Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.Annual Report 2024
Shenzhen Topband Co. Ltd.Stock code
March 2025
1Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Annual Report 2024
Section I Important Notes Contents and Interpretations
The Board of Directors the Board of Supervisors and directors supervisors and senior
executives of the Company hereby guarantee that the content set out in the Annual Report is free from
false records misleading statements or major omissions and undertake joint and several liabilities
for the authenticity accuracy and integrity of the report.Wu Yongqiang the principal of the Company Luo Muchen the accounting head and accounting
department head (the accountant in charge) hereby guarantee the truth accuracy and completeness of
the financial statements in this Annual Report.All directors have attended the Board Meeting at which this Annual Report was deliberated.Forward-looking statements such as plans and development strategies covered in the Report
involve uncertainty so they do not represent the Company's profit forecasts nor are they regarded as
a substantive commitment to investors.Topband has no material risks that affect its financial position and sustained profitability and
the possible risks in the operation of the Company are described in detail in Section III "Management
Discussion and Analysis" of the Report. Investors are kindly reminded to pay attention to relevant
content.The profit distribution plan approved by the Board of Directors of the Company: cash dividends
of RMB 0.7 (tax inclusive) per 10 shares are paid to all shareholders based on the 1228789388
shares (excluding the repurchased shares) 0 shares of bonus shares (tax inclusive) and reserves
would not be converted into share capital.The Report is prepared in Chinese and translated into English. Should there be any discrepancies
or misunderstandings between the two versions the Chinese version shall prevail.
2Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Chairman's Statement
Dear shareholders partners and all friends concerned about Topband
Hello everyone!
Thank you for your continuous attention to and trust in Topband. In 2024 we successfully
achieved the strategic goal of "restarting growth". The Company's operating income exceeded RMB
10 billion for the first time seeing the year-on-year growth rate regain double-digit growth. The
overall profitability operational efficiency and per capita efficiency of the Company were
significantly improved compared to those in 2023 with the health of the Company further enhanced.In the past year the industry of power tools and home appliances experienced continuous rapid
development the transformation of digital energy business achieved initial success and a series of
intelligent systems with strong market competitiveness were launched. These advances are
inseparable from the efforts and dedication of all Topband employees as well as the continued support
of all shareholders and partners.In the past decade we have achieved tenfold growth. Such sustained and stable "resilient
growth" not only reflects the society's increasing demand for intelligent products but also embodies
Topband's original aspiration of long-term adherence to "value creation through technology" and the
fact that it has always implemented the business philosophy of "Agility·Innovation·Partnership". We
have built a technical platform of "four electrics and one network" and established a customer-
centered global operating system forming a multi-level business layout and a good customer structure
and enabling the Company to maintain resilient growth in the face of market fluctuations.In 2025 we have three strategic priorities to support the realization of the overall strategic policy
of "accelerating growth":
I. Expand the share of component business. The business of intelligent controller components
has always been Topband's dominant field. In 2025 we will continue to focus on resources enhance
our competitiveness further expand our market share in existing fields and actively explore new
fields to become the "hidden champion" in more segments.II. Make breakthroughs in AI system business. Artificial intelligence (AI) is rapidly changing
4Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
our lives and industrial models. Topband will continue to increase investments in AI and intelligence
with a particular focus on the application of AI technology in terminal products. The Company plans
to implement a responsibility system for younger product managers stimulate the team's innovation
potential continuously launch more competitive AI system products and strive to create "category
champions" in multiple sub-categories gradually growing into a leading AI application company.III. Accelerate overseas marketing. At present half of the Company's business comes from
overseas markets and we have established multiple operation bases overseas. We shall further
accelerate "overseas marketing". We shall not only seize the opportunities of global industrial chain
transfer but also actively develop local markets and build a truly international company.We are well aware that there are no companies successful once and for all but only ones that
constantly adapt to the development of the times. From RMB 10 billion to RMB 100 billion we stand
at a new starting point. We firmly believe that when the control technology is deeply integrated with
artificial intelligence a new pattern of a trillion-level intelligent hardware industry is taking shape.Topband will gradually grow from a leader in intelligent control to an expert in AI applications and
actively participate in and promote industrial upgrading.We look forward to working with you to create this intelligent and beautiful future!
Chairman and President of Shenzhen Topband Co. Ltd.March 28 2025
5Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Contents
Section I Important Notes Contents and Interpretat... 2
Section II Company Profile and Primary Financial I... 9
Section III Management Discussion and Analysis ..... 14
Section IV Corporate Governance .................... 95
Section V Environmental and Social Responsibility.. 133
Section VI Important Matters ...................... 135
Section VII Share Change and Shareholders ......... 147
Section VIII Information on Preferred Shares ...... 157
Section IX Relevant Information of Bonds .......... 157
Section X Financial Report ........................ 158
6Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Directory of documents for future reference
I. The financial statements bearing the signature and seal of the principal of the Company the
accounting head and the accounting department head.II. The original audit report bearing the seal of the accounting firm and the signature and seal of the
certified public accountant.III. The originals of all the company documents publicly disclosed in newspapers designated by the
CSRC during the Reporting Period and the original manuscripts of announcements.IV. The original of the Annual Report 2024 bearing the signature of the Chairman.V. All the above documents are complete and are available for reference at the office of the Board
of Directors of the Company.
7Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Interpretations
Terms Refer to Contents
Company the Company
Refer to Shenzhen Topband Co. Ltd.Topband
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1 2024 to December 31 2024
Articles of Association Refer to Articles of Association of Shenzhen Topband Co. Ltd.Huizhou Topband Refer to Huizhou Topband Electrical Technology Co. Ltd.YAKO Automation Refer to Shenzhen YAKO Automation Technology Co. Ltd.SZACS Refer to Shenzhen Allied Control System Co. Ltd.Topband Software Refer to Shenzhen Topband Software Technology Co. Ltd.ORVIBO Refer to Shenzhen ORVIBO Technology Co. Ltd.Ningbo Topband Refer to Ningbo Topband Intelligent Control Co. Ltd.Meanstone Intelligent Refer to Shenzhen Meanstone Intelligent Technology Co. Ltd.HANSC Intelligent Refer to Shenzhen HANSC Intelligent Technology Co. Ltd.Hong Kong Topband Refer to Topband (Hong Kong) Co. Ltd.Topband Romania Refer to Topband Smart Europe Company Limited S.R.L.Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co. Ltd.Four electrics and one
Refer to Electric control motor battery power and IoT
network
IOT Refer to Internet of Things
AI Refer to Artificial intelligence
AIoT Refer to Artificial Intelligence + Internet of Things (AI + IoT)
E-Bike Refer to Electric bike
BLDC Motor Refer to Brushless DC Motor
Cell Refer to Cell without a protection circuit board
BMS Refer to Battery management system for monitoring battery status
PACK Refer to Battery pack
BG BU Refer to Business Group Business Unit
IPD Refer to Integrated Product Development
ISC Refer to Integrated Supply Chain
PLC Refer to Programmable Logic Controller
AIGC Refer to Artificial Intelligence Generated Content
1C1C3S Refer to Cell cloud platform BMS PCS EMS
Power conversion system for controlling discharge/charge and current direction
PCS Refer to
change
EMS Refer to Energy management system for monitoring the status of the energy system
Tier 1 Refer to The first tier
RTK Refer to Real-time kinematic
8Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
HVAC/R Refer to Heating ventilation air conditioning & refrigerating
An Internet-based data-trained and text-generated deep learning model (Generative
GPT Refer to
Pre-Trained Transformer)
A language representation model (Bidirectional Encoder Representations from
BERT Refer to
Transformers)
Section II Company Profile and Primary Financial Indicators
I. Company information
Stock abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳拓邦股份有限公司
Chinese abbreviation of the拓邦股份
Company name
Name of the Company in foreign
Shenzhen Topband Co. Ltd
language (if any)
Abbreviation of the Company
Topband
name in foreign language (if any)
Legal representative of the
Wu Yongqiang
Company
Address: F1 Topband Industrial Park Phase II Keji Second Road Tangtou Community
Registered address
Shiyan Sub-district Bao'an District Shenzhen
Postal code of registered address 518108
The registered address of the Company is changed from "Room 413 Block B Research
Changes of the Company's Institute of Tsinghua University High-tech Industrial Park Yuehai Sub-district Nanshan
registered address District Shenzhen" to "F1 Topband Industrial Park Phase II Keji Second Road Tangtou
Community Shiyan Sub-district Bao'an District Shenzhen".Office address Topband Industrial Park Keji Second Road Shiyan Sub-district Bao'an District Shenzhen
Postal code of office address 518108
Website https://www.topband.com
Email wenzh@topband.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Representative of securities affairs
Name Wen Zhaohui Zhang Yuhua
Topband Industrial Park Keji Second Road Topband Industrial Park Keji Second Road
Address
Shiyan Sub-district Bao'an District Shenzhen Shiyan Sub-district Bao'an District Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn zhangyuhua@topband.com.cn
9Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. Information disclosure and storage place
Website of the stock exchange where the Company discloses
http://www.cninfo.com.cn
the Annual Report
Name and website of the media where the Company discloses
Securities Times and CNINFO (http://www.cninfo.com.cn)
the Annual Report
Location where the Company's annual report is available Office of the Board of Directors of the Company
IV. Changes in registration
Unified social credit code 91440300192413773Q
Changes in the main business of the Company since listing (if any) No changes
Previous changes in controlling shareholders (if any) No changes
V. Other relevant information
Accounting firm engaged by the Company
Name of accounting firm RSM China CPA LLP (Special General Partnership)
901-22 to 901-26 Waijingmao Mansion Building 1 No. 22
Office address of accounting firm
Fuchengmenwai Street Xicheng District Beijing
Name of accountants Tian Jingliang Zhu Aiyin and Fan Lihua
Sponsor institution engaged by the Company to perform ongoing supervisory duties during the Reporting Period
□ Applicable □ Not applicable
Financial consultant engaged by the Company to perform ongoing supervisory duties during the Reporting Period
□ Applicable □ Not applicable
VI. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes □ No
Increase or decrease compared
202420232022
with the previous year
Operating income (RMB) 10501219821.54 8992342169.08 16.78% 8875099137.06
Net profit attributable to
shareholders of listed companies 671442652.91 515513995.18 30.25% 583000286.76
(RMB)
Net profit attributable to
shareholders of listed companies
642049717.52511919208.8225.42%484048089.18
after deducting non-recurring
profit and loss (RMB)
10Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Net cash flow from operating
1091950718.251465948499.18-25.51%491055076.33
activities (RMB)
Basic earnings per share
0.550.4134.15%0.46
(RMB/share)
Diluted earnings per share
0.550.4134.15%0.46
(RMB/share)
Weighted return on average equity 10.44% 8.54% 1.90% 10.85%
Change at the end of the current
End of 2024 End of 2023 Reporting Period compared with End of 2022
the end of the previous year
Total assets (RMB) 12848865960.24 11184119392.80 14.88% 10385326794.56
Net assets attributable to
shareholders of listed companies 6672327751.46 6284917468.50 6.16% 5729233981.14
(RMB)
The Company's net profit before and after deducting the non-recurring profit and loss (whichever is lower) is
negative in the last three fiscal years and the audit report of the latest year shows that the uncertainty in the
Company's sustainable operation ability
□ Yes □ No
The net profit before and after deducting the non-recurring profit and loss (whichever is lower) is negative
□ Yes □ No
VII. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable □ Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting Period.
2. Difference between the net profit and net assets in the financial statements disclosed in accordance with
both foreign accounting standards and Chinese accounting standards at the same time
□ Applicable □ Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
Overseas Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting Period.
11Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
VIII. Quarterly primary financial indicators
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 2318132398.80 2697652766.79 2683824552.60 2801610103.35
Net profit attributable to shareholders of listed
175637574.45213190940.73163393117.62119221020.11
companies
Net profit attributable to shareholders of listed
companies after deducting non-recurring profit 169367238.38 203789537.88 166016327.05 102876614.21
and loss
Net cash flow from operating activities 99471015.01 370843159.66 281568559.04 340067984.54
Whether there are major differences between the above financial indicators or the total and the financial indicators
in the quarterly report and semi-annual report disclosed by the Company
□ Yes □ No
IX. Items and amount of non-recurring profit and loss
□ Applicable □ Not applicable
Unit: RMB
Amount of Amount of
Items Amount of 2022 Description
20242023
Profits and losses on disposal of non-current assets
(including the write-off portion of the provision for asset -12272827.51 -11399766.84 -3145453.49
impairment)
Government subsidies included in current profits and
losses (except those that are closely related to the normal
business of the Company conform to national policies and
36473349.4332905181.8933217045.91
regulations are enjoyed according to certain standards
and have a lasting impact on the Company's profits and
losses)
Profits and losses due to fair value changes arising from
the financial assets and liabilities held by the non-
financial business as well as the profits and losses arising
-1934735.46-1302568.5190812862.06
from the disposal of financial assets and liabilities except
for the effective hedging business related to the normal
business of the Company
Reversal of provision for impairment of accounts
3769982.90120596.48
receivable that has been separately tested for impairment
Debt restructuring gains and losses -1281246.63
One-time share-based payment due to cancellation or
-28092840.35
modification of the stock incentive plan
Other non-operating income and expenses other than
8149822.5821796444.13373250.06
those mentioned above
Other profits and losses that conform to the definition of
1150853.841477128.99270112.67
non-recurring profit and loss
Minus: amount affected by income tax 4660769.24 11184636.52 22265407.68
12Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Amount affected by minority shareholders' equity
1494.52604156.43430808.43
(after tax)
Total 29392935.39 3594786.36 98952197.58 --
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable □ Not applicable
None.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss as
recurring profit and loss items
□ Applicable □ Not applicable
There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-
recurring Profit and Loss as recurring profit and loss items in the Company
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Section III Management Discussion and Analysis
I. Industry situation of the Company during the Reporting Period
1. Basic situation of the industry
Intelligent controllers are a high-tech product that integrates advanced automatic control technology computer
technology sensor technology microelectronics technology and power electronics technology. They play a role
similar to the "nerve center" and "brain" of the human nervous system in electronic products. By efficiently
collecting processing and analyzing various types of information and instructions intelligent controllers can
achieve intelligent driving and control of controlled objects thereby executing various complex tasks. As the trend
of intelligent substitution becomes increasingly prominent it has not only changed our lifestyle but also
revolutionized our working mode. As one of the key components of intelligence intelligent controllers have a wide
range of applications covering multiple important fields such as home appliances smart homes smart buildings
power tools industry automation automotive electronics new energy and medical equipment.Thanks to the increasing penetration rate of downstream industries and the continuous expansion of application
scenarios the global intelligent controller market has shown a trend of steady growth in recent years. According to
the latest research data from Frost & Sullivan the global intelligent controller industry has shown a trend of
significant growth: the market size reached USD 1546.2 billion in 2019 with a compound annual growth rate of
5.9% compared to that in 2015. The organization predicted that the global market size would further expand to USD
1959.9 billion by 2024. In this development process China has gradually established its dominant position in the
global industrial chain with its well-established electronic supply chain system and the technological upgrading
capabilities of local companies. Data shows that China's market share of intelligent controllers has jumped from 16%
in 2016 to over 30% in 2024 indicating that the global industrial landscape is undergoing a structural transformation
of "rising in the east and falling in the west" and this trend is expected to continue to deepen in the future.The continuous advancement of technology has not only accelerated the pace of product updates but also
depicted a broader picture of prospects for the intelligent controller industry. We are at the forefront of the intelligent
technology revolution. The deep integration of intelligent controllers with artificial intelligence and robotics is
redefining the way we live and work opening up unprecedented possibilities. With the continuous advancement of
technological innovation in the future we will witness the emergence of more new products new formats and new
models which will inject new impetus into the vigorous development of the intelligent controller industry.
14Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2. Position in industry
As a global leading company in intelligent control solutions Topband has always adhered to the core values
of "Agility·Innovation·Partnership". Relying on the technology matrix of "four electrics and one network" (electric
control motor battery power and IoT platform) it has built a complete closed-loop technology ecosystem covering
hardware development to cloud services. The Company provides in-depth services in three major fields: power tools
and home appliances digital energy and intelligent vehicles and robots offers customized solutions to global
customers and continues to consolidate its position as an industry benchmark.In 2024 The Company was awarded the title of "Manufacturing Individual Champion Demonstration
Enterprise (Smart Home Control Module)" by the Ministry of Industry and Information Technology of China
indicating that its technical strength and market leadership in the segment have been recognized at the national level.At the same time the Company has been at the forefront of the top 500 manufacturing industries in Guangdong
Province for consecutive years. It ranked 62nd in 2024 five places higher than that in 2022 demonstrating its
continuously increasing industry competitiveness.Topband's core competitiveness lies in "platform-based technology innovation capability partner-style
customer service capability and systematic agile service capability". Based on these three capabilities the Company
has gradually built a global production base network covering Asia Europe and America and created an efficient
supply chain collaboration mechanism not only promoting the Company's continuous progress and development
but also helping us establish close and lasting cooperative relationships with many leading customers in many
industries. At present we take the lead in intelligent control solutions for the industry of power tools and home
appliances and have become an innovation leader in the fields of digital energy and intelligent vehicles and robots.II. Main business engaged by the Company during the Reporting Period
The 10-fold growth to over RMB 10 billion in the past 10 years originated from the Company's brand concept
of "Agility·Innovation·Partnership". With value creation through technology as its mission and quick response to
customers as its business philosophy the Company has built the technology platform capability of "four electrics
and one network" (electric control motor battery power and IoT platform) and a customer-centered full-process
system. At the same time we firmly believe that the long-term trend of "intelligence low-carbon development and
internationalization" will remain unchanged. We will accelerate overseas marketing and increase investments in
emerging application fields.
15Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
During the Reporting Period the Company researched developed produced and sold component and system
products based on the core technology system of "four electrics and one network". Component products mainly
include intelligent controllers high-efficiency motors and battery packs and system products include charging piles
energy storage and AI hardware. Our products are widely used in three major fields: power tools and home
appliances digital energy and intelligent vehicles and robots. We not only offer innovative efficient and reliable
customized services to global customers but also bring green intelligent and innovative products to consumers.Intelligent controllers are the core business of Topband. In 2024 it shipped 178 million sets of intelligent
controllers with a year-on-year increase of 28.5% and a cumulative shipment of 1.63 billion sets and it took a lead
in intelligent control solutions for the industry of power tools and home appliances. Topband's high-efficiency
motors focus on three categories including external-rotor brushless DC motors used in the tool industry laser radar
motors used for automobiles and coreless motors used for robots. In 2024 it shipped 3.53 million sets of high-
efficiency motors with a year-on-year increase of 100% and it ranked among Tier 1 in the industry. Battery packs
are the third largest category of Topband's component products with a wide range of applications including not
only the industry of power tools and home appliances but also E-Bikes onboard equipment and other business
scenarios. In 2024 it shipped 564MWh of battery packs with a year-on-year increase of 27%.While consolidating its leading position in intelligent control components Topband actively develops product
and brand capabilities and builds a new growth curve. The Company's system products are based on the technology
of "four electrics and one network" are deeply integrated with scenario-based needs and mainly focus on the AI
field including liquid-cooled supercharging piles integrated industrial and commercial energy storage systems
integrated household energy storage systems AI anti-aging beauty instruments AI lawn mowing robots and
commercial AI cooking machines. Currently all of these products have been mass-produced and achieved good
market performance.Business applications Power Tools and Home Digital Energy and
Robots
of "three industries" Appliances Intelligent Vehicles
Liquid-cooled Integrated industrial and commercial Integrated household
Intelligent High-efficiency supercharging pile Battery pack energy storage system
energy storage system
"Component + system" controller motor
Al anti-aging beauty AI lawn mowing Commercial Al
product composition instrument robot cooking machine
Components AI systems
Electric Control Motor Technology Battery Technology Power Technology
Technical layout of
"Four Electrics and One
Network" IoT platform
16Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
1. The Company's core technology: "Four Electrics and One Network" (electric control motor battery
power and IoT platform).
1.1 Electric control technology
The electric control technology achieves intelligent control by taking the microcomputer as the core involving
many technologies such as the sensor power electronics signal processing communication interaction power and
energy conversion electromagnetic compatibility etc. The Company has profound accumulation in key fields such
as automatic control human-computer interaction embedded computing machine vision robotics intelligent
sensor and motion control.The Company has developed hundreds of electric control technology platforms to meet the diverse needs of
products in industries such as home appliances tools digital energy robots and intelligent vehicles. Electric control
technology is widely used in products such as controllers M&E products power supplies and smart batteries.
1.2 Motor technology
Motor technology plays a key role in converting electric energy into kinetic energy in the intelligent control
system. The Company has established complete technical capability from motor design and simulation testing and
verification to scale manufacturing based on continuous innovation in high efficiency low noise high precision and
high stability of motors forming dozens of advanced motor product platforms such as brushless DC motor (BLDC)
coreless motor stepper motor and servo motor.The Company's motor technology has been successfully applied in many fields. Our motor technology takes
the lead in the field of power tools and automation equipment and in terms of the application of motor technology
in new energy vehicles robots and medical care we have achieved remarkable results which has been widely
recognized in the market.Coreless motors are known as the "crown jewel" in the field of motors with a high technical content and
outstanding performance advantages. Topband has been engaged in the research development and production of
brush/brushless coreless motors since 2007 and is one of the earliest domestic manufacturers to break the monopoly
of Europe America and Japan and successfully achieve mass production of coreless motors. At present we have a
coreless motor product platform covering outer diameters of Φ7 to Φ40 a complete brush/brushless product lineup
and design research development and production capabilities for key components including motors reduction
gearboxes screws encoders controllers as well as their actuator module assemblies with an annual production
capacity of over one million motors. Among others samples of motors and actuators applied to the dexterous hands
17Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
of humanoid robots have been sent to more than 10 leading companies in the industry.
1.3 Battery technology
Battery technology is the technology where energy is stored and managed. Its core technologies include battery
material application cell design and manufacturing and battery system integration. Battery material application
technologies include positive and negative electrode materials electrolytes diaphragms and other related
application technologies; cell design and manufacturing include electrochemical architecture design and
manufacturing process technologies such as coating laminating/winding and forming; battery system integration
consists of a series of technologies such as battery assembly thermal management collision and leakage safety
accurate measurement of voltage/current/temperature signals battery state estimation and cell equalization. The
technology spans multiple fields of material science electrochemistry electronics and control engineering. After
years of accumulation the Company has formed a complete design development customization and production
technology capability from cell technology (CELL) and battery management technology (BMS) to battery pack
(PACK) system.In terms of battery management system (BMS) we have achieved industry-leading accuracy and reliability.With advanced algorithms and control strategies our BMS can monitor and manage the battery status in real-time
ensuring optimal performance and safe operation of the battery system. Technological innovations in this area have
made us a market leader when providing efficient and safe battery solutions for energy storage systems power
backup power exchange and portable devices.
1.4 Power technology
Power technology as the key to efficient conversion of electric energy covers analog power switching power
and digital power. We have a wide range of technology platforms in this field and focus on providing efficient and
reliable power solutions.With innovative energy management strategies and high-precision power quality control technology we have
optimized the charging and discharging process of the power conversion system (PCS) and improved the overall
efficiency and life of the system. Our PCS technology supports a wide range of battery types and configurations
and meets the needs of energy storage applications varying in scale. In terms of photovoltaic inverter technology
we have significantly improved the energy conversion efficiency of solar panels with advanced control algorithm
and efficient electrical energy conversion circuit design supporting a variety of communication protocols.In the field of high power DC charging piles we have achieved fast and safe charging of electric vehicles by
18Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
using efficient power electronic conversion technique and intelligent charging control algorithm. Our DC charging
piles are of high power density and excellent heat dissipation performance which ensures the efficiency and stability
of the charging process.
1.5 IoT platform
The IoT platform as the key to connecting the perception layer network layer and application layer enables
us to achieve intelligent connection of devices and efficient management of data. With complete technical
capabilities from modules and smart terminals to applications (APP) and Platform as a Service (PaaS) our IoT
platform can provide integrated solutions for multiple industries.Especially in the cloud platform for household energy management we have made remarkable achievements.By intelligently analyzing and processing the household energy consumption data the platform helps users optimize
energy consumption and achieve the conservation and efficient use of energy. By seamlessly integrating with smart
home devices the platform provides users with a comprehensive and easy-to-use energy management and control
solution.In the development of the photovoltaic energy storage and charging cloud platform we have achieved the
intelligent collaboration of solar power generation energy storage and charging facilities by using advanced Internet
of Things. The platform not only improves the energy efficiency but also provides users with convenient energy
management and use experience promoting the wide application of renewable energy.In addition our digital energy management platform provides comprehensive energy monitoring analysis and
optimization for the industrial commercial and public facilities with big data and artificial intelligence technology.The platform helps users to reduce energy consumption and improve the sustainability of energy use supporting
the enterprises and society in achieving green development goals.
2. The Company mainly provides customized components system solutions and system products for
three industries: power tools and home appliances digital energy and intelligent vehicles and robots.The Company's products are mainly classified into two categories: components and systems. The mode of
product provision is to provide customized components system solutions and system products by comprehensively
utilizing the core technology of "four electrics and one network" around the needs of downstream customers and
consumers in the industries of power tools and home appliances digital energy and intelligent vehicles and robots.
2.1 Business of power tools and home appliances
The Company mainly provides a series of customized products and services from product concept design and
19Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
development to manufacture and delivery for brand customers in the industry of power tools and home appliances.The products provided by it mainly include four key components: controllers motors batteries and power supplies
as well as a series of intelligent system products. These products are used in almost all categories of home appliances
and are widely used in power tools garden tools and various professional tools.Application
scenarios
Products
2.2 Business of digital energy and intelligent vehicles
In the field of digital energy and intelligent vehicles we have focused on laying out storage and charging
system and intelligent driving scenarios. For storage and charging systems the Company has formed a complete
product matrix covering core components systems and system solutions. In terms of core components the Company
has completed the layout of "1Charging 1 Cell 3S" core products including the charging module cell BMS PCS
and EMS. In terms of systems the Company has developed a full range of products such as charging piles
household energy storage industrial and commercial energy storage communication backup power and portable
energy storage devices. In terms of system solutions the Company has combined the core technical capability of
systems and cloud platforms and developed complete solutions for scenarios such as photovoltaic power generation
energy storage and charging zero-carbon parks and household green energy and has achieved application among
multiple customers at home and abroad. For intelligent driving scenarios we provide laser radar motors in-vehicle
infotainment systems and thermal management control products. Our main customers include Tier 1 and
automotive OEMs.
20Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Products Application scenarios
2.3 Robots
In the field of robots our main business is the research development production and sales of industrial
intelligent control products and high-efficiency motors and our downstream applications involve 3C electronics
robots medical equipment semiconductor equipment photovoltaics and lithium battery industries.Robots are a key layout area of Topband with a focus on application forms such as industrial robots service
robots and humanoid robots. Currently the product platforms of servo drive + motor + motion control and 8mm
and 10mm coreless motors that have been built take the lead in the industry and have achieved supply in batches.For humanoid robots in addition to the coreless motor we have also reserved dexterous hand actuator capabilities
- integrating key components independently developed and customized by the Company such as coreless motor
encoder reduction gearbox and ball screw drive achieving leading accuracy of repeated positioning and absolute
positioning in the industry and accurately reproducing fine human finger operation at 0.1mm level. The Company
is optimistic about the extensive application scenarios of robots in the future. While increasing research and
development it speeds up market promotion and actively engages with leading system manufacturers to promote
the implementation of products and scenarios. The Company has also reserved system capabilities in the field such
as lawn mowing robots educational robots and sweeping robots.
21Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Products Application scenarios
III. Analysis of core competitiveness
1. Platform-based technology innovation capability
The Company takes technology as the gene of enterprise development and considers innovation as the core
competence of the Company. With industry-leading platform technology innovation capabilities we have built a
technology platform that comprehensively covers all core technology areas of integrated intelligent-control
solutions.Our professional team has a deep understanding of various control mechanisms and has the ability of
independent realization and continuous innovation. This covers a wide range of areas from intelligent control
algorithms and motor control to lithium battery and sodium battery technology sensor technology human-machine
interaction interface image recognition digital power management embedded software development and
temperature control (including heating and cooling). Through the integration and application of these core
technologies we can provide customers with advanced intelligent control solutions.In addition we own rich product lines forming numerous core product platforms that have been verified
through mass production. Each product platform strictly follows the quality assurance process to ensure the high
quality and reliability of products. Based on these mature technologies and product platforms we can quickly
respond to customer needs and provide customized high-quality solutions to meet the diverse needs of customers.
22Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
It is particularly worth mentioning that we have the unique overall solution capability of "controller + motor +
battery + power + cloud platform" in the industry. This comprehensive technology integration not only enables us
to maintain a leading position in a single field but also allows us to continuously develop new category solutions to
help our customers stand out in fierce market competition. Regardless of improving the performance of existing
products or exploring new market opportunities we are committed to creating maximum value for our customers
and helping them achieve innovation and success in their respective industry.
2. Partnership customer service capability
The Company values long-term development takes value co-creation and value win-win as the development
concept and develops long-term partnership with customers. Supported by platform-based technology innovation
capability the Company continues to gain insight into customer needs creates in-depth co-creations with customers
establishes organizational customer relationships and builds partner-based customer service capabilities.Based on multi-region layout the Company has established international production bases mainly covering
Pearl River Delta Yangtze River Delta Southeast Asia North America and Europe. It also establishes international
market platforms to improve its ability to serve nearby through management capabilities resource allocation and
other aspects. A number of overseas offices have been set up for close cooperation with customers. The Company
has established close partnerships with excellent customers at home and abroad in various business areas. Based on
long-term cooperation and mutual development we have formed a good image and brand reputation in the industry
widely recognized and generally praised by our customers.
3. Systematic agile service capability
With the development of intelligent technology and the increase in uncertainty the speed of global innovation
iteration is accelerating and the Company increasingly needs to be more agile in serving its customers. Based on a
deep understanding of the intelligent control business the Company has created a strong platform system from the
implementation of IPD ideas in the R&D and design process the core customer ISC changes in the supply chain
system the laboratory and quality assurance system and the intelligent manufacturing platform system to build a
customer-centric process-oriented organization internalizing the Company's superior capabilities into agile
operational capabilities and the agile system will further strengthen the Company's advantages and the two form a
mutually reinforcing and virtuous development thus achieving sustainable high-quality growth.
23Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
IV. Analysis of main business
1. Overview
In the context of ongoing geopolitical conflicts and expected tariff increases the global industrial chain
continues to be "regionalized" and domestic and foreign markets are facing opportunities for economic and market
restructuring. Faced with the impact of external risks the Company adopted a "two-step" strategy. On the one hand
it focused on customer needs optimized component product capabilities and strengthened innovation
empowerment achieving an increase in market share among leading customers and breakthroughs in new category
customers. On the other hand it continuously developed the core technology of "four electrics and one network"
actively expanded application opportunities for system categories and built new growth space. At the same time
the Company deepened strategy implementation focused on advantageous management resources and built the
competitiveness of overseas factories; it increased R&D investments in emerging fields explored incremental
application opportunities for new technologies and new products achieved the growth of revenue and profits
demonstrated resilience in quality and sustainable development and moved forward steadily. In 2024 with the
concerted efforts of all employees the Company realized operating revenue of RMB 10.501 billion with a year-
on-year increase of 16.78% net profit attributable to shareholders of listed company of RMB 671 million with a
year-on-year increase of 30.25% and net profit attributable to shareholders of listed company after deduction of
non-cash dividends of RMB 642 million with a year-on-year increase of 25.42%.Annual operating results and core operating metrics for 2024 are set forth below:
(I) The Company continuously made efforts with revenue over RMB 10 billion
1. Steady growth has achieved RMB 10 billion and multiple business types are reshaping the strategic
landscape
Over the past decade the Company has achieved a compound annual growth rate of 25% in a complex and
ever-changing market environment. The breakthrough progress of over RMB 10 billion has verified the Company's
global competitiveness in the R&D production and manufacture of intelligent control products. Based on insights
into the needs of an intelligent and low-carbon society component products under the intelligent control category
and system products with multiple application scenarios jointly constitute the core driving force for the Company's
growth. The Company has accumulated momentum for its future business and market expansion through the
accumulation of strategic products and excellent technologies (such as photovoltaic power generation energy
storage and charging liquid-cooled supercharging motor drive robot core components and systems AI+ intelligent
24Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
hardware and variable frequency control technology) and the establishment of overseas factories. In 2025 the goal
of continuous breakthroughs in overseas output value and industry changes and opportunities brought about by new
technologies form a strategic echo with the continuous development of the market for tools home appliances
intelligent energy and intelligent vehicles. The demand of the development pattern in this new situation for the
Company's "categories of multiple business types" is reshaping its new business landscape.
2. The Company is creating the future with intelligence and keeping pace with the times
Driven by today's wave of digitalization the rapid development of artificial intelligence (AI) technology and
its deep integration with the Internet of Things (IoT) are injecting unprecedented vitality into many fields such as
smart homes smart energy and smart factories. This is expected to give birth to more powerful and intelligent
hardware products while stimulating new demands in downstream markets. In the context of the "AI+" era the
industry in which the Company operates is facing unprecedented opportunities for value reassessment.Since the establishment of the Company we have always kept pace with the trend of intelligence and low-
carbon development adhered to the pursuit of innovation in intelligent control systems and actively explored the
broad market demand brought by new technologies with a high proportion of R&D investments. In the future with
the gradual implementation of cutting-edge technologies such as intelligent upgrading artificial intelligence
algorithms human-machine interaction edge AI and robot products in hardware applications the intelligent control
industry is standing at a new starting point for development. The integration and innovation of these technologies
will bring new development opportunities to the industry give birth to the application of more intelligent scenarios
and promote the development of society in a smarter more efficient and greener direction.
3. Carbon peaking and carbon neutrality development brings new energy and drives the growth of
demand for the periphery of intelligent energy and intelligent vehicles
As the global energy structure accelerates its transformation towards cleanliness and intelligence the
construction of the intelligent energy system remains hot and the upgrading of technical standards for products for
the charging scenario has brought new growth to the industry. On the one hand the continuous promotion of the
"carbon peaking and carbon neutrality" policy of countries and the accelerated construction of the new energy
system have promoted the further development of energy management towards digitization and intelligence
injecting strong impetus into the intelligent energy industry; on the other hand the rapid iteration of technical
standards has pushed existing equipment into a period of renewal further requiring the transformation of terminal
25Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
products towards integration networking and intelligence driving an increase in the penetration rate of integrated
software and hardware solutions and bringing new growth opportunities to the market.
4. Operation of each business segment:
(1) Power Tool and Home Appliance segments: During the Reporting Period the revenue was RMB 7.981
billion with a year-on-year increase of 25.48% and the gross profit margin was 23.17% with a year-on-year
increase of 0.25 percentage points. The revenue from tools and that from home appliances are comparable with a
year-on-year growth rate of over 20%.Power Tool segment: The share of downstream customers in the tool segment is highly concentrated and
mainly overseas. As a core Chinese supplier in the power tool industry the Company provides customers with one-
stop solutions including controllers motors battery packs and systems. According to the White Paper on the
Development of China's Power Tool Industry (2025) jointly released by EVTank China YiWei Institute of
Economics and China Battery Industry Research Institute the global power tool shipment experienced two
consecutive years of decline in 2022 and 2023. Since 2024 new products have been continuously launched
downstream channels have continued to replenish inventory and the interest rate cut cycle has driven the recovery
of the North American real estate market. In 2024 the whole global power tool market rebounded significantly and
achieved year-on-year positive growth. The annual shipment increased by 24.8% to 570 million driving the global
power tool market size to USD 56.64 billion with a year-on-year increase of 5.8%. It is expected that the market
will continue to grow steadily in the future and the global power tool market size will reach USD 98.7 billion by
2030. With the steady growth trend of the industry and the market opportunities brought by the global layout the
Company built global supply capabilities for leading customers by virtue of its technology accumulation innovation
advantages reliable delivery ability and leading advantages in "going overseas" and its market share steadily
increased. During the Reporting Period the United States cut the interest rate to ease the pressure on the real estate
market the end of downstream de-stocking drove the recovery of the tool & OPE market the lithium-ion battery
and cordless tool development of the tool industry accelerated the penetration rate of lithium-ion battery products
continued to increase and the demand for professional-grade tools and garden tools resumed growth.Home Appliance segment: The Company focused on developing advantageous categories continued to
develop the fields of large white home appliances (refrigerators washing machines and air conditioners) kitchen
and bathroom appliances and innovative small home appliances and expanded market applications such as cleaning
appliances temperature control and commercial scenarios. During the Reporting Period the share of commercial
26Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
categories such as fresh air ventilators thermostats and scrubbers and personalized demand categories in innovation
scenarios increased while the Company's core categories achieved rapid growth.With the deep penetration of AI technology it is expected to promote the development process of home
appliances from "functional devices" to "home intelligent agents". Through the integration of multimodal perception
edge computing and autonomous decision-making capabilities home appliances are expected to break through the
boundary of the single function and evolve into intelligent devices with the ability to understand the environment
and provide personalized services.
(2) Digital energy and intelligent vehicles: During the Reporting Period the total revenue was RMB 2.052
billion with a year-on-year decrease of 6.32% and the gross profit margin was 20.91% with a year-on-year increase
of 1.52 percentage points.Field of digital energy: During the Reporting Period the revenue was RMB 1.672 billion with a year-on-
year decrease of 17.16%. The Company is positioned as a provider of full-scenario energy storage solutions with
the ability to provide components (BMS PCS EMS) systems (charging piles onboard equipment backup power
household energy storage & industrial and commercial energy storage) and solutions for all energy storage scenarios.Its products focus on energy storage systems components and cloud solutions. Affected by the continued decline in
the cell price the revenue from the segment of digital energy declined. During the Reporting Period the Company
continued to expand customized application scenarios such as industrial and commercial energy storage household
energy storage and RV electrical power supplies and was deeply bound to high-quality leading customers in the
industry with the integrated industrial and commercial energy storage solution typically applied in the Czech
Republic Tokyo in Japan and Poland; at the same time based on the accumulation of rectification/inversion
technology grid-connected control technology module series and parallel connection technology and electrical
safety and protection technology the Company increased investments in the R&D of energy storage inverters
developed household three-phase/single-phase hybrid inverters photovoltaic grid-connected inverters industrial
and commercial energy storage inverters and low-voltage/high-voltage integrated household storage systems
utilized its AI digital energy cloud platform to realize remote operation and maintenance improved product safety
and reliability and enhanced its overall competitiveness on the energy storage market. In terms of marketing the
Company built an overseas marketing platform and actively participated in various exhibitions such as: "Global
Sources Hong Kong Electronics Show" "136th Canton Fair" "All-Energy Australia 2024" "North American RE +
International Energy Exhibition" "EESA Shanghai Energy Storage Exhibition" "Nuremberg Industry Automation
27Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Exhibition in Germany" "Munich Energy Storage Exhibition in Germany (EES Europe 2024)" "London Electric
Vehicle Show in the UK" and "Shanghai BMW Construction Machinery Exhibition" to showcase its "photovoltaic
power generation energy storage and charging" technology "smart charging products" AI digital energy cloud
platform and other products. The Company continued to exert its efforts in domestic and foreign markets gave full
play to the innovative advantages of product managers and young teams injected vitality into the market insight
product iteration and business expansion of new categories and contributed to future growth increments.During the Reporting Period we also achieved breakthrough progress overseas. The Company won the "Best
Energy Storage BMS Supplier Award 2024" at the EESA exhibition and expanded the application of its products
in overseas large energy storage power stations with a cumulative overseas energy storage BMS shipment of over
26GWh. At the same time the Company's PCS (inverter) products have successfully obtained certificates and test
reports from CQC and TUV Rheinland and can meet the safety regulations and grid-connected requirements of
most overseas countries. Among others the hybrid inverters TB10K-H3P and TB6K-H1P have passed IEC 62109
IEC 61000 EN 50549 and VDE 4105 international standard certification.In the next three years the global energy storage market is expected to show rapid growth and the total demand
for energy storage will increase significantly. At the same time energy storage technology will develop towards
high safety low cost high capacity high efficiency centralization digitization intelligence and greening. Currently
the Company has established product reserves and the construction of the overseas market platform. In the future
it will leverage its global layout and rapid response capabilities to accelerate its entry into Tier 1 in the field.Intelligent vehicle business: During the Reporting Period the revenue was RMB 380 million with a year-on-
year increase of 121.07%. The Company built a product matrix mainly around electrification and high-level
intelligent driving applications with its core products including LiDAR motors and charging piles.* Lidar motors: During the Reporting Period the revenue was over RMB 100 million. In response to the
rapidly developing market demand for intelligent driving systems the Company has worked with a leading customer
to jointly develop a new generation of rotating mirror LiDAR motors with stronger market competitiveness. Based
on maintaining the high precision high reliability and rapid response capabilities of the product its structural design
has been further optimized its size and cost have been significantly reduced and its technical indicators such as
NVH are far ahead helping the customer to continuously launch differentiated products and achieve market
leadership at the highly competitive stage of LiDAR. The project has fully entered the mass production stage
28Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
achieved stable cooperation with the leading customer in intelligent driving and won the customer's "Best Partner
Award". In the future the Company will further expand its market share of LiDAR motor products in the intelligent
driving industry strive to achieve No. 1 in the industrial market share and strengthen its technical influence in the
field of onboard equipment business. The project will continue to promote the platform-based development of
automotive-grade motors improve product scalability and multi-model adaptability and consolidate the Company's
position in the customer's field of key parts for intelligent driving.* Charging piles: The Company's products are centered around liquid-cooled supercharging form a product
matrix integrating AC points and integrated DC charging piles and cover all scenario needs such as household
commercial application public transportation and long-distance travel. Topband has built a trinity solution of
"equipment + platform + service". Through the collection analysis processing and value mining of data it can
enhance the service value from multiple dimensions. For example in the charging field it can predict charging
demand and optimize charging strategy based on data analysis intelligently schedule charging behavior improve
operational efficiency and realize fine management and cost control. During the Reporting Period the Company
sold nearly 50000 AC and DC charging piles. As of the end of the Reporting Period the cumulative sales exceeded
60000; the cumulative charging quantity of charging piles connected to Topband's AI digital energy cloud platform
reached 1.1717 million kWh including 550700 kWh consumed in 2024.In response to the development trend of
high-power fast charging in the electric vehicle industry the Company focused on key areas such as liquid-cooled
heat dissipation high-power output and intelligent scheduling and developed a high-performance liquid-cooled
supercharging system. Through a split master-slave architecture the Company has achieved flexible deployment of
charging controllers and terminals improved adaptability in multiple scenarios such as urban street corners and
expressway service areas comprehensively enhanced users' charging experience and built its core technology and
product competitiveness in the field of charging equipment. At present the liquid-cooled supercharging system has
been commercially deployed and put into operation in multiple pilot stations with the overall charging efficiency
increased by more than 20%.The system adopts a full-matrix power scheduling design which supports any power
module to be flexibly assigned to any charging gun thereby significantly improving the equipment utilization rate.The power distribution module is highly modular and has the ability to be flexibly configured on demand to meet
the customized needs of multiple scenarios. The project has been deeply integrated with the Company's "Topband
cloud charging" platform to build an integrated operation and management capability of "equipment+platform"
achieving end-to-end intelligent control data interoperability and remote maintenance.
29Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Industry trend: Data from China Association of Automobile Manufacturers shows that in 2024 the production
and sales of new energy vehicles in China were 12.888 million and 12.866 million respectively with a year-on-year
growth of 34.4% and 35.5% respectively. The sales of new energy vehicles in China accounted for 70.5% of the
global sales an increase of 5.7 percentage points compared with that in 2023. There is a huge market demand for
charging and intelligentization of new energy vehicles. In terms of intelligent driving many high-end models are
currently equipped with an L2 or even higher-level autonomous driving system which can realize partial
autonomous driving functions in environments such as expressways and urban roads. The system is equipped with
advanced cameras LiDAR and other high-precision sensors to quickly collect information on the surrounding
environment and utilizes advanced algorithms and big data analysis to achieve precise control of the vehicle's
driving status. As the electric control system evolves towards the era of intelligent driving 3.0 the penetration rate
of LiDAR is expected to continue to increase. According to the statistics and forecast of QYR (QYResearch) the
global automobile LiDAR market sales reached USD 950.27 million in 2024 and is expected to reach USD 9420.35
million in 2030 with a compound annual growth rate (CAGR) of 52.39% (2024-2030).
(3) Robots: During the Reporting Period the sales revenue was RMB 468 million with a year-on-year
increase of 6.09% and the gross profit margin was 28.68% with a year-on-year increase of 0.58 percentage
points.This segment mainly focuses on service robots humanoid robots industrial robots and equipment as well as
the provision of controls motors drives and AI system products. The Company's mobile robot chassis technology
covers a number of core technologies such as robot map building positioning planning navigation movement
obstacle avoidance multi-sensor fusion AI visual perception fusion obstacle avoidance algorithm RTK
technology three-dimensional perception of point cloud information and human-machine interaction. At present
the technology has realized modular integrated application in multiple product lines such as lawn mowers care
machines and sweepers. Among others the Company's lawn mowing robot solutions lead the industry in terms of
shipments in the domestic professional third-party market. The Company has also accumulated system capabilities
in this field and its commercial cooking robots educational robots sweeping robots and other products have
achieved mass sales of systems.For humanoid robots the Company has currently built product platforms of 8mm and 10mm coreless motors
which take the lead in the industry and have achieved mass supply. During the Reporting Period the Company
increased its investments in low-voltage multi-axis bus servo drive technology and the dexterous hand drive module
30Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
which integrates core components such as coreless motor reduction gearbox screw and encoder to form a small
modular drive unit with high precision high output and low power consumption. The module has achieved stable
performance with a single output of > 10N a grasping life of > 100000 times a position control accuracy of ≤
0.5mm and industry-leading repeated positioning and absolute positioning accuracy. It can accurately reproduce
the 0.1mm-level fine operation of human fingers innovatively adopts nanocrystalline coating technology to achieve
ultra-light body design under the condition of ensuring power density and meets the structural mechanics
requirements for the multi-knuckle collaborative drive of the dexterous hand further expanding the market
application of the Company's products in the fields of industrial robots and humanoid robots.The Company is optimistic about the extensive application scenarios of robots in the future. While increasing
research and development it speeds up market promotion and actively engages with leading system manufacturers
to promote the implementation of products and scenarios.(II) The proportion of innovative products increased the cost reduction and efficiency improvement
achieved results and the gross profit margin and profitability improved.In 2024 the Company achieved a comprehensive gross profit margin of 22.97% a year-on-year increase of
0.66%. During the Reporting Period the gross profit margin of the segments of power tools and home appliances
digital energy and intelligent vehicles and robots increased year on year. On the one hand the Company
continuously improved the operational capabilities of each base through management empowerment; on the other
hand it built a digital management system to achieve internal systematic technical collaboration realize a platform-
based technology sharing mechanism improve R&D response efficiency and increase the gross profit of
advantageous product categories.(III) The Company adhered to innovation-driven development embraced the intelligent industry and
sought development through innovation.In today's world emerging technologies are rapidly evolving and commercial applications are constantly
innovating. Digitalization intelligence and low-carbon development are definite development trends and the
intelligent world is approaching at an accelerated pace. In 2024 even in the face of multiple challenges such as
increased external risks increased overseas taxes and a global economic slowdown we still adhered to the
innovation mechanism driven by both R&D and customer demand and increased R&D investments in innovative
application fields such as AI+ robots motors systems and intelligent vehicles with R&D investments accounting
for 9.07%. The Company applied for a total of 3667 patents including 1270 invention patents 1844 utility models
31Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
442 designs 51 foreign patents and 60 PCT patents. The Company and its subsidiaries applied for a total of 307
software copyrights and 450 trademarks.In 2024 the Company adhered to the multi-path and multi-scenario technical route gave full play to the
advantages of product platforms and technology platforms and focused on AI+ home care AI+ home learning AI+
intelligent detection intelligent companion scenarios and opportunities for intelligent vehicles and humanoid robots.In the field of power tools and home appliances it actively laid out the research on artificial intelligence
technologies on the terminal equipment side such as machine vision voice recognition and big data applications.By deploying or connecting the large cloud model on the terminal equipment side it improved the intelligent control
and human-machine interaction capabilities of products enhanced user experience and product performance and
continued to create value for the industry. At the same time intelligent control systems and motors for multiple
scenarios such as power tools garden tools and variable-frequency air conditioners achieved technical iteration. DC
variable-frequency air conditioners on the Indian market realized a significant reduction in energy consumption
with ISEER > 6.0 under high-temperature conditions and have reached the 5-star standard. In the field of digital
energy and intelligent vehicles the storage and charging platform was equipped with self-developed cloud network
technology and an integrated operation and management capability of "equipment + platform" was built to realize
end-to-end intelligent control data interoperability and remote maintenance; in response to the demand for rapid
development of intelligent driving systems the Company launched a new generation of rotating mirror LiDAR
motors with market competitiveness and promoted the large-scale application of client LiDAR motor products. In
the field of robotics the Company gave full play to the advantages of coreless motor products actively sent samples
developed robot application products with market competitiveness and actively grasped opportunities for
innovative categories brought by new technologies.(IV) Controllable cash flow management supported steady business expansion
During the Reporting Period the Company achieved an operating cash flow of RMB 1.092 billion with a year-
on-year decrease of 25.51%. This is mainly due to the consumption of low-priced raw materials stocked in the early
stage of the Reporting Period and an increase in demand for stocking raw materials brought about by an increase
in sales revenue. At the same time the Company actively expanded its business boundaries and laid out new
business of systems; increased investments in the R&D of new technologies and new products to enhance product
competitiveness. Based on the expansion of the Company's business scale the development potential of new
32Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
business and the overall plan for funds its cash flow was at a normal and controllable level and all its business
operations were steady and sustainable.(V) Globalization was accelerating and the advantages of overseas layout were highlighted
In 2024 relying on the local operation advantages of the overseas manufacturing platform the Company's
service advantages of nearby delivery and quick response were highlighted. The output value of the overseas
manufacturing platform exceeded RMB 2.2 billion an increase of more than 70% laying the foundation for further
developing the overseas market expanding the business landscape and enhancing market influence.(VI) The Company adapted to low-carbon development and built green operation capabilities
During the Reporting Period the Company made every effort to implement the concept of low-carbon
development. Through measures such as energy-saving transformation production line upgrades and fine
management the Company's mature parks successfully achieved energy consumption reduction targets. At the same
time the Company actively carried out green supply chain and green enterprise certification incorporated
environmental protection standards into supplier screening actively engaged with high-quality suppliers and
explored new environmentally friendly raw materials to strive to achieve green revolution on the raw material side;
in addition it incorporated environmental protection training and green production into its daily operations
enhanced organizational carbon emission and product-side carbon footprint accounting capabilities and helped
downstream companies achieve green low-carbon and sustainable development goals.
2. Revenue and Cost
(1) Composition of operating income
Unit: RMB
20242023
YoY increase or
Proportion in Proportion in
Amount Amount decrease
operating income operating income
Total operating income 10501219821.54 100% 8992342169.08 100% 16.78%
By industry
Intelligent control
10501219821.54100.00%8992342169.08100.00%16.78%
electronics industry
By product
Power Tools and
7980983546.4076.00%6360597815.0670.73%25.48%
Home Appliances
Digital Energy and
2051746214.3519.54%2190147490.2624.36%-6.32%
Intelligent Vehicles
Robots 468490060.79 4.46% 441596863.76 4.91% 6.09%
By region
33Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
PRC (mainland) 3658753063.77 34.84% 3615419893.91 40.21% 1.20%
Overseas 6842466757.77 65.16% 5376922275.17 59.79% 27.26%
Distribution model
Basing production on
10501219821.54100.00%8992342169.08100.00%16.78%
sales prospects
Note: In 2024 the segments were reorganized according to business attributes. The Power Tool and Home Appliance segments were
merged into "Power Tools and Home Appliances" the New Energy segment was renamed "Digital Energy and Intelligent Vehicles"
and the Industrial segment focused on expanding robot business and was renamed Robots.
