for deducting the deductible temporary
differences.For deductible losses and tax deductions that can be carried down in subsequent years the corresponding deferred income tax
assets shall be recognized with the limit of the future taxable income which is likely to be obtained for deducting the deductible
losses and tax deduction.Deferred income tax assets and deferred income tax liabilities shall be calculated on the balance sheet date based on the
applicable tax rate during the period of expected recovery of relevant assets or clearing off relevant liabilities according to tax laws.On the balance sheet date it is required to recheck the book value of the deferred income tax assets. If sufficient taxable
income is not likely to be obtained for deducting the interest of deferred income tax assets in the future the book value of deferred
income tax assets shall be written down. When it is very likely to obtain enough taxable income the write-down amount shall be
reversed.
(3) Income tax expenses
The income tax expenses comprise the current income tax and deferred income tax.Moreover the other current income tax and deferred income tax expenses or earnings shall be recognized through current
profits and losses except for book value of goodwill which is adjusted on the basis of the deferred income tax caused by the
enterprise merger and that the current income tax and the deferred income taxes related to other comprehensive incomes or
transaction or affairs of direct recording in the shareholders' equities are recognized through other comprehensive incomes or
shareholders' equities.
(4) Offset of income tax
When it has the legal rights of settlement based on the net amount and it intends to make settlement based on net amount
obtain assets or offset liabilities simultaneously the current income tax assets and current income tax liabilities of the Group shall
be presented based on the net amount after offsetting.When it has the legal rights of settling the current tax assets and current income tax liabilities based on the net amount and
the deferred income tax assets and deferred income tax liabilities are related to income tax levied to the same subject of tax
payment by the same tax collection and administration department or are related to different taxpayer but in each important period
of deferred income tax assets and liabilities reverse in the future and when the involved taxpayer intend to settle the current
income tax assets and liabilities based on the net amount or obtain assets and pay off the liabilities at the same time the Group's
deferred income tax assets and deferred income tax liabilities shall be presented after offsetting.
31. Lease
Lease refers to a contract in which it is agreed that the lessor transfers the use right of assets to the lessee to get corresponding
consideration within a certain period.The Group evaluates whether the contract is used for lease or includes the lease on the contract commencement date. Where
either party thereto assigns one or more use rights of the recognized assets under its control in a certain period to get consideration
the contract is a lease or includes a lease.
1402024 Annual Report of Zhejiang Supor Co. Ltd.
In order to determine whether the contract transfers the right of controlling the use of an identified asset for a certain period of
time the Group conducts the following assessment:
- Whether the contract involves the use of the identified asset. The identified asset may be explicitly specified by the contract
or implicitly specified when the asset is available for use by the customer and the asset is physically distinguishable or in the
event that any production capacity of the asset or other part of the asset is physically indistinguishable but it substantially
represents the full capacity of the asset and thus enables the customer to have access to almost all the economic benefits arising
from the use of the asset. If the supplier of the asset has the substantial right of replacing the asset throughout the period of use
then the asset is not attributed to an identified asset;
- Whether the lessee has the right to acquire almost all the economic benefits arising from the use of the identified asset
during the period of use;
- Whether the lessee has the right to direct the use of the identified asset during the period of use.If the contract contains multiple separate leases at the same time the lessee and lessor will split the contract and have each
separate lease separately subject to accounting treatment. If the contract includes lease and non-lease parts at the same time the
lessee and the lessor will split them separately.
(1) Lessee
At the beginning date of the lease term the Group recognizes the right-of-use asset and lease obligation of the lease. The
right-of-use asset is initially measured at cost including the initial measurement amount of the lease obligation the lease payment
paid at or before the beginning date of the lease term (less the amount of lease incentives already granted) the initial direct
expenses incurred and the costs expected to be incurred to demolish and remove the leased asset restore the site where the leased
asset is located or restore the leased asset to the state agreed upon in the provisions of the lease.The Group employs the straight-line method to depreciate right-of-use assets. If the ownership of the leased assets can be
reasonably confirmed to be obtained upon expiry of the lease term the depreciation of leased assets shall be withdrawn by the
Group during the remaining service life thereof; Otherwise the leased asset is depreciated during the shorter of the lease term and
the remaining service life of the leased asset. Impairment provisions for right-of-use assets shall be made in accordance with the
accounting policies described in Note V 22 "Impairment of long-term assets".The lease obligation is initially measured at the present value of the lease payment that has not been paid at the beginning
date of the lease term and the discount rate is the implicit rate of the lease. If the implicit rate of the lease cannot be determined
the incremental borrowing rate of the Group shall be adopted as the discount rate.The Group calculates the interest expense of the lease obligation for each period of the lease term at a fixed periodic interest
rate which is recognized through current profits and losses or relevant asset costs. The variable lease payment not recognized
through measurement of lease obligations will be recognized through current profits and losses or relevant asset costs when it
actually occurs.In case of any of following circumstances after the beginning date of the lease term the Group will remeasure lease
obligations at the present value of the lease payment after any change:
-Where the amount payable anticipated changes according to the guaranteed residual value;
-Where the index or ratio used for recognizing the lease payment changes;
-Where there is a change in the Group's assessment results of the option of purchase renewal option or option of termination
of lease or the actual exercising of the termination of the renewal option or option of termination of lease is inconsistent with the
original assessment result.When the lease obligation is measured anew the Group will adjust the book value of right-of-use assets accordingly. If the
book value of the right-of-use asset has been reduced to zero but the lease obligation still needs to be further reduced the Group
will include the remaining amount in the current profits and losses.
1412024 Annual Report of Zhejiang Supor Co. Ltd.
The Group chooses not to confirm the right-of-use asset and lease obligation for short-term lease (with a lease term not
exceeding 12 months) and low-value asset lease (the value of a single leased asset is lower when it is a brand new asset) as well as
includes related lease payment into the current profits and losses or relevant asset costs in each period during the lease term
pursuant to the straight-line method.
(2) Lessor
At the beginning date of the lease term the Group divides leases into financing and operating leases. Financing lease refers to
a lease in which almost all the risks and rewards related to the ownership of the leased asset are essentially transferred regardless
of whether the ownership is finally transferred or not. The operating lease refers to the other leases except for the financing lease.The Group as the lessor provides classification of subleases based on the right-of-use assets created by the original lease
rather than the underlying assets of the original lease. If the original lease is a short-term lease and the Group chooses to apply the
simplified treatment of the above short-term lease to the original lease then the Group classifies the sublease as an operating lease.Under financing leases at the beginning date of the lease term the Group confirms financing lease receivables for financing
lease and derecognizes the financial leasing assets. The Group regards the net investment in a lease as the entry value of financing
lease receivables at the time of initial measurement of financing lease receivables. The net investment in a lease is the sum of the
present value of unguaranteed residual value and lease receipt not received yet on the beginning date of the lease term which is
subject to discounting at the interest rate implicit in the lease term.The Group calculates and recognizes the Interest revenue in each period within the lease term according to a fixed periodic
rate. The derecognition and impairment of financing lease receivables shall be treated in accordance with the accounting policies
described in Note V 10 Financial Instruments and 11 Financial Assets Impairment. The variable lease payment which is not
recognized through net lease investment shall be recognized through current profits and losses when it actually occurs.The lease receipts of operating lease are confirmed as rent revenue in each period within the lease term in light of straight-line
method. The Group capitalizes the initial direct expenses incurred in connection with operating leases apportioned them over the
lease term on the same basis as the rent revenue recognition and recorded into the current profits and losses by stages. The
variable lease payment which is not recognized through lease receipt shall be recognized through current profits and losses when it
actually occurs.
32. Dividend distribution
After the balance sheet date the proposed dividends or profits to be distributed in the profit distribution plan approved upon
review are not recognized as a liability on the balance sheet date and are disclosed separately in the notes.
33. Related parties
If one party controls or jointly controls the other party or imposes significant impact on the other party and two or more
parties are controlled or jointly controlled by one party these parties are related parties. Related party can be individual or
enterprise. An enterprise that is only controlled by the state but does not have other related party relationships does not constitute a
related party.In addition the Company also determines the Group or related parties of the Company in accordance with the Administrative
Measures for the Disclosure of Information of Listed Companies promulgated by the CSRC.
34. Segment report
See Note XVIII 1 "Segment Information" for details of accounting policies related to segment reporting for details.
1422024 Annual Report of Zhejiang Supor Co. Ltd.
35. Other important accounting policies and estimates
(1) Repurchased shares
If the Group reduces its capital by acquiring the shares of the Company with approval then it shall reduce equities according
to the total amount of the book value of cancelled shares and adjust owners' equities according to the difference between the price
paid to purchase shares back (including transaction cost) and the book value of shares. The part exceeding the total book value
shall be used to write down capital reserve (share capital premium) surplus reserve and undistributed profit. If the price is lower
than the total book value then the part lower shall be added with capital reserve (share capital premium).Shares repurchased by the Group shall be managed as treasury shares before they are cancelled or transferred; total
expenditure of repurchased shares shall be transferred as the cost of treasury shares.When treasury shares are transferred the part higher than their cost shall be transferred to increase capital reserve (share
capital premium); the part lower than the cost of treasury shares shall write down capital reserve (share capital premium) surplus
reserve and undistributed profit in sequence.If the Group repurchase shares for the reason of equity incentive it shall treat all expenses on shares repurchase as treasury
shares while repurchasing and make registration for future reference.
(2) Fair value measurement
Fair value refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability
among the orderly transactions made on the measurement date. The Group measures relevant asset or liability and considers the
characteristics of this asset or liability at fair value; supposes the selling of assets or transfer of liabilities by market participant are
orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities are carried out in
the main market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets
or liabilities when there is no main market. The Group adopts the assumptions that market participants use to maximum their
economic benefits when they price assets or liabilities.The Group judges whether the fair value at initial recognition equals to its transaction price according to transaction nature
and the characteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value relevant gains or losses
will be recognized through current profits and losses unless otherwise specified by relevant accounting standards.The Group adopts the valuation technique that is applicable to the current situation and has enough available data and other
information to support. Mainly used valuation techniques include market approach income approach and cost method. In the
application of valuation techniques relevant observable input values shall be used first and unobserved input values can only be
used when relevant observable input values cannot be obtained or it is not feasible to obtain them.Input values used by the Group for fair value measurement is divided into 3 levels. The first level of input values will be used
first and then the second level and the third level. First level of input values are the quotations of same assets or liabilities that can
be obtained on the measurement date and are not adjusted in the active market; the second level of input values are the direct or
indirect observable input values of relevant assets or liabilities other than the first level of input values; the third level of input
values are the unobservable input values of relevant assets or liabilities.The Group measures non-financial assets with fair value considers market participant's ability to use this asset in the best
way to generate economic benefits or the ability to sell this asset to other market participants who can use this asset in the best
way to generate economic benefits. To measure a liability with fair value the Group supposes this liability is transferred to other
market participants on the measurement date and further exists after transfer and the market participant who is the transferee
performs obligations. To measure one's own equity instrument with fair value suppose this equity instrument is transferred to
other market participants on the measurement data and further exits after transfer and the market participant as the transferee
obtains relevant rights to this instrument and undertakes corresponding obligations.
1432024 Annual Report of Zhejiang Supor Co. Ltd.
36. Change of important accounting policies and estimates
(1) Change of important accounting policies
? Applicable □ Not applicable
In 2024 the Group implemented the relevant provisions and guidelines of in Accounting Standards for Business Enterprises
issued by the Ministry of Finance in recent years mainly including:
- The provisions on "Classification of Current and Non-current Liabilities" in Interpretation No. 17 of the Accounting Standards
for Business Enterprises No. 17 (CK [2023] No. 21 hereinafter referred to as "Interpretation No. 17");
- The provisions on "Accounting Treatment of Warranty-Type Quality Assurance Not Constituting a Separate Performance
Obligation" in Interpretation No. 18 of the Accounting Standards for Business Enterprises (CK [2024] No. 24 hereinafter referred to
as "Interpretation No. 18").(a)The main impact of the Group's adoption of the above regulations and guidelines
(i) Provisions on the classification of current and non-current liabilities
According to the provisions of Interpretation No. 17 when classifying the liquidity of liabilities the Group only considers
whether it has the substantive right to defer the settlement of liabilities for more than one year after the balance sheet date (hereinafter
referred to as the "right to defer liability settlement") at the balance sheet date without considering the subjective likelihood of the
Group exercising such right.For liabilities arising from the Group's loan arrangements if the Group's right to defer liability settlement depends on whether
the Group complies with the conditions specified in the loan arrangements (hereinafter referred to as "covenant conditions") the
Group only considers the covenant conditions that must be met on or before the balance sheet date when classifying the liquidity of
the relevant liabilities without considering the impact of covenant conditions that must be met after the balance sheet date.For liabilities settled by delivering the Group's own equity instruments at the option of the counterparty if the Group classifies
such option as an equity instrument and separately recognizes it as the equity component of a compound financial instrument in
accordance with Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments it does not affect the
liquidity classification of the liability. Conversely if such option cannot be classified as an equity instrument it will affect the
liquidity classification of the liability.The adoption of these provisions has not had a material impact on the Group's financial position or operating results.(ii) Presentation of warranty expenses
According to the provisions of Interpretation No. 18 the Group records the accrued warranty expenses under "cost of main
business" instead of "sales expense."
The Group has applied the retrospective adjustment method to adjust the financial statement data for comparable periods
accordingly.(b) Impact of the changes on the current year's financial statements
The impact of the above accounting policy changes on the consolidated profit statement and the parent company's income
statement for the year 2024 is summarized as follows:
Increase/decrease in financial statement items due to the adoption of revised
accounting policies
Item
Profit statement of the parent
Consolidated profit statement
company
Operating cost 228378126.00
Sales expenses -228378126.00
(c) Impact of the changes on comparative period financial statements
The impact of the above accounting policy changes on the consolidated profit statement and the parent company's income
statement for the year 2023 is summarized as follows:
1442024 Annual Report of Zhejiang Supor Co. Ltd.
Consolidated profit statement
Item
Before adjustment Amount of adjustments After adjustment
Operating cost 15700128849.31 218316250.79 15918445100.10
Sales expenses 2297847425.74 -218316250.79 2079531174.95
Profit statement of the parent company
Item
Before adjustment Amount of adjustments After adjustment
Operating cost 2370968026.25 2370968026.25
Sales expenses 38814845.01 38814845.01
(2) Change of important accounting estimates
□ Applicable ? Not applicable
(3) First implementation of new accounting standards adjusts the related items in financial statements since 2024
□ Applicable ? Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax Tax base Tax rate
The taxable revenue from sales of Taxable income is calculated at output tax rates of 0 6% 9%
VAT commodities or rendering of and 13% and VAT is calculated based on the difference after
services deducting the input tax allowable for the current period.Urban maintenance
VAT payable 7%
and construction tax
Corporate income tax rate is 25%. Shaoxing Supor Zhejiang
WMF and Hainan Supor E-Commerce Company are taxed at a
preferential tax rate of 15%. Wuhan Recycling and Shanghai
Enterprise income tax Taxable income
Marketing are taxed at a preferential tax rate of 20%. Overseas
subsidiary Indonesian Company is taxed at a 22% rate Supor
Vietnam and AFS are taxed at 20% and SEADA is taxed at 17%.Education surcharge VAT payable 3%
Local education
VAT payable 2%
surcharge
1.2% of the residual value after
deducting 30% of the original value
of the property is calculated and
paid in case of ad valorem; for
Housing property tax 1.2% 12%
housing property levied on the basis
of rent housing property tax is
levied at the rate of 12% of rent
revenue.
1452024 Annual Report of Zhejiang Supor Co. Ltd.
2. Tax preferences
Pursuant to GKH Zi [2020] No. 32 document Shaoxing Supor and Zhejiang WMF renewed the hi-tech enterprise
qualification in 2022 and is entitled to enjoy the preferential enterprise income tax rate of 15% for the three-year period starting
from January 1 2022.According to the Enterprise Income Tax Law of the People's Republic of China and its implementation regulations the
Notice on Preferential Policies for Enterprise Income Tax in Hainan Free Trade Port (CS [2020] No.31) as well other provisions
business income tax will be levied at a rate of 15% for encouraged industrial enterprises registered and substantially operating in
the Hainan Free Trade Port from January 1 2020 to December 31 2024. Meeting the e-commerce in the encouraged industries
catalogue Hainan Supor E-Commerce Company applies the preferential tax rate of 15% in 2024.Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration on the Preferential Income
Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households (CS [2023] No.6) on March
26 2023 from January 1 2023 to December 31 2024 the portion of the annual taxable income of small and micro profit
enterprises that does not exceed RMB 1 million shall be taken into the taxable income at the ratio of 25% and the enterprise
income tax payable thereof shall be settled at the rate of 20%. Meanwhile according to the Announcement of the Ministry of
Finance and the State Taxation Administration on Further Implementing the Preferential Income Tax Policies for Micro and
Small Enterprises (CS [2022] No. 13) from January 1 2022 to December 31 2024 for the part of the annual taxable income of
small and low-profit enterprises that exceeds RMB 1 million but less than RMB 3 million a reduced rate of 25% shall be applied
and the enterprise income tax shall be paid at a tax rate of 20%. The Announcement of the Ministry of Finance and the State
Administration of Taxation on Further Supporting the Development of Small and Micro Enterprises and Individual Businesses
with Tax and Fee Policies (CS [2023] No.12) issued on August 2 2023 extends the policy of calculating taxable income at 25%
and applying a 20% tax rate for small and low-profit enterprises until December 31 2027 Among which Wuhan Recycling and
Shanghai Marketing meet the standards of small and low-profit enterprises in 2024 therefore the preferential tax rate at 20% is
applicable in 2024.VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Item Closing balance Opening balance
Cash on hand 63867.50 62594.14
Cash in bank 2181724307.80 2964417369.53
Other monetary capitals 298219143.39 583797478.77
Total 2480007318.69 3548277442.44
Including: deposited overseas 113595779.66 61122895.90
Other remarks:
1) As of December 31 2024 the restricted bank deposits amounted to RMB 68400.00 which was the frozen amount in the
subsidiary's bank account (December 31 2023: RMB 30423.72 which was the frozen amount in the bank account of the
deregistered branch). Time deposits which cannot be withdrawn at any time amounting to RMB 662696328.77 (December 31
2023: RMB 1607020342.48).
2) As of December 31 2024 other monetary capitals included restricted amounts such as RMB 189178000.00 for acceptance bill
security (December 31 2023: RMB 476860000.00) RMB 945617.14 for e-commerce platform security (December 31 2023:
1462024 Annual Report of Zhejiang Supor Co. Ltd.
RMB 613739.88) and RMB 58000000.00 for advance payment financing business deposit security (December 31 2023: RMB
58000000.00). Unrestricted monetary funds included RMB 50095526.25 in Alipay JD Wallet Tiktok Wallet securities
settlement accounts futures settlement accounts and Youzan accounts (December 31 2023: RMB 48323738.89).
3) As at December 31 2024 the monetary capital deposited by Supor in Vietnam amounts to RMB 103650689.72 (December 31
2023: equivalent to RMB 44335548.85); The monetary capital deposited by Supor in Singapore is equivalent to RMB
4467651.13 (December 31 2023: equivalent to RMB 4491068.45). The monetary capital deposited by Supor in Indonesia is
equivalent to RMB 5477438.81 (December 31 2023: equivalent to RMB 12296278.60).
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at the fair value with their changes included
281234235.25351137787.54
into the current profits and losses.Including:
- Short-term financial products 281234235.25 351137787.54
Total 281234235.25 351137787.54
Other remarks:
As at December 31 2024 the financial assets at fair value through current profits and losses are the financial products purchased
by subsidiaries amounting to RMB 280000000.00 (December 31 2023: RMB 350000000.00). These financial products with
floating income and linked to interest rates and exchange rates etc. and the corresponding gains from changes in fair value i.e
RMB 1234235.25 (December 31 2023: RMB 1137787.54) are recognized at the end of the current period.
3. Notes receivable
(1) Details on categories
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 4036734.84 15311935.98
Total 4036734.84 15311935.98
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Book balance Book balance
bad debts bad debts
Category
Provisi Provisi
Book value Book value
Amoun on on
Amount Proportion Amount Proportion Amount
t proport proport
ion ion
Notes
4036734.84100.00%4036734.8415311935.98100.00%15311935.98
receivable for
1472024 Annual Report of Zhejiang Supor Co. Ltd.
provision for
bad debts made
on the basis of
portfolio
Including:
Portfolio: Bank
4036734.84100.00%4036734.8415311935.98100.00%15311935.98
acceptance bill
Total 4036734.84 100.00% 4036734.84 15311935.98 100.00% 15311935.98
If yes a provision for bad debts for notes receivable shall be accrued according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts made collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Category Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Bank acceptance
bill
Wherein important amounts of provision for bad debts collected or reversed in the current period:
□ Applicable ? Not applicable
(4) Notes receivables that the Company has pledged at the end of the period
As of December 31 2024 the Group had no notes receivable pledged (December 31 2023: None).
(5) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: RMB
Item Closing balance derecognized Closing balance not derecognized
Bank acceptance bill 3608696.65
Total 3608696.65
(6) Other explanations
By December 31 2024 Supor's undue and endorsed notes receivable of RMB3608696.65 (December 31 2023: RMB
10761655.33). have not been recognized as notes transferred to the suppliers to settle the amount payable. This is mainly because
that according to the management the risks and remunerations attached to the ownership of the notes have not been actually
transferred. The book values of the said undue notes receivable approximate their fair values. The said undue notes receivable will
get mature within 1 year.
1482024 Annual Report of Zhejiang Supor Co. Ltd.
(7) Notes the Company transfers to accounts receivable due to the drawer's failure to perform the
contract at the end of the period
As at December 31 2024 the Group has not any notes transferred to accounts receivable due to non-performance of drawers.
(December 31 2023: None)
4. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (inclusive) 2770620082.25 2956340005.74
1-2 years 6036063.60 7090033.51
2-3 years 1907485.94 1283949.52
Over 3 years 1461383.34 880404.97
3-4 years 580978.37 127479.68
4-5 years 127479.68 96637.91
Over 5 years 752925.29 656287.38
Total 2780025015.13 2965594393.74
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Book value Book value
Proportio Provision Proportio Provision
Amount Amount Amount Amount
n proportion n proportion
Accounts
receivable for
provision made
195920.380.01%195920.38100.00%195920.380.01%195920.38100.00%
on an
individual
basis
Accounts
receivable for
provision for 27798290 89780065. 269004902 2965398473 107151117 28582473
99.99%3.23%99.99%3.61%
bad debts made 94.75 95 8.80 .36 .33 56.03
on the basis of
portfolio
Including:
Portfolio 1: age 26524970 89652733. 256284428 2843635733 107029354 27366063
95.41%3.38%95.89%3.76%
portfolio 23.77 88 9.89 .09 .59 78.50
Portfolio 2: 12733207 127204738. 121762740.2 121640977
4.58%127332.070.10%4.10%121762.740.10%
low-risk 0.98 91 7 .53
1492024 Annual Report of Zhejiang Supor Co. Ltd.
portfolio
2780025089975986.269004902296559439310734703728582473
Total 100.00% 3.24% 100.00% 3.62%
15.13338.80.74.7156.03
Provision for bad debts made on an individual basis: RMB195920.38
Unit: RMB
Opening balance Closing balance
Name Book Provision for Book Provision for Provision
Reasons
balance bad debts balance bad debts proportion
It is not expected to be recovered so the
Customer A 41463.78 41463.78 41463.78 41463.78 100.00%
provision for bad debts is fully accrued.It is not expected to be recovered so the
Customer B 75662.72 75662.72 75662.72 75662.72 100.00%
provision for bad debts is fully accrued.It is not expected to be recovered so the
Customer C 78793.88 78793.88 78793.88 78793.88 100.00%
provision for bad debts is fully accrued.Total 195920.38 195920.38 195920.38 195920.38
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB 89652733.88
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (inclusive) 2643289828.34 87913941.69 3.33%
1-2 years (including 2 years) 6036063.60 482885.09 8.00%
2-3 years (including 3 years) 1907485.94 286122.89 15.00%
3-4 years (including 4 years) 580738.76 290369.38 50.00%
4-5 years (including 5 years) 17461.50 13969.20 80.00%
Over 5 years 665445.63 665445.63 100.00%
Total 2652497023.77 89652733.88
Explanation on the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience in actual credit loss and adjusted based on the difference between
the economy during the historic period of data collection the current economy and the economy during the duration expected by
Supor.If yes a provision for bad debts for accounts receivable shall be accrued according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts made collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Category Opening balance Collected or Closing balance
Accrued Written off Others
reversed
1502024 Annual Report of Zhejiang Supor Co. Ltd.
Provision for bad debts
107347037.71-17175103.55-48398.00-147549.8389975986.33
for accounts receivable
Total 107347037.71 -17175103.55 -48398.00 -147549.83 89975986.33
Decreased provision for bad debts of RMB 147549.83 for conversion difference in foreign currency statement caused by the
change in exchange rate.
(4) Accounts receivable actually written off in current period
Unit: RMB
Item Amount written off
Accounts receivable actually written off 48398.00
Including significant accounts receivable written off:
None
(5) Accounts receivable and contract asset details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of
impairment
Proportion in the
Accounts provision for bad
Closing balance of sum of accounts
Closing balance of receivable and debts for accounts
Entity name accounts receivable and
contract asset closing balance of receivable and
receivable closing balance of
contract asset impairment
contract asset
provision for
contract assets
SEB S.A. and its subsidiaries 1768146032.80 1768146032.80 63.60% 44205448.90
Customer D 417106255.20 417106255.20 15.00% 20879339.51
Customer E 102825954.26 102825954.26 3.70% 102825.95
Customer F 61865537.20 61865537.20 2.23% 3093276.86
Customer G 38845263.67 38845263.67 1.40% 1942263.18
Total 2388789043.13 2388789043.13 85.93% 70223154.40
5. Receivables financing
(1) Classification of receivables financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 368776534.93 363532765.35
Total 368776534.93 363532765.35
1512024 Annual Report of Zhejiang Supor Co. Ltd.
(2) Other explanations
The Group endorses or discounts certain bank acceptance bills by the needs of day-to-day fund management. Taking into account
of the amount and frequency of endorsement or discount of bank acceptance bills the Group determines that the objective of such
business model is to receive contractual cash flows and sell the notes receivable simultaneously and therefore such notes
receivable are classified into financial assets at fair value through other comprehensive incomes and presented as receivables
financing.As at December 31 2024 the Group had no receivables financing pledged. (December 31 2023: None).
(3) Endorsed or discounted receivables financing undue at the balance sheet date at the end of the year
Unit: RMB
Closing balance not
Item Closing balance derecognized
derecognized
Bank acceptance bill 3606899919.08
Total 3606899919.08
(4) Other remarks
In order to settle part of the payables the Group endorses the equal amount of undue notes receivable to the suppliers and the
management of the Group considers that certain undue notes meet the conditions that is almost all risks and remuneration
pertaining to ownership have been transferred and meanwhile the current obligations of the relevant payables have been fully
discharged thus the relevant notes and payables are derecognized. The possible greatest loss undertaken by the Group for the
continued involvement therein is the amount of the undue notes receivable endorsed by the Group to suppliers. The said undue
notes receivable will get mature within 1 year.
6. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 94546924.00 16126721.38
Total 94546924.00 16126721.38
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 13672150.12 11391814.36
Temporary payment receivable 9547339.30 6972323.05
Personal deposit 1760482.43 1457137.01
1522024 Annual Report of Zhejiang Supor Co. Ltd.
Tax refund receivable 1617531.28 996927.07
Government subsidy receivable 72684645.29
Total 99282148.42 20818201.49
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (inclusive) 90024282.49 12043858.73
1-2 years 1522365.57 3460785.69
2-3 years 3406469.00 2570919.30
Over 3 years 4329031.36 2742637.77
3-4 years 1776419.50 688905.05
4-5 years 622310.36 251762.10
Over 5 years 1930301.50 1801970.62
Total 99282148.42 20818201.49
3) Classified disclosure by the bad debt provision method
? Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Book value Book value
Provision Provision
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Provision for
bad debts made
1190578.81190578.8
on an 3000.00 0.00% 3000.00 100.00% 5.72% 100.00%
99
individual
basis:
Provision for
bad debts made 99279148. 4732224.4 94546924. 19627622. 3500901.2 16126721.
100.00%4.77%94.28%17.84%
on a portfolio 42 2 00 60 2 38
basis
Including:
Portfolio 1: age 24976971. 4732224.4 20244747. 18630695. 3500901.2 15129794.
25.16%18.95%89.49%18.79%
portfolio 85 2 43 53 2 31
Portfolio 2:
74302176.74302176.
low-risk 74.84% 996927.07 4.79% 996927.07
5757
portfolio
99282148.4735224.494546924.20818201.4691480.116126721.
Total 100.00% 4.77% 100.00% 22.54%
4220049138
Provision for bad debts made on an individual basis: RMB 3000.00
Unit: RMB
1532024 Annual Report of Zhejiang Supor Co. Ltd.
Opening balance Closing balance
Name Provision Provision for Book Provision
Book balance for bad Reasons
bad debts balance proportion
debts
It is not expected to be recovered so the
Customer H 1187578.89 1187578.89
provision for bad debts is fully accrued.It is not expected to be recovered so the
Customer I 3000.00 3000.00 3000.00 3000.00 100.00%
provision for bad debts is fully accrued.Total 1190578.89 1190578.89 3000.00 3000.00
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB 4732224.42
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (inclusive) 15722105.92 786105.28 5.00%
1-2 years 1522365.57 121789.25 8.00%
2-3 years 3406469.00 510970.35 15.00%
3-4 years 1776419.50 888209.75 50.00%
4-5 years 622310.36 497848.29 80.00%
Over 5 years 1927301.50 1927301.50 100.00%
Total 24976971.85 4732224.42
Explanation on the basis for determining such portfolio:
A provision for bad debts that are accrued according to the general model of the expected credit loss:
Unit: RMB
Phase I Phase II Phase III
Provision for bad debts Expected credit loss in the Expected credit loss in the Expected credit loss in Total
entire duration (without entire duration (credit
future 12 months
credit impairment) impairment)
Balance on January 1 2024 3500901.22 1190578.89 4691480.11
Balance on January 1 2024 in
the current period
Provision for current period 1236465.92 1236465.92
Reversals in the current period -1187578.89 -1187578.89
Other changes -5142.72 -5142.72
Balance on December 31 2024 4732224.42 3000.00 4735224.42
Other remarks:
Decreased provision for bad debts of RMB 5142.72 for conversion difference in foreign currency statement caused by the change
in exchange rate.Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not applicable
1542024 Annual Report of Zhejiang Supor Co. Ltd.
4) Provision for bad debts made collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Category Opening balance Collected or Write-off or Closing balance
Accrued Others
reversed charge-off
Provision for bad debts
4691480.111236465.92-1187578.89-5142.724735224.42
of other receivables
Total 4691480.11 1236465.92 -1187578.89 -5142.72 4735224.42
5) Other receivables of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance of
Entity name Nature of receivables Closing balance Ages total closing balance provision for bad
of other receivables debts
Government subsidy
Unit A 45401900.00 Within 1 year 45.73%
receivable
Government subsidy
Unit B 14441200.00 Within 1 year 14.55%
receivable
Government subsidy
Unit C 12841545.29 Within 1 year 12.93%
receivable
Deposit as security &
Within 1 year 1-
Customer J temporary payment 2411986.00 2.43% 441699.30
4 years
receivable
Customer K Deposit as security 1681500.00 Within 1 year 1.69% 84075.00
Total 76778131.29 77.33% 525774.30
7. Advance payment
(1) Listing by ages
Unit: RMB
Closing balance Opening balance
Ages
Amount Proportion Amount Proportion
Within 1 year 269994369.41 98.95% 190478767.90 98.61%
1-2 years 2208500.02 0.81% 2453401.67 1.27%
2-3 years 441866.71 0.16% 123148.33 0.06%
Over 3 years 231285.94 0.08% 114137.61 0.06%
Total 272876022.08 193169455.51
1552024 Annual Report of Zhejiang Supor Co. Ltd.
(2) Advance payment of the top 5 closing balances by prepayment objects
Unit: RMB
Proportion in the balance of advance
Entity name Book balance
payment
Supplier A 26693149.63 9.78%
Supplier B 23082374.24 8.46%
Supplier C 22149055.00 8.12%
Supplier D 19154384.53 7.02%
Supplier E 17168622.50 6.29%
Subtotal 108247585.90 39.67%
Other remarks:
Aging is calculated from the date of confirmation of accounts prepaid.
8. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Closing balance Opening balance
Inventory Inventory
depreciation depreciation
Item reserves or reserves or
Book balance impairment Book value Book balance impairment Book value
provision for provision for
contract contract
performance cost performance cost
Raw materials 340206359.81 7421752.13 332784607.68 339021663.87 8468573.73 330553090.14
Unfinished
92996160.9592996160.9593073750.6193073750.61
products
Finished products 2035266676.85 23460922.00 2011805754.85 1739751597.38 16482797.36 1723268800.02
Low value
121972166.54237339.29121734827.25108345465.6782857.41108262608.26
consumables
Packing materials 6636757.74 6636757.74 7525138.28 7525138.28
Total 2597078121.89 31120013.42 2565958108.47 2287717615.81 25034228.50 2262683387.31
(2) Inventory depreciation reserves and impairment provision for contract performance cost
Unit: RMB
Increase Decrease
Item Opening balance Reversal or write- Closing balance
Accrued Others Others
off
1562024 Annual Report of Zhejiang Supor Co. Ltd.
Raw materials 8468573.73 2790614.04 3749231.49 88204.15 7421752.13
Finished products 16482797.36 15094540.34 8108046.95 8368.75 23460922.00
Low value
82857.41237339.2982857.41237339.29
consumables
Total 25034228.50 18122493.67 11940135.85 96572.90 31120013.42
There is an decreased inventory depreciation reserves of RMB 96572.90 for conversion difference in foreign currency statement
caused by the change in exchange rate.Inventory falling price reserve on a portfolio basis
Unit: RMB
End of the period Beginning of the period
Falling Falling
Portfolio name price price Impairment Impairment
Closing balance reserve Opening balance reserve
provision provision
accrual accrual
ratio ratio
Raw materials 340206359.81 7421752.13 2.18% 339021663.87 8468573.73 2.50%
Finished products 2035266676.85 23460922.00 1.15% 1739751597.38 16482797.36 0.95%
Low value
121972166.54237339.290.19%108345465.6782857.410.08%
consumables
Total 2497445203.20 31120013.42 2187118726.92 25034228.50
9. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Other debt investments due within one year 1558446438.34 285783958.92
Total 1558446438.34 285783958.92
(1) Debt investment due within one year
□ Applicable ? Not applicable
(2) Other debt investments due within one year
? Applicable □ Not applicable
1) Other debt investments due within one year
Impairment
Fair provisions that
value are
Accumulated
Interest changes cumulatively
Item Opening balance Interest accrued Closing balance Cost fair value Remarks
adjustment in the determined in
changes
current other
period comprehensive
incomes
1572024 Annual Report of Zhejiang Supor Co. Ltd.
Negotiable certificates of deposit 285783958.92 58813412.20 -366973.86 1558446438.34 1500000000.00
Total 285783958.92 58813412.20 -366973.86 1558446438.34 1500000000.00
2) Other important debt investments due within one year at the end of the period
Unit: RMB
Effective interest rate Overdue principal
Coupon
Item Book value Expiry date
rate Closing Opening Closing Opening
balance balance balance balance
Shaoxing Supor - Bank of
China negotiable certificates of 140000000.00 3.35% March 3 2025 3.32% 3.32%
deposit
Shaoxing Supor Housewares -
China Guangfa Bank
200000000.00 3.55% April 21 2025 3.43% 3.43%
negotiable certificates of
deposit
Shaoxing Supor Housewares -
Industrial Bank negotiable 200000000.00 2.15% June 4 2025 2.11%
certificates of deposit
Shaoxing Supor Housewares -
China Guangfa Bank
300000000.00 2.15% June 6 2025 2.11%
negotiable certificates of
deposit
Total 840000000.00
10. Other current assets
Unit: RMB
Item Closing balance Opening balance
Return cost receivable 16498602.12 15285358.91
Creditable VAT 262746904.13 111403625.69
Others 8750409.11 15734711.62
Total 287995915.36 142423696.22
11. Other debt investments
(1) Situation of other debt investment
Unit: RMB
Impairment
provisions
Fair value
Accumulated that are
Opening Interest Interest changes in Closing
Item Cost fair value cumulatively Remarks
balance accrued adjustment the current balance
changes determined in
period
other
comprehensiv
1582024 Annual Report of Zhejiang Supor Co. Ltd.
e incomes
Negotiable
951306342.70064883.1183765663176800000
certificates of -408253.00
4820.120.00
deposit
Minus: Part - - - -
due within 285783958. 58813412.2 366973.86 155844643 150000000
one year 92 0 8.34 0.00
665522383.11251470.9279210191.268000000.
Total -41279.14
5627800
(2) Important other debt investment at the end of the period
Unit: RMB
Closing balance Opening balance
Overdu Effectiv
Effective
Other debt items Book Coupon Expiry e Book Coupon e Expiry Overdue
interest
value rate date princip value rate interest date principal
rate
al rate
Shaoxing Supor
Housewares -
China Guangfa 2000000 April 21
3.55%3.43%
Bank negotiable 00.00 2025
certificates of
deposit
Shaoxing Supor -
Bank of China
1400000 March 3
negotiable 3.35% 3.32%
00.002025
certificates of
deposit
3400000
Total
00.00
12. Long-term equity investment
Unit: RMB
Increase/decrease Closing
balance
Opening Opening Adjustme Closing
Investment Cash of
balance balance of Invest Invest nt in Accrued balance
Invested unit profit or loss Changes dividend/pr impairm
(book impairment ment ment other impairme (book
recognized in other ofit Others ent
value) provision increas decrea comprehe nt value)
by equity equity declared for provisio
ed sed nsive provision
method distribution n
income
I. Joint Ventures
II. Associated Enterprises
Wuhan
Anzai 61678984. 60739389.-939594.64
Cookware 35 71
Co. Ltd.
61678984.60739389.
Subtotal -939594.64
3571
61678984.60739389.
Total -939594.64
3571
1592024 Annual Report of Zhejiang Supor Co. Ltd.
The recoverable amount is determined as the net amount of the fair value less disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined as the present value of estimated future cash flow of assets
□ Applicable ? Not applicable
13. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1265771512.34 1243210689.64
Total 1265771512.34 1243210689.64
(1) Fixed assets
Unit: RMB
Buildings and General
Item Special equipment Transport facilities Total
structures equipment
I. Original book value:
1. Opening balance 1234240411.28 295292863.08 965149950.66 34174160.70 2528857385.72
2. Increase 71638627.96 18687175.38 75934563.76 5375713.23 171636080.33
(1) Acquisition 1379578.82 17943963.57 50690509.70 5375713.23 75389765.32
(2) Transferred in from
70259049.14743211.8125244054.0696246315.01
construction in progress
(3) Increase from
enterprise merger
3. Decrease 11151740.68 8470523.34 20073480.78 6014032.97 45709777.77
(1) Disposal or
11151740.688470523.3420073480.786014032.9745709777.77
scrapping
4. Impact of change in
-1040506.15-261997.65-2163639.33-77255.10-3543398.23
exchange rate
5. Closing balance 1293686792.41 305247517.47 1018847394.31 33458585.86 2651240290.05
II. Accumulated depreciation
1. Opening balance 417002264.73 223951178.16 617795971.50 26593506.97 1285342921.36
2. Increase 45407841.50 25734147.81 57711070.28 2918157.75 131771217.34
(1) Provision 45407841.50 25734147.81 57711070.28 2918157.75 131771217.34
3. Decrease 790533.16 7847011.62 16230386.68 5073134.47 29941065.93
(1) Disposal or
790533.167847011.6216230386.685073134.4729941065.93
scrapping
4. Impact of change in
-388852.57-183136.75-1062950.25-69355.49-1704295.06
exchange rate
5. Closing balance 461230720.50 241655177.60 658213704.85 24369174.76 1385468777.71
III. Impairment Provision
1602024 Annual Report of Zhejiang Supor Co. Ltd.
1. Opening balance 303774.72 303774.72
2. Increase
(1) Provision
3. Decrease 303774.72 303774.72
(1) Disposal or
303774.72303774.72
scrapping
4. Closing balance
IV. Book Value
1. Closing book value 832456071.91 63592339.87 360633689.46 9089411.10 1265771512.34
2. Opening book value 817238146.55 71037910.20 347353979.16 7580653.73 1243210689.64
(2) Fixed assets with property ownership certificate unsettled
Unit: RMB
Item Book value Reasons for unsettlement
Function dormitory of Shaoxing After all projects are completed and the completion and settlement procedures
32102094.29
Supor are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.3 plant of Shaoxing Supor 23791682.51
are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.1 plant of Shaoxing Supor 22147340.93
are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.8 plant of Shaoxing Supor 26479428.11
are fulfilled the property ownership certificate shall be processed uniformly
Function cafeteria of Shaoxing After all projects are completed and the completion and settlement procedures
8614458.66
Supor are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.12 plant of Shaoxing Supor 11365305.07
are fulfilled the property ownership certificate shall be processed uniformly
Transformer substation (35 kV) of After all projects are completed and the completion and settlement procedures
1043338.51
Shaoxing Supor are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.13 plant of Shaoxing Supor 13368361.61
are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.14 plant of Shaoxing Supor 20751804.54
are fulfilled the property ownership certificate shall be processed uniformly
After all projects are completed and the completion and settlement procedures
No.15 plant of Shaoxing Supor 37638699.37
are fulfilled the property ownership certificate shall be processed uniformly
Forklift charging room of After all projects are completed and the completion and settlement procedures
796134.78
Shaoxing Supor are fulfilled the property ownership certificate shall be processed uniformly
13-B# warehouse project of After all projects are completed and the completion and settlement procedures
12698129.04
Shaoxing Supor are fulfilled the property ownership certificate shall be processed uniformly
Transfer procedures of land use right certificate are not settled due to land
Generator room of P&R Products 446.25
ownership issue
Water pump building and Transfer procedures of land use right certificate are not settled due to land
55016.68
structures of P&R Products ownership issue
Extended plant for bakelite Transfer procedures of land use right certificate are not settled due to land
121436.39
workshop of P&R Products ownership issue
Polishing workshop of P&R Transfer procedures of land use right certificate are not settled due to land
63360.00
Products ownership issue
Total 211037036.74
1612024 Annual Report of Zhejiang Supor Co. Ltd.
14. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 13026975.92 26862380.61
Total 13026975.92 26862380.61
(1) Details of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Shaoxing Supor Fire Protection
20185019.0720185019.07
Renovation Project
Piecemeal projects 12074143.87 12074143.87 5844384.84 5844384.84
Equipment payment 952832.05 952832.05 832976.70 832976.70
Total 13026975.92 13026975.92 26862380.61 26862380.61
(2) Impairment test of the construction in progress
□ Applicable ? Not applicable
15. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Buildings and structures Land General equipment Total
I. Original Book Value
1. Opening balance 342434143.81 3283631.77 345717775.58
2. Increase 53284906.84 38527155.31 91812062.15
3. Decrease 54161975.80 54161975.80
4. Exchange rate
366.23-26474.28-26108.05
effect
5. Closing balance 341557441.08 3257157.49 38527155.31 383341753.88
II. Accumulated
Depreciation
1. Opening balance 121901162.50 313039.94 122214202.44
2. Increase 48453978.32 105086.21 1208503.28 49767567.81
(1) Provision 48453978.32 105086.21 1208503.28 49767567.81
3. Decrease 15574767.52 15574767.52
1622024 Annual Report of Zhejiang Supor Co. Ltd.
(1) Disposal 15574767.52 15574767.52
4. Exchange rate
4022.334429.358451.68
effect
5. Closing balance 154784395.63 422555.50 1208503.28 156415454.41
III. Impairment Provision
IV. Book Value
1. Closing book
186773045.452834601.9937318652.03226926299.47
value
2. Opening book
220532981.312970591.83223503573.14
value
16. Intangible assets
(1) Intangible assets
Unit: RMB
Trademark use
Item Land use right Software Dumping right Total
right
I. Original Book Value
1. Opening balance 474966791.54 47328811.32 102286810.21 9894760.97 634477174.04
2. Increase 6716150.11 85650.48 6801800.59
(1) Acquisition 6716150.11 85650.48 6801800.59
(2) In-house R&D
(3) Increase from
enterprise merger
3. Decrease 604108.97 604108.97
(1) Disposal 604108.97 604108.97
4. Impact of change in
-161669.35-26264.49-187933.84
exchange rate
5. Closing balance 474805122.19 47328811.32 108372586.86 9980411.45 640486931.82
II. Accumulated Amortization
1. Opening balance 108421816.13 37817999.03 57279563.96 1978952.20 205498331.32
2. Increase 9973220.31 4732881.13 10934382.39 2004647.33 27645131.16
(1) Provision 9973220.31 4732881.13 10934382.39 2004647.33 27645131.16
3. Decrease 584564.40 584564.40
(1) Disposal 584564.40 584564.40
4. Impact of change in
-60437.37-19175.55-79612.92
exchange rate
5. Closing balance 118334599.07 42550880.16 67610206.40 3983599.53 232479285.16
III. Impairment Provision
IV. Book Value
1632024 Annual Report of Zhejiang Supor Co. Ltd.
1. Closing book value 356470523.12 4777931.16 40762380.46 5996811.92 408007646.66
2. Opening book value 366544975.41 9510812.29 45007246.25 7915808.77 428978842.72
At the end of this period the proportion of intangible assets formed through internal R&D in the balance of intangible assets is
0.00%.
17. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of assets 111138817.84 24494103.97 121098089.15 26260667.30
Profits not realized by internal
94550609.5123220723.0469741065.3916436357.10
transaction
Deductible losses 7251431.15 1641932.94 18987969.57 4474069.98
Accrued expenses 1305412988.97 313274780.18 1379497142.55 331107609.67
Accrued salary 105431046.38 25003717.86 60023338.88 14699395.04
Estimated liabilities 4910559.70 736583.96 7258295.50 1088744.33
Share-based payment 75636317.17 17498092.50 107454470.04 24615719.01
Expected returns 11121206.55 2612314.13 10173886.95 2449174.32
Lease obligation 230416401.82 54345224.36 224849380.79 53129092.96
Total 1945869379.09 462827472.94 1999083638.82 474260829.71
(2) Un-offset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Right-of-use assets 226926299.47 53471643.65 223503573.14 52776659.15
Depreciation of fixed assets 7389215.93 1108381.41 8198493.05 1231924.26
Total 234315515.40 54580025.06 231702066.19 54008583.41
(3) Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: RMB
Offsetting amount Closing balance of Offsetting amount Opening balance of
between deferred deferred income tax between deferred deferred income tax
Item
income tax assets and assets or liabilities after income tax assets and assets or liabilities after
liabilities at the end of offsetting liabilities at the offsetting
1642024 Annual Report of Zhejiang Supor Co. Ltd.
the period beginning of the period
Deferred income tax assets 54580025.06 408247447.88 54008583.41 420252246.30
Deferred income tax liabilities 54580025.06 54008583.41
(4) Detail about unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 14708679.24 16278431.89
Deductible losses 93544350.35 56282437.20
Total 108253029.59 72560869.09
(5) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
Year Closing amount Opening balance Remarks
20248287689.09
20256945189.336945189.33
20267751051.177751051.17
20275232792.235232792.23
202828065715.3828065715.38
202945549602.24
Total 93544350.35 56282437.20
18. Assets with title or use right restrictions
Unit: RMB
End of the period Beginning of the period
Item Type of Type of
Book balance Book value restrictio Restriction Book balance Book value restrictio Restriction
n n
Monetary Bank acceptance bill Bank acceptance bill
189178000.00 189178000.00 Frozen 476860000.00 476860000.00 Frozen
capital security security
Deposit security for Deposit security for
Monetary
58000000.00 58000000.00 Frozen advance payment 58000000.00 58000000.00 Frozen advance payment
capital
financing financing
Security and frozen Security and frozen
Monetary
945617.14 945617.14 Frozen funds of e-commerce 613739.88 613739.88 Frozen funds of e-commerce
capital
platforms platforms
Write off the frozen
Monetary Restricted funds used
68400.00 68400.00 Frozen 30423.72 30423.72 Frozen amount in the bank
capital in bank deposits
account of the branch
1652024 Annual Report of Zhejiang Supor Co. Ltd.
Total 248192017.14 248192017.14 535504163.60 535504163.60
19. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Item Closing balance Opening balance
Bank acceptance discount 199741167.36
Total 199741167.36
There were no past due loans at the end of the year.