(2) The situation of industries products regions or sales models accounting for more than 10% of the
Company's operating income or operating profit
□ Applicable □ Not applicable
Unit: RMB
Increase
Increase Increase
or
or or
decrease
decrease decrease
of
Gross of of gross
Less: operating operating
Operating income profit operating profit
cost income
rate costs over rate over
over the
the same the same
same
period of period of
period of
last year last year
last year
By industry
Intelligent control electronics industry 10501219821.54 8088901865.21 22.97% 16.78% 15.78% 0.66%
By product
Power Tools and Home Appliances 7980983546.40 6132027485.15 23.17% 25.48% 24.68% 0.25%
Digital Energy and Intelligent
2051746214.351622768649.5820.91%-6.32%-7.31%1.52%
Vehicles
By region
PRC (mainland) 3658753063.77 2961529315.43 19.06% 1.20% 2.07% -0.69%
Overseas 6842466757.77 5127372549.78 25.07% 27.26% 25.52% 1.02%
Distribution model
Intelligent control electronics industry 10501219821.54 8088901865.21 22.97% 16.78% 15.78% 0.66%
The Company's main business data for the last year adjusted according to the caliber at the end of the Reporting
Period when the statistical caliber of the Company's main business data is adjusted during the Reporting Period
□ Applicable □ Not applicable
(3) Whether the Company's revenue from physical sales is greater than that from services
□ Yes □ No
YoY increase or
Industry classification Items Unit 2024 2023
decrease
34Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Sales pcs 186754409 143304884 30.32%
Intelligent controller
Production output pcs 188636179 138284579 36.41%
electronics industry
Inventory pcs 8185598 6303828 29.85%
Reasons for year-on-year changes of relevant data exceeding 30%
□ Applicable □ Not applicable
The sales volume of the current period increased by 30.32% year on year mainly due to improved performance
including improved product competitiveness increased market demand and the driving force of the Company's
marketing strategy.The production of the current period increased by 36.41% year on year mainly driven by performance.For the selling price per unit P >RMB 200 the sales volume is 7510300 PCS and the sales revenue is RMB
3.082 billion;
For the selling price per unit RMB 100≤P< RMB 200 the sales volume is 20934900 PCS and the sales
revenue is RMB 2.94 billion;
For the selling price per unit RMB 50≤P< RMB 100 the sales volume is 26801400 PCS and the sales revenue
is RMB 1.93 billion;
For the selling price per unit P < RMB 50 the sales volume is 131507700 PCS and the sales revenue is RMB
2.549 billion;
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the
Reporting Period
□ Applicable □ Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
20242023
Industry Proportion Proportion to YoY increase Items
classification Amount to operating Amount operating or decrease
costs costs
Intelligent control
electronics Operating costs 8088901865.21 100.00% 6986324444.52 100.00% 15.78%
industry
Unit: RMB
35Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2024 2023 YoY
Product category Items Proportion to Proportion to
increase
Amount operating Amount operating or
costs costs decrease
Power Tools and
Operating costs 6132027485.15 75.81% 4918132354.42 70.40% 24.68%
Home Appliances
Digital Energy and
Operating costs 1622768649.58 20.06% 1750713393.28 25.06% -7.31%
Intelligent Vehicles
Robots Operating costs 334105730.48 4.13% 317478696.82 4.54% 5.24%
(6) Whether the consolidation scope has changed during the Reporting Period
□ Yes □ No
In August 2024 a wholly-owned sub-subsidiary Topband Digital Energy Technology (Huizhou) Co. Ltd. was
established with a registered capital of RMB 1 million;
In September 2024 a wholly-owned sub-subsidiary Chongqing Topband Yishu Energy Technology Co. Ltd. was
established with a registered capital of RMB 1 million;
(7) Major changes or adjustments of the Company's business products or services during the Reporting
Period
□ Applicable □ Not applicable
(8) Main clients and suppliers
Information on main clients of the Company
Total sales of the top five clients (RMB) 4152309618.24
Proportion of total sales of the top five clients in the annual
39.54%
sales
Proportion of related party sales in the total sales of the top five
0.00%
clients in the annual sales
Information of the Company's top five clients
No. Client name Sales (RMB) Proportion to the annual sales
1 No. 1 2989747216.02 28.47%
2 No. 2 335454933.41 3.19%
3 No. 3 300097680.27 2.86%
4 No. 4 275706988.54 2.63%
5 No. 5 251302800.00 2.39%
Total -- 4152309618.24 39.54%
Other information on main clients
36Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Applicable □Not applicable
Information on main suppliers of the Company
Total purchase amount of the top five suppliers (RMB) 1953273659.85
Proportion of total purchase amount of the top five suppliers in
28.22%
the annual purchase amount
Proportion of related party purchase amount in the total
purchase amount of the top five suppliers in the annual 0.00%
purchase amount
Information on top five suppliers of the Company
Proportion to the annual
No. Supplier name Purchase amount (RMB)
purchase amount
1 No. 1 1442300252.03 20.84%
2 No. 2 240668280.09 3.48%
3 No. 3 130406112.05 1.88%
4 No. 4 72394302.97 1.05%
5 No. 5 67504712.71 0.98%
Total -- 1953273659.85 28.22%
Other information on main suppliers
□ Applicable □ Not applicable
3. Expenses
Unit: RMB
YoY increase
2024 2023 Explanation of major changes
or decrease
Mainly due to the increase in the employee benefits for
Selling personnel engaged in new businesses as well as the
379247836.25322340584.4917.65%
expenses increase in travel expenses and exhibition expenses
incurred for the development of overseas markets.Mainly due to the Company's optimization of internal
Overheads 401415660.16 438361342.66 -8.43% management and improvement of operating efficiency
during the Reporting Period.Finance
-52598946.07 -51708683.93 -1.72% No significant changes
expenses
R&D Mainly due to the Company's increased investments in
809006999.25689969610.9817.25%
expenses R&D during the Reporting Period.
4. R&D investment
□ Applicable □ Not applicable
37Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Impact on the
Description of main
Project purpose Project progress Goals to be achieved Company's future
R&D projects
development
The project has completed
technical development and
verification at multiple
product platforms and
products such as high-power
air conditioners refrigerators
washing machines and range
hoods are being optimized
This project focuses on
continuously.solving core technical
problems of variable- Take air conditioner and heat
frequency control pump products as examples:
technology such as high 1. Energy efficiency
power high efficiency improvement in the Indian
To achieve the industry-
and low noise. By market: By cooperating with The project will
leading level of variable-
adopting advanced vector local mainstream brands and effectively expand the
frequency control
control algorithms and adopting the Company's Company's advantages
technology in key
new topology independently developed DC in the control of high-
indicators such as energy
technologies the energy variable-frequency end home and
High-power efficiency improvement
efficiency ratio of the technology ISEER > 6.0 has commercial appliances
variable-frequency vibration and noise
system will be further been achieved under high- enhance the added value
control technology suppression and system
improved. At the same temperature conditions of and gross profit margin
platform reliability and promote
time by combining above 45°C in South Asia of products and lay a
the large-scale industrial
intelligent control with the 5-star standard solid foundation for the
application of
technology and energy- reached and the energy Company's continued
technological
saving and environmental efficiency increased by about expansion in the global
achievements in core
protection design 15% year on year. market.product lines.concepts the product
2. Breakthroughs in
series will be expanded
commercial air conditioners
and the comprehensive
and heat pumps: Technologies
competitiveness of the
such as interleaved PFC and
Company in related
three-phase active PFC have
markets will be enhanced.been used to improve system
energy efficiency purify the
power grid and enhance
system reliability and
significant breakthroughs have
been made in high-threshold
markets such as Europe and
Japan.
38Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The project will provide
strong technical support
At present the technology
for the Company's R&D
platform has achieved modular
and mass production of
integrated application in
various mobile robot
multiple product lines such as
products indoors and
This project focuses on lawn mowers care machines
outdoors and greatly
the R&D of the core and sweepers and supported
improve product
chassis platform for the rapid iteration and
development efficiency
mobile robots covering technological leadership of
and market response
key technologies such as system products and has the To achieve the industry-
speed. In the process of
map building ability to mass-produce leading level of the
promotion and
positioning path multiple categories of mobile robot chassis
application the platform
planning navigation products. During the project platform in aspects such
has a large number of
control dynamic obstacle dozens of invention patents as performance
key data resources
avoidance multi-sensor and utility model patents have compatibility and
accumulated and a group
fusion AI visual been applied for and scalability possess the
of technical backbone
Mobile robot perception RTK-based technological achievements ability of rapid
personnel with system
chassis technology high-precision have been gradually development and
capabilities trained and
platform positioning 3D point systematized. deployment suitable for
possesses good
cloud perception and For example in the field of multiple types of robots
scalability and
human-machine perimeter wire-free intelligent for multiple indoor and
ecological construction
interaction. It aims to lawn mowing robots the outdoor scenarios and
potential. In the future it
build a rapidly reusable platform integrates RTK-based support the continuous
will not only support the
stable and reliable robot high-precision positioning and optimization and rapid
development of the
chassis platform to virtual boundary technology iterative upgrading of the
Company's own product
support the rapid so that the robot can achieve chassis platform.lines but also provide
development and centimeter-level precise
customers with complete
industrialization of the positioning without
robot solutions expand
Company's various types embedding boundary lines
business boundaries
of mobile robot products. and the user just needs to set
enhance the Company's
virtual boundaries via the
core competitiveness
mobile application improving
and market risk
the convenience and user
resistance and become a
experience of the product.new revenue growth
point of the Company.
39Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The successful
implementation of the
To make the Hall-free
project will further
motor control algorithm
This project focuses on consolidate the
reach the industry-leading
the research of Hall-free At present the project has Company's
level improve the
motor control technology completed the R&D and technological leading
performance of the
and electromechanical verification of Hall-free motor position in the field of
electromechanical
Hall-free motor integration technology drive technology and passed tool motors and control
integration module by
drive and and is committed to the scenario durability test and bring good customer
more than 30% reduce
electromechanical creating a high-reliability stage on the customer's overall development potential.the cost by more than
integration low-cost and small- product side and the In the future the
30% and ultimately
technology volume tool motor- electromechanical integration technology platform is
make the
platform control integration module has achieved mass expected to be promoted
electromechanical
solution to further production. The technology and applied to more tool
integration module
enhance the Company's platform continues to undergo categories and
developed in the project
technical advantages in technological upgrades. application scenarios
reach the leading level in
the tool product market. thereby enhancing the
terms of reliability cost
Company's profitability
size and weight.and market development
capabilities.
40Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project aims to focus
The successful
on the R&D of core key
implementation of the
technologies for the
project is expected to
shared battery swap
significantly enhance the
system for two-wheeled
Company's technical
and three-wheeled
resolution capabilities in
vehicles including At present the R&D of the
the battery swap
system architecture project is progressing The goal of the project is
application scenarios for
BMS intelligent charging smoothly and each core to make the smart shared
two-wheeled and three-
Smart shared management data technology module is being battery swap system
wheeled electric
battery swap processing safety developed as planned. Among technology platform
vehicles and further
system technology control battery tracking others the fourth-generation reach the industry-leading
consolidate its leading
platform for two- and cabinet fire BMS product has undergone level in terms of
position in the field. As
wheeled and three- protection so as to technical development and intelligence and system
the technology platform
wheeled vehicles comprehensively improve rigorous testing and reliability and achieve
becomes mature and is
the intelligence and verification and has been large-scale industrial
launched on the market
reliability of the battery delivered and applied in application.the market share of the
swap system. The project batches.Company's related
aims to serve the shared
business is expected to
travel industry and is
further increase
committed to creating an
providing a new growth
efficient intelligent and
point for future
safe battery swap service
development.platform.
41Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project aims to focus At present important
The ultimate goal is to
on the field of intelligent breakthroughs have been made
create independent and
vehicles with a particular in areas such as intelligent
controllable key
emphasis on R&D in key cockpits and thermal
technology platforms for The application of
technological directions management and several
intelligent vehicles project achievements
such as the intelligent mature product platforms have
master core technologies will enrich the
cockpit of vehicles and been formed. Among others
and build a complete Company's product
Key technology the thermal management the intelligent cockpit platform
product verification lines expand its market
platforms for of new energy vehicles. has been successfully
system so as to support opportunities in key
intelligent vehicles By establishing sound delivered to domestic Top 10
the high reliability and areas of intelligent
such as intelligent technology platforms automobile enterprises and
large-scale mass vehicles such as
cockpit and thermal product platforms and the platform for overseas
production capabilities of intelligent cockpits and
management verification platforms the markets has also entered the
products and ensure that thermal management
application Company's technical mass production stage; in
the Company has core and provide strong
level and product level addition the electronic water
technological advantages support for its
will be comprehensively pump has achieved mass
and stable mass sustainable development
improved laying a solid production delivery to Tier 1
production capabilities in in the future.foundation for the suppliers indicating that the
areas such as intelligent
development of business Company's related products
cockpits and thermal
related to intelligent have reached the first-class
management.vehicles. level in the industry.
42Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project aims to
establish the Company's
core technology system in
the field of digital power
and provide a unified
digital power technology
platform for the
development of medium- It is expected that the
and high-power power successful
The achievements of the
products. To this end the To achieve industry- implementation of the
project have been applied to a
project focuses on leading power conversion project will strongly
number of mass-produced
researching digital efficiency in high-power support the Company to
products such as 300W to
Digital power control architecture for application scenarios achieve technological
5000W bidirectional hybrid
technology different power ranging from several and product
inverters 30kW/40kW DC
platform topological structures kilowatts to hundreds of breakthroughs in the
charging pile power modules
developing high- kilowatts and possess field of high-end digital
and DC/AC uninterruptible
performance digital excellent adaptability to power and further
power supplies (UPS) for NAS
signal processors (DSPs) complex applications. expand its application
systems.and all-digital feedback space in the new energy
control platforms and market.deeply mastering core
digital power algorithms
so as to comprehensively
enhance the Company's
independent R&D
capabilities in the field of
digital power.
43Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
the research of terminal-
side artificial intelligence
algorithms such as
machine vision speech
recognition and
The project has successfully
embodied intelligence.realized the terminal-side On the one hand the
By deploying or
deployment of AI models in achievements of the
connecting large cloud
the vertical field through project will significantly
model capabilities on
large-model connection and enhance the Company's
terminal devices
quantitative tuning and AI product innovation
Terminal-side (terminal side) the
multiple prototype products The goal of the project is capabilities and help
artificial intelligent control and
have been developed to establish a terminal- launch more intelligent
intelligence (AI) human-machine
accordingly. These prototype side AI application products; on the other
application interaction capabilities of
products have been used to platform and incubate a hand the project will
technology products will be
carry out exploratory research batch of new AI products. provide strong support
platform improved thereby
in fields such as smart homes for consolidating the
enhancing user
smart home appliances and Company's leading
experience. At the same
new energy and have position in the field of
time the project will
preliminarily demonstrated the intelligent control
build an embedded AI
feasibility and value of the technology.algorithm and
project's technical solution.implementation platform
to provide unified support
for the terminal-side
deployment of the above-
mentioned AI
capabilities.
44Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
the demand for key
actuating components in The project has completed the
the context of the rapid development of the multi-
development of the specification coreless motor
embodied intelligent platform with outer diameters
industry. It aims to of 8mm 10mm 12mm and
develop a dexterous hand 16mm. The module has high-
drive module that speed and high-torque To create drive module The project will
integrates core performance and the overall solutions that meet the significantly enhance the
components such as power consumption is requirements for different Company's technical
coreless motor reduction controlled at ≤5W. The humanoid robots and capabilities and system
gearbox screw and module has achieved stable embodied intelligence integration capabilities
encoder to form a small performance with a single applications through in the field of high-
Dexterous hand modular drive unit with output of > 10N a grasping modular and standardized precision miniaturized
drive module high precision high life of > 100000 times and a design help customers modules for dexterous
output and low power position control accuracy of ≤ reduce the difficulty of hands and expand its
consumption. The project 0.5mm. At the same time the selection and simplify the product and market
aims to build a project innovatively adopts assembly process and development in cutting-
standardized and nanocrystalline coating effectively reduce the edge fields such as
platform-based product technology to achieve ultra- overall development embodied intelligence
system based on the light body design under the cycle and material costs. and humanoid robots.Company's technological condition of ensuring power
accumulation in the field density and meet the structural
of coreless motors and mechanics requirements for
enhance its application the multi-knuckle
promotion and market collaborative drive of the
dominance in the dexterous hand.embodied intelligence
market segment.
45Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
key quality inspection
needs in the industrial
manufacture process and
At present the hardware and
aims to build a general
software systems of the The project will
inspection technology The platform will focus
platform have been built the significantly enhance the
platform based on AI on application scenarios
core algorithms have been Company's
vision technology and such as PCBA board-
integrated and debugged the technological
deep learning algorithms. level soldering
first batch of demo prototypes capabilities in the fields
By realizing high- inspection conformal
have been successfully of AI vision and
precision target coating inspection wiring
deployed at the PCBA industrial intelligent
recognition classification harness connection
production line to undertake detection consolidate its
AI visual and defect inspection the quality verification and
the task of automatic detection intelligent
inspection problems of low system appearance
of abnormal solder joints and manufacturing
technology efficiency low accuracy inspection so as to
the recognition accuracy and capabilities in sub-
platform and being prone to achieve automatic
processing efficiency have industries such as
fatigue in traditional identification and
achieved the expected results. electronic assembly
manual inspection will be judgment of key quality
The platform has the ability of smart home appliances
solved the quality control points in the industrial
replication and promotion to digital energy and
ability and inspection production process and
scenarios such as smart home robots and achieve
efficiency of industrial help the intelligent
appliance and power tool technological cost
production will be upgrading of the
assembly lines and new reduction and efficiency
improved the manufacturing process.energy system and part improvement.manufacturing cost will
inspection lines.be reduced and the
improvement of product
quality and performance
will be promoted.
46Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
The project will enhance
the high-integration and
the competitiveness of
high-precision control
the Company's industrial
requirements for industry
To build a micro multi- control products in the
automation
axis low-voltage drive automated
manufacturing
At present the project has technology platform manufacturing
equipment and aims to
completed the development of suitable for SMT equipment industry and
carry out the construction
a 4-axis low-voltage drive automatic insertion expand its market share
of a multi-axis drive
prototype based on EtherCAT machines pick-and-place in SMT 3C and other
technology platform. By
bus communication and machines 3C-oriented equipment fields. The
studying integrated multi-
realized the integration SMT equipment and technology platform will
Low-voltage multi- axis compact design and
verification of multi-axis drive other equipment realize have good scalability in
axis bus servo drive bus-based drive control
control core technology. The the integrated deployment the future. It is expected
technology technology the drive
system has the characteristics of drives and motors to be applied to multi-
platform module can be deployed
of low-voltage operation high significantly reduce the axis drive scenarios such
near the motor side
responsiveness and high- wiring workload improve as robot end effectors
thereby reducing the
precision synchronous control assembly efficiency and and semiconductor
complexity of internal
laying the foundation for the meet the technical packaging and testing
wiring of equipment
subsequent platform-based requirements for high- equipment and help the
improving the assembly
development of products. density installation and Company expand into
efficiency and operational
multi-axis collaborative more high-end
reliability of the system
control. intelligent equipment
and assisting in the
fields and enhance core
miniaturization and
technology barriers and
intelligent upgrading of
industry influence.equipment.
47Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The successful
Through the optimal design of implementation of the
the outer-rotor structure project will effectively
This project focuses on electromagnetic scheme and consolidate the
the development trend of thermal management system Company's
high-power garden power innovative motor products technological and
To continuously optimize
tools and aims to develop with independent intellectual market advantages in the
outer-rotor brushless DC
high-performance outer- property rights have been field of garden tools
motors for high-power
rotor brushless DC successfully developed in the strengthen its R&D and
garden power tools
motors to meet the project and obtained invention manufacturing
expand the application of
industry's demand for patents. The project has fully capabilities in power
the motor technology
Outer-rotor high-efficiency and high- entered the mass production tools and motors and
platform to other high-
brushless DC motor reliability drive systems. stage at present and related enhance customer
power power tools and
for high-power The project will enhance products achieved an output satisfaction and brand
related fields while
garden power tools the Company's technical value contribution of more influence. At the same
maintaining technological
level and product than RMB 20 million in 2024. time the scalability of
leadership in the field of
competitiveness in the The motors are highly reliable the technology platform
garden tools and further
field of power tool while meeting customers' will help the Company
enhance product
motors and expand the requirements for high power extend to more high-
universality and market
depth and breadth of and high efficiency and have power motor application
adaptability.application of its motor been highly recognized by key scenarios provide stable
products in the garden customers. The Company is support for its continued
tool market. continuously promoting growth and further
subsequent product iteration enhance its industry
and delivery scale expansion. status and market
recognition.
48Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project aims to meet
the rapidly developing
The continued
market demand for
The Company will further advancement of the
intelligent driving
At present the project has expand its market share project will accelerate
systems and work with a
fully entered the mass of LiDAR motor products the Company's layout in
customer to develop a
production stage and achieved in the intelligent driving the automotive-grade
new generation of
stable cooperation with the industry strive to achieve motor product market
rotating mirror LiDAR
leading intelligent-driving No. 1 in the industrial and promote the large-
motors with stronger
customer and sample delivery market share and scale application of
market competitiveness.to other industry-leading strengthen its technical LiDAR motor products.Based on maintaining the
customers has been completed. influence in the field of In the stage of
high precision high
The products have stable onboard equipment accelerating the
reliability and rapid
performance and good business. The project will penetration of intelligent
response capabilities of
LiDAR motor customer feedback continue to promote the driving the Company is
products the structural
contributing an output value platform-based expected to steadily
design will be further
contribution of over RMB 100 development of increase its market share
optimized the size and
million to the Company in automotive-grade motors and enhance its industry
cost will be significantly
2024. At the same time the improve product visibility with the help
reduced and technical
project is continuing to scalability and multi- of technology leadership
indicators such as NVH
promote next-generation model adaptability and and cooperation with
will be far ahead helping
product iteration and plans to consolidate the customers thus driving
customers to
derive two or three sub-models Company's position in the the growth and
continuously launch
to meet the application needs customer's field of key breakthrough of its
differentiated products
in different scenarios. parts for intelligent overall business in the
and achieve market
driving. field of onboard
leadership at the highly
equipment.competitive stage of
LiDAR.
49Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The successful
implementation of the
This project focuses on
project will help the
the rapid development
Company open up the
trend of embodied
The development of the first market for core
intelligence and robotics
generation of brushless components in the
industries and aims to
coreless motor products has embodied intelligence
develop a new generation To realize the large-scale
been completed and 8mm and and humanoid robot
of brushless coreless application of coreless
10mm platform specifications industry chain provide
motor products around motor products in the
have been built. The products more competitive
the demand for high- robotics industry
have performance advantages solutions for customers
performance including industrial robot
such as no cogging high of emerging forms such
miniaturized and highly grippers dexterous hand
precision high response as dexterous hands and
responsive motors. By end effectors and other
compact size and high power expand the Company's
building a standardized scenarios promote the
density with the moment of technological coverage
Coreless motor platform the project will adaptability of the
inertia as low as 0.025q·cm2 in the robotics segment.achieve technical product standardization
and the mechanical time At the same time it will
breakthroughs and mass platform in multiple
constant able to be as low as also provide basic motor
deployment of coreless models and multiple
1.75ms and meet the actual technology support for
motors in key application industries and further
application requirements for the Company's internal
scenarios such as strengthen the Company's
dexterous operation and high- dexterous hand system
industrial robots ability to supply actuating
speed response. Product product development
dexterous hands and components in the field
samples have been sent to further promote the
grippers and enhance the of embodied intelligence.several humanoid robot coordinated
Company's technological
customers and small-batch development of motors
capabilities and market
orders have been obtained. and modules and
competitiveness in the
enhance the overall
field of core actuating
technical depth and
components for robots.market expansion
capabilities.
50Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project is committed
to building an integrated
distributed-energy
operation and
maintenance platform for The platform will
households and industrial significantly enhance the
and commercial users system integration
covering full-scenario capabilities and service
applications such as added value of the
photovoltaics energy Company's self-
storage and charging. developed new energy
At present the AI digital Within three years the
The platform provides a system products and
energy cloud platform has platform plans to achieve
digital management help improve the gross
been commercially deployed cumulative pre-
portal for investors profit margin of
at home and abroad has pre- integration of more than
owners equipment products. By building a
integrated the Company's 32 100 products of the
companies terminal users unified intelligent
solar power generation energy Company and the total
and engineering service operation and
storage and charging products installed capacity to
providers through the maintenance system the
and possesses core capabilities support remote operation
Web/APP/applet to Company will
such as unified data access and maintenance will
realize pre-integration accumulate valuable
AI digital energy intelligent diagnosis and exceed 1GW.Through the
and remote intelligent equipment operation
cloud platform remote control. Up to now the continuous evolution of
operation and data and user behavior
new installed capacity of the AI algorithms the
maintenance of the data build digital assets
remote operation and platform will achieve
Company's full range of and form a schedulable
maintenance system supported autonomous generation of
new energy products. The energy resource pool.by the platform has exceeded control strategies for
project integrates AI The platform-based
30MW and the stability and various scenarios
technology explores new operation model will
service capability of the forming a core energy
operation service models provide solid support for
platform have been management hub with
such as "zero-carbon the Company to build an
preliminarily verified in the intelligent scheduling
park" "solar power AI-driven energy
market. capabilities.generation energy ecosystem in the
storage and charging distributed energy
station" and "virtual market and promote its
power plant" based on the upgrade from a
concept of "becoming hardware manufacturer
smarter safer and more to an intelligent energy
economical with use" service provider.and accelerates the
construction of the
Company's digital energy
ecosystem.
51Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
To build a product matrix
whose core is liquid-
cooled supercharging and The project will
which integrates AC significantly enrich the
points and integrated DC Company's product
charging piles and cover system and system
all scenario needs such as solution capabilities in
This project closely At present the liquid-cooled household commercial the field of new energy
follows the development supercharging system has been application public replenishment. Through
trend of high-power fast commercially deployed and transportation and long- the deep integration of
charging in the electric put into operation in multiple distance travel. liquid-cooled
vehicle industry and pilot stations with the overall supercharging and the
To promote the
aims to develop a high- charging efficiency increased Topband cloud platform
application of V2G
performance liquid- by more than 20%.The system not only can the market
interaction technology
cooled supercharging adopts a full-matrix power share be expanded
establish bidirectional
system around key areas scheduling design which rapidly but the platform
energy flow capability
such as liquid-cooled heat supports any power module to operation and
between electric vehicles
dissipation high-power be flexibly assigned to any maintenance efficiency
and the power grid and
output and intelligent charging gun thereby user satisfaction and
support the interactive
scheduling. Through a significantly improving the service value can also be
scheduling of distributed
split master-slave equipment utilization rate. The improved. The
Liquid-cooled powers.architecture the power distribution module is integration of V2G
supercharging pile
Company has achieved highly modular and has the To implement a station- station-level scheduling
product platform
flexible deployment of ability to be flexibly level intelligent and solar power
charging controllers and configured on demand to meet scheduling system and generation energy
terminals improved the customized needs of carry out energy storage and charging
adaptability in multiple multiple scenarios. The project prediction and optimal system linkage
scenarios such as urban has been deeply integrated control of photovoltaic capabilities will help the
street corners and with the Company's "Topband power generation energy Company enter strategic
expressway service areas cloud charging" platform to storage and charging emerging areas such as
comprehensively build an integrated operation loads thereby improving virtual power plants
enhanced users' charging and management capability of station operation energy management and
experience and built its "equipment+platform" efficiency. regional energy Internet
core technology and achieving end-to-end To create photovoltaic promote its
product competitiveness intelligent control data power generation-energy transformation from an
in the field of charging interoperability and remote storage-charging equipment supplier to an
equipment. maintenance. integration and energy energy ecosystem
storage-charging operator and create a
integration solutions and sustainable
build a next-generation technological moat and
green energy long-term growth space
replenishment network for it.with high energy
efficiency high economy
52Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
and flexible deployment
capability.
53Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The project will build an
integrated industrial and
commercial energy
The successful
storage system product
implementation of the
platform that supports
integrated industrial and
multiple power levels and
This project focuses on commercial storage
cooling methods and
industrial and commercial system project will open
adapts to different
energy storage up a broader market
At present integrated application scenarios to
application scenarios and space for the Company
industrial and commercial meet diverse deployment
aims to develop air- in the field of new
energy storage system needs from office
cooled and liquid-cooled energy storage and
products have been shipped buildings and factory
integrated energy storage become an important
and put into practical parks to charging stations
systems around the pillar for performance
application with the ability to and data centers. At the
energy needs of growth. By continuously
be delivered in batches. The same time the project
enterprise users in terms expanding the
products have excellent will further expand the
of peak load shaving boundaries of product
performance in overload following capability
dynamic capacity capabilities the project
capacity environmental modules:
expansion and demand will drive the Company
adaptability and grid-
management. The project 1. Deep integration with to form an integrated
Air/liquid-cooled connected performance with
is committed to building the photovoltaic system energy solution
integrated an actual operation efficiency
standardized industrial and charging pile system capability of "product +
industrial and of over 90% support grid-
and commercial energy to achieve "collaboration platform + service" to
commercial energy connected and off-grid multi-
storage products with of solar power improve system delivery
storage system mode operation and support
stable performance high generation energy efficiency customer
product platform high-reliability multi-machine
cost effectiveness and storage and charging" and stickiness and platform
collaboration. The system has
capability of wide improve overall energy operation value. At the
flexible capacity configuration
deployment in multiple efficiency and system same time under the
and scenario adaptation
industry scenarios benefits; guidance of the
capabilities and can meet
supporting customers in 2. Support access to the integrated energy
multi-level power demands
achieving energy virtual power plant ecosystem strategy of
from small commercial
structure optimization scheduling platform and "solar power generation
applications to large parks.and green transformation have capabilities such as energy storage and
Core technologies of products:
and building the response to grid charging + virtual power
BMS PCS EMS cells and
Company's core product frequency regulation and plant + intelligent
packs realize full-stack self-
strength and load management; operation and
research.differentiated advantages maintenance" it will
3. Support AI energy
in the field of energy help the Company
scheduling algorithms to
storage systems. become a core
achieve strategy
competitor in the era of
optimization and
energy digitalization and
economic improvement;
intelligence.
4. Complete pre-
integration with the
Company's "AI digital
54Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
energy cloud platform" to
achieve the remote
monitoring and intelligent
operation and
maintenance of
equipment and the
automatic generation of
AI-driven strategies and
help build a closed-loop
system of intelligent
operation and
maintenance.
55Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The photovoltaic
inverter project will
become an important
performance growth
pole of the Company in
At present the Company has
the new energy sector.completed the development of
The project will Relying on core
user-side photovoltaic inverter
continuously improve the advantages such as full
This project focuses on products in the full power
photovoltaic inverter product coverage
user-side distributed range from several kilowatts to
product platform expand excellent performance
photovoltaic power hundreds of kilowatts and
the coverage of micro- and platform
generation scenarios and achieved mass shipment. The
inverters and high-power intelligence it will help
aims to create products cover a variety of
string inverters and the Company quickly
photovoltaic inverter specifications including
enhance the intelligent open up the distributed
product series covering single-phase three-phase and
capabilities of products in photovoltaic markets for
multiple power ranges multi-channel MPPT and
grid-connected control household applications
and suitable for multiple form a full matrix product
environmental and industrial and
application scenarios and system covering household
adaptability remote commercial applications
enhance the Company's applications industrial and
Photovoltaic management and safety and enhance its voice
product competitiveness commercial applications and
inverter product protection. By creating an and technical leadership
and system solution small ground power stations.platform integrated solution of in the new energy
capabilities in the field of Through collaborative
inverter + energy storage industry chain. Its
photovoltaic equipment. optimization with other
+ charging + energy continued advancement
The project will enhance photovoltaic power generation
management platform it will drive the
customer stickiness and and storage supporting
will achieve deep coordinated
form integrated products the project has
integration with development of related
photovoltaic power reached the advanced
Topband's AI digital supporting products
generation-storage- industrial level in core
energy cloud platform to (such as energy storage
charging-cloud indicators such as system
improve the charging and
capabilities by providing integration quality product
controllability monitoring systems)
products with price and stability and inverter
maintainability and promote the Company to
performance advantages. efficiency and the product
operational efficiency of build an AI distributed
performance consistently
the system. energy system product
ranks among Tier 1 in the
portfolio and
industry.comprehensively
enhance the Company's
competitiveness and
market share in the
digital energy field.
56Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The project will build a
complete household
energy storage product
matrix and provide
integrated system
solutions for multiple
capacity ranges and
multiple output power
This project is aimed at
levels around different
typical energy demand At present the integrated
house types and regional
scenarios for household household energy storage
power structures. It will As an important part of
users such as self- system project has completed
improve system the Company's digital
generation and self-use mass production and shipment
collaboration efficiency energy business the
peak-valley electricity mainly covers two major
through the high-voltage integrated household
price arbitrage and series: low voltage and high
integrated platform and energy storage system
emergency backup power voltage has realized the
strengthen household project will carry
supply and focuses on compact integration of the
users' energy strategic breakthroughs
high-voltage architecture inverter and battery system
independence and in the field of household
and integration design to has advantages such as high
electricity consumption energy. The project will
Integrated develop a household energy density high
economy. On the basis of build differentiated core
household energy energy storage system conversion efficiency silent
existing mass production competitiveness through
storage system with high efficiency high operation and intelligent
business it will increase underlying technology
product platform safety and high management meets the
the market share of R&D drive and platform
intelligence level. The multiple needs of household
household energy storage design helping the
project aims to create a users for easy installation
products and expand the Company grasp
cost-effective solution for flexible expansion and
Company's brand incremental market
household distributed emergency response and
influence in the global opportunities in the
energy scenarios and supports access to the
household energy storage context of the rapid
enhance the Company's Company's AI digital energy
market. At the same time development of global
product richness and cloud platform to realize
it will promote the household energy
system solution remote operation and
integration and storage.capabilities in the maintenance and strategy
deployment of
household energy storage management.photovoltaics and
market.charging piles to lay the
foundation for the future
integrated household
energy ecosystem of
"photovoltaic power
generation energy
storage charging cloud
platform".
57Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The energy storage BMS
product platform has achieved
This project focuses on The energy storage BMS
continuous iteration and
the core requirements of product platform is a
market application. A mature
the multi-scenario and core control technology
solution has now been formed
multi-specification To build a BMS product point in the Company's
and is widely used in large
energy storage system for platform that spans energy storage industry
energy storage projects and
the battery management household energy storage chain. The continued
leading customers' industrial
system (BMS) and aims industrial and commercial breakthroughs of the
and commercial energy
to develop a high- energy storage and large project will further
storage system projects. As of
reliability energy storage grid-level energy storage enrich the Company's
mid-December 2024 the
BMS product platform systems support different product portfolio in the
cumulative shipment of the
that adapts to different cell types (LFP ternary energy storage BMS
Company's energy storage
string structures battery sodium ion etc.) and field enhance its
BMS was nearly 26.5GWh.types and application communication protocol customized delivery
environments. The The new-generation 1500V specifications and capabilities for leading
project will improve the energy storage BMS has been improve the scenario customers and expand
safety of battery deployed in large energy adaptability and its global market share.Energy storage
operation life storage power stations in international market The deep linkage
BMS product
management accuracy batches with ten safety universality of products. between the platform
platform
and system compatibility protection mechanisms and To further enhance the and the AI digital energy
meet the safety highly modular architecture ability to collaborate with cloud will build a BMS
management and significantly improving system the AI digital energy lifecycle management
intelligent control reliability and operation and cloud platform achieve system with data-driven
requirements for multi- maintenance convenience. the state prediction management and
level energy storage
For household scenarios the preventive maintenance intelligent strategy as the
systems from household
newly developed high-voltage and AI-driven multi- core laying a solid
energy storage and
household energy storage scenario dynamic control foundation for the
industrial and commercial
BMS has fine charge and strategy for battery Company to build
energy storage to large
discharge management systems and help greatly intelligent energy
energy storage power
capabilities can automatically improve the intelligent storage system solution
stations and build a key
prevent and control risks such level of energy storage capabilities and
core control platform to
as overcharge overheating and systems. accelerating its upgrade
support the Company's
overdischarge and meets the to an energy storage
energy storage system
diverse connection ecosystem platform
product ecosystem.requirements for distributed enterprise.energy storage.
58Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
mobile application The project will fully
scenarios such as RVs adapt to electrical
The products have been
ships and golf carts It appliance scenarios for
applied in batches been
aims to address power mainstream vehicles and
widely deployed in typical
supply and energy storage ships on the market and The successful
scenarios such as RVs
needs develop lithium form a lithium battery implementation of the
shipborne systems and golf
battery systems with product matrix covering project will establish the
carts and gained a leading
intelligent functions such multiple voltage Company's leading
share in many market
as Bluetooth platforms and multiple position in the smart
segments. The system has the
communication OTA capacity ranges. The lithium battery market in
advantages of high safety high
upgrades and water and products will have the segments such as RVs
energy density and low
collision resistance and advantages of ships and golf carts.maintenance cost possesses a
Onboard smart promote the replacement differentiated design Through differentiated
high IP rating and shock-
lithium battery of lead-acid batteries with high-functionality product layout and
resistant and anti-collision
product platform lithium batteries. The integration high- platform capability
design and can adapt to
project will build an performance output and output it will not only
complex outdoor operating
onboard integrated controllable cost support continue to contribute to
environments. Through the
battery solution platform subsequent integration the Company's
linkage between Bluetooth and
improve the safety with the AI digital energy performance growth but
the mobile app remote
convenience and cloud platform achieve also expand its influence
monitoring battery status
intelligence of products remote diagnosis early in the digital energy
queries and OTA online
provide customers with warning and distributed market and its voice in
upgrades can be realized and
customized and data analysis capabilities the industry.user experience and after-sales
systematic energy and promote the project
service efficiency can be
products and further to be implemented in a
improved.develop the outdoor wider range of
travel and special commercial scenarios.application power market.
59Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project focuses on
The core architecture design
the urgent need of
has been completed in the
industry automation
platform technology solution
equipment for high- The project will
and product application has
precision and multi-axis To further improve the effectively enhance the
been achieved. At present
collaborative control and multi-axis stepper drive Company's core
small-batch production of
aims to develop a multi- product platform enrich technical capabilities
multiple specific models has
axis stepper drive the support for multi-axis and product
been completed and
platform that integrates configuration and competitiveness in the
application verification has
EtherCAT bus function. enhance compatibility field of industry
been successfully realized in
Through standardized and with mainstream PLCs automation control
fields such as 3C
modular design it will and controllers. To components. By seizing
manufacturing wiring harness
build a 4-axis stepper simplify the complexity market upgrade
Stepper drive equipment and semiconductor
drive control system for of equipment connection opportunities for
product platform automation equipment. The
industries such as 3C through the standardized conversion from single-
drive system has the
manufacturing wire drive solution axis control to multi-axis
characteristics of fast bus
harness assembly and significantly reduce the control it will build a
communication response high
semiconductor system integration cost product platform that
control accuracy and high
equipment promote and strengthen the cost- integrates standard
system stability. Through port
product upgrades from performance advantage of models and customized
adaptation a variety of
traditional single-axis products in medium/low- models and expand the
application models can be
stepper control to multi- speed and high-precision Company's share in the
quickly derived forming a
axis integrated intelligent motion control scenarios. bus stepper drive
product strategy of
control and improve product market.coexistence of standard
system wiring efficiency
models and customized
control accuracy and
models.equipment integration.
60Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
This project aims to meet The servo drive technology
the extensive demand of platform is under continuous
industry automation development and has now
equipment for high- formed a series of products To continuously promote
performance and high- with a maximum power of the product serialization
The project will
precision drive control 7.5kW covering high medium and modularization of the
significantly enrich the
and develop a servo drive and low ends with excellent servo drive platform and
Company's product
system that can dynamic response capabilities create a servo drive
matrix in the field of
accurately control AC control accuracy and system product family with
core components for
permanent magnet reliability. The products focus complete power range
industry automation
synchronous motors. The on the core needs of industries coverage rich control
expand the market share
platform is designed to such as machine tools and interfaces and strong
of servo drive products
cover multiple power electronic equipment and compatibility. To achieve
through continuous
ranges multiple interface differentiated product models the large-scale
Servo drive product penetration in key areas
protocols and multiple are launched in succession to deployment of products
platform such as high-end
application scenarios in enhance industry coverage and in the mid-to-high-end
manufacturing
order to create high- market penetration. automation market
electronic equipment
performance servo drive In addition the project also robots and manipulators
and intelligent
products suitable for expands the development of a through leading technical
production and enhance
fields such as CNC micro multi-axis low-voltage performance and
the Company's brand
machine tools electronic drive platform which can be optimized cost structure
influence and market
equipment and non- widely used in SMT automatic and meet the core
position in the field of
standard automation insertion machines pick-and- requirements of many
high-precision control
equipment and enhance place machines 3C-oriented industries for motion
technology.the Company's core SMT equipment robots and control stability accuracy
competitiveness in the other precise motion control and response speed.mid-to-high-end scenarios providing customers
automation control with more compact and
market. efficient drive solutions.
61Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
To build a high-
performance controller
The EtherCAT bus
product platform based
controller project will
on the EtherCAT bus and
This project is dedicated fill a key link in the
possess key capabilities
to developing an Company's high-
such as simplified wiring
EtherCAT bus controller performance industrial
module cascading remote
that combines high controller product line
IO expansion and
performance strong The technology platform is and enhance its core
servo/stepper drive
scalability and ease of continuously being improved control capabilities in
synchronous control .To
use. The project and small-batch production the overall control chain
improve the
combines EtherCAT bus has been achieved. Products of the automation
comprehensive
communication have been applied in 3C and system. By building an
performance of the
technology and industrial SMT production lines and independent
controller in terms of
motion control algorithms other fields and show good controllable standard
communication
to create a core control stability real-time and open control
bandwidth response
platform with high-speed performance and platform and forming an
EtherCAT bus speed real-time
communication compatibility. The platform integrated industrial
controller product scheduling and multi-axis
capabilities flexible has powerful motion control control solution
platform synchronization through
scalability and multi-axis function modules supports capability of "control +
the continuous iteration
cascade control unified scheduling of multiple drive + motor" the
of the software and
capabilities meet the servo and stepper drives Company will further
hardware platform to
requirements for adapts to complex process expand its market layout
meet the system
automation equipment in flows and equipment layouts in fields such as high-
integration needs of
precision control multi- and forms the ability to end equipment
multiple industries (such
axis collaboration and quickly deliver standard and manufacturing electrical
as electronic
simplified wiring and customized products in control system
manufacturing automatic
enhance the Company's parallel. integration and motion
assembly and testing
overall solution control solutions and
equipment). The products
capabilities in the mid-to- enhance its
will have significant cost-
high-end industrial competitiveness and
effectiveness advantages
control market. customer stickiness in
and support the platform
the industry automation
to achieve large-scale
industry.application in multiple
vertical industries.
62Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The goal of the project is
to establish an AI-driven
intelligent beauty and
The successful
skin care product system
implementation of the
This project focuses on in the household medical
project marks the
the fast-growing The product has been beauty market and
Company's official entry
household medical beauty developed and mass-produced realize a closed-loop
into the field of AI
care market and and sold first on a domestic e- upgrade from equipment
household smart beauty
innovatively integrates commerce platform with to algorithms and to user
devices making it one
the new generation of positive market feedback service. Through AI's
of the first explorers in
ultrasonic anti-aging continuous increase in sales continuous learning and
the direction of AI
technology and AI volume and initial optimization of skin
ultrasonic beauty
intelligent algorithms to establishment of brand conditions anti-aging
instruments. With the
create a household beauty awareness. With "AI + progress and usage
deep empowerment of
instrument product with Ultrasonic" dual engines as its effects it aims to enhance
AI in terms of user
professional performance core highlight the product the intelligent experience
perception interaction
and intelligent interactive adopts the two-dimensional of "the more you use the
and care intelligence
"Simple Charm" AI experience. Through AI's ultrasonic dot matrix product the better it
strategy the project is
anti-aging beauty identification and technology for the first time understands you" create
expected to drive the
instrument analysis of users' skin supports functions such as innovative product
Company's brand
type usage habits care intelligent skin type features with leading
upgrade and category
progress and other data it identification dynamic functions personalized
expansion in the
will realize personalized regulation and control of care customization and
household consumer
skin care strategy plans and multi-mode intelligent
electronics health sector
recommendation and intelligent linkage forms companionship and
open up the growth
precise energy output obvious advantages in further strengthen the
curve of consumer smart
improve users' care accuracy safety and long-term stickiness with
terminals form a new
efficiency safety and convenience and gradually users.round of enhancement of
experience and provide forms differentiated At the same time it aims
product value and user
users with sustainable positioning in the high-end to form a first-mover
value and bring new
adaptive and scientific household beauty instrument technological advantage
revenue growth points
household beauty market. in the direction of
and continuous
solutions. "ultrasonic + AI" and
innovation momentum
create multi-dimensional
to the Company.competitiveness in terms
of function experience
and brand.
63Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The AI lawn mower
This project aims to meet
project will open up a
the strong demand of
new growth channel for
European and American
the Company in the
household users for
mobile service robot
automated care of The project will continue
sector and promote its
courtyard lawns. It to iterate core functions
transformation from
integrates core such as intelligent
"control technology" to
technologies such as AI mowing dynamic
"intelligent system
visual perception RTK- obstacle avoidance
products" in the field of
based high-precision autonomous path
household intelligent
positioning and planning and adaptation
robots. With the
intelligent path planning to complex lawn
combined advantages of
to develop AI lawn scenarios to ensure that
AI lawn mowers have RTK + vision + AI path
mowers with independent the product has stable
officially entered the online algorithm the Company
obstacle avoidance performance and leading
channel promotion and sales will accumulate key
adaptive environment experience in the
AI lawn mower stage in the European and technological
recognition and perimeter perimeter wire-free
American markets driving the capabilities in core
wire-free intelligent intelligent lawn mowing
large-scale development of dimensions such as
operation capabilities. robot market. Through AI
lawn mowing robot business. perimeter wire-free
The product aims to help algorithm training and
intelligent operation
users automatically edge computing
high-precision
complete daily mowing optimization robots can
positioning and low
tasks significantly reduce achieve high-precision
maintenance costs
the cost of yard and high-efficiency
establish a reusable
maintenance and manual operations in scenarios
platform for cross-
dependence improve the such as different grass
category applications
convenience and safety of types obstacles and
further improve the
use and create a new terrain slopes.Company's service robot
species of household
product layout and
service robots with high
create a sustainable
performance and
high-value-added
intelligence.income source.
64Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The project will
The "Chuji" AI cooking
This project focuses on continuously optimize the
machine project marks
the core problems faced key Chinese food cooking
the deep application of
by Chinese restaurants in capabilities of the "Chuji"
the Company's
terms of meal serving The "Chuji" AI cooking AI cooking machine in
intelligent control
efficiency quality machine has been successfully terms of high-temperature
technology in the field
consistency and labor mass-produced and sold on the heating control heat
of commercial systems.costs and aims to solve domestic Chinese catering control recognition
The project will not only
the industry problem that market and has been widely cooking rhythm matching
expand the Company's
ordinary cooking promoted through online and and good-mouthfeel
product line and brand
machines lack a good offline channels. The product restoration and create a
value in the field of
mouthfeel and to create has excellent performance in product experience that
intelligent kitchen
the Company's own brand terms of meal serving combines "authentic
equipment but also lay
"Chuji" AI commercial efficiency meal serving flavor" and "intelligent
the foundation for it to
cooking machine. By quality and system stability standard".create a collaborative
"Chuji" integrating core and has been highly It will further strengthen ecosystem of the
commercial AI technologies such as AI recognized by customers and the functions of AI recipe consumer side and
cooking machine intelligent control recipe the industry. The brand's system remote operation commercial side.algorithms precision heat slogan "Chuji cooking management data
Through the continued
control and cooking machines bring a good monitoring and strategy
in-depth development of
rhythm control it will mouthfeel" has been widely optimization support
"Chuji" in Chinese food
provide standardized and spread and it has become a customers to achieve
cooking scenarios the
intelligent cooking representative of the industry intelligent operation and
project is expected to
solutions to help Chinese that is "both standard and restaurant chain
drive the Company's
restaurants achieve authentic" and established a management establish
brand building sales
standardized meal serving unique brand image and the "Chuji" brand's
growth and market
and intelligent operations technical label for intelligent technical advantages and
layout in the field of
and promote the Chinese Chinese food cooking user trust barriers in the
commercial kitchen
catering industry to machines. field of intelligent
equipment and build a
achieve chain operations Chinese food cooking
new growth curve of
and scale replication and maintain the Tier 1
"technology + brand +
faster. market position in the
channel" for it.industry.R&D personnel of the Company
2024 2023 Variable proportion
Number of R&D personnel
217820048.68%
(person)
Proportion of R&D personnel 18.75% 21.50% -2.75%
Educational background of R&D personnel
Bachelor 1448 1317 9.95%
Master 214 158 35.44%
Doctor and above 4 3 33.33%
65Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Junior college degree and
512526-2.66%
below
Age composition of R&D personnel
Below 30 865 834 3.72%
30-40103493610.47%
Above 40 279 234 19.23%
R&D investment of the Company
2024 2023 Variable proportion
R&D investment (RMB) 952105344.29 834406343.71 14.11%
Proportion of R&D investment in operating income 9.07% 9.28% -0.21%
Capitalized amount of R&D investment (RMB) 143098345.04 144436732.73 -0.93%
Proportion of capitalized amount in R&D
15.03%17.31%-2.28%
investment
Reasons for and impacts of major changes in the composition of the Company's R&D personnel
□ Applicable□ Not applicable
Reasons for the significant change in the proportion of total R&D investment to the operating income compared
with that of the previous year
□ Applicable □ Not applicable
Reasons for significant changes in the capitalization rate of R&D investment and explanation
□ Applicable □ Not applicable
5. Cash flow
Unit: RMB
Items 2024 2023 YoY increase or decrease
Subtotal of cash inflow from operating activities 10663397902.69 9742654137.01 9.45%
Subtotal of cash outflow from operating activities 9571447184.44 8276705637.83 15.64%
Net cash flow from operating activities 1091950718.25 1465948499.18 -25.51%
Subtotal of cash inflow from investment activities 789697703.80 39243483.78 1912.30%
Subtotal of cash outflow from investment activities 1671453937.24 1187630073.16 40.74%
Net cash flow from investment activities -881756233.44 -1148386589.38 23.22%
Subtotal of cash inflow from financing activities 1130521336.29 985342992.26 14.73%
Subtotal of cash outflow from financing activities 1310642190.60 1218525834.63 7.56%
Net cash flow from financing activities -180120854.31 -233182842.37 22.76%
Net increase in cash and cash equivalents 101608828.97 120462012.53 -15.65%
Main influencing factors of the significant year-on-year changes in relevant data
66Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Applicable □ Not applicable
1. Net cash flow from operating activities: It is mainly due to the increase in salaries and cash expenses paid
during the Reporting Period compared with the same period of last year.
2. Net cash flow from investment activities: It is mainly due to the decrease in the cash paid for the purchase
and construction of long-term assets during the Reporting Period compared with the same period of last year.