20. Notes payable
Unit: RMB
Type Closing balance Opening balance
Bank acceptance bill 1282200000.00 1235000000.00
Total 1282200000.00 1235000000.00
The total amount of notes payable that have expired but remain unpaid at the end of the period is RMB 0.00.The above amounts are all notes payable due within one year.
21. Accounts payable
(1) Details
Unit: RMB
Item Closing balance Opening balance
Goods payment 1821729996.38 1757840901.20
Equipment and engineering funds 35599639.05 57759242.79
Cost payment 1304406436.97 1350090957.97
Total 3161736072.40 3165691101.96
Other remarks:
As at December 31 2024 Supor had no significant accounts payable with an age of more than one year (December 31 2023:
None).
22. Other payables
Unit: RMB
Item Closing balance Opening balance
1662024 Annual Report of Zhejiang Supor Co. Ltd.
Other payables 135584472.49 147617550.27
Total 135584472.49 147617550.27
(1) Other payables
1) Listing by nature
Unit: RMB
Item Closing balance Opening balance
Deposit as security 97023753.29 103302075.21
Temporary receipts payable 16328753.68 21367823.48
Others 22231965.52 22947651.58
Total 135584472.49 147617550.27
23. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 1088405139.86 862706076.18
Total 1088405139.86 862706076.18
The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
Item Variation amount Variation reason
Including the revenue recognized by the amount of book value of contract
Advances on sales -862706076.18
liabilities at the beginning of the year
The amount increased due to receipt of cash (excluding the amount
Advances on sales 1088405139.86
recognized as revenue in the current year)
Total 225699063.68 ——
24. Employee remuneration payable
(1) Details
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term Employee Remuneration 320212390.06 1876221869.79 1847460084.06 348974175.79
II. Post-employment Benefits - Defined
10195224.02114201840.20116217452.458179611.77
Contribution Plan
III. Termination Benefit 1731091.20 2485936.30 3806959.99 410067.51
Total 332138705.28 1992909646.29 1967484496.50 357563855.07
1672024 Annual Report of Zhejiang Supor Co. Ltd.
(2) Details of short-term employee remuneration
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary bonus allowance and subsidy 271284222.43 1671634234.70 1639048329.78 303870127.35
2. Employee services and benefits 4179266.16 71445211.69 70284013.32 5340464.53
3. Social insurance premiums 6741348.08 65017353.94 66838729.91 4919972.11
Including: medical insurance premium 6331939.24 58495644.41 60410845.20 4416738.45
Occupational injuries premium 409408.84 6521709.53 6427884.71 503233.66
4. Housing accumulation fund 104145.00 49608959.69 49559241.09 153863.60
5. Trade union fund and employee education
37903408.3918516109.7721729769.9634689748.20
fund
Total 320212390.06 1876221869.79 1847460084.06 348974175.79
(3) Details of defined contribution plan
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic endowment insurance 9844178.96 110129650.96 112057900.81 7915929.11
2. Unemployment insurance premiums 351045.06 4072189.24 4159551.64 263682.66
Total 10195224.02 114201840.20 116217452.45 8179611.77
(4) Termination benefit
Supor paid termination benefits of RMB 3806959.99 (2023: RMB 3804066.37) due to the termination of employment
relationships during the year. The amount payable but unpaid at the end of the year was RMB 410067.51 (December 31 2023:
RMB 1731091.20).
25. Taxes and fees payable
Unit: RMB
Item Closing balance Opening balance
VAT 35886885.98 37895819.95
Enterprise income tax 201467590.23 266724688.22
Individual income tax 4401978.83 3461145.87
Urban maintenance and construction tax 11677943.91 9463195.64
Housing property tax 11184562.99 10999275.32
Land use tax 6702356.51 6702356.51
Stamp tax 4619205.79 4433184.32
1682024 Annual Report of Zhejiang Supor Co. Ltd.
Education surcharge 5000990.12 4057809.94
Local education surcharge 3358369.55 2725257.74
Total 284299883.91 346462733.51
26. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease obligations due within one year 41987421.60 47568255.43
Total 41987421.60 47568255.43
27. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Refund payable 27619808.67 25459245.72
Endorsed bank acceptance bill unrecognized 3608696.65 10761655.33
Output tax to be written-off 140846897.45 111431313.35
Total 172075402.77 147652214.40
28. Lease obligation
Unit: RMB
Item Closing balance Opening balance
Long-term lease obligations 230416401.82 224849380.79
Minus: Lease obligations due within one year -41987421.60 -47568255.43
Total 188428980.22 177281125.36
Other remarks:
The Group also rents employee dormitories temporary warehouses etc. for a lease term up to one year representing short-term
leases. The Group has chosen not to recognize the right-of-use assets and lease obligations for these leases.
29. Long-term payroll payable to employees
(1) Long-term payroll payable to employees
Unit: RMB
Item Closing balance Opening balance
1692024 Annual Report of Zhejiang Supor Co. Ltd.
I. Termination Benefit 822218.97 1128743.89
II. Other Long-term Welfare 38377219.62 14707829.27
Total 39199438.59 15836573.16
30. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reasons for the balance
See Note XVI. "Commitments and Contingencies" for
Pending lawsuit 3082977.50 5538727.50
details
See Note XVI. "Commitments and Contingencies" for
Financial guarantee contract 1827582.20 1719568.00
details
See Note XVI. "Commitments and Contingencies" for
Product quality assurance 47938174.63 39916751.22
details
Total 52848734.33 47175046.72
31. Share capital
Unit: RMB
Increase/decrease in the period (+ -)
Opening Closing
balance Converted New shares Shares bonus Others Subtotal balance
capital
Total shares 806708657.00 -5348924.00 -5348924.00 801359733.00
Other remarks:
During this period the share capital decreased by RMB 5348924.00. * Based on the authorization of the Annual General
Meeting of Shareholders for 2022 Fiscal Year 5150000 shares held in the special stock repurchase account were canceled
reducing the registered capital. The cancellation of these repurchased shares resulted in a corresponding reduction in share capital
of RMB 5150000.00. * Restricted stocks of 20250 held by departed equity incentive employees were repurchased and canceled
at RMB 1 per share resulting in a corresponding reduction in share capital of RMB 20250.00. * The Proposal on Repurchasing
and Canceling a Part of Restricted Stock was approved at the 11th Session of the Eighth Board of Directors in 2024. A total of
178674 restricted stocks under the 2022 Restricted Stock Incentive Plan which did not to meet the 100% unlocking target in the
first assessment period were repurchased and canceled resulting in a corresponding reduction in share capital of RMB 178674
(The business deregistration procedures will be completed in January 2025).
32. Capital reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other capital reserve 173110627.02 18371008.29 187025.64 191294609.67
Total 173110627.02 18371008.29 187025.64 191294609.67
Remarks (including increase and decrease in current period and variation reason):
1702024 Annual Report of Zhejiang Supor Co. Ltd.
1) The increase of RMB 18371008.29 in other capital reserves in the current period refers to * the share-based payments settled
with equity cost of RMB 17379109.00 in the current period included in the capital reserve (other capital reserves) as detailed in
Note XV "Description of Share-based Payment" to these financial statements. * The tax impact of RMB 991899.29 resulting
from the excess of the tax-deductible amount for share-based payments over the cost recognized under accounting standards was
directly recorded in other capital reserves.
2) Other capital reserves decreased by RMB 187025.64 during the year. * The tax impact of RMB -187025.64 resulting from
the expected future deductible amount for share-based payments being less than the cost recognized during the waiting period was
directly recorded in other capital reserves.
33. Treasury shares
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Treasury share 488057333.76 253559628.51 234497705.25
Total 488057333.76 253559628.51 234497705.25
Remarks (including increase and decrease in current period and variation reason):
During the year treasury share capital decreased by RMB 253559628.51. * Pursuant to the resolutions of the 2nd Session of the
Eighth Board of Directors in 2023 and the 7th Session of the Eighth Board of Directors in 2024 four and seven incentive
employees under the 2021 and 2022 Restricted Stock Incentive Plans respectively no longer met the incentive conditions due to
resignation. The Company repurchased and canceled a total of 20250 restricted shares at RMB 1 per share resulting in a
corresponding reduction in repurchase obligations of RMB 20250.00. * Pursuant to the resolution of the 11th Session of the
Eighth Board of Directors in 2024 288 incentive employees no longer met the unlocking conditions as their business units did not
achieve the 100% unlocking target for the unlock of restricted stocks. The Company repurchased and canceled a total of 178674
restricted shares at RMB 1 per share resulting in a corresponding reduction in repurchase obligations of RMB 178674.00. *
During the year the Company canceled 5150000 repurchased stocks totaling RMB 252348753.51. * During the year the
Company canceled repurchase obligations for 1011951 restricted shares under the 2021 and 2022 Restricted Stock Incentive
Plans resulting in a corresponding reduction in repurchase obligations of RMB 1011951.00.
34. Other comprehensive incomes
Unit: RMB
Amount incurred during this period
Minus: other
comprehensiv Minus: other
Opening Current period e incomes comprehensive Closing
Item Minus: Attributable to Attributable to
balance cumulative carried incomes carried balance
income tax parent non-controlling
before income forward forward transferred
expenses company interest
tax transferred to to retained
profits and earnings
losses
I. Other
Comprehensive
-
Incomes That -9232789.93 -9046280.81 -186509.12 -28222735.40
19176454.59
Can Be
Reclassified into
1712024 Annual Report of Zhejiang Supor Co. Ltd.
Profit and Loss
Conversion
difference in
-
foreign currency -9232789.93 -9046280.81 -186509.12 -28222735.40
19176454.59
financial
statement
Total other
-
comprehensive -9232789.93 -9046280.81 -186509.12 -28222735.40
19176454.59
income
35. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 355939901.82 185751505.61 247198753.51 294492653.92
Total 355939901.82 185751505.61 247198753.51 294492653.92
Remarks on surplus reserve (including increase and decrease in current period and variation reason):
The surplus reserve increased by RMB 185751505.61 during the period which was the statutory surplus reserve accrued at 10%
of the parent company’s net profit for the period. The decrease was due to the cancellation of 5150000 repurchased stocks. The
difference between the repurchase price and the book value of the stocks was offset against the capital reserve - share capital
premium and the insufficient portion was offset against the surplus reserve amounting to RMB 247198753.51.
36. Undistributed profits
Unit: RMB
Item Current period Prior period
Undistributed profits at the end of last
5516807622.625865316233.53
period before adjustment
Undistributed profits at period beginning
5516807622.625865316233.53
after adjustment
Plus: Net profit attributable to owners of
2244444529.352179798147.27
the parent company
Minus: withdrawal of statutory surplus
185751505.6185151939.97
reserve
Ordinary share dividends payable 2175512858.61 2439504228.21
Grant of restricted stocks 3650590.00
Undistributed profits at the end of the
5399987787.755516807622.62
period
Adjustment of undistributed profits at period beginning:
1) Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations undistributed
profit at period beginning was changed by RMB 0.00.
2) Due to change of accounting policies undistributed profit at period beginning was changed by RMB 0.00.
3) Due to rectification of important accounting errors undistributed profit at period beginning was changed by RMB 0.00.
1722024 Annual Report of Zhejiang Supor Co. Ltd.
4) Due to change of merger scope resulted from same control undistributed profit at period beginning was changed by RMB 0.00.
5) Due to other adjustment undistributed profit at period beginning was changed by RMB 0.00.
37. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 22168020396.90 16673052522.91 21047461714.13 15701235070.03
Revenue from other operations 259317589.48 225221015.71 256486928.53 217210030.07
Total 22427337986.38 16898273538.62 21303948642.66 15918445100.10
Whether the net profit before or after non-recurring profit and loss are deducted whichever is lower is negative
□ Yes ? No
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Contract classification
Operating income Operating cost
Business type
Including:
Cookware 6836158028.21 4991414008.19
Electric appliances 15300420337.16 11659834449.07
Others 290021126.73 246580438.08
Classified by business area
Including:
Domestic 14924537552.66 10792653145.25
Foreign 7502061939.44 6105175750.09
Total 22426599492.10 16897828895.34
Note: The above revenue related information does not include rental income.Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period the revenue from the performance obligations that have not been fulfilled or completely
fulfilled under existing contract is RMB 1088405139.86 of which RMB 1088405139.86 is expected to be recognized as
income in 2025.
38. Taxes and surcharges
Unit: RMB
1732024 Annual Report of Zhejiang Supor Co. Ltd.
Amount incurred during this Amount incurred during prior
Item
period period
Urban maintenance and construction tax 64619482.33 64295557.27
Education surcharge 28053059.29 27696208.95
Housing property tax 12543351.76 13343358.14
Land use tax 7457381.96 1630388.68
Vehicle and vessel use tax 51320.31 51074.40
Stamp tax 16703717.74 16715072.33
Local education surcharge 18701151.06 18464139.22
Environmental protection tax 77772.69 54852.44
Total 148207237.14 142250651.43
Other remarks:
See Note VI. Taxes for calculating standard of taxes and surcharges.
39. Administrative expenses
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Employee remuneration 231591045.41 232400181.10
Office business traveling and depreciation and amortization
93214915.4489412248.70
expenses
Cost of equity incentive and performance incentive fund 33194694.31 35864304.26
Others 38032588.34 35921232.76
Total 396033243.50 393597966.82
40. Sales expense
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Advertising sales promotion and special gift expenses 1690530659.60 1573518407.60
Employee remuneration 302892789.55 322862558.17
Office and business traveling expenses 114735395.65 105466503.21
Cost of equity incentive and performance incentive fund 13086311.47 11796303.73
Others 60713393.54 65887402.24
Total 2181958549.81 2079531174.95
1742024 Annual Report of Zhejiang Supor Co. Ltd.
41. R&D expense
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Employee remuneration 241177833.50 218391753.12
Trial production experiment cost and consumption
96137397.0580046107.59
expenditure
New product design cost 41356078.63 42518700.10
Patent and external institutional fees 48204943.92 52659379.35
Cost of equity incentive and performance incentive fund 12369893.38 10098463.21
Others 30416853.48 27574132.92
Total 469662999.96 431288536.29
42. Financial expenses
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Interest expense of loans and accounts payables 2367010.84 3816340.07
Interest revenue of deposits and receivables -70813837.27 -80404233.22
Interest expense of lease obligations 9659202.55 10526971.78
Gain on net foreign exchange -17618174.15 -6403128.91
Handling fee and other financial expenses 3960010.47 4834108.92
Total -72445787.56 -67629941.36
43. Other income
(1) Classification of other income
Amount recognized through
Amount incurred during this Amount incurred during
Source of other revenues non-recurring profit or loss of
period prior period
the current year
Government subsidies concerning daily
265730729.78244371726.06194597342.89
activities
Withholding and paying tax expense and
948088.741188766.09948088.74
handling fee refund
Input tax plus deduction 18992035.68 3357048.16
Total 285670854.20 248917540.31 195545431.63
(2) Government subsidies concerning daily activities
Amount incurred during this Amount incurred during
Subsidy item Related to assets/income
period prior period
1752024 Annual Report of Zhejiang Supor Co. Ltd.
Project subsidy 19977876.57 25116349.04 Related to benefits
Government reward 174619466.32 166463308.00 Related to benefits
Tax returns 71133386.89 52792069.02 Related to benefits
Total 265730729.78 244371726.06
44. Gains from changes in fair value
Unit: RMB
Amount incurred during this Amount incurred during prior
Resource for gains from changes in fair value
period period
Transactional financial assets 1234235.25 1137787.54
Total 1234235.25 1137787.54
45. Investment incomes
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Long-term equity investment income under the equity method -936938.07 -529681.40
Investment income from disposal of transactional financial assets 2853703.91 7970271.40
Investment income from disposal of debt investments 4413731.02 4898876.71
Interest from term deposit 7432119.49
Investment income of debt investment during the holding period 24995993.01 29040658.23
Total 31326489.87 48812244.43
46. Credit impairment losses
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Bad debt losses for accounts receivable 17175103.55 -25670079.70
Loss for bad debts of other receivables -48887.03 -320174.60
Financial guarantee contract -108014.20 -229126.28
Total 17018202.32 -26219380.58
47. Asset impairment losses
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
I. Loss on Inventory Depreciation and Impairment Loss of -7948487.46 6575264.78
1762024 Annual Report of Zhejiang Supor Co. Ltd.
Contract Performance Cost
II. Loss on Fixed Asset Impairment Loss -303774.72
Total -7948487.46 6271490.06
48. Assets disposal income
Unit: RMB
Amount incurred during this Amount incurred during prior
Source of assets disposal income
period period
Disposal losses of fixed assets -2211278.41 -4212813.38
Proceeds from the disposal of the right-of-use assets 1532395.67 151301.37
Total -678882.74 -4061512.01
49. Non-operating income
Unit: RMB
Amount recognized
Amount incurred during Amount incurred during through non-recurring
Item
this period prior period profit or loss of the
current period
Damage and scrapping gains of non-current assets 169242.63 171685.02 169242.63
Including: Gains from scraping of fixed assets 169242.63 171685.02 169242.63
Compensation liquidated damages and forfeiture
6374949.019243680.816374949.01
income
Reversion of estimated liabilities 2455750.00 5150000.00 2455750.00
Others 1277754.02 703471.60 1277754.02
Total 10277695.66 15268837.43 10277695.66
50. Non-operating expense
Unit: RMB
Amount recognized through
Amount incurred during Amount incurred during
Item non-recurring profit or loss of
this period prior period
the current period
Donation expenditures 2107291.64 5868685.02 2107291.64
Damage and scrapping losses of non-
5732042.363066439.875732042.36
current assets
Including: Scrapping losses of fixed assets 5732042.36 3066439.87 5732042.36
Others 2351882.15 2938582.02 2351882.15
Total 10191216.15 11873706.91 10191216.15
1772024 Annual Report of Zhejiang Supor Co. Ltd.
51. Income tax expenses
(1) Details
Unit: RMB
Item Amount incurred during this period Amount incurred during prior period
Current income tax expenses 475295342.28 522122005.28
Deferred income tax expenses 11817772.78 -16823987.79
Total 487113115.06 505298017.49
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Amount incurred during this
Item
period
Total profit 2732357095.86
Income tax expenses based on statutory/applicable tax rate 683089273.97
Effect of different tax rate applicable to subsidiaries -147852363.21
Effect of prior income tax reconciliation -17794882.08
Effect of non-taxable revenue -128672.96
Effect of non-deductible costs expenses and losses 10679774.76
Effect of use of the deductible losses of unconfirmed deferred income tax assets in the prior period
Effect of deductible temporary differences or deductible losses of unrecognized deferred income tax
5025605.69
assets in the current period
Deduction for the additional calculation of R&D expense -45905621.11
income tax expenses 487113115.06
52. Other comprehensive incomes
See Note 34 for details.
53. Items of cash flow statement
(1) Cash related to operating activities
Other cash received relating to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of government subsidies 214537467.31 196125471.29
Receipt of deposit security and employee reserve fund loan 9592823.58 4205917.24
Interest revenues 37328346.73 53992386.07
1782024 Annual Report of Zhejiang Supor Co. Ltd.
Others 1645295.24 13569937.64
Total 263103932.86 267893712.24
Other cash payments related to operating activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Cash payment for sales expense 1761580062.90 1633323496.20
Cash payment for administrative expenses 104314934.66 108299990.50
Cash payment for R&D expenses 211291509.14 200066224.77
Donations payment 2107291.64 5868685.02
Other payments 30125572.33 7351491.57
Total 2109419370.67 1954909888.06
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Recovery of financial products and principal of term
3982135271.092738215081.02
deposit
Total 3982135271.09 2738215081.02
Other cash payments related to investing activities
Unit: RMB
Amount incurred during prior
Item Amount incurred during this period
period
Cash payment for financial products and term deposit 3852251431.43 2923123711.63
Total 3852251431.43 2923123711.63
(3) Cash related to financing activities
Other cash payments related to financing activities
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Receipt of equity incentive payment 79000.00
Total 79000.00
Other cash payments related to financing activities
Unit: RMB
1792024 Annual Report of Zhejiang Supor Co. Ltd.
Amount incurred during this Amount incurred during prior
Item
period period
Repurchase of stocks and handling fees 198924.00 480141518.74
Cash paid for repayment of lease obligation principal and interest 57084806.98 60599875.73
Total 57283730.98 540741394.47
Changes in various liabilities arising from financing activities
? Applicable □ Not applicable
Unit: RMB
Increase Decrease
Item Opening balance Non-cash Closing balance
Cash change Non-cash change Cash change
change
Short-term
199741167.36198257000.002001832.64400000000.00
borrowings
Other payables -
Fund allocation of 15611335.16 603697.83 16215032.99
related parts
Other payables-
restricted stock
2442250.00198924.001011951.001231375.00
repurchase
obligations
Other payables -
2175512858.612175512858.61
Dividend payable
Lease obligation 224849380.79 62651828.01 57084806.98 230416401.82
Total 442644133.31 198860697.83 2240166519.26 2632796589.59 1011951.00 247862809.81
54. Supplementary information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
Amount of the prior
Supplement information Amount of this period
period
1. Reconciliation of net profit to cash flow from operating activities
Net profit 2245243980.80 2179420437.21
Plus: Impairment provision of assets 7948487.46 -6271490.06
Credit impairment loss -17018202.32 26219380.58
Depreciation of fixed assets oil and gas assets productive biological assets 131771217.34 133135887.72
Depreciation of right-of-use assets 49767567.81 49584118.95
Amortization of intangible assets 27645131.16 26701518.01
Amortization of long-term unamortized expenses
Loss on disposal of fixed assets intangible assets and other long-term assets 678882.74 4061512.01
1802024 Annual Report of Zhejiang Supor Co. Ltd.
("-" for gains)
Fixed assets retirement loss ("-" for gains) 5562799.73 2894754.85
Losses from changes in fair value ("-" for revenue) -1234235.25 -1137787.54
Financial expenses ("-" for gains) -46469197.07 -10405102.90
Investments losses ("-" for gains) -31323833.30 -48824770.65
Decrease of deferred income tax assets ("-" for increase) 11817772.78 -16823987.79
Increase of deferred income tax liabilities ("-" for decrease)
Decrease in inventories ("-" for increase) -311223208.63 238814733.91
Decrease in operating receivables ("-" for increase) -119563557.17 -1010714769.68
Decrease in operating payables ("-" for increase) 324215377.37 644777222.70
Others 305683154.75 -176522321.12
Net cash flows from operating activities 2583502138.20 2034909336.20
2. Significant investing and financing activities not related to cash receipts and
payments
Conversion of debt into capital
Convertible bonds to be matured within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 1569118972.78 1405752936.36
Minus: Opening balance of cash 1405752936.36 2395932752.38
Plus: closing balance of cash equivalents
Minus: Opening balance of cash equivalents
Net increase in cash and cash equivalents 163366036.42 -990179816.02
(2) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1569118972.78 1405752936.36
Including: Cash on hand 63867.50 62594.14
Cash in bank on demand for payment 1518959579.03 1357366603.33
Other monetary capitals on demand for payment 50095526.25 48323738.89
II. Cash Equivalents
III. Balance of Cash and Cash Equivalents at the End of the Period 1569118972.78 1405752936.36
1812024 Annual Report of Zhejiang Supor Co. Ltd.
(3) Monetary capitals that are not cash and cash equivalents
Unit: RMB
Amount of this Amount of the prior Reason of classification not as
Item
period period cash and cash equivalents
Restricted funds in bank deposit 68400.00 30423.72 Usage rights are restricted
Term deposit 662696328.77 1607020342.48 Cannot be withdrawn at any time
Deposit security for advance payment financing 58000000.00 58000000.00 Usage rights are restricted
Bank acceptance bill security 189178000.00 476860000.00 Usage rights are restricted
Security and frozen funds of e-commerce platforms 945617.14 613739.88 Usage rights are restricted
Total 910888345.91 2142524506.08
55. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance in foreign Closing balance in RMB
Item Conversion rate
currencies equivalents
Monetary capital
Including: USD 52337675.51 7.1884 376224146.64
EUR 21791.47 7.5257 163996.07
GBP 0.70 9.0765 6.35
VND 21152082596.80 0.000282997 5985975.92
SGD 91745.06 5.3214 488212.16
IDR 12091476403.00 0.000453 5477438.81
Accounts receivable
Including: USD 41387490.50 7.1884 297509836.71
VND 11410743767.67 0.000282997 3229206.25
IDR 15596394726.00 0.000453 7065166.81
Accounts payable
Including: USD 1946872.54 7.1884 13994898.57
EUR 1680.00 7.5257 12643.18
VND 114318710713.01 0.000282997 32351852.18
SGD 32499.00 5.3214 172940.18
IDR 4179104022.63 0.000453 1893134.12
1822024 Annual Report of Zhejiang Supor Co. Ltd.
(2) Description of overseas business entities including important overseas business entities indicated that
its main overseas business entity recording currency and selection basis as well as the reasons for
changes of recording currency shall be disclosed.□ Applicable ? Not applicable
56. Lease
(1) The Company as the lessee
? Applicable □ Not applicable
Variable lease payments not recognized through measurement of lease obligation
□ Applicable ? Not applicable
Leasing costs of short-term leases or low value assets with simplified treatment
? Applicable □ Not applicable
Unit: RMB
Item 2024 2023
Short-term lease expenses under the simplified treatment method 9641850.99 8541439.82
Lease-related total cash outflow 66726657.97 69141315.55
(2) The Company as the lessor
Operating lease as the lessor
? Applicable □ Not applicable
Unit: RMB
Including: Revenue related to variable
Item Lease income lease payments not recognized through
lease receipts
Houses and buildings 738494.28
Total 738494.28
Financing lease as the lessor
□ Applicable ? Not applicable
Annual undiscounted lease receipts for the future five years
□ Applicable ? Not applicable
(3) Sales profit and loss of financing leases recognized as manufacturer or distributor
□ Applicable ? Not applicable
VIII. R&D Expenditure
Unit: RMB
1832024 Annual Report of Zhejiang Supor Co. Ltd.
Amount incurred during this Amount incurred during prior
Item
period period
Employee remuneration 241177833.50 218391753.12
Trial production experiment cost and consumption expenditure 96137397.05 80046107.59
New product design cost 41356078.63 42518700.10
Patent and external institutional fees 48204943.92 52659379.35
Cost of equity incentive and performance incentive fund 12369893.38 10098463.21
Others 30416853.48 27574132.92
Total 469662999.96 431288536.29
Including: expensed R&D expenditure 469662999.96 431288536.29
IX. Change on Merger Scope
1. Others
There is no change in the merger scope of the Company in the period.X. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise Group
Unit: RMB
Main
Registered Place of Business Shareholding ratio Acquisition
Subsidiary name operating
capital registration nature
place Direct Indirect
method
Manufactu
Zhejiang Supor Electrical Appliances
133697100.00 Hangzhou Hangzhou ring 100.00% Establishment
Manufacturing Co. Ltd
industry
Manufactu
Zhejiang Shaoxing Supor Domestic
610000000.00 Shaoxing Shaoxing ring 100.00% Establishment
Electrical Appliances Co. Ltd
industry
Manufactu
Supor (Vietnam) Co. Ltd 104934081.16 Vietnam Vietnam ring 100.00% Establishment
industry
Wuhan Supor Recycling Co. Ltd 1000000.00 Wuhan Wuhan Commerce 100.00% Establishment
Manufactu
Wuhan Supor Cookware Co. Ltd
91160000.00 Wuhan Wuhan ring 25.00% 75.00% Establishment
[Note 1]
industry
Hangzhou Omegna Commercial Trade
10000000.00 Hangzhou Hangzhou Commerce 100.00% Establishment
Co. Ltd
Shanghai Supor Cookware Marketing
5000000.00 Shanghai Shanghai Commerce 100.00% Establishment
Co. Ltd
Manufactu Enterprise
Wuhan Supor Pressure Cooker Co.
224039000.00 Wuhan Wuhan ring 100.00% merger under
Ltd
industry the same
1842024 Annual Report of Zhejiang Supor Co. Ltd.
control
Enterprise
Manufactu
Zhejiang Supor Plastic & Rubber Co. merger under
8044670.77 Yuhuan Yuhuan ring 100.00%
Ltd. the same
industry
control
Enterprise
Yuhuan Supor Cookware Sales Co. merger not
8000000.00 Yuhuan Yuhuan Commerce 100.00%
Ltd. under the same
control
Enterprise
merger under
SEADA 23314945.98 Singapore Singapore Commerce 51.00%
the same
control
Enterprise
AFS Vietnam Management Co. Ltd. merger under
2453486.50 Vietnam Vietnam Commerce 100.00%
[Note 2] the same
control
Manufactu
Shanghai WMF Enterprise
50000000.00 Shanghai Shanghai ring 100.00% Establishment
Development Co. Ltd
industry
Manufactu
Zhejiang WMF Housewares Co. Ltd 100000000.00 Yuhuan Yuhuan ring 100.00% Establishment
industry
Manufactu
Zhejiang Shaoxing Supor Household
50000000.00 Shaoxing Shaoxing ring 100.00% Establishment
Products Co. Ltd.industry
Manufactu
Zhejiang Supor Large Kitchen
100000000.00 Shaoxing Shaoxing ring 100.00% Establishment
Appliance Co. Ltd.industry
PT GROUPE SEB
32714774.74 Indonesia Indonesia Commerce 66.67% Establishment
INDONESIA MSD [Note 3]
Manufactu
Zhejiang Supor Water Heater Co. Ltd
100000000.00 Shaoxing Shaoxing ring 52.00% Establishment
[Note 4]
industry
Hainan Supor E-commerce Co. Ltd
8000000.00 Hainan Hainan Commerce 100.00% Establishment
[Note 5]
Hainan Tefal Trading Co. Ltd [Note 5] 10000000.00 Hainan Hainan Commerce 100.00% Establishment
Explanation on shareholding ratio in subsidiary different from voting ratio:
Note 1: The Company is subsidiary of Wuhan Supor Pressure Cooker Co. Ltd.; of which Wuhan Supor Pressure Cooker Co. Ltd
holds 75% shares and the Company holds 25% shares.Note 2: The Company holds 51% equity of SEADA while SEB INTERNATIONALE S.A.S holds a 49% equity in the same
company. AFS is a wholly-owned subsidiary of SEADA.Note 3: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA a subsidiary of the Company and PT
MULTIFORTUNA in Indonesia this year. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.Note 4: Zhejiang Supor Water Heater Co. Ltd is jointly invested and established by the Company and Supor Group Co. Ltd. The
Company holds 52% of the shares and Supor Group Co. Ltd holds 48% of the shares.Note 5: Hainan Supor E-commerce Company and Hainan Tefal Trading Company are totally held by Zhejiang Supor Electrical.