3. Net cash flow from financing activities: It is mainly due to the increase in loans obtained during the
Reporting Period compared with the same period of last year.Reasons for the significant difference between the net cash flow from operating activities during the Reporting
Period and the net profit for the year
□ Applicable □ Not applicable
V. Analysis of non-main business
□ Applicable □ Not applicable
Unit: RMB
Proportion in Is it
Amount Explanation of reasons
total profit sustainable
Mainly due to the investment income from
Investment income 3945501.92 0.51% No
purchasing structured deposits
Profit and loss from Mainly due to the loss from changes in fair
-5950391.17 -0.77% No
changes in fair value value of equity investments
Mainly due to provision for inventory falling
Impairment of assets -80133065.08 -10.34% No
price reserves
Compensation from customer's breach of
Non-operating income 10883626.59 1.40% No
contract and various fines
Non-operating Mainly due to the loss of scrapping of non-
12316804.97 1.59% No
expenditure current assets
VI. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of 2024 Beginning of 2024 Increase
or
Proportion Proportion decrease Explanation of major changes
Amount in total Amount in total in
assets assets proportion
Monetary
1713976263.3413.34%1550450889.8213.86%-0.52%
capital
67Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Accounts
2992784497.7323.29%2431773877.5621.74%1.55%
receivable
Inventory 1810510580.57 14.09% 1653816715.51 14.79% -0.70%
Investment
100566027.850.78%103404402.850.92%-0.14%
property
Long-term
equity 38959272.14 0.30% 37748179.30 0.34% -0.04%
investment
During the Reporting Period
Nantong Industrial Park reached
Fixed assets 2737959115.57 21.31% 2102862886.72 18.80% 2.51% the expected usable state and was
fully put into use and converted
into fixed assets.Due to the increase in construction
investment in Huizhou No. 2
Construction in Industrial Park and Huizhou
768223670.575.98%568107950.655.08%0.90%
progress YAKO Automation No. 2
Industrial Park during the
Reporting Period.During the Reporting Period there
Right-of-use were few new lease contracts but
67227073.110.52%101446985.740.91%-0.39%
assets the corresponding depreciation
increased.Due to the increase in short-term
Short-term loans obtained from banks during
1224214110.419.53%279348750.002.50%7.03%
loans the Reporting Period compared to
the beginning of the Period.Contractual
131435683.971.02%168681571.891.51%-0.49%-
liabilities
Due to repayment of matured long-
Long-term
245740474.88 1.91% 437747877.47 3.91% -2.00% term loans during the Reporting
loans
Period
Due to the lease payments made
Lease liabilities 42076530.36 0.33% 61429811.03 0.55% -0.22%
during the Reporting Period.High proportion of overseas assets
□ Applicable □ Not applicable
Proportio
Control n of Is there a
measures to foreign significant
Asset Reasons of Operation
Asset size Location ensure the Earning position assets to risk of
details formation mode
safety of net assets impairmen
assets of the t
Company
Financial
Operation R&D
Investment and Pune supervision
Center in 588119123.37 production 47273336.37 8.81% No
establishment India and external
India and sales
audit
Dong Nai Financial
Dong R&D
Operation Investment and supervision
968330504.50 Nai production 229765782.59 14.51% No
Center in establishment and external
Vietnam and sales
Vietnam audit
68Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2. Assets and liabilities measured at fair value
□ Applicable □ Not applicable
Unit: RMB
Profits and losses Changes in
from changes in cumulative fair Amount of purchase Amount of sale in
Items Opening balance Other changes Closing balance
fair value in the value included in in the current period the current period
current period equity
Financial assets
1. Tradable financial assets
(excluding derivative 656704087.16 - 5506110.04 238079377.13 2614550135.72 2524227802.51 -2071618.56 739448691.77
financial assets)
2. Other equity instrument
41192950.003819826.003819826.0045012776.00
investments
3.Financing of accounts
278520642.22-147302969.66131217672.56
receivable
Subtotal of financial assets 976417679.38 -1686284.04 241899203.13 2614550135.72 2524227802.51 -149374588.22 915679140.33
Total of the above 976417679.38 -1686284.04 241899203.13 2614550135.72 2524227802.51 -149374588.22 915679140.33
Financial liabilities 0.00 444281.13 444281.13
Contents of other changes
None
Are there significant changes in the measurement attributes of the Company's main assets during the Reporting
Period
□ Yes □ No
3. Restricted asset rights by the end of the Reporting Period
For details please refer to 31 VII Section X Financial Report.VII. Investment analysis
1. General situation
□ Applicable □ Not applicable
Investment in the Reporting Period Investment amount in the same period of
Range of change
(RMB) last year (RMB)
200000.0061192950.00-99.67%
69Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2. Major equity investment obtained during the Reporting Period
□ Applicable □ Not applicable
3. Major non-equity investment obtained during the Reporting Period
□ Applicable □ Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable □ Not applicable
There was no securities investment during the Reporting Period.
(2) Derivatives investment
□ Applicable □ Not applicable
1) Derivatives investment for the purpose of hedging during the Reporting Period
□ Applicable □ Not applicable
Unit: RMB ten thousand
Proportion
of
Profits investment
and amount at
losses Changes the end of
Amount of Amount of
from in the period
Initial purchase sale during
Types of derivatives Beginning changes cumulative Ending in net
investment during the the
investment amount in fair fair value amount assets of
amount Reporting Reporting
value in included the
Period Period
the in equity Company
current at the end
period of the
Reporting
Period
Trading of foreign
60236.089917.28-44.43-44.4350318.8051610.008626.081.29%
exchange derivatives
Swap 124359.32 0 0 0 124359.32 124359.32 0 0.00%
Total 184595.4 9917.28 -44.43 -44.43 174678.12 175969.32 8626.08 1.29%
Explanation of The Company has made corresponding accounting and presentation for foreign-exchange derivative
accounting policies transaction to be done according to Accounting Standards for Business Enterprises No. 22 - Recognition
and specific and Measurement of Financial Instruments Accounting Standards for Business Enterprises No. 24 - Hedge
accounting principles Accounting Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments
for hedging business issued by Ministry of Finance and other regulations and guides. Foreign exchange derivative contracts
70Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
during the Reporting were initially and subsequently measured using tradable financial assets which fair value is priced by
Period as well as financial institutions based on open market trading data and there has been no significant change compared
whether there have to the last Reporting Period.been significant
changes compared to
the last Reporting
Period
Explanation of actual
The amount included in current profits and losses from foreign-exchange derivative transactions
profits and losses in
conducted during the Reporting Period was approximately RMB -3.0683 million.the Reporting Period
The Company conducted forward exchange transaction effectively reducing the risk of exchange
Explanation of
fluctuations through reasonable RMB forward exchange transaction focusing on future transaction costs
hedging effect
and incomes and achieving asset hedging with the aim of avoiding risks.Capital sources of
Self-own capitals
derivatives investment
I. Risk analysis of forward exchange transaction
The forward exchange transaction business carried out by the Company and its subsidiaries followed the
principle of locking in exchange rate risk and not engaging in speculative or arbitrage trading operations.However there were still certain risks in forward exchange transaction operations:
1. Exchange rate fluctuation risk: In the event of significant fluctuations in exchange rates if the forward
settlement exchange rate stipulated in the confirmation letter for forward exchange transactions was lower
than the real-time exchange rate on the settlement day it will cause exchange losses.
2. Internal control risk: Because forward exchange transactions are highly specialized risks may arise due
to inadequate internal control systems.
3. Customer default risk: If the customer's accounts receivable are overdue and the payment cannot be
collected within the predicted payment period it will cause a delay in forward exchange settlement and
result in losses for the Company.
4. Risk of payment collection prediction: In general the Sales Department of the Company predicts
payment collection based on customer orders and expected orders. Nonetheless during the actual
execution process customers may adjust their own orders and the Company may make an inaccurate
payment prediction leading to the risk of delayed delivery of forward exchange settlement.Risk analysis and
5. Legal risk: Changes in relevant laws or violations of relevant legal systems by counterparties may result
control measures of
in contracts being unable to be executed normally and cause losses to the Company.derivatives positions
II. Risk control measures
in the Reporting
1. The Company has formulated the Internal Control System for Forward Exchange Transactions which
Period (including but
provides clear regulations on the Company's foreign exchange transaction operating principles approval
not limited to market
authority internal operating procedures responsible departments and individuals information isolation
risk liquidity risk
measures and risk management for forward exchange transaction and can meet the needs of practical
credit risk operational
operations and its internal control and risk management measures formulated are practical and effective.risk legal risk etc.)
2. The finance center and audit department of the Company as relevant responsible departments have
clear management positioning and responsibilities and responsibilities are assigned to their positions.Through this hierarchical management the risks of single person or individual department operations are
fundamentally eliminated and the speed of risk response is also improved while effectively controlling
risks.
3. To prevent delayed delivery of forward exchange transactions the Company attaches great importance
to the management of accounts receivable and actively collects accounts receivable to avoid the
phenomenon of overdue accounts receivable.
4 The Company engages in financial derivative transaction business with large commercial banks with
legal qualifications closely monitors relevant laws and regulations in the field avoiding potential legal
risks.
5. The Company's forward exchange transactions must be based on a cautious prediction for foreign
currency receipts (payments) of the Company and the foreign currency amount of the foreign exchange
transaction contract must not exceed 90% of the annual planned total amount of foreign currency receipts
(payments).The delivery period of forward exchange transactions needs to match the Company's predicted
foreign currency collection time.Changes in market
Determine changes in fair value based on market quotes from external financial institutions.price or fair value of
71Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
products of the
invested derivatives
during the Reporting
Period and the
disclosure of specific
methods used and
relevant assumptions
and parameters set in
the analysis of the fair
value of derivatives
Litigation (if
Not applicable
applicable)
Disclosure date of
Board of Directors
announcement for
January 4 2025
approval of
derivatives investment
(if any)
2) Derivatives investment for the purpose of speculation during the Reporting Period.
□ Applicable □ Not applicable
The Company did not have any derivatives investment for the purpose of speculation during the Reporting Period.
5. Usage of raised capitals
□ Applicable □ Not applicable
(1) General use of raised capitals
□ Applicable □ Not applicable
Unit: RMB ten thousand
Amoun
t of
Total Cumulative
Proportion raised
Total amount of total Purpose
of raised Cumulative Total capitals
amount of raised amount and
Total Total amount capitals total amount amount which
Year of Way of Date of Net amount of raised capitals for proportion destinatio
amount of of raised used at the of raised of have
raising raising listing of raised capitals capitals change of of raised n of
raised capitals used end of the capitals with unused been
capitals capitals securities (1) used in the purpose capitals unused
capitals (2) Reporting changed raised idle for
current during the with raised
Period (3) purposes capitals more
period Reporting changed capitals
= (2)/(1) than
Period purposes
two
years
72Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Balanced
Issuance of raised
convertible capitals
corporate for
20192019/4/85730056543.658741.9956543.65100.00%8241.608241.6014.38%00
bonds to permanen
unspecified t
parties replenish
ment
All have
been
Issuance of
invested
shares to
2021 2021/6/3 105000 103684.71 16350.69 103684.71 100.00% 0 69144.83 65.85% 0 in the 0
specific
project
parties
and used
up
Total -- -- 162300 160228.36 25092.68 160228.36 100.00% 8241.60 77386.43 47.68% 0 -- 0
General use of raised capitals
1. Actual amount and time of arrival of capitals raised
(1) Public offering of convertible corporate bonds to raise funds in 2019
The Company publicly issued 5.73 million convertible corporate bonds on March 7 2019 each with a par value of RMB 100 with a total amount of RMB 573
million with the approval in the Reply of China Securities Regulatory Commission on the Approval of Public Offering of Convertible Corporate Bonds by
Shenzhen Topband Co. Ltd. (ZJXK [2018] No. 1842).The issuance method was priority placement to original shareholders and the balance after priority
placement to original shareholders (including the part for which the original shareholders gave up priority placement) was issued to public investors online
through the trading system of Shenzhen Stock Exchange with stand-by underwriting of the part with the subscription amount less than RMB 573 million by
the lead underwriter. Capitals with a total amount of RMB 573000000.00 were raised and the net capitals raised were RMB 565436509.42 after deduction
of all the issuance costs amounting to RMB 7563490.58.The capitals arrived on March 13 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and issued the Capital Verification
Report (RHYZ [2019] No. 48270001).
(2) Non-public offering of shares to raise capitals in 2021
Shenzhen Topband Co. Ltd. issued 92105263 A shares to specific targets in private at the price of RMB 11.40 per stock with a par value of RMB 1 per stock
with the approval in the Reply of China Securities Regulatory Commission on the Approval of Non-public Offering of Shares by Shenzhen Topband Co. Ltd.(ZJXK [2020] No. 1865). The total amount of funds raised was RMB 1049999998.20 and the net funds actually available for use were RMB 1036847068.71
after deduction of all the issuance costs amounting to RMB 13152929.49 (tax-exclusive).The capitals raised this time were transferred to the Company's special account for raised capitals on May 10 2021.Baker Tilly China Certified Public
Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (TZYZ [2021] No. 29460) for the capitals.
2. Usage amount and balance of capitals raised in 2024
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of December 31 2024 the Company had invested a total of RMB 565.4365 million in capital-raising projects. Among them RMB 456.7857 million was
directly invested in the capital-raising projects and RMB 26.2348 million of capitals invested before the raised capitals were in place were returned. As of
December 31 2024 the capitals raised for the project had been used up and the fund-raising account had been canceled.
(2) Non-public offering of shares to raise capitals in 2021
As of December 31 2024 the Company had invested a total of RMB 1036.8471 million in capital-raising projects. Among them RMB 794.3575 million was
directly invested in capital-raising projects RMB 45.3987 million of capitals invested before the raised capitals were in place were returned and RMB 197.0909
million was used to pay for the capital-raising projects using bankers' acceptance bills and invested in the capital-raising projects with the capital raised in equal
replacement. As of December 31 2024 the capitals raised for the project had been used up.
(2) Situation of projects with capital-raising commitments
□ Applicable □ Not applicable
Unit: RMB ten thousand
73Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Projects
Wheth Where
with
er the Whe there
investme
project ther is any
nt
has Investment Cumulative the signifi
commit Total Total Amount Accumulate The date Benefits
been progress benefits expe cant
Name of Date of ments Proje committed investment invested d investment when the achieved
chang by the end achieved by cted chang
financing listing of and ct investment after during the by the end of project is during the
ed of the the end of the bene e in
project securities investme nature of raised adjustment Reporting the period ready for Reporting
(inclu period (3) Reporting fits the
nt capitals (1) Period (2) use Period
ding = (2)/(1) Period are feasibi
direction
some achi lity of
of over
chang eved the
raised
es) project
capitals
Committed investment projects
Construc
Issuance of tion The
convertible project Produ project
corporate of ction was put
bonds to 2019/4/8 Topband and Yes 56543.65 48302.06 500.39 48302.06 100.00% into use -1774.79 -6724.54 No No
unspecified East constr and
parties in China uction complete
2019 Operatio d in 2024
n Center
Construc
Issuance of tion Reple
convertible project nishm
corporate of ent of Not
Not
bonds to 2019/4/8 Topband worki 8241.60 8241.60 8241.60 100.00% applicabl 不适用 No No
applicable
unspecified East ng e
parties in China capita
2019 Operatio l
n Center
Topband
Issuance of Produ
Huizhou Not
shares to ction Not
No. 2 Not appl
specific 2021/6/3 and Yes 73684.71 4539.87 0 4539.87 100.00% applicabl 不适用 No
Industria applicable icabl
parties in constr e
l Park e
2021 uction
Project
Topband
Nantong The
Issuance of Industria Produ project
shares to l Park ction was put
specific 2021/6/3 Phase-I and Yes 61000 16350.69 61000 100.00% into use -3671.42 -3671.42 No No
parties in Stage-1 constr in
2021 Project uction Septembe
(Lithium r 2024
Battery)
Reple
Replenis
Issuance of nishm
h the Not
shares to ent of Not
Compan Not Not appl
specific 2021/6/3 worki No 30000 38144.83 38144.83 100.00% applicabl No
y's applicable applicable icabl
parties in ng e
working e
2021 capita
capital
l
Subtotal of committed investment projects -- 160228.36 160228.36 25092.68 160228.36 -- -- -5446.21 -10395.96 -- --
Total -- 160228.36 160228.36 25092.68 160228.36 -- -- -5446.21 -10395.96 -- --
74Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Explanation of the
situation and reasons of
failing to reach the
planned progress or
expected income (by 1. Topband East China Operation Center: The project has been accepted and has been gradually put into production. Currently the production capacity is
specific project) still in the climbing stage.(including the reason 2. Topband Nantong Industrial Park Phase-I Stage-I Project (Lithium Battery): The project has been subject to the final acceptance and has been
for selecting "Not gradually put into production. At this stage the production line is being subject to upgrading and commissioning due to process updates.applicable" for
"whether the expected
income has been
achieved")
Explanation of major
changes in project None
feasibility
Amount use and
progress of over raised Not applicable
capitals
Applicable
Changes occurred in previous years
Change of 1. On January 8 2022 the Company held the 18th Meeting of the 7th Board of Directors deliberated and passed the Proposal on the Implementation
implementation Mode Subject and Location of Changes in Some Capital-raising Projects and agreed that the Company would change the implementation subject location
location of investment and mode of the lithium battery business in the planned project. Specifically the implementation place was changed from Huizhou Guangdong Province
projects with raised to Nantong Jiangsu Province.capitals 2. On August 18 2022 the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors deliberated and passed the Proposal on Changing
the Implementation Mode and Location Again in Some Capital-raising Projects and agreed to changes in the implementation mode and location of
"Topband Nantong Industrial Park Phase-I Stage-1 Project (Lithium Battery)" where the location was changed from "Area A Nantong Free Trade Zone
Jiangsu" to "Nantong Economic Technological Development Area Jiangsu".Applicable
Changes occurred in previous years
1. On January 8 2022 the Company held the 18th Meeting of the 7th Board of Directors deliberated and passed the Proposal on the Implementation
Mode Subject and Location of Changes in Some Capital-raising Projects and agreed that the Company would change the implementation subject location
and mode of the lithium battery business in the planned project. Specifically the implementation mode was changed from the land acquisition for building
construction to the direct purchasing of buildings with infrastructure constructed.
2. On August 18 2022 the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors deliberated and passed the Proposal on Changing
the Implementation Mode and Location Again in Some Capital-raising Projects and agreed to changes in the implementation mode and location of
"Topband Nantong Industrial Park Phase-I Stage-1 Project (Lithium Battery)" where the mode was changed from "the direct purchasing of buildings with
Adjustment of infrastructure constructed" to "the land acquisition for building construction".implementation mode 3. On September 7 2023 the Company held the 37th Meeting of the 7th Board of Directors and the 30th Meeting of the 7th Board of Supervisors
of investment projects deliberated and passed the Proposal on Changing the Use of Part of the Raised Funds and Permanently Supplementing Working Capital and agreed that
with raised capitals the use of the remaining raised funds for the Topband Huizhou No. 2 Industrial Park Project (Motor) for which the Company issued shares in the non-
public manner in 2021 would be changed to permanently supplementing working capital and the remaining RMB 81.4483 million (excluding interest
income) would be used to permanently supplement working capital for the Company's daily operating activities.
4. The Company held the 9th Meeting of the 8th Board of Directors the 6th Meeting of the 8th Board of Supervisors and the 2023 Annual General Meeting
of Shareholders deliberated and passed the Proposal on the Completion of the Company's East China Operation Center Project and the Use of Balanced
Raised Funds for Permanently Supplementing Working Capital and agreed that the use of the remaining raised funds for the Topband East China Operation
Center Project for which the Company issued convertible corporate bonds in the public manner to raise funds in 2019 would be changed to permanently
supplement working capital and the fund-raising project would be completed and RMB 90.7948 million of balanced raised funds (including interest
income and financial management income subject to the bank interest balance on the day of transfer) would be used to permanently supplement working
capital for the Company's daily operating activities.The above changes were deliberated and passed by the General Meeting of Shareholders.Upfront investment and Applicable
75Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
replacement of 1. The Company invested RMB 26.2348 million in advance in the operation center project of Topband East China with self-raised capitals. Ruihua Certified
investment projects Public Accountants (Special General Partnership) conducts a special audit on the above matters and issues the Authentication Report on the Report of
with raised capitals Shenzhen Topband Co. Ltd. on the Investment Projects with Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25 2019 the 25th
Meeting of the 5th Board of Directors of the Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals
Invested in Advance. The Company had replaced the pre-invested self-raised funds as of August 1 2019.
2. The Company invested RMB 45.3987 million in Topband Huizhou No. 2 Industrial Park Project with self-raised funds in advance. Baker Tilly China
Certified Public Accountants (Special General Partnership) conducted a special audit on the matter above and issued the Authentication Report of Pre-
investment of Shenzhen Topband Co. Ltd. in the Investment Project of Funds Raised with Self-raised Funds (TZYZ [2021] No. 31911). The 10th Meeting
of the 7th Board of Directors was held to review and approve the Proposal on Replacement of Pre-invested Self-raised Funds with Funds Raised on June
8 2021. The Company had replaced the pre-invested self-raised funds as of June 10 2021.
The Board of Supervisors Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on the matter.On December 1 2023 the Company held the 4th (Extraordinary) Meeting of the 8th Board of Directors and the 3rd (Extraordinary) Meeting of the 8th
Board of Supervisors deliberated and passed the Proposal on Temporarily Replenishing Working Capital with Some Idle Raised Capitals and agreed that
Temporary the Company would temporarily replenish working capital with no more than RMB 220 million idle capitals raised on the premise of ensuring the capital
replenishment of needs of the fund-raising projects and the normal progress of the investment plan of the raised capitals with a period of not longer than 12 months from
working capital with the date when the Board of Directors deliberated and passed the proposal and would return the capitals to the Company's special account for raised capitals
idle capitals raised upon maturity. As of October 15 2024 the Company had returned all of RMB 220 million of raised capitals used to temporarily supplement working
capital and transferred them to the Company's special account for raised capitals with a usage period of not longer than 12 months. The Company's sponsor
and sponsor representative have been notified of the return of the above-mentioned raised capitals.Applicable
1. The project for which the Company issued convertible corporate bonds in the public manner to raise funds in 2019 has been accepted and the balance
of raised funds was RMB 82.416 million.
2. Reason for the balance of the raised funds: During the implementation of relevant fund-raising projects the Company strictly followed the relevant
Amount and reasons of regulations on the use of the raised funds and on the premise of ensuring the project quality and reasonably controlling risks prudently used the raised
the balance of raised funds and strengthened the control supervision and management of the costs in all aspects to reasonably reduce the project costs. In addition due to the
capitals in project limitation period of fund payments and other reasons the Company contributed part of its own funds in the construction of the fund-raising projects.implementation Therefore there is a balance of the raised funds.
3. The Company held the 9th Meeting of the 8th Board of Directors on March 25 2024 and the 2023 Annual General Meeting of Stockholders on April
17 2024 deliberated and passed the Proposal on the Completion of the Company's East China Operation Center Project and the Use of Balanced Raised
Funds for Permanently Supplementing Working Capital and agreed that the Company would complete the fund-raising project - Topband East China
Operation Center Project and use the balanced raised funds to permanently supplement the Company's working capital.Purpose and
whereabouts of unused As of December 31 2024 the Company's raised capitals had been used up.raised capitals
Problems or other
situations in the usage
None.and disclosure of raised
capitals
(3) Change of projects with raised capitals
□ Applicable □ Not applicable
Unit: RMB ten thousand
Total Is there any
amount of Actual Whether significant
Actual Investment The date Benefits
Corresponding raised funds cumulative the change in
Name of Way of Project investment progress by when the achieved
originally to be investment expected the
financing raising after during the the end of project is during the
promised invested in by the end benefits feasibility
project capitals change Reporting the period ready for Reporting
project the project of the period are of the
Period (3) = (2)/(1) use Period
after change (2) achieved project after
(1) change
76Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Topband
Nantong Topband The
Issuance of
Issuance of Industrial Huizhou No. 2 project
shares to
shares to Park Phase- Industrial Park was put
specific 61000.00 16350.69 61000.00 100.00% -3671.42 No No
specific I Stage-1 Project into use in
parties in
parties Project (Lithium September
2021
(Lithium Battery) 2024
Battery)
Issuance of Replenish Topband
Issuance of
shares to the Huizhou No. 2
shares to Not Not
specific Company's Industrial Park 38144.83 38144.83 100.00% No No
specific applicable applicable
parties in working Project
parties
2021 capital (Motor)
Issuance of
Issuance of
convertible Replenish
convertible Topband East
corporate the
corporate China Not Not
bonds to Company's 8241.60 8241.60 8241.60 100.00% No No
bonds to Operation applicable applicable
unspecified working
unspecified Center
parties in capital
parties
2019
Total -- -- -- 107386.43 24592.29 107386.43 -- -- -3671.42 -- --
77Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
1. In January 2022 the downstream market demand was strong due to the rapid development of the Company's
lithium battery business in recent years. The Company originally planned to purchase land and construct factory
buildings to promote the lithium battery project with a construction period of 2 years. In the Company's Nantong
lithium battery project the infrastructure of the existing factory buildings purchased was already completed so the
construction period of the project will be greatly shortened. In order to promote the expansion of lithium battery
business as soon as possible fully seize market opportunities in the lithium battery industry and new energy industry
enhance the Company's market competitiveness and business performance and utilize raised funds more efficiently
the Company plans to change the implementation subject location and mode of the lithium battery business in the
original fund-raising project after a comprehensive evaluation.The Company held the 18th (Extraordinary) Meeting of the 7th Board of Directors the 15th (Extraordinary) Meeting
of the 7th Board of Supervisors and the 1st Extraordinary General Meeting of Shareholders in 2022 deliberated and
passed the Proposal on the Implementation Mode Subject and Location of Changes in Some Capital-raising
Projects and agreed that the Company would change the implementation subject location and mode of the lithium
battery business in the planned project.