1852024 Annual Report of Zhejiang Supor Co. Ltd.
2. Equity in joint venture or associated enterprises
(1) Aggregated financial information for insignificant joint ventures and associated enterprises
Unit: RMB
Closing balance/amount incurred Opening balance/ Amount incurred
during this period during prior period
Joint ventures:
Total investment book values 60739389.71 61678984.35
Total amounts of the following items calculated
according to the shareholding ratio
- Net profits -939594.64 -517155.18
Associated enterprise:
Total amounts of the following items calculated
according to the shareholding ratio
- Total comprehensive income -939594.64 -517155.18
XI. Government Subsidies
1. Government subsidies affirmed as per receivable at the end of reporting period
? Applicable □ Not applicable
Closing balance of the receivables: RMB 72684645.29.Reasons for not receiving the expected amount of government subsidies at expected time points
□ Applicable ? Not applicable
2. Liability projects with government subsidies
□ Applicable ? Not applicable
3. Government subsidy recognized through current profits and losses
? Applicable □ Not applicable
Unit: RMB
Accounting item Amount incurred during this period Amount incurred during prior period
Other incomes 265730729.78 244371726.06
XII. Risks Related To Financial Instruments
1. Various risks arising from financial instruments
X. Risks Related To Financial Instruments
1862024 Annual Report of Zhejiang Supor Co. Ltd.
(I) Risk management objectives and policies
The Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to
minimize the adverse effects of risks on the Group's financial performance and maximize the interests of shareholders and other
equity investors. Based on such objectives the Group's risk management policies are established to identify and analyze the risks
faced by the Group to set appropriate risk limits and controls and to monitor risks and adherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future
cash flows due to changes in exchange rate. The Group's foreign currency risk relates mainly to foreign currency monetary assets
and liabilities of the Group. When short-term imbalance occurred to foreign currency assets and liabilities the Group may conduct
foreign exchange hedge or trade foreign currency at market exchange rate when necessary in order to maintain the net risk
exposure within an acceptable level.The foreign currency financial assets and liabilities of Supor at the end of the year are disclosed in the section "Foreign
Currency Monetary Items" under the Notes to Other Items in this Note.Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged the increase in shareholders' equities and
net profits due to the 1% appreciation of RMB due to the change in exchange rate of RMB against all foreign currencies as at 31
December of the Group will be as follows. This influence is translated into RMB at the spot rate on the balance sheet date.Shareholders' equities Net profit
December 31 2024 ? ?
USD 5122258.99 5122258.99
EUR 1186.38 1186.38
GBP 0.05 0.05
VND -185093.19 -185093.19
SGD 2616.76 2616.76
IDR 83065.88 83065.88
Total 5024034.87 5024034.87
December 31 2023 ? ?
USD 3347158.67 3347158.67
EUR 1375.88 1375.88
GBP 0.05 0.05
VND -64825.16 -64825.16
SGD 1363.89 1363.89
IDR 106215.87 106215.87
Total 3391289.20 3391289.20
(2) Interest risk - risk for cash flow changes
Interest risk is the risk that the Group may encounter fluctuation in fair value of financial instruments or future cash flows due
to changes in market interest rate. As of December 31 2024 balance of borrowings is zero the Group's gross profits and
shareholders' equities will not be significantly affected by interest risk.
1872024 Annual Report of Zhejiang Supor Co. Ltd.
2. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to
discharge an obligation.The monetary capital of the Group other than cash is mainly deposited in creditworthy financial institutions and the entrusted
financial products are issued by creditworthy financial institutions. The management considers that there is not any significant
credit risk and it is not expected to create losses to the Group as a result of default by the counterparty.The exposure of the maximum credit risk assumed by the Group is the book value of each financial asset in the balance sheet
(including derivative financial instruments). Except for the financial guarantee provided by the Group in Note XVI the Group has
not provided any other guarantee that may expose the Group to credit risk. The exposure of the maximum credit risk assumed by
the above financial guarantees on the balance sheet date has been disclosed in Note XIV.The Company's credit risk is primarily attributable to receivables. In order to control such risks the Company has taken the
following measures.
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of the Group is mainly bank acceptance bill receivable. The Group conducts
ongoing monitoring on receivables to avoid significant risks in bad debts.
(2) Accounts receivable
The Group only conducts business with credible and well-reputed third parties. According to the Group's policies credit
evaluations are performed on all customers to determine the credit limit and terms applicable to the customers. In addition the
Group conducts ongoing monitoring on accounts receivable to avoid significant risks in bad debts.(i) Continue to strengthen risk awareness strengthen risk management of accounts receivable and strengthen internal control of
customer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keep
real time updating on customers' information and learn their latest credit situation in order to make suitable credit policies.The Group's accounts receivable from related party SEB S.A. and its subsidiaries accounted for 63.60% of closing balance
(December 31 2023: 60.95%) and the Group's account receivables are expected to have less credit risk. As the Company's credit
risks fall into several business partners and customers as of December 31 2024 22.33% (December 31 2023: 21.00%) of the
total accounts receivable was due from the five largest customers of the Company after deducting receivables from related party
SEB S.A and its subsidiaries. The Company has no significant central credit risk.
(3) Other receivables
Other receivables of the Group are mainly export rebate receivable and deposit as security receivable etc. The Group
performed collective management and ongoing monitoring on such receivables and related business to avoid significant risks in
bad debts.
3. Liquidity risk
Liquidity risk is the risk that the Group 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 counterparts of contracts or early redemption of debts or failure in achieving
estimated cash flows.In order to control such risk the Group optimizes the structure of assets and liabilities and finally maintains a balance
between financing sustainability and flexibility.Financial instruments classified based on remaining time period till maturity
Unit: RMB
Item Balance at the end of year
Book value Within 1 year 1- 3 years Over 3 years Total
1882024 Annual Report of Zhejiang Supor Co. Ltd.
Financial assets
Monetary capital 2480007318.69 2480007318.69 2480007318.69
Transactional financial assets 281234235.25 281234235.25 281234235.25
Notes receivable 4036734.84 4036734.84 4036734.84
Accounts receivable 2690049028.80 2690049028.80 2690049028.80
Receivables financing 368776534.93 368776534.93 368776534.93
Other receivables 94546924.00 94546924.00 94546924.00
Other debt investments 1837656630.12 1623810000.00 292264000.00 1916074000.00
Subtotal 7756307406.63 7542460776.51 292264000.00 7834724776.51
Financial liabilities
Notes payable 1282200000.00 1282200000.00 1282200000.00
Accounts payable 3161736072.40 3161736072.40 3161736072.40
Other payables 135584472.49 135584472.49 135584472.49
Other current liabilities 3608696.65 3608696.65 3608696.65
Lease obligation 230416401.82 52594680.89 104682376.18 121066821.14 278343878.21
Subtotal 4813545643.36 4635723922.43 104682376.18 121066821.14 4861473119.75
(Continued)
Beginning balance
Item
Book value Within 1 year 1- 3 years Over 3 years Total
Financial assets
Monetary capital 3548277442.44 3548277442.44 3548277442.44
Transactional financial assets 351137787.54 351137787.54 351137787.54
Notes receivable 15311935.98 15311935.98 15311935.98
Accounts receivable 2858247356.03 2858247356.03 2858247356.03
Receivables financing 363532765.35 363532765.35 363532765.35
Other receivables 16126721.38 16126721.38 16126721.38
Other debt investments 951306342.48 289940000.00 695085000.00 985025000.00
Subtotal 8103940351.20 7442574008.72 695085000.00 8137659008.72
Financial liabilities
Short-term borrowings 199741167.36 200000000.00 200000000.00
Notes payable 1235000000.00 1235000000.00 1235000000.00
Accounts payable 3165691101.96 3165691101.96 3165691101.96
1892024 Annual Report of Zhejiang Supor Co. Ltd.
Other payables 147617550.27 147617550.27 147617550.27
Other current liabilities 10761655.33 10761655.33 10761655.33
Lease obligation 224849380.79 58560520.38 117066276.20 91225179.97 266851976.55
Subtotal 4983660855.71 4817630827.94 117066276.20 91225179.97 5025922284.11
Note: Other current assets are term deposits for the purpose of obtaining benefits.(II) Transfer of financial assets
Transferred but not wholly derecognized financial assets
For details see Note VII."3 Notes Receivable" and "27. Other Current Liabilities".XIII. Fair value disclosure
1. Fair value as of the balance sheet date of the assets and liabilities measured at the fair value
Unit: RMB
Fair value as of the balance sheet date
Item
Level 1 Level 2 Level 3 Total
I. Continuous Fair Value Measurement -- -- -- --
(I) Transactional financial assets 281234235.25 281234235.25
(II) Other debt investments 1837656630.12 1837656630.12
(III) Receivables financing
(1) Notes receivable 368776534.93 368776534.93
II. Non-continuous Measurement of Fair Value -- -- -- --
2. Basis for determining the market value of continuous and non-continuous Level 1 fair value
measurement items
None
3. Qualitative and quantitative information of continuous and non-continuous Level 2 fair value
measurement items valuation techniques adopted and important parameters
The financial assets measured at fair value with changes recognized in current profit or loss including financial products other
debt investments and receivables financing are determined based on valuation techniques. These valuation techniques aim to
utilize observable market data as much as possible and minimize reliance on entity-specific estimates.
4. Qualitative and quantitative information of continuous and non-continuous Level 3 fair value
measurement items valuation techniques adopted and important parameters
None
1902024 Annual Report of Zhejiang Supor Co. Ltd.
5. Fair value of the financial assets and financial liabilities not measured at fair value
As of December 31 there was not a significant difference between the book value and fair value of the Group's various financial
assets and financial liabilities.XI. Related Parts and Related Transactions
1. Parent company
Holding Voting right
Place of
Parent company name Business nature Registered capital proportion over the proportion over the
registration
Company (%) Company (%)
SEB INTERNATIONALE S.A.S France Investment company EUR 830 million 83.18% 83.18%
Explanation on the parent company of the Group
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose) namely purchase and subscription of shares bonds company shares and interest various securities and marketable
securities and transfer of such securities or notes all financial operations related to equity participation purchase manufacturing
and selling of home appliances for the purpose of distribution and rendering of relevant services all activities directly or indirectly
contributing to the realization of these operations particularly in the areas of movable properties real estate finance commerce
and industry operation.The Group's final controlling party is SEB S.A.
2. Company's subsidiaries
See Note X "1. Equity in subsidiaries" for details on the Company's subsidiaries for details.
3. Joint ventures and associated enterprises of the Company
See Note X. 2 "Equity in Joint Ventures or Associated Enterprises" for details on the Company's significant joint ventures and
associates for details.Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period
or in Prior period but with balance in current period are as follows:
Name of the joint venture or associated enterprise Relationships with the Company
Wuhan Anzai Cookware Co. Ltd. Associated enterprise
4. Other related parties of the Company
Related party Relationship between other related parties and the Company
SEB S.A. Final controlling shareholder
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S. Same controlling shareholder with the controlling shareholder
S.A.S.SEB Same controlling shareholder with the controlling shareholder
1912024 Annual Report of Zhejiang Supor Co. Ltd.
SEB INTERNATIONAL SERVICE S.A.S. Same controlling shareholder with the controlling shareholder
LAGOSTINA S.P.A. Same controlling shareholder
GROUPE SEB MOULINEX Same controlling shareholder with the controlling shareholder
GROUPE SEB EXPORT Same controlling shareholder with the controlling shareholder
SEB DEVELOPPMENT SAS Same controlling shareholder with the controlling shareholder
IMUSA USA LLC Same controlling shareholder
Supor Group Co. Ltd. Company controlled by related natural person
ETHERA Same controlling shareholder with the controlling shareholder
WMF Consumer Goods (Shanghai) Co Ltd. Same controlling shareholder
WMF GROUPE GMBH Same controlling shareholder
GROUPE SEB VIETNAM JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB SINGAPORE Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Emsa Taicang Co. Ltd. Same controlling shareholder
Heshan Demei Tableware Co. Ltd. Same controlling shareholder
EMSA GMBH Same controlling shareholder
GROUPE SEB CANADA Same controlling shareholder
GROUPE SEB ANDEAN S.A. Same controlling shareholder
GROUPE SEB KOREA LTD. Same controlling shareholder
Saichuang (Zhejiang) Technology Co. Ltd. Same controlling shareholder
Zhejiang Nanyang Pharmaceutical Sales Co. Ltd. Company controlled by related natural person
Saichuang Commercial Electric Appliance (Shaoxing) Co. Ltd Same controlling shareholder
5. Related transactions
(1) Related transactions in the purchase and sale of commodities and provision and acceptance of labor
services
Purchase of commodities and receiving of services
Unit: RMB
Transactio Exceeding Amount
Contents of related Amount incurred
Related party n quota transaction incurred during
transaction during this period
granted limit or not prior period
Wuhan Anzai Cookware Co. Ltd. Finished products 154043353.56 No 129174736.13
Wuhan Anzai Cookware Co. Ltd. Accessories 30972505.33 No 52505244.94
GROUPE SEB EXPORT Finished products 289937.06 No 1323298.24
1922024 Annual Report of Zhejiang Supor Co. Ltd.
GROUPE SEB EXPORT Accessories 147620.00 No 73810.00
TEFAL S.A.S. Accessories 26463346.58 No 20213451.95
LAGOSTINA S.P.A. Finished products 2495638.80 No 2821255.84
SEB INTERNATIONAL SERVICE S.A.S. Accessories 115623.23 No 84055.57
SEB INTERNATIONAL SERVICE S.A.S. Finished products 259661.54 No 21064.57
SEB ASIA LTD. Finished products 1043174.99 No 260526.98
GROUPE SEB MOULINEX Accessories 878092.80 No 2871660.72
Heshan Demei Tableware Co. Ltd. Finished products 78956.81 No 184681.57
GROUPE SEB SINGAPORE Finished products No 17600.69
GROUPE SEB THAILAND Finished products No 413719.66
ETHERA Accessories 85328.04 No 141420.43
WMF GROUPE GMBH Finished products 55446079.12 No 55991104.27
WMF Consumer Goods (Shanghai) Co Ltd. Finished products 97168.57 No 10220.71
GROUPE SEB KOREA LTD. Finished products 63875.67 No 171210.71
GROUPE SEB VIETNAM JOINT STOCK
Finished products 160609.57 No
COMPANY
Sale of commodities and rendering of services
Unit: RMB
Contents of related Amount incurred during Amount incurred during
Related party
transaction this period prior period
SEB ASIA LTD. Finished products 6933006308.02 5718651248.45
SEB ASIA LTD. Accessories 4569742.01 22355391.81
S.A.S.SEB Finished products 1779657.76 15722826.89
S.A.S.SEB Accessories 759317.00 471895.40
TEFAL S.A.S. Finished products 3771049.42 2674842.16
TEFAL S.A.S. Accessories 18829588.01 18245450.86
GROUPE SEB MOULINEX Finished products 17148474.23 14344236.48
Supor Group Co. Ltd. Finished products 3616925.03 9976697.94
SEB INTERNATIONAL SERVICE S.A.S. Accessories 25450484.40 20175797.39
LAGOSTINA S.P.A. Accessories 785011.38 440230.62
IMUSA USA LLC Finished products 3575084.51 7559422.13
IMUSA USA LLC Accessories 19464.22 43099.33
WMF Consumer Goods (Shanghai) Co Ltd. Finished products 224062.75 226850.81
GROUPE SEB CANADA Finished products 12775953.89 11070592.32
GROUPE SEB VIETNAM JOINT STOCK COMPANY Finished products 15129701.24 13592296.18
GROUPE SEB ANDEAN S.A. Accessories 7791772.35 1520747.00
1932024 Annual Report of Zhejiang Supor Co. Ltd.
Zhejiang Nanyang Pharmaceutical Sales Co. Ltd. Finished products 881453.10
(2) Related party leases
The Company as the lessee:
Unit: RMB
Rent costs of short-term Variable lease payments
leases and low-value not included in the Interest expense of
Increased right-of-use
asset leases with measurement of lease Rentals lease obligation
asset
simplified treatment (if obligation (if undertaken
Types of
applicable) applicable)
Lessor leased
Amount Amount Amount Amount Amount
assets Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred
incurred incurred incurred incurred incurred
during during during during during
during this during this during this during this during this
prior prior prior prior prior
period period period period period
period period period period period
Supor
13866846127720202825167.2898045.1203072625053608
Group Co. Real estate.83.326538.56.23
Ltd.