2. In August 2022 due to the change in the overall plan of the Management Committee of the Nantong Economic
and Technological Development Zone for the implementation location of the Company's Topband Nantong
Industrial Park Phase-I Stage-1 Project and in view of the utilization efficiency of the Company's raised funds the
speed of promoting the fund-raising project and the Company's business development needs the Company decided
after friendly consultation with the Management Committee of the Nantong Economic and Technological
Development Zone to give up the purchase of use rights of relevant assets change the implementation mode and
location of the fund-raising project use the raised funds and its own funds to purchase the land use rights of
approximately 250 mu in the Nantong Economic and Technological Development Zone and implement the Topband
Nantong Industrial Park Phase-I Stage-1 Project (Lithium Battery) through self-construction.The Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors the 22th (Extraordinary) Meeting
of the 7th Board of Supervisors the 2nd Extraordinary General Meeting of Shareholders in 2022 deliberated and
Explanation of reason for change passed the Proposal on Changing the Implementation Mode and Location Again of Some Capital-raising Projects
decision-making procedure and and changed the implementation mode and location of the lithium battery business in the planned capital-raising
information disclosure (by specific project with the non-public offering of shares in 2021.project) 3. In September 2023 the Company continued to implement the motor project in Topband Huizhou No. 2 Industrial
Park based on the overall plan for and construction period of Topband Huizhou No. 2 Industrial Park and the market
demand for the motor project. The input of funds estimated at the initial stage of the project is already difficult to
cover the overall project needs of Topband Huizhou No. 2 Industrial Park and it is difficult to meet the requirements
for the construction period of the motor project. At the same time extending the construction period will make it
difficult to meet the market demand for the motor project in the future. In order to cope with the complex and ever-
changing market environment the Company realized a production capacity of 3.5 million sets of high-efficiency
motors per year in mature industrial parks in Shenzhen Vietnam etc. simultaneously with its own supplementary
funds in order to quickly seize market opportunities. Subsequently the Company will continue to pay attention to
the market environment dynamically adjust its layout and continue to use its own funds to invest in the construction
of the project in order to ensure the Company's market competitiveness in the motor field. Therefore the Company
changed the use of funds raised for Topband Huizhou No. 2 Industrial Park (Motor) and used the raised funds and
corresponding interest income to permanently supplement working capital.On September 7 2023 the Company held the 37th Meeting of the 7th Board of Directors the 30th Meeting of the
7th Board of Supervisors and the 2nd Extraordinary General Meeting of Shareholders in 2023 and deliberated and
passed the Proposal on Changing the Use of Part of the Raised Funds and Permanently Supplementing Working
Capital.
4. In April 2024 in order to improve the utilization efficiency of the raised funds save finance expenses and improve
the operation performance of the Company the Company completed the Topband East China Operation Center
Project for which the Company issued convertible corporate bonds in the public manner to raise funds in 2019 and
changed the use of the remaining raised funds to permanently supplement working capital.The Company held the 9th Meeting of the 8th Board of Directors and the 6th Meeting of the 8th Board of Supervisors
on March 25 2024 and the 2023 Annual General Meeting of Stockholders on April 17 2024 and deliberated and
passed the Proposal on the Completion of the Company's East China Operation Center Project and the Use of
Balanced Raised Funds for Permanently Supplementing Working Capital.
5. The Company disclosed the above information in strict accordance with the information disclosure requirements.
78Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Explanation of the situation and
reasons of failing to reach the
Not applicable
planned progress or expected income
(by specific project)
Explanation of major changes in the
Not applicable
feasibility of the project after change
VIII. Sale of major assets and equity
1. Sale of major assets
□ Applicable □ Not applicable
The Company did not sell any major assets during the Reporting Period.
2. Sale of major equity
□ Applicable □ Not applicable
IX. Analysis of major holding and equity participating companies
□ Applicable □ Not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit of
the Company
Unit: RMB
Company Registered Operating Operating
Company name Main business Total assets Net assets Net profit
type capital income profit
R&D
Huizhou Topband production
Electrical sales import RMB 300
Subsidiary 4538310031.02 2226200992.82 6312623543.83 296790575.44 270988497.81
Technology Co. and export of million
Ltd. electronic
components
TOPBAND R&D
SMART DONG production
NAI sales import USD 33.5
Subsidiary 968330504.50 606495337.12 1214159545.27 254635787.18 229765782.59（VIETNAM） and export of million
COMPANY electronic
LIMITED components
Situation of acquisition and disposal of subsidiaries during the Reporting Period
□ Applicable □ Not applicable
Method of acquisition and disposal of subsidiaries Impact on overall production and
Company name
during the Reporting Period operations and results
Topband Digital Energy Technology No significant impact on the results
Newly established and acquired
(Huizhou) Co. Ltd. of the Report
79Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Chongqing Topband Yishu Energy No significant impact on the results
Newly established and acquired
Technology Co. Ltd. of the Report
Explanation of major shareholding companies
None
X. Situation of structured entity controlled by the Company
□ Applicable □ Not applicable
XI. Prospects for the future development of the Company
(I) Social development trend and 2035 vision
1. Intelligence development
In today's era of rapid technological change the vigorous development of new technologies such as Internet of
Things (IoT) 5G and artificial intelligence (AI) and the continuous expansion of their application areas are opening
up new growth space in an unprecedented manner and accelerating the process of social intelligence. In this era we
are actively engaged in the exploration of the future world with innovative technologies and are fully committed to
exploring and expanding new opportunities for industry intelligence in various application scenarios such as
clothing food housing transportation corporate operations and urban management.With the rapid development of artificial intelligence (AI) technology especially the major breakthroughs in
large models and robotics we are already standing at a critical juncture in a new era of intelligence. General large
models represented by BERT and GPT have demonstrated amazing language understanding and logical analysis
capabilities. The improvement of the capabilities will not only greatly enhance the intelligence level of our products
and services but also provide us with new ideas and approaches to deeply explore the value of data optimize
business processes and innovate user interaction methods. By analyzing and learning from massive data we can
accurately grasp user needs and provide users with products and services that better meet their personalized needs;
at the same time we can continuously optimize internal business processes improve operational efficiency and
reduce costs.In the field of robotics we foresee that with the continuous optimization of AI algorithms and the in-depth
application of machine learning technologies future robots will have higher levels of intelligence and autonomy.Not only are they able to perform complex physical tasks expertly they are also capable of advanced decision-
making and learning. In the manufacturing industry intelligent robots can undertake high-precision and repetitive
80Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
production tasks and improve product quality and production efficiency; in the service industry robots can provide
customers with more professional and efficient services; in the family scenario robots can undertake housework
companionship and care and other tasks; in the medical field robots can assist doctors in performing surgery and
caring for patients. These applications will comprehensively improve production efficiency and quality of life and
have a profound impact on social development.Faced with this general trend of intelligent development we will keep pace and increase R&D investment in
AI and robotics. Our goal is to deeply integrate these cutting-edge technologies into our products and solutions. On
the one hand we will enhance the intelligence level of existing products and make them more competitive in the
market; on the other hand we will actively explore new business models and market opportunities and open up new
market areas. Through continuous technological innovation we will provide customers with more intelligent
efficient and personalized services to meet their ever-changing needs thereby promoting our continuous growth and
development in the era of intelligence and occupying a favorable position in future market competition.
2. Low-carbon development
As the climate crisis caused by greenhouse gas emissions intensifies year by year countries around the world
are accelerating measures to save energy and reduce carbon emissions. It is predicted that by 2050 China's
cumulative investment in various aspects such as energy production use and ecological protection will reach RMB
300 trillion. This not only reflects China's high attention to low-carbon development but also brings unprecedented
market opportunities to related industries.As a leading intelligent controller company we actively respond to the call of the "carbon peaking and carbon
neutrality" policy and use the "four electrics and one network" technology (power electronics electrochemistry
power grid and digital network) to seize this historic market opportunity. Our goal is to drive the world towards
low-carbon development through technological innovation and practice.Currently we are deeply researching and developing and promoting green energy solutions with power
electronics electrochemistry and digital technologies as the core. The application of these technologies will greatly
improve energy utilization efficiency reduce carbon emissions and promote the green transformation of the energy
industry. In particular the integrated solutions for photovoltaic power generation energy storage and charging
provided by us integrates solar power generation energy storage and intelligent charging technologies providing
strong support for achieving a zero-carbon-emission energy system.Looking ahead we will continue to explore and develop more innovative low-carbon technologies and
81Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
solutions striving to become a pioneer in the low-carbon transformation. By providing advanced technologies and
comprehensive solutions we hope to help global customers achieve greener and more sustainable development
goals. We firmly believe that through unremitting efforts we can not only make important contributions to the global
low-carbon goals but also jointly create a cleaner and better future.
3. Internationalization
Against the backdrop of increasing changes in the global supply chain and growing security risks the supply
chain is moving towards decentralization and the internationalization process is therefore paying more attention to
multi-regional localization strategies. Faced with the increasingly complex personalized and differentiated demands
for terminal products the market has placed higher requirements on R&D speed and product delivery efficiency
while emphasizing the reliability and stability of product quality.China's industrial cluster advantages and abundant engineer resources have promoted the transfer of many
industries to China putting China in a favorable position to quickly respond to market demands. However the
uncertainties brought about by international trade conflicts and geopolitical factors have significantly increased the
risks of relying on a single Chinese industrial chain. Based on the combined effect of these two factors the future
industrial development trend will present a new pattern of development with China as the core and gradually
expanding to Southeast Asia North America and other regions.We are deeply aware of this change and are actively responding to the new challenges facing the supply chain.We are committed to exploring and expanding emerging opportunities in multi-regional markets and accelerating
our internationalization pace. By strengthening our global presence and optimizing supply chain management we
can not only reduce operational risks caused by geopolitical factors but also more effectively meet the specific needs
of customers in different regions and promote the continued growth and steady development of the Company's
business.
2035 vision of the Company
By 2035 the Company's goal is to provide customers with intelligent solutions and products by gaining deep
insights into the pain points of users scenarios and industries making the world more intelligent and low-carbon.An intelligent society is the irresistible trend with a long-term continuous wide-ranging and far-reaching
change which will deeply affect modern life and change the form of products. We will seize the historical
opportunity of intelligent scenario-based green and low-carbon development and actively innovate business
82Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
models. From components and solutions to independent system products we will innovate home appliance business
around the "four electrics and one network" technology cultivate blue ocean market expand tool business product
categories maintain leading market share accelerate the development of digital energy and intelligent vehicle
business enhance market competitiveness and increase efforts to speed up robotics and industrial business to
achieve scale growth.(II) Development strategies of the Company
1. Focusing on strategy to achieve effective scale growth
Based on the framework of the interim development goals for 2025 we have formulated a vision blueprint for
the next decade and clearly set long-term development goals until 2035. The Company will take scale growth as its
core goal and continue to deepen the implementation of the five strategic guidelines of "scale growth close customer
relationship innovation-driven development agile operation and organizational evolution" aiming to build a
pyramid profit model further consolidate and enhance our leading position among global intelligent control solution
providers and ensure sustained and effective growth.To achieve these goals we will make full use of the technological advantages of "four electrics and one
network" and focus on the three major industry fields of " power tools and home appliances + digital energy and
intelligent vehicles + robots". Especially in the digital energy and intelligent vehicle industries we will increase our
business development efforts and strive to provide one-stop intelligent control solutions and services for the world's
leading brand customers. At the same time we will also make good use of the capital market platform and combine
endogenous growth and external expansion to accelerate the business development of the robot industry and achieve
rapid expansion of revenue scale.Looking ahead we will continue to focus on strategy concentrate resources on the most promising growth
areas and continuously optimize our products and services to meet the increasingly diverse needs of our customers.At the same time we will focus on the flexibility and adaptability of our internal organization promote continuous
innovation ensure that the Company maintains its competitive advantage in a rapidly changing market environment
and achieve long-term and stable development. Through this series of measures we are confident that we can
achieve our established development goals by 2035 and consolidate our leadership in the industry.
2. Continuously enhancing innovation-driven technology and product competitiveness
Guided by the innovation-driven development strategy we have always been committed to maintaining R&D
83Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
investment above the industry average aiming to strengthen basic research and cutting-edge technology exploration
and build solid technology control points. By strengthening product line construction we will build more high-
quality product platforms and at the same time we will pay attention to the protection of intellectual assets such as
patents and trade secrets and gradually establish higher technical barriers.In order to foster new growth engines and ensure the Company's long-term competitiveness we will attach
great importance to the cultivation and development of innovative talents. This includes not only improving the
professional skills of existing team members but also attracting top talents from around the world to join our team.In addition we will actively embrace the development trend of artificial intelligence (AI) technology seek
innovative breakthroughs at the AI application level provide supporting parts and modules for AI hardware
manufacturers and independently develop AI system products to further enrich our product lines and service
capabilities.Faced with important development opportunities such as "intelligent development" and "low-carbon
development" we will actively explore emerging business areas such as robotics the Internet of Things and green
travel and continuously consolidate and expand the core technological capabilities of "four electrics and one
network". By improving our market insights and product development capabilities we can more accurately identify
high-value market opportunities and meet the needs of different customer groups.To this end the Company has identified key development plans for "knock-out products" in various fields
focused on strategic opportunities and strengthened innovation efforts around key categories. Whether in the fields
of smart homes smart tools digital energy and intelligent vehicles we will spare no effort to promote technological
innovation and strive to launch more products and services with market competitiveness.
3. Agile operation for continuous quality improvement cost reduction and efficiency increase
In order to build sustainable competitiveness the Company will deepen the implementation of agile operation
strategy continuously optimize business processes in all aspects from strategy marketing R&D sales and
procurement to after-sales and improve end-to-end operational efficiency.In terms of cost reduction and efficiency increase the Company will increase its efforts to comprehensively
use various means to achieve effective cost reduction for mature products. Specific measures include: reducing costs
through innovative design and optimization of product structure during the R&D and design stage; strengthening
supplier management and cooperation to strive for more favorable purchase prices during the procurement process;
improving the level of production automation and the process efficiency to reduce waste and improve production
84Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
efficiency during the manufacturing process.At the same time the Company will actively introduce the artificial intelligence technology to assist operations.Through the AI quality inspection system product quality can be quickly and accurately inspected product quality
can be effectively improved and cost losses caused by quality problems can be reduced. In terms of operational
efficiency improvement AI technology will be used to enable real-time monitoring and intelligent scheduling of
production processes so that production plans and resource allocation can be further optimized to improve the
overall operational efficiency. In addition we will also leverage the advantages of AI in data analysis and forecasting
to help the Company better grasp market dynamics plan ahead and reduce the risks brought by market fluctuations
thereby achieving the goal of improving quality reducing costs and increasing efficiency.
4. Organizational reform and continuous evolution of process-oriented organizations
In order to adapt to the rapidly changing market environment and maintain the Company's competitive
advantage we will continue to implement the organizational evolution strategy aiming to achieve continuous
evolution by strengthening talent team building optimizing the middle office and back office support systems and
building a customer-centered process-oriented organization.First we will focus on rapidly improving the quality of talents in key positions especially on cultivating a
group of high-potential product managers who have a deep understanding of market demand and possess innovation
awareness and product management capabilities. This group of excellent product managers will become the key
force driving the success of the Company's independent system products. They not only need to have keen market
insights but also need to master advanced product development methods to ensure that our products can stand out
in the fierce market competition.At the same time we will strengthen the capacity building of the middle office and back office to better
empower the front-line "iron triangle" team (that is sales solutions and service delivery). By building strong middle
office and back office support systems we can provide more efficient support and services to the front-end team to
ensure that they can respond quickly to customer needs and provide high-quality solutions. This includes but is not
limited to measures such as improving internal communication mechanisms optimizing resource allocation
processes and enhancing data analysis capabilities.On this basis we will strive to build a customer-centered process-oriented organization. This means that the
design and execution of all business processes will revolve around meeting customer needs. From the initial demand
analysis to the final product delivery and service support we will strive to achieve seamless connection in every
85Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
link thus creating maximum value for customers.
5. Accelerating international layout and building global multi-base delivery capabilities
With meeting the needs of customers for fast and nearby delivery as the core the Company will accelerate the
international layout based on business development needs. The Company has currently established operation centers
production and manufacturing centers R&D centers and representative offices in multiple locations around the
world forming an extensive global network. During the Reporting Period the Company accelerated scale
production in Vietnam and India and accelerated the construction and mass production introduction of factories in
Mexico and Romania further improving its global multi-base delivery capabilities.At the same time the Company actively practiced the concept of Local for Local and strengthened localized
operations. The Company gradually built localized production capabilities and service systems in overseas bases to
better adapt to local market demands and provide products and services that are more suitable for local customers.(III) Business plan for 2025
1. Acceleration of globalization: In 2025 the Company will make every effort to promote the
internationalization process of the marketing team and actively expand overseas markets. We will not only seize the
opportunity of global order transfer but also deeply explore and meet the needs of the local market. At the same
time we will continue to enhance the operational capabilities and NPI (New Product Introduction) capabilities of
our overseas bases further optimize the global supply chain layout and continuously increase the output value of
our overseas bases and their proportion in overall delivery.
2. Expansion of market share in component business: While consolidating our existing position in the field of
components such as intelligent controllers high-efficiency motors and battery packs we will actively explore more
new fields based on the "four electrics and one network" technology and become "hidden champions" in more fields
to expand our advantages in the field of components.
3. Breakthroughs in AI + system business: In 2025 the Company will increase its R&D investment in cutting-
edge technologies such as AI and actively promote the development of AI end-side applications based on the
combination of its own core capabilities and market insights. For the system product line the Company will
implement the product manager responsibility system establish a young team and provide corresponding
assessment and incentive mechanisms to promote the cultivation and promotion of new products and gradually build
and enhance brand capabilities.(IV) Fund demand and utilization plan
86Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The Company is in a stage of rapid development and has a significant funding demand in terms of equipment
upgrades expansion of production capacity and overseas business development. The Company has a good credit
standing so it is able to get strong support from the bank in a timely manner. In 2025 the Company will make
reasonable use of various capital-raising channels to raise the necessary funds for the Company's development on
the basis of its own development situation and development strategy.(V) Risks faced by the Company and countermeasures
1. External risks such as the macro environment
Trade frictions and geopolitical tensions will also produce adverse influences on business confidence and
investment. The Company may continue to face an uncertain external environment so we will further strengthen
risk identification and control for various businesses and regions and adjust strategies timely to minimize external
influences.
2. Risks of technology upgrading
The intelligent controller industry technology as the main business of the Company is developing rapidly with
fast product upgrading and short life cycle. Although the Company continues to invest in R&D and owns a number
of invention and utility patents there is still a risk that the technology will not be updated in time to meet market
demand or lag behind competitors in launching new products resulting in a decline in the market share and
profitability of the Company.
3. Exchange rate risk
The Company's revenue from export sales accounts for nearly 60% of the total revenue. In order to cope with
the risk of RMB exchange rate fluctuation the Company will reduce or hedge foreign exchange risks by conducting
RMB hedging business international purchase and re-pricing of new product.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad and there are some factors
that are unfavorable to the operation of the Company. For example the China-United States trade war shortage of
raw materials rising price insufficient labor and customer credit risk will increase the uncertainty of the Company's
operation.
87Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XII. Reception investigation communication interview and other activities during the
Reporting Period
□ Applicable □ Not applicable
Main contents of
Type of Basic Information
Time of Location of Method of interview and
reception Reception object index for
reception reception reception materials
object investigation
provided
Harvest Fund Kaiyuan Securities
Aegon-Industrial Fund J.P. Morgan
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Securities PICC Pension Horizon
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Fund and Chongyang Investment
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Huamei Investment
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88Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
TF Securities Regents Capital
GUOTAI AMC Western Securities
Taiping Asset Management Shengang
Securities Invesco Great Wall Value
Partners Limited China Merchants
Securities Everbest Fund Kingsun
Investment Loyal Valley Capital Ruiyi
Investment Chengluo Investment
EverFortune Hwabao WP Fund
Xingyin Fund Great Abundance Year
Asset Zhengyuan Investment TruValue
Asset Management LONGRISING
Springs Capital Zhongtai Securities
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Investment Bin Yuan Capital
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Wealth Beijing Ding Investment
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Securities Harvest Fund BOC Learn about the
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Tourmaline Asset Management provided.Changzhou Boyan Ruixuan Venture
Capital Fengpei Capital China Post
Life Insurance New Thinking
Investment Industrial Securities Pictet
Asset Management Amundi BOC
Wealth Management Congrong Asset
Management Shinian Investment
Eastern Smart Rock CICC Jumi
Capital Haoyuan Investment Western
Leadbank FMC Zhonghai Fund
Qingdao Xingyuan Pacific Securities
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Management Longhang Asset
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Prudential and Purekind Fund
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89Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
TF Securities China Securities Invesco
Great Wall Huajin Securities Shenwan
Hongyuan Securities Rabbit Fund
Shifeng Asset China Post Life
Insurance Taikang Funds China
Merchants Securities Huachuang
Securities Macrotrends Fund Regents
Capital CICC CPIC Fund Caitong
Securities Zhongtai Securities
Changzhou Boyan Ruixuan Venture
Capital Perseverance Asset
Management Soochow Asset
Management GUOTAI AMC Xunyuan
Investment HSBC Jintrust Fund
Wanjia Asset Loyal Valley Capital
Yude Capital New Thinking
Investment New China Fund
Dongxing Asset Management
Trinastella Investment Sino Life Asset
CIB Wealth Management Tianlang
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Asset Generali China Asset Union
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provided.Shanxi Securities Shanghai Life BOC
Investment Management Harvest
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Xuanyuan Investment KNIGHT
Investment Mingyu Fund TruValue
Asset Management Hengjian
International Q. M. FORTUNE
Hanxiang Investment Hezhong
Yisheng Hongding Wealth Soochow
Securities Changsheng Fund Ren
Bridge Asset Management FORTUNE
CAPITAL BNB Wealth Management
JT Asset Management Milestone Asset
Shenzhen Qianhai Jumpstart Asset
Management Southern Asset
Management GFUND Orient
Securities BOC Investment
Management Rongtong Fund Harvest
Fund New China Asset Chengluo
Investment Asia-Pacific P&C HFT
Investment Management CITIC
Prudential Intewise Capital China Life
AMP Asset Management Orient Fund
Lead Wolf Asset Tianshi Kaiyuan
Zhengyuan Investment Guanghuiyuan
China Capital Management Huatai-
Pinebridge Fund Management PH
90Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Capital Guotai Junan Securities
Xiangyuxing Jinghe Asset
Management Ping An Asset
Management Chuanghua Investment
Penghua Fund Horizon Asset Shanghai
Chongyun Changjiang Pension CCB
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Management Jianghai Securities
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TF Securities China Merchants Fund
CHUANGFU BUSINESS Taiping
Asset Management PICC CICC
HSBC Jintrust Fund Chengluo
Investment Foresight Fund Haijin
Investment Guolian Securities China
Merchants Securities Topsperity Fund
Huachuang Securities Regents Capital
Changjiang Securities Great Wall
Securities Bosera Funds Ducheng
Investment BOC Investment
Management Penghua Fund Pictet
Asset Management Sinosafe General
Insurance Fengrui Asset Management
Quanli Asset Management TruValue
Asset Management Bridgeone Capital
ORIGIN Maxwealth Fund First-trust
Fund Shenzhen Qianhai Jumpstart
Asset Management MegaTrust BOC
International Rays Capital Xinghe
Fund China Post Life Insurance Zhong
Ou AMC Kingsun Investment Union
Asset Citi Shanghai Life GreatWall
Wealth Insurance GTS Fund Xunyuan
Asset Management China Life
Sunsource Investment Yinhua Fund
Micang Asset Management Mingyu
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2024/8/1 Company information
GUOTAI AMC Fullgoal Fund Ruiquan
provided.Fund Wosheng Private Equity ABC
Wealth Management China Securities
First-Trust Fund Union Asset
Management DIB Asset Management
Chengquan Capital Lion Fund New
Thinking ICBC Credit Suisse Guotai
Junan Securities Nomura Securities
Point 72 Barings Asset Management
Franklin Templeton Guosen Securities
Panhou Dynamic China Merchants
Fund Invesco Great Wall BOC
Investment Management Taikang Asset
Management Brilliance Asset
Management Limited HFT Investment
Management CPIC Fund United
Advance Huatai Securities Asset
Management Orient Asset
Management Chang'an Fund J.P.Morgan Asset Management Southern
Asset Management GTS Fund
Dacheng Fund China Universal Asset
Management Topsperity Fund Yihe
Jiufu BOC Wealth Management
Hotland Innovation Asset Management
Tenbagger (Ziran) China Life AMP
Asset Management Guosen H&B
Boom Leading Investment Heqi
92Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Investment Harvest Fund GF
Securities and Ren Bridge Asset
TF Securities China Merchants Fund
Bosera Funds Changjiang Securities
Huatai Securities China Securities
CICC Regents Capital Haitong
Securities Citibank P-along Investment
Management Southwest Securities
Southern Asset Management Xunyuan
Asset Management Century Securities
Cathay Investment Trust AVIVA-
COFCO Orient Securities Bosc Asset
Guanghuiyuan LCRICH CAPITAL
MANAGEMENT GTS Fund China
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BNB Wealth Management Shanghai
Life Pictet Asset Management JP
Morgan Yinhua Fund Union Asset
Management Xulie Private Equity
Cyber Atlas Capital BOC Investment
Management Northeast Securities
Integration CITIC Prudential Taiping
Asset Management CIB Fund China
Life Xiniu Investment Beijing Ding
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AMC Micang Asset Management
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Fund E Funds and Zheshang Securities
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provided.XIII. Development and implementation of market value management system and valuation
enhancement plan
Did the Company establish a market value management system
□ Yes □ No
Did the Company disclose the valuation enhancement plan
93Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Yes □ No
XIV. Implementation of the action plan for "double improvement of quality and return"
Did the Company disclose the announcement on the action plan for "double improvement of quality and return"
□ Yes □ No
94Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Section IV Corporate Governance
I. Basic status of corporate governance
Since its listing the Company has always adhered to standardized governance strictly followed the
requirements of relevant laws and regulations formulated a series of internal corporate governance systems and
established a governance structure of the General Meeting of Shareholders the Board of Directors and its special
committees the Board of Supervisors and management level in accordance with the law to respectively exercise
decision-making power executive power supervisory power and operating responsibilities ensuring the Company's
efficient operation with a multi-level governance system with clear powers and responsibilities.Through the implementation of the Articles of Association and various internal systems the Company has
defined the responsibilities powers procedures and obligations of organizations at all levels in terms of decision-
making execution and supervision.Shareholders and the General Meeting of Shareholders: The Company strictly follows the provisions and
requirements of laws and regulations such as the Company Law the Securities Law the Rules of Procedure for the
General Meeting of Shareholders and the Rules of Procedure for the General Meeting of Shareholders of Listed
Companies and continually improves the standardized operation of the Company's General Meeting of
Shareholders. During the Reporting Period the Company held a total of 3 general meetings of shareholders
(including the 2023 Annual General Meeting of Shareholders) deliberated 17 proposals and organized votes on all
of them through a combination of on-site and online voting methods; during the deliberation of each proposal the
Company separately counted votes on matters affecting the interests of minority shareholders and specially
provided dialog sessions between participating shareholders and the Company's directors supervisors and senior
executives to fully ensure that all shareholders especially minority shareholders enjoy equal status and fully
exercise their rights.Relationship between the controlling shareholder and the listed company: The controlling shareholder
regulates his behavior in strict accordance with the Securities Law the Code of Governance for Listed Companies
and other laws and regulations as well as the Articles of Association and can exercise his rights and assume
corresponding obligations in accordance with the law. The controlling shareholder of the Company is an individual
who does not have other investment projects and has not directly or indirectly intervened in the Company's decision-
95Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
making and operating activities beyond the Company's General Meeting of Shareholders. The Board of Directors
Board of Supervisors and corresponding departments of the Company can operate normally and have independence.Directors and the Board of Directors: All directors of the Company can carry out their work in accordance
with laws and regulations such as the Rules of Procedure for the Board of Directors and the Management Measures
for Independent Directors of Listed Companies attend relevant meetings seriously actively participate in training
and familiarize themselves with relevant laws and regulations. The Company's Board of Directors has set up a
Strategy Committee an Audit Committee a Salary and Assessment Committee and a Nomination Committee as
well as a mechanism of Independent Directors' Special Committee and each committee performs its duties in strict
accordance with the relevant laws and regulations and rules of procedure providing complementary information
for the scientific decision-making of the Board of Directors. During the Reporting Period the Company's Board of
Directors consists of 3 independent directors and 4 non-independent directors including 2 directors on behalf of
workers and staff. The composition of the Board of Directors complies with the requirements of laws and regulations
and the Company's Articles of Association.Supervisors and the Board of Supervisors: The formation of the Company's Board of Supervisors strictly
follows the relevant provisions of the Company Law the Articles of Association etc. The Board of Supervisors
consists of three supervisors including one supervisor on behalf of workers and staff. The Company's supervisors
and Board of Supervisors can conscientiously perform their duties in accordance with the requirements of the Rules
of Procedure for the Board of Supervisors review the Company's regular reports progress in the use of raised funds
connected transactions equity incentives and other matters and provide written review opinions supervise directors
and senior executives in performing their corporate duties and safeguard the legitimate rights and interests of the
Company and shareholders.Performance evaluation and incentive and restraint mechanism: The Company has established a series of
performance evaluation and incentive and restraint mechanisms which are open and transparent in the appointment
of senior executives and in accordance with relevant laws and regulations.Relevant stakeholders: The Company can fully respect and safeguard the legitimate rights and interests of
relevant stakeholders and actively cooperate with stakeholders to jointly promote the sustainable and healthy
development of the Company.Information disclosure and transparency: The Company conscientiously performs the obligation of
information disclosure in accordance with the relevant provisions of laws and regulations such as the Articles of
96Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Association the Stock Listing Rules of Shenzhen Stock Exchange and the Management Measures for Information
Disclosure of Listed Companies. The Company has designated Securities Times and the CNINFO as the newspaper
and website for its information disclosure to ensure timely and accurate disclosure of company information.Is there any significant difference between the actual situation of corporate governance and laws administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC
□ Yes □ No
There is no significant difference between the actual situation of corporate governance and laws administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC.II. The independence of the Company relative to its controlling shareholder and actual
controller in ensuring the Company's assets personnel finance organizations business and
other aspects
The controlling shareholder of the Company is a natural person and has no other investments. The Company
is completely separated from its controlling shareholder in terms of business personnel assets finance etc. The
Company's production and operation are stable and can operate independently and in a standardized manner.
1. Business independence: The Company's business is independent of its controlling shareholder and the
Company has a complete and independent production supply and sales system without relying on shareholders or
any other related party.
2. Personnel independence: The Company has an independent workforce and has established a sound personnel
management system. The Chairman President Vice President Secretary of the Board of Directors Chief Financial
Director and other senior executives of the Company work full-time in the Company and receive remuneration.They have not held any positions other than directors or supervisors in shareholder entities holding more than 5%
of the Company's equity and their subsidiaries nor have they held any positions in other companies with the same
or similar business as the Company. Independent personnel management.
3. Asset independence: The Company has independent production and business premises production systems
supporting facilities land usage rights and property ownership and does not share them with the controlling
shareholder.
4. Organizational independence: The Company has established a sound organizational system that can operate
independently. There is no subordinate relationship with the controlling shareholder.
97Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
5. Financial independence: The Company has set up an independent financial accounting department and
established independent accounting system and financial management system and independently carries out
financial operations according to the requirements of the relevant accounting system. The Company has separate
bank accounts and conducts independent tax declaration and performs payment obligations according to law.III. Competition in the same industry
□ Applicable □ Not applicable
IV. Information on the Annual and Extraordinary General Meeting of Shareholders held
during the Reporting Period
1. Information on the General Meeting of Shareholders during the Reporting Period
Investor
Date of
Meeting session Meeting type participation Meeting date Meeting resolution
disclosure
ratio
The following contents were
deliberated and passed:
1. Proposal on Annual Report 2023
and Abstract;
2. Proposal on 2023 Final Financial
Report;
3. Proposal on 2023 Profit
Distribution Plan;
4. Proposal on 2023 Work Report of
the Board of Directors;
5. Proposal on 2023 Work Report of
the Board of Supervisors;
2023 Annual Annual General
6. Proposal on Remuneration of
General Meeting of Meeting of 20.48% April 17 2024 April 18 2024
Company Directors in 2023;
Shareholders Shareholders
7. Proposal on Remuneration of
Company Supervisors in 2023;
8. Proposal on Application for
Comprehensive Credit Line from
Banks by the Company and Its
Subsidiaries in 2024;
9. Proposal on the Completion of the
Company's East China Operation
Center Project and the Use of
Balanced Raised Funds for
Permanently Supplementing Working
Capital.
98Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents were
deliberated and passed:
1. Proposal on the Proposed Change
The 1st
Extraordinary of Accounting Firm and the
Extraordinary
General November 5 Appointment of the Company's 2024
General Meeting of 22.75% November 4 2024
Meeting of 2024 Audit Institution;
Shareholders in
Shareholders 2. Proposal on the Change of the
2024
Company's Registered Capital and
the Amendment of the Articles of
Association.The following contents were
deliberated and passed:
1. Proposal on the Company's
Employee Stock Ownership Plan for
2024 (Draft) and its Summary;
2. Proposal on the Company's
Management Measures for the
Employee Stock Ownership Plan for
2024;
3. Proposal on Requesting the
General Meeting of Shareholders to
Authorize the Board of Directors to
The 2nd
Extraordinary Handle Matters Related to the
Extraordinary
General November 26 Company's Employee Stock
General Meeting of 23.71% November 25 2024
Meeting of 2024 Ownership Plan for 2024;
Shareholders in
Shareholders 4. Proposal on the Company's Stock
2024
Option Incentive Plan for 2024
(Draft) and its Summary;
5. Proposal on the Company's
Management Measures for
Assessment of the Stock Option
Incentive Plan for 2024;
6. Proposal on Requesting the
General Meeting of Shareholders to
Authorize the Board of Directors to
Handle Matters Related to the
Company's Stock Option Incentive
Plan for 2024.
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable □ Not applicable
V. Directors supervisors and senior executives
1. Basic situation
Number of Numbe Numbe
Other Number of
shares held r of r of Reasons for share
Starting Ending date changes in shares held at
Positio at the additio shares changes in
Name Gender Age Position date of term of term of increase or the end of the
n status beginning of nal reduced increase or
of office office decrease period
the period shares in the decrease
(shares) (shares)
(shares) held in current
99Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
the period
current (shares)
period
(shares)
Wu
Chairman Incumb
Yongqia Male 60 2011/08/29 2026/09/25 212008715 0 0 212008715
President ent
ng
Repurchase and
cancellation of
the remaining
Zheng Director Incumb
Male 59 2011/08/29 2026/09/25 6336970 0 0 373100 5963870 restricted stock
Sibin Vice President ent
under the 2021
Restricted Stock
Incentive Plan
Repurchase and
cancellation of
the remaining
Director Incumb
Ma Wei Male 51 2011/08/29 2026/09/25 8950934 0 0 431200 8519734 restricted stock
Vice President ent
under the 2021
Restricted Stock
Incentive Plan
Repurchase and
cancellation of
Peng the remaining
Incumb
Ganqua Male 53 Director 2011/08/29 2026/09/25 5136900 0 0 280000 4856900 restricted stock
ent
n under the 2021
Restricted Stock
Incentive Plan
Li Independent Incumb
Male 59 2021/03/31 2026/09/25 0 0 0 0
Xumeng director ent
Chen
Independent Incumb
Zhengx Male 57 2023/09/26 2026/09/25 0 0 0
director ent
u
Independent Incumb
Qin Wei Male 46 2023/09/26 2026/09/25 0 0 0
director ent
Repurchase and
cancellation of
Vice President
the remaining
Wen and Secretary Incumb
Female 51 2011/08/29 2026/09/25 2771127 0 0 128100 2643027 restricted stock
Zhaohui of the Board ent
under the 2021
of Directors
Restricted Stock
Incentive Plan
Dai Incumb
Female 49 Supervisor 2011/08/29 2026/09/25 319612 0 0 319612
Huijuan ent
Kang
Incumb
Weiqua Male 41 Supervisor 2014/08/21 2026/09/25 0 0 0 0
ent
n
Chen Incumb
Male 47 Supervisor 2017/02/15 2026/09/25 0 0 0 0
Jinzhou ent
Repurchase and
cancellation of
Chief the remaining
Luo Incumb
Male 42 Financial 2023/05/30 2026/09/25 50000 0 0 35000 15000 restricted stock
Muchen ent
Director under the 2021
Restricted Stock
Incentive Plan
Total -- -- -- -- -- -- 235574258 0 0 1247400 234326858 --
100Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Is there any resignation of directors and supervisors during their term of office and dismissal of senior executives
during the Reporting Period
□ Yes □ No
Changes in directors supervisors and senior executives
□ Applicable □ Not applicable
2. Employment status
Educational background main working experience and major responsibilities of existing directors supervisors and
senior executives of the Company
(I) Members of the Board of Directors
Wu Yongqiang male born in 1965 holds a master's degree without permanent residency abroad. He is a local
leading talent recognized by Shenzhen. He won the honors of "Shenzhen Young Science and Technology Leader"
awarded by Shenzhen Municipal Government "One of Top Ten Outstanding Young People" in Nanshan District
Shenzhen and "Shenzhen Industrial Award". He successively served as lecturer of Harbin Institute of Technology
and Vice Chairman of the Company. Now he serves as Chairman of the Company executive director of Shenzhen
Topband Software Technology Co. Ltd. executive director of Shenzhen Hongru Investment Management Co. Ltd.partner of Shenzhen Hongru Investment Enterprise (Limited Partnership) executive director and President of
Ningbo Topband Intelligent Control Co. Ltd. executive director of Shenzhen Topband Automation Technology
Co. Ltd. director of Shenzhen YAKO Automation Technology Co. Ltd. and director of Topband (Hong Kong)
Co. Ltd.Zheng Sibin male born in 1966 holds a master's degree and is an accountant without permanent residency
abroad. He served as office director and vice factory director of Zhejiang Songyang Brewery and finance supervisor
manager of Finance Department and Chief Financial Director of Nam Tai Electronics (Shenzhen) Co. Ltd. He is
now a director Vice President and President of business units of the Company a supervisor of Shenzhen Topband
Software Technology Co. Ltd. and a supervisor of Chongqing Topband Industrial Co. Ltd.Ma Wei male born in 1974 holds a bachelor's degree without permanent residency abroad. He served as a
technical development engineer and President of Shenzhen Huafa Electronics Co. Ltd. He is now a director Vice
101Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
President and President of business units of the Company.Peng Ganquan male born in 1972 holds a master's degree without permanent residency abroad. He
successively served as engineer development engineer of the electrical business unit technical director and Vice
President of Hunan Instrument and Meter Factory. Now he serves as director and President of business units of the
Company President of Shenzhen Topband Automotive Electronics Co. Ltd. and director of TOPBAND INDIA
PRIVATE LIMITED.Li Xumeng male born in 1966 Chinese holds a doctor's degree in business management without permanent
residency abroad. He successively served as consultant of Beijing Shangheng Zhiben Consulting Co. Ltd. and
consultant of Shanghai Danfu Business Consulting Center. He is now a researcher of Zhuoyuehui Innovation and
Development (Shenzhen) Co. Ltd. a supervisor of Guangxi Danfu Venture Capital Investment Co. Ltd. and an
independent director of the Company.Chen Zhengxu male born in 1968 Chinese is a PhD student without permanent residency abroad. He served
as managing director of the investment banking department of Qilu Securities and Hongyuan Securities an off-
campus supervisor of master's degree programs of School of Economics Shenzhen University and Department of
Finance Shanghai Normal University an independent director of Shenzhen Kingdom Technology Co. Ltd. and
an independent director of Shenzhen BTR New Energy and Materials Co. Ltd. Now he is the executive director
and President of Shenzhen Dingfeng Mingdao Asset Management Co. Ltd. a director of Beijing Smartlink
Microchip Co. Ltd. the executive director and President of Shenzhen Pumao Culture and Art Co. Ltd. an executive
partner of Shenzhen Daoxiang Investment Partnership (Limited Partnership) the manager of Shenzhen Mingxin
Venture Capital Investment Partnership (Limited Partnership) the manager of Shenzhen Ming'ao Sensing
Technology Venture Capital Investment Partnership (Limited Partnership) the President of Shenzhen Mingdao
Dandelion Venture Capital Investment Partnership (Limited Partnership) the head of Shenzhen Daoxin Venture
Capital Investment Partnership (Limited Partnership) and an independent director of the Company.Qin Wei male born in 1979 Chinese holds a bachelor's degree in engineering and a master's degree in
economics without permanent residency abroad. Mr. Qin Wei is a non-practicing member of the Chinese Institute
of Certified Public Accountants. He served as a senior credit analyst of Shenzhen China Chengxin Credit
Management Co. Ltd. a business director of Huatai United Securities Co. Ltd. managing director of Topsperity
102Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Securities Co. Ltd. and managing director of Yingda Securities Co. Ltd. Now he is a director of Shenzhen Taotao
Technology Co. Ltd. a director of Shenzhen Pallet Sharing Technology Co. Ltd. a director of Acecamel
Technology (Shenzhen) Co. Ltd. a director of Shenzhen Qicai Xiangyun Information Technology Co. Ltd. a
director of Shenzhen Haytham Technology Co. Ltd. a director of Yacovia (Guangdong) Optical Technology Co.Ltd. a director of Shenzhen Hainav Sensor Technology Co. Ltd. the executive director and President of Shenzhen
Taiya Dingfu Investment Consulting Co. Ltd. a founding partner of Xiamen Taiya Dingfu Investment Management
Co. Ltd. a partner of Xiamen Taiya Innovation Equity Investment Partnership (Limited Partnership) an
independent director of Shenzhen Fenda Technology Co. Ltd. and an independent director of the Company.(II) Members of the Board of Supervisors
Dai Huijuan female born in 1976 holds a bachelor's degree without permanent residency abroad. She
successively served as supervisor and manager of the Company's Human Resources Department. Now she serves
as chairwoman of the Board of Supervisors and director of the Human Resources Center of the Company executive
director and President of Huizhou Topband Electrical Technology Co. Ltd. partner of Shenzhen Hongru
Investment Enterprise (Limited Partnership) and supervisor of Shenzhen Topband Automotive Electronics Co. Ltd.Chen Jinzhou male born in 1978 permanent resident of Hong Kong China holds a doctor's degree from the
Chinese University of Hong Kong. He successively served as electronic engineer at Hong Kong Productivity
Council senior researcher at Beijing Noitom Technology Ltd. and senior chief engineer at Johnson Electric. He
served as Vice President of the microelectronics business unit of the Company and supervisor of the Company
during the Reporting Period. As of the disclosure date of the report Mr. Chen Jinzhou had resigned.Kang Weiquan male born in 1984 holds a bachelor's degree without permanent residency abroad. He used
to be a cost accountant at Shenzhen EVA Precision Industry Holdings Limited. Now he serves as a cost accountant
and supervisor on behalf of workers and staff of the Company.(III) Senior executives
Wu Yongqiang the President is detailed in the resume of members of the Board of Directors.Zheng Sibin the Vice President is detailed in the resume of members of the Board of Directors.
103Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Ma Wei the Vice President is detailed in the resume of members of the Board of Directors.Wen Zhaohui female born in 1974 holds a bachelor's degree and is an accountant without permanent
residency abroad. She successively served as head of the Finance Department manager of the Finance Department
and Finance Director of Shenzhen Topband Co. Ltd. and director of Shenzhen Dynanonic Co. Ltd. She is now the
Vice President and Secretary of the Board of Directors of the Company. Ms. Wen Zhaohui was honored as "New
Fortune Golden Secretary" for five consecutive years. She won the titles of "Excellent Secretary" awarded by
Shenzhen Securities Regulatory Bureau and "Securities Times Top 100 Board Secretaries" in 2015 2016 and 2017
and was selected into "New Fortune Hall of Fame of Golden Secretaries in 2019".Luo Muchen male born in 1983 holds a bachelor's degree and is an accountant without permanent residency
abroad. He served as an audit project manager of Shenzhen Branch of Ruihua Certified Public Accountants and the
report supervisor and financial manager of Shenzhen Topband Co. Ltd. Now he is the director of the Company's
finance center.Employment in shareholder entity
□ Applicable □ Not applicable
Employment in other entities
□ Applicable □ Not applicable
Ending
Receive remuneration
Position taken Starting date of date of
Incumbent's name Name of another entity and allowances from
in another entity term of office term of
another entity
office
Shenzhen Topband Software Executive September 18
Wu Yongqiang No
Technology Co. Ltd. director 2014
Executive
Shenzhen Hongru Investment
Wu Yongqiang (managing) August 20 2015 No
Management Co. Ltd.director
Shenzhen Hongru Investment
September 2
Wu Yongqiang Enterprise (Limited Partner No
2015
Partnership)
Shenzhen YAKO Automation December 24
Wu Yongqiang Chairman No
Technology Co. Ltd. 2022
Shenzhen Topband
Executive November 24
Wu Yongqiang Automation Technology Co. No
director 2016
Ltd.Executive
Topband (Qingdao) Intelligent
Wu Yongqiang director and March 29 2021 No
Control Co. Ltd.manager
104Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Executive
Ningbo Topband Intelligent
Wu Yongqiang director and August 28 2017 No
Control Co. Ltd.President
Shenzhen Topband
September 7
Peng Ganquan Automotive Electronics Co. President No
2021
Ltd.TOPBAND INDIA PRIVATE December 11
Peng Ganquan Director No
LIMITED 2015
Shenzhen Topband Software February 26
Zheng Sibin Supervisor No
Technology Co. Ltd. 2004
Chongqing Topband Industrial
Zheng Sibin Supervisor March 12 2008 No
Co. Ltd.Zhuoyuehui Innovation and
Li Xumeng Development (Shenzhen) Co. Researcher June 1 2018 Yes
Ltd.Guangxi Danfu Venture
Li Xumeng Supervisor April 7 2023 No
Capital Investment Co. Ltd.Executive
Shenzhen Dingfeng Mingdao
Chen Zhengxu director and August 25 2014 Yes
Asset Management Co. Ltd.President
Beijing Smartlink Microchip December 21
Chen Zhengxu Director No
Co. Ltd. 2017
Executive
Shenzhen Pumao Culture and
Chen Zhengxu director and June 13 2019 No
Art Co. Ltd.President
Shenzhen Daoxiang
Executive
Chen Zhengxu Investment Partnership June 14 2019 No
partner
(Limited Partnership)
Shenzhen Mingxin Venture
December 20
Chen Zhengxu Capital Investment Partnership Manager No
2021
(Limited Partnership)
Shenzhen Ming'ao Sensing
Technology Venture Capital
Chen Zhengxu Manager April 7 2023 No
Investment Partnership
(Limited Partnership)
Shenzhen Mingdao Dandelion
Venture Capital Investment February 28
Chen Zhengxu President No
Partnership (Limited 2023
Partnership)
Shenzhen Daoxin Venture
Chen Zhengxu Capital Investment Partnership Head June 17 2022 No
(Limited Partnership)
Shenzhen Taotao Technology
Qin Wei Director March 29 2021 No
Co. Ltd.Shenzhen Pallet Sharing
Qin Wei Director January 19 2021 No
Technology Co. Ltd.Shenzhen Qicai Xiangyun
Qin Wei Information Technology Co. Director October 28 2021 No
Ltd.Shenzhen Hisham Technology
Qin Wei Director August 3 2023 No
Co. Ltd.Yacovia (Guangdong) Optical
Qin Wei Director August 10 2020 No
Technology Co. Ltd.Shenzhen Taiya Dingfu Executive
Qin Wei Investment Consulting Co. director and October 26 2022 No
Ltd. President
105Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Xiamen Taiya Dingfu
Founding
Qin Wei Investment Management Co. May 16 2016 Yes
partner
Ltd.Xiamen Taiya Innovation
December 18
Qin Wei Equity Investment Partnership Partner No
2019
(Limited Partnership)
Shenzhen Fenda Technology Independent
Qin Wei August 22 2022 Yes
Co. Ltd. director
Executive
Huizhou Topband Electrical November 14
Dai Huijuan director and No
Technology Co. Ltd. 2011
President
Shenzhen Topband
September 7
Dai Huijuan Automotive Electronics Co. Supervisor No
2021
Ltd.Shenzhen Hongru Investment
September 2
Dai Huijuan Enterprise (Limited Partner No
2015
Partnership)
Explanation of
employment in None
other entities
Punishment imposed by securities regulators in the past three years on the Company's directors supervisors and
senior executives currently in office and left office during the Reporting Period
□ Applicable □ Not applicable
3. Remuneration for directors supervisors and senior executives
Decision-making procedure confirmation basis and actual payment of remuneration for directors supervisors and
senior executives
1. Decision-making procedure and confirmation basis of remuneration: The remuneration of the Company's
directors supervisors and senior executives shall be paid according to the Remuneration Management System for
Directors Supervisors and Senior Executives deliberated and passed by the General Meeting of Shareholders. The
Salary and Assessment Committee shall formulate a remuneration plan for directors and submit it to the Board of
Directors for review and approval by the General Meeting of Shareholders.
2. The Remuneration Management System for Directors Supervisors and Senior Executives revised at the 2nd
Extraordinary General Meeting of Shareholders for 2023 held on September 26 2023 and the Proposal on
Reviewing Allowances for Independent Directors deliberated at the 2nd Extraordinary General Meeting of
Shareholders for 2023 stipulate that the allowance for independent directors of the Company is RMB 84000 (before
tax) per year which will be paid according to their duration of service and relevant regulations. The Company shall
be responsible for the travel expenses of the independent directors who attend the Board of Directors and the General
106Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Meeting of Shareholders and the expenses required for the exercise of their functions and powers according to the
Articles of Association of the Company
Remuneration for directors supervisors and senior executives during the Reporting Period
Unit: RMB ten thousand
Received
Total pre-tax
remuneration
remuneration
Name Gender Age Position Position status from related
received from
parties of the
the Company
Company
Wu
Male 60 Chairman and President Incumbent 199.65 No
Yongqiang
Zheng
Male 59 Director and Vice President Incumbent 285.82 No
Sibin
Ma Wei Male 51 Director and Vice President Incumbent 290.39 No
Peng
Male 53 Director Incumbent 244.59 No
Ganquan
Li Xumeng Male 59 Independent director Incumbent 8.4 No
Chen
Male 57 Independent director Incumbent 8.4 No
Zhengxu
Qin Wei Male 46 Independent director Incumbent 8.4 No
Wen Vice President and Secretary of the
Female 51 Incumbent 96.94 No
Zhaohui Board of Directors
Dai
Female 49 Supervisor Incumbent 98.02 No
Huijuan
Kang
Male 41 Supervisor Incumbent 47.48 No
Weiquan
Chen
Male 47 Supervisor Incumbent 94.37 No
Jinzhou
Luo
Male 42 Chief Financial Director Incumbent 78.36 No
Muchen
Total -- -- -- -- 1460.82 --
Explanation of other situations
□ Applicable □ Not applicable
VI. Directors' performance of duties during the Reporting Period
1. Information on the Board of Directors during the Reporting Period
Date of
Meeting session Meeting date Meeting resolution
disclosure
The following contents were deliberated and
passed:
The 5th Meeting of the 8th 1. Proposal on Carrying out Forward Foreign
January 3 2024 January 5 2024
Board of Directors Exchange Trading Business;
2. Proposal on Signing a Procurement Framework
Agreement with Shenzhen Jizhiguang Electronics
107Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Co. Ltd.;
3. Proposal on Using Own Funds for Cash
Management.Announcement of Resolutions The following contents were deliberated and
of the 6th (Extraordinary) passed:
January 23 2024 January 24 2024
Meeting of the 8th Board of 1. Proposal on the Plan to Repurchase Company
Directors Shares;
The following contents were deliberated and
The 7th (Extraordinary) passed:
Meeting of the 8th Board of February 5 2024 February 6 2024 1. Proposal on Changing the Total Amount of
Directors Repurchase Funds in the Plan to Repurchase
Company Shares.The following contents were deliberated and
passed:
1. Proposal on Terminating the Spin-off of
The 8th Meeting of the 8th
March 11 2024 March 12 2024 Subsidiaries to be Listed on the Growth Enterprise
Board of Directors
Market of Shenzhen Stock Exchange;
2. Proposal on Planning the Acquisition of Minority
Shareholders' Equity in Holding Subsidiaries.The following contents were deliberated and
passed:
1. Proposal on Annual Report 2023 and Abstract;
2. Proposal on 2023 Work Report of the Board of
Directors;
3. Proposal on 2023 Work Report of the President;
4. Proposal on 2023 Final Financial Report;
5. Proposal on 2023 Profit Distribution Plan;
6. Proposal on 2023 Internal Control Evaluation
Report;
7. Proposal on Remuneration of Company Directors
in 2023;
8. Proposal on Remuneration of Senior Executives
of the Company in 2023;
The 9th Meeting of the 8th
March 25 2024 March 27 2024 9. Proposal on the Special Report on the Deposit
Board of Directors
and Use of Raised Funds in 2023;
10. Proposal on Application for Comprehensive
Credit Line from Banks by the Company and Its
Subsidiaries in 2024;
11. Proposal on the 2023 ESG and Social
Responsibility Report;
12. Proposal on Provision for Asset Impairment in
2023;
13. Proposal on the Completion of Some Fund-
raising Projects and the Use of Balanced Raised
Funds for Permanently Supplementing Working
Capital;
14. Proposal on the Notice of Convening the 2023
Annual General Meeting of Shareholders.The following contents were deliberated and
The 10th Meeting of the 8th
April 22 2024 passed:
Board of Directors
1. Proposal on the First Quarter Report in 2024;
The following contents were deliberated and
The 11th Meeting of the 8th passed:
May 29 2024 May 30 2024
Board of Directors 1. Proposal on the Acquisition of Residual Equity in
Shenzhen YAKO Automation Technology Co. Ltd.The 12th Meeting of the 8th The following contents were deliberated and
July 29 2024 July 31 2024
Board of Directors passed:
108Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
1. Proposal on 2024 Semi-annual Report and
Abstract;
2. Proposal on the Special Report on the Deposit
and Use of Raised Funds in the Half Year of 2024.The following contents were deliberated and
passed:
1. Proposal on the Proposed Change of Accounting
Firm and the Appointment of the Company's 2024
Audit Institution;
2. Proposal on the Formulation of the Management
The 13th Meeting of the 8th
October 16 2024 October 17 2024 Measures for the Selection and Appointment of
Board of Directors
Accounting Firms;
3. Proposal on the Change of the Company's
Registered Capital and the Amendment of the
Articles of Association;
4. Proposal on Convening the 1st Extraordinary
General Meeting of Shareholders in 2024.The following contents were deliberated and
The 14th Meeting of the 8th
October 24 2024 passed:
Board of Directors
1. Proposal on the Third Quarter Report in 2024.
The following contents were deliberated and
passed:
1. Proposal on the Company's Employee Stock
Ownership Plan for 2024 (Draft) and its Summary;
2. Proposal on the Company's Management
Measures for the Employee Stock Ownership Plan
(Draft) for 2024;
3. Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to
Handle Matters Related to the Company's
The 15th (Extraordinary)
November 7 Employee Stock Ownership Plan for 2024;
Meeting of the 8th Board of November 6 2024
2024 4. Proposal on the Company's Stock Option
Directors
Incentive Plan for 2024 (Draft) and its Summary;
5. Proposal on the Company's Management
Measures for Assessment of the Stock Option
Incentive Plan for 2024;
6. Proposal on Requesting the General Meeting of
Shareholders to Authorize the Board of Directors to
Handle Matters Related to the Company's Stock
Option Incentive Plan for 2024;
7. Proposal on Convening the 2rd Extraordinary
General Meeting of Shareholders in 2024.The following contents were deliberated and
passed:
The 16th (Extraordinary)
December 12 1. Proposal on Adjusting Matters Related to the
Meeting of the 8th Board of December 11 2024
2024 2024 Stock Option Incentive Plan;
Directors
2. Proposal on Granting Stock Options to Incentive
Objects.