(3) Fund allocation of related parts
Unit: RMB
Related party Borrowed/lent amount Start date Expiry date Notes
Borrowing
SEB S.A. 603697.83 January 1 2024 Open-ended Loan
(4) Key management's emoluments
Item Amount incurred during this period Amount incurred during prior period
Key management's remuneration RMB16097000 RMB15275700
Equity incentive and performance incentive
RMB7819500 RMB 7182900
fund for key management personnel
(5) Other related transactions
* Property management maintenance and berth fees
Amount incurred in current Amount incurred during prior
Service renderer Purchasing parties
year period
The Company 235503.51 171428.57
Supor Group Co. Ltd. Zhejiang Supor Electrical 188571.43 308571.43
Wuhan Supor Cookware 188571.43 177142.86
1942024 Annual Report of Zhejiang Supor Co. Ltd.
* Consulting fee
Amount incurred in current Amount incurred during prior
Service renderer Purchasing parties
year period
The Company 1187625.21 1114578.46
Wuhan Supor Cookware 866645.97 813341.40
SEB ASIA LTD.Shaoxing Supor 609868.01 572353.11
Zhejiang Supor Electrical 546073.71 512104.35
* R&D and human resources services
Amount Amount
Service renderer Purchasing parties incurred during incurred during
this period prior period
Zhejiang Supor Electrical Saichuang (Zhejiang) Technology Co. Ltd. 850520.79 586266.58
Saichuang (Zhejiang) Technology Co. Ltd. 1336825.88
The Company
Saichuang Commercial Electric Appliance (Shaoxing) Co. Ltd 129095.28
Shaoxing Supor Saichuang (Zhejiang) Technology Co. Ltd. 53588.30
AFS GROUPE SEB VIETNAM JOINT STOCK COMPANY 2775681.29 2881836.67
Saichuang (Zhejiang)
Shaoxing Supor 4286270.02
Technology Co. Ltd.* Interest expenses
Amount incurred during prior
Selling parties Purchasing parties Amount incurred during this period
period
SEB S.A. SEADA 624010.83 596062.26
* Software use license etc.Amount incurred in current Amount incurred during prior
Service renderer Purchasing parties
year period
SEB DEVELOPPMENT SAS The Company 1509161.61 1145521.04
* Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co. Ltd and S.A.S SEB on
December 29 2013 S.A.S SEB licensed Wuhan Supor Cookware Co. Ltd compensated use of its patent of Household Appliance
for Food Cooking under Pressure with Elastomer Safety Valve and other four utility patents. According to related terms and
conditions in the contract signed by both parties use charges are accrued at 3% of revenue from sales of products licensed. In the
current period Wuhan Supor Cookware Co. Ltd should pay S.A.S SEB technology use charges of RMB 1862564.78 (2023:
RMB 986969.97) and as of December 31 2024 a balance of RMB 268451.45 has not been paid (December 31 2023: RMB
111278.17.
* Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co. Ltd and LAGOSTINA SPA. on
December 15 2014 LAGOSTINA SPA licensed Wuhan Supor Cookware Co. Ltd for compensated use of its trademark "LAGE".According to the relevant terms and conditions of the contract signed by both parties the royalty fee is calculated at 4% of the
sales achieved by the licensed products. In the current year Wuhan Cookware is required to pay LAGOSTINA S.P.A. a trademark
royalty fee of RMB 0 (2023: RMB 1071.69). As of December 31 2024 the payment has been fully settled (December 31 2023:
RMB 1071.69).
1952024 Annual Report of Zhejiang Supor Co. Ltd.
* Pursuant to the Trademark License entered into between Omegna and LAGOSTINA SPA. on December 5 2016
LAGOSTINA SPA licensed Omegna for compensated use of its trademark "LAGE". According to the relevant terms and
conditions of the contract signed by both parties the royalty fee is calculated at 4% of the sales achieved by the licensed products.In the current year Omegna is required to pay LAGOSTINA S.P.A. a trademark royalty fee of RMB 70094.55 (2023: RMB
6525.10). As of December 31 2024 a balance of RMB 76619.65 has not been paid (December 31 2023: RMB 3392562.80).
* Shaoxing Supor purchased and used particles product of air purifier and relevant technology in accordance with Agreement on
Purchase and Using for Particles of Air Purifier signed by Shaoxing Supor on April 25 2016 with ETHERA. In accordance with
the relevant terms and conditions of the contract signed by both parties the royalty fee for the technology transfer is calculated
based on the unit price corresponding to the actual total sales volume. This year Shaoxing Supor is required to pay ETHERA a
technology transfer fee of RMB 0 yuan (2023: RMB 8621.96 yuan) which has been fully paid as of December 31 2024
(December 31 2023: fully paid).
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Items Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts
SEB ASIA LTD. 1736534035.86 43413350.89 1780235700.55 53407071.02
receivable:
S.A.S.SEB 1406560.86 42196.83
TEFAL S.A.S. 6131159.29 153278.98 5793936.65 173818.10
SEB INTERNATIONAL SERVICE
8180857.92204521.455586161.59167584.85
S.A.S.GROUPE SEB MOULINEX 2351347.91 60581.78 5481313.07 166201.95
IMUSA USA LLC 9219.55 230.49 1802613.02 54078.39
Supor Group Co. Ltd. 16238.60 811.93
WMF Consumer Goods (Shanghai)
12297.24307.43101518.923045.57
Co Ltd.GROUPE SEB CANADA 3903240.19 97581.00 1337688.11 40130.64
GROUPE SEB VIETNAM JOINT
7116121.79177903.045001845.80150055.37
STOCK COMPANY
GROUPE SEB ANDEAN S.A. 1219607.81 30490.20 304479.89 9134.40
LAGOSTINA S.P.A. 152431.85 3810.80 53387.75 1601.63
Saichuang (Zhejiang) Technology
2398872.3959971.81347080.3610412.41
Co. Ltd.Saichuang Commercial Electric
136841.003421.03
Appliance (Shaoxing) Co. Ltd
Total 1768146032.80 44205448.90 1807468525.17 54226143.09
Advance
EMSA GMBH 197.55 197.55
payment:
Total 197.55 197.55
1962024 Annual Report of Zhejiang Supor Co. Ltd.
Other
Supor Group Co. Ltd. 145000.00 130000.00 165000.00 98500.00
receivables:
Total 145000.00 130000.00 165000.00 98500.00
(2) Payables
Unit: RMB
Items Related party Ending book balance Beginning book balance
Accounts
Wuhan Anzai Cookware Co. Ltd. 15639559.75 19000235.48
payable:
WMF GROUPE GMBH 15323780.96 8344358.20
GROUPE SEB EXPORT 7381.00 73810.00
TEFAL S.A.S. 4373217.14 4296587.82
S.A.S.SEB 271094.63 113921.35
LAGOSTINA S.P.A. 1104411.95 5725894.53
GROUPE SEB MOULINEX 798500.07 1356062.24
GROUPE SEB THAILAND 71925.59
SEB INTERNATIONAL SERVICE S.A.S. 58127.43 17570.25
ETHERA 54519.37
Saichuang (Zhejiang) Technology Co. Ltd. 718456.36
Supor Group Co. Ltd. 6536.00
WMF Consumer Goods (Shanghai) Co Ltd. 129.00
SEB ASIA LTD. 471883.29 152068.55
SEB DEVELOPPMENT SAS 1358245.45 1030968.94
Total 39406201.67 40963043.68
Contract
Supor Group Co. Ltd. 401246.04 381292.07
liabilities:
S.A.S.SEB 1423550.16
Total 1824796.20 381292.07
Other payables: SEB S.A. 16215032.99 15611300.30
Wuhan Anzai Cookware Co. Ltd. 50000.00 50000.00
Total 16265032.99 15661300.30
Lease
Supor Group Co. Ltd. 46104337.81 52956539.46
obligation:
Total 46104337.81 52956539.46
1972024 Annual Report of Zhejiang Supor Co. Ltd.
XV. Share-based Payment
1. Overall information
? Applicable □ Not applicable
Unit: RMB
Invalidation in the current
Grant in the current period Exercise in the current period Release in the current period
Category of period
grant objects
Share number Amount Share number Amount Share number Amount Share number Amount
Manager 743000 11754260.00 640851 32416335.40 127274 5428198.53
Sales personnel 169000 2673580.00 201408 10126834.64 42092 1847134.96
R&D personnel 219000 3464580.00 169692 8345832.23 29558 1252522.72
Total 1131000 17892420.00 1011951 50889002.27 198924 8527856.21
Outstanding stock options or other equity instruments at the end of the period
? Applicable □ Not applicable
The 2021 and 2022 Restricted Stock Incentive Plans:
Outstanding Restricted stock at the end of the Outstanding other equity instruments at
period the end of the period
Category of grant objects
Scope of the exercise Remaining contract Scope of the Remaining contract
price term exercise price term
Management sales and R&D personnel RMB 1/share 1.07-1.86 years
The 2023 and 2024 Stock Option Incentive Plans:
Outstanding stock options at the end of the Outstanding other equity instruments at
period the end of the period
Category of grant objects
Scope of the exercise Remaining contract Scope of the Remaining contract
price term exercise price term
RMB36.49 and
Management sales and R&D personnel 2.85 - 3.79 years
37.89/share
2. Share-based payments settled with equity
Unit: RMB
2021 and 2022 Restricted Stock Incentive Plans Related content
Determination method for fair value of equity
According to the market price on the grant date
instruments on grant date
Based on the corresponding equity instruments of incentive targets the
Determination method for the optimal estimate of the
performance of the Company and the forecast of future performance of the
number of equity instruments expected to vest
Company
The significant difference between this period estimate
None
and last period
Cumulative amount of share-based payments settled
101964704.87
with equity included in capital reserve
Total expenses recognized for share-based payments
4644572.02
settled with equity during the current period
1982024 Annual Report of Zhejiang Supor Co. Ltd.
2023 and 2024 Stock Option Incentive Plans Related content
Determination method for fair value of equity
The fair value calculated using the Black-Scholes model
instruments on grant date
Important parameters of fair value of equity instruments
Estimated dividends historical volatility risk-free interest rate
on grant date
Based on the corresponding equity instruments of incentive employees the
Determination method for the optimal estimate of the
performance of the Company and the forecast of future performance of the
number of equity instruments expected to vest
Company
The significant difference between this year estimate and
None
last year
Cumulative amount of share-based payments settled
16047948.03
with equity included in capital reserve
Total expenses recognized for share-based payments
12734536.98
settled with equity during the current year
Other remarks:
According to the resolution passed at the sixth meeting of the eighth board of directors held by our company on January 26
2024 regarding the achievement of the first lifting of the restriction period and the lifting of the restriction conditions for the 2021
restricted stock incentive plan the first lifting of the restriction period and the lifting of the restriction conditions set for the 2021
restricted stock incentive plan have been achieved. The total number of restricted stocks lifted this time is 555750 with a fair
value of RMB 31511036.03.According to the resolution passed at the 11th meeting of the 8th Board of Directors held by our
company on October 24 2024 regarding the achievement of the first lifting of the restriction period and the lifting of the
restriction conditions for the 2022 restricted stock incentive plan the first lifting of the restriction period and the lifting of the
restriction conditions set for the 2022 restricted stock incentive plan have been achieved. The total number of restricted stocks
lifted this time is 456201 with a fair value of RMB 19377966.24.The impact of 2021 Equity Incentive Plan on the capital reserve is RMB 58961502.97 at the beginning of the year with an
accrual of RMB 2782698.04 in the current year amounting to an accrued amount of RMB 61744201.01.The impact of 2022 Equity Incentive Plan on the capital reserve is RMB 38358629.88 at the beginning of the year with an
accrual of RMB 1861873.98 in the current year amounting to an accrued amount of RMB 40220503.86.The impact of 2023 Equity Incentive Plan on the capital reserve is RMB 3313411.05 at the beginning of the year with an
accrual of RMB 6712839.94 in the current year amounting to an accrued amount of RMB 10026250.99.The impact of 2024 Equity Incentive Plan on the capital reserve is RMB 0 at the beginning of the year with an accrual of
RMB 6021697.04 in the current year amounting to an accrued amount of RMB 6021697.04.
3. Share-based payment expenses in the current period
? Applicable □ Not applicable
Unit: RMB
Category of grant objects Share-based payments settled with equity Cash-settled share-based payment expenses
Manager 10123095.58
Sales personnel 4019904.75
R&D personnel 3236108.67
Total 17379109.00
1992024 Annual Report of Zhejiang Supor Co. Ltd.
XVI. Commitments and Contingencies
1. Important commitments
Significant commitments existing at the balance sheet date
In 2020 an overseas customer filed a legal lawsuit against Shaoxing Supor a subsidiary of Supor citing user disputes. As of
2024 Supor is in the process of settlement negotiations with the customer. In line with the principle of prudence Supor retained a
provision for liabilities of RMB 1544300 as of December 31 2024 (December 31 2023: RMB 4000000). In 2021 another
overseas customer filed a claim against Shaoxing Supor citing product quality issues related to user disputes. In line with the
principle of prudence Supor retained a provision for liabilities of RMB 1538700 as of December 31 2024 (December 31 2023:
RMB 1538700).Contingent liabilities formed by financial guarantee and their financial impact
The Group signs tripartite acceptance agreements with distributors and banks and the Group provides financing guarantee for
the banks to issue bank acceptance bills to the distributors. In the event that the Group endorses and assigns an acceptance bill
obtained by the Group and if the distributor fails to repay the difference between the security and the amount of the acceptance
bill after the maturity of the acceptance bill the Group will bear part of the loss of the difference that the bank has not recovered
from the distributor. As of December 31 2024 the risk exposure undertaken by Supor is RMB 365516400 (December 31 2023:
RMB 343913600) and the Company has provisioned a total estimated liability of RMB 1827600 (December 31 2023: RMB
1719600) under financial guarantee contracts for this risk exposure.
Supor offers a product quality guarantee to consumers who purchase its products providing free repairs for any malfunctions
or quality issues that occur during the warranty period after the product is sold. Based on its recent product quality assurance
experience Supor estimates and accrues for the estimated liabilities when providing product quality guarantees to consumers at the
time of sale. As of December 31 2024 Supor had accrued RMB 47938200 for product quality security (December 31 2023:
RMB 39916800).
2. Contingencies
(1) A statement shall be given even if the Company has no significant contingencies to disclose.
The Company has no significant contingencies to disclose.XVII. Events after the Balance Sheet Date
1. Profit distribution
According to the Profit Distribution Plan for 2024 Fiscal Year adopted at the 14th Session of the Eighth Board of Directors of
the Company on March 27 2025 the Company distributes cash dividend of 796692233 shares at the end of 2024 (total capital
stock of 801359733 shares at the end of 2024 (after deducted by 178674 shares of Restricted Stock repurchased and canceled on
January 17 2025)deducted by 4667500 shares of repurchased shares in the Company’s special stock repurchase account) a cash
dividend of RMB 28.10 (tax-inclusive) per 10 shares is distributed to all shareholders and the total cash dividend was
RMB2238705174.73. No bonus share will be distributed or conversion from capital reserves to share capital is made this year.The undistributed profits of the parent company at the end of the year amount to RMB 3278810132.94 which includes the
proposed dividends of RMB2238705174.73.
2002024 Annual Report of Zhejiang Supor Co. Ltd.
During the period from the disclosure of this profit distribution plan to the actual implementation date if the Company's share
capital changes due to conversion of convertible bonds into stocks share repurchases equity incentive exercise and refinancing
and new share listing it will be executed based on the changed share capital and the above distribution ratio remains unchanged.This profit distribution plan shall be submitted to the Annual General Meeting of Shareholders for 2024 Fiscal Year for
approval after adopted by the Board of Directors.XVIII. Other Important Matters
1. Segment information
(1) Determination basis and accounting policy of report segment
The Group establishes operating segment according to internal organizational structure management requirement and internal
report system; determines report segment and disclose segment information based on Operating Segment.Operating Segment refers to the Group's organization meeting following conditions: (1) The organization can yield income
and cost in daily activity; (2) The Group's management can appraise operating result of the organization regularly so as to allocate
resources on a targeted basis and evaluate its performance; (3) The Group can obtain financial condition operating result cash
flow and other relevant accounting information of the organization. Two or more operating segments which have similar
economic characteristics and meet a certain condition can be combined into an operating segment.The preparation of segment reports is conducted with the revenue of trans-branch transaction measured at the actual
transaction price. The accounting policy for segment report preparation is consistent with that used in Supor's financial statement.The Group with main product focused on cookware and SDA (small domestic appliances) in kitchen establishes report
segment based on product and geographic segments and assets and liabilities shared by product segments is unable to be clearly
distinguished.
(2) Financial information of reportable segments
Unit: RMB
Inter-segment
Item Cookware Electrical products Others Total
offsetting
Revenue from main business 6948418410.21 15396002174.64 194952896.86 371353084.81 22168020396.90
Cost of main business 5121334886.64 11755635214.95 167618773.39 371536352.07 16673052522.91
(3) Other explanations
* Geographic segment
Information on the Group's income from external transactions and non-current assets (excluding financial assets and deferred
income tax assets the same below) by region is shown in the following table. Income from external transactions is divided
according to the location of customers who receive services or purchase products. Non-current assets are classified as per the
physical location of the assets (for fixed assets and construction in progress) or the location where they are allocated to related
business (for intangible assets) or the location of joint ventures and associated enterprises.Inter-segment
Item Domestic Foreign Total
offsetting
Revenue from main business 14757349421.40 7445003624.47 34332648.97 22168020396.90
2012024 Annual Report of Zhejiang Supor Co. Ltd.
Cost of main business 10418782745.33 6288142960.41 33873182.83 16673052522.91
Non-current assets 2016904234.14 74601378.05 117033788.09 1974471824.10
* Major customers
Among the Group's customers one customer (2023: 1) whose revenue from a single customer accounted for 10% or more of
the Group's total revenue was related party SEB S.A. and its subsidiaries accounting for approximately 31.41% (2023: 27.45%) of
the Group's total revenue.XIX. Notes To Items of Parent Company Financial Statements
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (inclusive) 696852004.62 639632187.73
Total 696852004.62 639632187.73
(2) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Provisio
Provision Book value Book value
Proportio n
Amount Proportion Amount proportio Amount Amount
n proporti
n
on
Accounts
receivable for
696852004.614317326.68253467639632187.715501798.624130389
provision for bad 100.00% 2.05% 100.00% 2.42%
2208.42317.56
debts made on the
basis of portfolio
Including:
Portfolio 1: age 566965647.7 14199145. 55276650 515929581.7 15395153. 500534428
81.36%2.50%80.66%2.98%
portfolio 1 44 2.27 1 38 .33
Portfolio 2: low- 118180757.3 11806257 106644785.3 106538140
16.96%118180.760.10%16.67%106644.790.10%
risk portfolio 2 6.56 2 .53
Portfolio 3: merged
11705599.17057820.
related parties 11705599.59 1.68% 0.00% 17057820.70 2.67% 0.00%
5970
portfolio
696852004.614317326.68253467639632187.715501798.624130389
Total 100.00% 2.05% 100.00% 2.42%
2208.42317.56
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB14199145.44
Unit: RMB
2022024 Annual Report of Zhejiang Supor Co. Ltd.
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year 566965647.71 14199145.44 2.50%
Total 566965647.71 14199145.44
If yes a provision for bad debts for accounts receivable shall be accrued according to the general model of expected credit loss:
□ Applicable ? Not applicable
(3) Provision for bad debts made collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Category Opening balance Collected or Closing balance
Accrued Written off Others
reversed
Provision for bad debts
15501798.17-1184471.9714317326.20
for accounts receivable
Total 15501798.17 -1184471.97 14317326.20
(4) Accounts receivable and contract asset details of the top 5 closing balances by debtors
Unit: RMB
Closing balance of
impairment
Proportion in the
provision for bad
Closing Accounts receivable sum of accounts
Closing balance of debts for accounts
Entity name balance of and closing balance receivable and
accounts receivable receivable and
contract asset of contract asset closing balance of
impairment
contract asset
provision for
contract assets
SEB S.A. and its subsidiaries 565965477.71 565965477.71 81.22% 14149136.94
Customer E 101675439.84 101675439.84 14.59% 101675.44
Supor Vietnam 8512301.50 8512301.50 1.22%
Customer L 8177239.18 8177239.18 1.17% 8177.24
Customer M 3121716.75 3121716.75 0.45% 3121.72
Total 687452174.98 687452174.98 98.65% 14262111.34
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 505784147.11 674127502.50
Total 505784147.11 674127502.50
2032024 Annual Report of Zhejiang Supor Co. Ltd.
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Ending book balance Beginning book balance
Deposit as security 305528.00 305528.00
Fund pool 478904614.39 671436662.09
Temporary payment receivable 4599119.06 3968595.43
Personal deposit 314090.57 551458.41
Government subsidy receivable 22789200.00
Total 506912552.02 676262243.93
2) Disclosure by aging
Unit: RMB
Ages Ending book balance Beginning book balance
Within 1 year (inclusive) 505905774.84 675240966.75
1-2 years 85528.00
2-3 years 85528.00 34500.00
Over 3 years 921249.18 901249.18
3-4 years 20000.00
4-5 years
Over 5 years 901249.18 901249.18
Total 506912552.02 676262243.93
3) Classified disclosure by the bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Book value Book value
Proportio Provision Provision
Amount Amount Amount Proportion Amount
n proportion proportion
Provision for
bad debts made
1187578.81187578.8
on an 0.18% 100.00% 0.00
99
individual
basis:
Provision for
bad debts made 506912552.0 1128404.9 505784147 675074665 674127502
100.00%0.22%99.82%947162.540.14%
on a portfolio 2 1 .11 .04 .50
basis
2042024 Annual Report of Zhejiang Supor Co. Ltd.
Including:
Portfolio 1: age 1128404.9 3964903.0 1699199.4
5093307.991.00%22.15%0.25%947162.5455.74%752036.95
portfolio 1 8 9
Portfolio 2:
501819244.0501819244673375465673375465
low-risk 99.00% 0.00% 99.57% 0.00%
3.03.55.55
portfolio
506912552.01128404.95057841476762622432134741.4674127502
Total 100.00% 0.22% 100.00% 0.32%
21.11.933.50
Provision for bad debts made on an individual basis:
Unit: RMB
Opening balance Closing balance
Name Provision for bad Provision for bad Provision
Book balance Book balance Reasons
debts debts proportion
Customer H 1187578.89 1187578.89
Total 1187578.89 1187578.89
Categories for bad debts provision: Portfolio 1
Provision for bad debts made on a portfolio basis: RMB1128404.91
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Within 1 year (inclusive) 4086530.81 204326.53 5.00%
1-2 years 8.00%
2-3 years 85528.00 12829.20 15.00%
3-4 years 20000.00 10000.00 50.00%
4-5 years 80.00%
Over 5 years 901249.18 901249.18 100.00%
Total 5093307.99 1128404.91
A provision for bad debts that are accrued according to the general model of the expected credit loss:
Unit: RMB
Phase I Phase II Phase III
Expected credit loss in
Provision for bad debts Expected credit loss in Expected credit loss in Total the entire duration
the entire duration (credit
future 12 months (without credit
impairment)
impairment)
Balance on January 1 2024 947162.54 1187578.89 2134741.43
Balance on January 1 2024 in
the current period
Provision for current period 181242.37 181242.37
Reversals in the current period -1187578.89 -1187578.89
Balance on December 31 2024 1128404.91 1128404.91
2052024 Annual Report of Zhejiang Supor Co. Ltd.
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable ? Not applicable
4) Provision for bad debts made collected or reversed in current period
Provision for bad debts made in current period:
Unit: RMB
Amount of changes in current period
Opening
Category Collected or Write-off or Closing balance balance
Accrued Others
reversed charge-off
Provision for bad debts
2134741.43181242.37-1187578.891128404.91
of other receivables
Total 2134741.43 181242.37 -1187578.89 1128404.91
5) Other receivables of the top 5 closing balances by debtors
Unit: RMB
Proportion in the Closing balance of
Nature of
Entity name Closing balance Ages total closing balance provision for bad
receivables
of other receivables debts
Hainan Supor E-commerce Company Fund pool 168685604.83 Within 1 year 33.28%
Zhejiang Supor Electrical Fund pool 141114157.35 Within 1 year 27.84%
Omegna Fund pool 79485261.60 Within 1 year 15.68%
Shanghai WMF Fund pool 50025067.77 Within 1 year 9.87%
Hainan Tefal Trading Company Fund pool 27730927.84 Within 1 year 5.47%
Total 467041019.39 92.14%
6) Presented in other receivables due to centralized fund management
Unit: RMB
Amount presented in other receivables due to centralized fund
478904614.39
management
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
2800295613.362800295613.362787004539.362787004539.36
subsidiaries
Investments in associates
60689589.1860689589.1861626527.2561626527.25
and joint ventures
Total 2860985202.54 2860985202.54 2848631066.61 2848631066.61
2062024 Annual Report of Zhejiang Supor Co. Ltd.
(1) Investments in subsidiaries
Unit: RMB
Increase/decrease
Opening Closing
Opening balance balance of Accrued Closing balance balance of
Invested unit
(book value) impairment Investment Investment impairme (book value) impairment
Others
provision increased decreased nt provision
provision
Wuhan Supor Pressure Cooker 240428244.41 240428244.41
P&R Products 20804297.92 20804297.92
Yuhuan Sales Company 2990149.81 7500000.00 10490149.81
Zhejiang Supor Electrical 784121383.11 1169225.00 785290608.11
Shaoxing Supor 652369686.26 339782.00 652709468.26
Supor Vietnam 105143165.64 105143165.64
Wuhan Recycling 1000000.00 1000000.00
Omegna 10000000.00 10000000.00
Shanghai Marketing 5000000.00 5000000.00
Wuhan Supor Cookware 607152927.18 722817.00 607875744.18
SEADA 11890622.45 11890622.45
Shanghai WMF 50198022.26 49028.00 50247050.26
Zhejiang WMF 104415267.98 885927.00 105301194.98
Zhejiang Supor LKA 101226928.70 197903.00 101424831.70
Shaoxing Supor Housewares 55458345.57 1683104.00 57141449.57
Supor Water Heater 31200000.00 31200000.00
Hainan Supor E-commerce
3605498.07743288.004348786.07
Company
Total 2787004539.36 13291074.00 2800295613.36
(2) Investments in associates and joint ventures
Unit: RMB
Increase/decrease
Opening Investmen Cash Closing
Opening Closing
balance of t profit or Adjustme dividend/ balance of
Invested balance Accrued balance
impairme Investmen Investmen loss nt in other Changes profit impairme
unit (book impairme (book
nt t t recognize comprehe in other declared Others nt
value) nt value)
provision increased decreased d by nsive equity for provision
provision
equity income distributio
method n
I. Joint venture
II. Associated enterprises
2072024 Annual Report of Zhejiang Supor Co. Ltd.
Wuhan
-
Anzai 6162652 6068958
936938.0
Cookware 7.25 9.18
7
Co. Ltd.-
61626526068958
Subtotal 936938.0
7.259.18
7
-
61626526068958
Total 936938.0
7.259.18
7
The recoverable amount is determined as the net amount of the fair value less disposal expenses
□ Applicable ? Not applicable
The recoverable amount is determined as the present value of estimated future cash flow of assets
□ Applicable ? Not applicable
4. Operating incomes and costs
Unit: RMB
Amount incurred during this period Amount incurred during prior period
Item
Revenue Cost Revenue Cost
Main business 3172395381.73 2772528133.84 2730903877.45 2307291786.04
Revenue from other operations 80776189.97 73948900.74 69901457.32 63676240.21
Total 3253171571.70 2846477034.58 2800805334.77 2370968026.25
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Contract classification
Operating income Operating cost
Business type
Including:
Cookware 3172395381.73 2772528133.84
Others 80569046.59 73765414.50
Classified by business area
Including:
Domestic 836047535.05 649775540.43
Foreign 2416916893.27 2196518007.91
Total 3252964428.32 2846293548.34
Note: The above revenue related information does not include rental income.Information related to performance obligations:
None
Information related to the transaction price allocated to the remaining performance obligations:
At the end of this reporting period the revenue from the performance obligations that have not been fulfilled or completely
2082024 Annual Report of Zhejiang Supor Co. Ltd.
fulfilled under existing contract is RMB 2321881.15 of which RMB 2321881.15 is expected to be recognized as income in
2025.
5. Investment incomes
Unit: RMB
Amount incurred during this Amount incurred during prior
Item
period period
Long-term equity investment income under the cost method 1644040517.75 1748623145.25
Long-term equity investment income under the equity method -936938.07 -529681.40
Interest from term deposit 7432119.49
Investment income from disposal of transactional financial assets 1036955.39 3419948.31
Investment income of debt investment during the holding period 2036239.80 7662465.75
Investment income from disposal of debt investments 3629637.00
Total 1649806411.87 1766607997.40
XX. Supplementary Data
1. Breakdown of non-recurring profit or loss in the current period
? Applicable □ Not applicable
Unit: RMB
Item Amount Notes
Profit or loss on disposal of non-current assets -6241682.47
Government subsidies recognized through current profits and losses (except those that are
closely related to the Company's normal business operations comply with national
195545431.63
policies and regulations and available according to certain standard quota or continuously
affect the Company's profits and losses)
Except the effective hedging business related to the normal operation of the Company
profits and losses from fair value changes caused by the finance assets and financial
33497663.19
liabilities held by non-financial enterprises and profits and losses from disposal of
financial assets and financial liabilities
Reversal of impairment provision for accounts receivable made on an individual basis 1187578.89
Other non-operating incomes or expenditures except for the foregoing items 5649279.24
Minus: influenced amount of income tax 49576326.72
Influenced amount of minority shareholders' equities (after tax) 316207.49
Total 179745736.27 --
Other specific circumstances of other items of profits and losses complying with the definition of non-recurring profits or losses:
□ Applicable ? Not applicable
The Company does not have other specific circumstances of other items of profits and losses complying with the definition of non-
recurring profits or losses.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of the
2092024 Annual Report of Zhejiang Supor Co. Ltd.
Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□ Applicable ? Not applicable
2. Return on net assets and earnings per share
Weighted average Earnings per share
Profit of the reporting period return on net Basic earnings per share Diluted earnings per
assets (RMB/share) share (RMB/share)
Net profit attributable to shareholders of common shares 37.27% 2.820 2.819
Net profit attributable to shareholders of common shares
34.28%2.5942.593
after deducting non-recurring profit or loss
3. Financial data difference on principle of domestic and oversea accounting
(1) Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable ? Not applicable
(2) Net profit and net assets discrepancies in financial statements disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable ? Not applicable
(3) The reason of accounting data difference under domestic and foreign accounting standard shall be
explained. If the data audited by the foreign audit organization carries out the different adjustment the
name of foreign organization shall be indicated.Zhejiang Supor Co. Ltd.Chairman: Thierry de LA TOUR D’ARTAISE
March 28 2025
210
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