2. Directors' attendance at board meetings and general meetings of shareholders
Directors' attendance at board meetings and general meetings of shareholders
Number of Number of Number of Number of Number Whether you Number of
Name of board on-site board board meetings board of have failed to the general
directors meetings meetings attended by meetings absences attend the board meetings of
during the attended correspondence attended by from meetings in shareholders
109Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Reporting an board person for two attended
Period authorized meetings consecutive
person times
Wu
12 12 0 0 0 No 3
Yongqiang
Ma Wei 12 12 0 0 0 No 3
Peng
12 12 0 0 0 No 2
Ganquan
Zheng Sibin 12 12 0 0 0 No 3
Li Xumeng 12 12 0 0 0 No 3
Chen
12 12 0 0 0 No 3
Zhengxu
Qin Wei 12 12 0 0 0 No 2
Explanation for failure to attend the board meetings in person for two consecutive times
None
3. Objections raised by Directors to the matters related to the Company
Whether Directors raise objections to matters related to the Company
□ Yes □ No
During the Reporting Period the Directors raised no objections to relevant matters of the Company.
4. Other descriptions on directors' performance of duties
Whether the directors' proposals to the Company have been adopted
□ Yes □ No
Director's explanation on the adoption or rejection of the Company's proposals
During the Reporting Period all directors of the Company performed their duties diligently and strictly
followed the relevant regulations of the CSRC and the Shenzhen Stock Exchange as well as the Articles of
Association Rules of Procedure for the Board of Directors and other regulations to carry out their work. They paid
close attention to the standardized operation and management of the Company. Based on the actual situation of the
Company they put forward professional and constructive opinions on the Company's major decisions. After
sufficient communication and discussion resolutions were formed to ensure that decisions were scientific timely
and efficient so as to safeguard the legitimate rights and interests of the Company and its all shareholders.
110Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
VII. Status of special committees under the Board of Directors during the Reporting Period
Number
Other Details of
Name of the of Meeting Important opinions and
Members Meeting content performance objections
committee meetings date suggestions put forward
of duties (if any)
held
The following contents
were deliberated and
passed:
1. Proposal on
Preliminary Review
Opinions on the
Company's 2023
The Audit Committee
Financial Accounting
reviewed the matters
Statement;
under consideration in
2. Proposal on the
strict accordance with the
Company's 2023 Audit
Rules of Procedure for
Work Time and
Qin Wei the Audit Committee of
The 8th January Arrangements;
Chen the Board of Directors Not Not
Audit 6 19 3. Proposal on the
Zhengxu and and relevant laws and applicable applicable
Committee 2024 Work Report of the
Li Xumeng regulations and fully
Company's Audit
communicated with the
Department for the
Finance Department and
Fourth Quarter of 2023
the Auditing Agency and
and the Work Plan for
unanimously agreed to
the First Quarter of
the relevant proposals.
2024;
4. Proposal on the 2023
Work Summary and
Next Year's Work Plan
of the Audit
Department of the
Company.
111Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents
were deliberated and
passed:
1. Proposal on
Opinions on the
Company's 2023
Financial Accounting
Report;
2. Proposal on 2023
Internal Control
The Audit Committee
Evaluation Report;
reviewed the matters
3. Proposal on the
under consideration in
Occupation of the
strict accordance with the
Company's Funds and
Rules of Procedure for
External Guarantees by
the Audit Committee of
March Controlling
the Board of Directors Not Not
25 Shareholders and Other
and relevant laws and applicable applicable
2024 Related Parties;
regulations and fully
4. Proposal on
communicated with the
Provision for Asset
Finance Department and
Impairment in 2023;
the Auditing Agency and
5. Proposal on
unanimously agreed to
Reviewing the Use and
the relevant proposals.Surplus of the
Company's Forward
Foreign Exchange
Trading Funds in 2023;
6. Proposal on
Opinions on the
Supervision of the
Performance of Duties
of Accounting Firms in
2023.
112Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents
were deliberated and
passed:
1. Proposal on
Opinions on the
Company's Accounting
Statement for the First
Quarter of 2024;
The Audit Committee
2. Proposal on the
reviewed the matters
Audit Department's
under consideration in
Work Report for the
strict accordance with the
First Quarter of 2024
Rules of Procedure for
and Work Plan for the
the Audit Committee of
April Second Quarter;
the Board of Directors Not Not
22 3. Proposal on the
and relevant laws and applicable applicable
2024 Occupation of the
regulations and fully
Company's Funds and
communicated with the
External Guarantees by
Finance Department and
Controlling
the Auditing Agency and
Shareholders and Other
unanimously agreed to
Related Parties in the
the relevant proposals.First Quarter of 2024;
4. Proposal on
Reviewing the Use and
Surplus of the
Company's Forward
Foreign Exchange
Trading Funds in the
First Quarter of 2024.
113Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents
were deliberated and
passed:
1. Proposal on the
Audit Department's
Work Report for the
Second Quarter of
2024 and Work Plan
for the Third Quarter;
2. Proposal on the
Occupation of the
Company's Funds and
External Guarantees by The Audit Committee
Controlling reviewed the matters
Shareholders and Other under consideration in
Related Parties in the strict accordance with the
Second Quarter of Rules of Procedure for
2024; the Audit Committee of
July 29 3. Proposal on the Board of Directors Not Not
2024 Reviewing the Use of and relevant laws and applicable applicable
the Company's regulations and fully
Forward Foreign communicated with the
Exchange Trading Finance Department and
Funds in the Second the Auditing Agency and
Quarter of 2024; unanimously agreed to
4. Proposal on the relevant proposals.
Opinions on the
Company's 2024 Semi-
annual Accounting
Statement;
5. Internal Audit
Report on the Use and
Deposit of Funds
Raised by the
Company in the
Second Quarter of
2024.
The Audit Committee
reviewed the matters
under consideration in
The following contents
strict accordance with the
were deliberated and
Rules of Procedure for
passed:
the Audit Committee of
Septem 1. Proposal on the
the Board of Directors Not Not
ber 23 Proposed Change of
and relevant laws and applicable applicable
2024 Accounting Firm and
regulations and fully
the Appointment of the
communicated with the
Company's 2024 Audit
Finance Department and
Institution.the Auditing Agency and
unanimously agreed to
the relevant proposals.
114Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents
were deliberated and
passed:
1. Proposal on
Opinions of the
Company's Financial
Accounting Statement
for the Third Quarter
of 2024;
2. Proposal on the
Audit Department's
Work Plan for the The Audit Committee
Fourth Quarter of reviewed the matters
2024; under consideration in
3. Proposal on strict accordance with the
Opinions on the Rules of Procedure for
Occupation of the the Audit Committee of
October
Company's Funds and the Board of Directors Not Not
24
External Guarantees by and relevant laws and applicable applicable
2024
Controlling regulations and fully
Shareholders and Other communicated with the
Related Parties in the Finance Department and
Third Quarter of 2024; the Auditing Agency and
4. Proposal on unanimously agreed to
Reviewing the Use of the relevant proposals.the Company's
Forward Foreign
Exchange Trading
Funds in the Third
Quarter of 2024;
5. Proposal on the
Inspection Report on
the Use and Deposit of
Funds Raised by the
Company in the Third
Quarter of 2024.The Strategy Committee
The following contents of the Board of Directors
were deliberated and deliberated the matters
Wu
passed: under consideration in
Yongqiang
Proposal on strict accordance with the
The 8th Zheng Sibin March
Terminating the Spin- Rules of Procedure of the Not Not
Strategy Peng 2 11
off of Subsidiaries to Strategy Committee of applicable applicable
Committee Ganquan Ma 2024
be Listed on the the Board of Directors
Wei and Li
Growth Enterprise and relevant laws and
Xumeng
Market of Shenzhen regulations and
Stock Exchange. unanimously agreed to
the relevant proposals.
115Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents The Strategy Committee
were deliberated and of the Board of Directors
passed: deliberated the matters
Proposal on the under consideration in
Completion of the strict accordance with the
March
Company's East China Rules of Procedure of the Not Not
25
Operation Center Strategy Committee of applicable applicable
2024
Project and the Use of the Board of Directors
Balanced Raised Funds and relevant laws and
for Permanently regulations and
Supplementing unanimously agreed to
Working Capital the relevant proposals.The Salary and
The following contents Assessment Committee of
were deliberated and the Board of Directors
passed: deliberated the matters
1. Proposal on under consideration in
March Remuneration of strict accordance with the
Not Not
25 Company Directors in Rules of Procedure of the
applicable applicable
2024 2023; Salary and Assessment
2. Proposal on Committee of the Board
Remuneration of of Directors and relevant
Senior Executives of laws and regulations and
the Company in 2023. unanimously agreed to
the relevant proposals.The following contents
were deliberated and
passed:
1. Proposal on the
The 8th Chen Company's Employee
Salary and Zhengxu Wu Stock Ownership Plan
3
Assessment Yongqiang for 2024 (Draft) and its The Salary and
Committee and Qin Wei Summary; Assessment Committee of
2. Proposal on the the Board of Directors
Company's deliberated the matters
Management Measures under consideration in
Novem for the Employee Stock strict accordance with the
Not Not
ber 6 Ownership Plan (Draft) Rules of Procedure of the
applicable applicable
2024 for 2024; Salary and Assessment
3. Proposal on the Committee of the Board
Company's Stock of Directors and relevant
Option Incentive Plan laws and regulations and
for 2024 (Draft) and its unanimously agreed to
Summary; the relevant proposals.
4. Proposal on the
Company's
Management Measures
for Assessment of the
Stock Option Incentive
Plan for 2024.
116Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The following contents
were deliberated and The Salary and
passed: Assessment Committee of
1. Proposal on the Board of Directors
Adjusting the Number deliberated the matters
of Stock Options under consideration in
Decemb Granted Under the strict accordance with the
Not Not
er 11 2024 Stock Option Rules of Procedure of the
applicable applicable
2024 Incentive Plan and the Salary and Assessment
List of Incentive Committee of the Board
Objects; of Directors and relevant
2. Proposal on laws and regulations and
Granting Stock unanimously agreed to
Options to Incentive the relevant proposals.Objects.VIII. Work of the Board of Supervisors
Whether the Board of Supervisors found any risks in the Company during its supervisory activities during the
Reporting Period
□ Yes □ No
The Board of Supervisors had no objection to the supervisory matters during the Reporting Period.IX. Information on the Company's employees
1. Number of employees specialty composition and education level
Number of employees of the parent company at the end of the
2562
Reporting Period (person)
Number of employees in major subsidiaries at the end of the
9055
Reporting Period (person)
Total number of employees at the end of the Reporting Period
11617
(person)
Total number of salaried employees in the current period
11617
(person)
Number of retired employees whose expenses need to be borne
6
by the parent company and major subsidiaries (person)
Specialty composition
Specialty composition category Number of specialty composition (person)
Production personnel 7281
Salesperson 716
Technician 2178
Financial staff 105
Administrative personnel 638
Logistics personnel 699
117Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total 11617
Education level
Education level category Number (person)
Bachelor or above 3558
Junior college level 1646
Below junior college level 6413
Total 11617
Note: The data is as of December 31 2024 and the increase in headcount is mainly due to the expansion of production and increase of
staff by overseas subsidiaries in preparation for market expansion.
2. Remuneration policy
The Company formulates salary management regulations in accordance with relevant national labor
regulations and policies and its actual situation and assesses and pays salaries in accordance with the salary
management regulations. The Company strictly complies with the Labor Law and relevant national and local labor
laws and regulations signs labor contracts with employees and pays various employee insurance according to
regulations. The Company's overall remuneration consists of the following three parts: fixed salary performance-
based salary and welfare allowances. Fixed salary includes basic salary position salary and confidentiality salary;
performance-based salary includes performance bonus year-end bonus and special bonus; and welfare includes
mandated benefits company benefits and allowances.In 2024 Topband has continuously optimized the salary management system formulated and implemented the
employee salary management system implemented differentiated salary band division for positions based on value
assessment built a salary grade development channel directly linked to the qualifications for the position and
formed a dynamic salary mechanism of "different salaries for the same position and changes in salary with changes
in position". For salary determination the method of a combination of performance and qualification certification
was adopted a gradual salary adjustment strategy of "small steps and fast progress" was implemented and on the
premise of ensuring reasonable control of the total salary department managers and the Human Resources
Department jointly assess it. For overseas employees the Company has revised the salary welfare and holiday
management measures further refined the principles time and process for the issuance of overseas allowances
improved the home leave policy and clarified the attendance management standards to protect the rights and
interests of overseas employees. Topband strictly fulfilled its responsibilities of paying employees' wages and social
security ensuring that all employees enjoy social insurance protection and building a solid welfare foundation for
employees.
118Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
In terms of salary fairness and performance management the Company has established an internal salary
benchmarking system which compares industry salary levels through external salary reports and combines internal
salary data analysis to provide a basis for annual salary adjustment decisions ensuring that salary levels are fair
while being competitive in the market. The performance management system focused on organizational strategic
goals emphasized team collaboration and personal development and ensured that individual performance is
consistent with the Company's overall goals.
3. Training plan
The Company gives a priority to the training programs and has established a talent training system combining
professional competence and leadership including routine training professional module training and management
cadre training. Different training courses are formulated in stages for new employees personnel in professional
positions such as R&D procurement and sales and middle and senior managers. An annual training plan is
implemented in the areas of corporate culture professional skills management improvement professional ethics
and mental health. Through the combination of internal and external training excellent human resources support is
provided for the sustainable development of the Company.During the Reporting Period in order to help new employees better adapt to the new work environment and
positions become familiar with the Company's relevant systems and integrate into the corporate culture the
Company's Human Resources Center prepared courses and implemented an annual training plan in the areas of
corporate culture professional skills management improvement professional ethics and mental health. The
internal training and external training were combined based on the office environment. In the "New Employee
Training" section the training content covers company profile benefits corporate culture information systems
finance and intellectual property legal basics and commercial confidentiality knowledge ISC core ideas and
concepts and occupational mental health covering all the new employees. At the same time for employees on the
production line the Company continues to provide on-site training and provides special training in the terms of
taking up posts on-duty issues job transfers and special skill positions so as to improve the professional
capabilities of front-line employees in workplace safety operating procedures and quality control.In addition in order to improve the effectiveness of professional training the module heads of departments of
the Company and the Talent Development Department of the Company's Human Resources Center jointly
formulated the 2024 professional training plan based on actual business needs; at the same time the Talent
Development Department of the Human Resources Center supervised and managed the implementation to ensure
119Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
the feasibility of the training plan. In 2024 the Company held targeted professional training for all professional
module positions from time to time including training on finance legal affairs patents customs procurement
supply chain sales R&D and manufacturing and quality. Experts from various fields were invited to regularly
communicate and share on these professional modules technologies and other topics.The Company pays attention to the training of the current managers and management trainees and has
formulated different training plans for them at different levels. During the Reporting Period multiple sessions of
"New Goose Training Camp" (supervisor trainees) and "Flying Goose Training Camp" (management trainees) were
carried out in Shenzhen Huizhou Ningbo Vietnam Romania and other places. The "New Goose/Flying Goose
Training Camp" is a professional training program for the Company's internal management trainees/current
managers. The program for current managers not only allows mangers to learn management knowledge and absorb
others' experience in a timely manner but also provides a learning platform for sharing and communication. The
program for management trainees prepares future managers for knowledge reserve and assessment before they enter
management positions and only those who pass the assessment can successfully enter the management talent pool.In addition to basic course training the training plan involves targeted training activities such as management case
practice management development micro-lesson presentations and IDP instructions by internal intermediate and
senior tutors. In addition to basic course activities the Company assigns 2-3 management tutors to each trainee
who conduct monthly face-to-face interviews to help trainees change their mindset and quickly adapt to
management roles. In May 2024 the Company launched the first "Overseas Goose Training Camp" which lasted
for two weeks. 21 outstanding management cadres and professional backbone personnel from three overseas bases
in Vietnam India and Romania participated in the training camp. The learning content included 15 hours of lessons
on the Company's development history strategy and management philosophy. In addition there were visits to the
parks in Shenzhen and Huizhou departmental learning and practice world coffee seminars and a two-day tour to
Guangzhou and Shenzhen to deeply experience China's economy and humanities. The training camp enhanced
overseas employees' understanding of the headquarters in China promoted cross-cultural communication and
cooperation and assisted in the implementation of the Company's globalization strategy.In order to better assist talent development the Company continues to promote the construction of a job
qualification system and carries out job qualification sorting and job personnel certification. As of the end of the
Reporting Period the Company's qualification system had covered 62 positions and nearly 2400 employees and
more than 1500 people had been certified which not only had provided employees with clear career advancement
criteria but also had helped improve organizational effectiveness through accurate matching of capabilities and
120Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
positions. On this basis the Company focused on the cultivation of core position capabilities and innovatively
designed special training camps to meet the needs of different job categories such as marketing procurement quality
and R&D. In 2024 the training camp covered more than 1000 person-times and offered more than 40 courses with
a total class time of over 100 hours. The job learning map provides staff in different positions with clear and definite
knowledge and skills required for personal development and improvement and provides targeted courses on the
required professional knowledge and skills for each position effectively helping personnel in different positions
improve their professional capabilities.
4. Labor outsourcing
□ Applicable □ Not applicable
X. Profit distribution and conversion of capital accumulation fund to share capital in the
Reporting Period
Profit distribution policy during the Reporting Period especially the formulation implementation or adjustment of
the cash dividend policy
□ Applicable □ Not applicable
During the Reporting Period after detailed consultation with the Company's shareholders and listening to their
opinions the Company's Board of Directors formulated the Company's 2023 Profit Distribution Plan based on the
Company's 2023 profit situation and investment situation and 2024 investment and expenditure plans. The 2023
Profit Distribution Plan was deliberated and passed at the 9th Meeting of the 8th Board of Directors and the 2023
Annual General Meeting of Shareholders. The 2023 Profit Distribution Plan is as follows. Based on the Company's
total share capital on the equity registration date minus 1225044888 shares of the repurchased shares in the
Company's special repurchase account a cash dividend of RMB 0.6 (tax inclusive) for every 10 shares will be
distributed to all shareholders. No accumulation fund will be converted to share capital and no bonus shares will
be issued. The above Profit Distribution Plan was implemented on May 9 2024. The 2023 Profit Distribution Plan
is in compliance with laws regulations the Articles of Association and the Company's Shareholder Dividend Plan
for the Next Three Years (2023-2025) and the profit distribution decision-making procedure complies with the
provisions of relevant laws regulations rules and codes.Special description of cash dividend policy
121Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Whether it complies with the provisions of the Company's
Articles of Association or the requirements of the resolutions of Yes
shareholders' meeting:
Are the dividend criteria and proportion clear and explicit Yes
Are the relevant decision-making procedures and mechanisms
Yes
complete
Have independent directors fulfilled their duties and played
Yes
their due role:
If the Company does not distribute cash dividends it shall
disclose the specific reasons and the measures it intends to take Not applicable
to enhance the level of investor returns:
Do small and medium shareholders have sufficient
opportunities to express their opinions and demands and are Yes
their legitimate rights and interests fully protected:
If the cash dividend policy is adjusted or changed are the
Not applicable
conditions and procedures compliant and transparent
The Company is profitable during the Reporting Period and the parent company has positive profit available for distribution to
shareholders but no cash dividend distribution plan has been proposed
□ Applicable □ Not applicable
Profit distribution and conversion of capital accumulation fund to share capital in the Reporting Period
□ Applicable □ Not applicable
Number of bonus shares send for every 10 shares (shares) 0
Number of dividend paid for every 10 shares (RMB) (tax
0.7
inclusive)
Equity base of the distribution plan (shares) 1228789388.00
Cash dividends (RMB) (tax inclusive) 86015257.16
Amount of cash dividends distributed in other ways (such as
95702125.00
share repurchase) (RMB)
Total cash dividends (including other methods) (RMB) 181717382.16
Distributable profit (RMB) 1409689377.48
The proportion of total cash dividends (including other
100%
methods) to total profit distribution
Distribution of cash dividends in this period
If the Company is in the growth period and has major capital expenditures the cash dividend shall account for at least 20% of the
profit distribution.Detailed description of the profit distribution or capital accumulation fund conversion plan
The Company's profit distribution plan for 2024 is as follows: Based on the Company's total share capital of 1228789388 shares
(excluding repurchase accounts) a cash dividend of RMB 0.7 (tax inclusive) per 10 shares will be paid to all shareholders. The
Company will not convert its accumulation fund to share capital and will not issue bonus shares. The accumulated undistributed
profits remaining after the implementation of the profit distribution plan shall be carried forward to subsequent years. If the
Company's total share capital changes before the implementation of the Profit Distribution Plan due to share repurchase or other
reasons the total distribution amount will be adjusted accordingly based on the principle of maintaining the same distribution ratio
per share. Investors are advised to pay attention to the risk of adjustment of the total distribution amount due to changes in the total
share capital.
122Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XI. Implementation of the Company's equity incentive plan employee stock ownership plan
or other employee incentive measures
□ Applicable □ Not applicable
1. Equity incentive
Implementation of the 2021 Restricted Stock Incentive Plan:
On September 20 2021 the Company held the 13th (Extraordinary) Meeting of the 7th Board of Directors
deliberated and passed the Proposal on the Company's 2021 Restricted Stock Incentive Plan and agreed that the
Company would intend to grant a total of no more than 34 million restricted shares to the incentive objects. Given
that the economic situation and the internal and external environment have changed significantly compared to when
the Company's equity incentive plan was announced it will be difficult to achieve the expected incentive purposes
and effects by continuing to implement the 2021 Restricted Stock Incentive Plan. On the basis of the Company's
future strategic development plan after carefully listening to opinions and suggestions and conducting prudent
research the Company intends to decide to terminate the implementation of the Incentive Plan and repurchase and
cancel the restricted shares that have been granted but not yet released from the restriction on sales.On December 1 2023 the Company held the 4th (Extraordinary) Meeting of the 8th Board of Directors and
the 3rd (Extraordinary) Meeting of the 8th Board of Supervisors deliberated and passed the Proposal on Terminating
the Implementation of the Restricted Stock Incentive Plan for 2021 and Repurchasing and Cancelling Restricted
Stocks and agreed to repurchase and cancel 270900 restricted shares which had been granted to 20 incentive objects
(including Shen Haibing and Wang Sifu) resigned due to personal reasons but whose rights had not been exercised
by them at a price of RMB 7.12 per share; and agreed to repurchase and cancel 20496224 restricted shares which
had been granted to 1024 in-service incentive objects but whose sales restriction had not been lifted at a price of
RMB 7.35 per share (generated after rounding with the payment subject to actual calculation). The above matters
had been deliberated and passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.As of April 24 2024 the relevant procedures for the repurchase and cancellation of the above-mentioned
restricted shares had been handled at Shenzhen Branch of China Securities Depository and Clearing Co. Ltd.For details of the implementation of the 2021 Restricted Stock Incentive Plan please refer to the Company's
announcements disclosed on Securities Times and CNINFO (http://www.cninfo.com.cn) on September 22 2021
October 14 2021 November 2 2021 November 3 2021 December 9 2021 December 16 2021 December 20
123Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2021 March 31 2022 July 26 2022 August 19 2022 September 24 2022 December 28 2022 March 31 2023
April 26 2023 September 9 2023 November 16 2023 December 2 2023 and April 24 2024.Implementation of the 2024 Stock Option Incentive Plan:
(1) On November 6 2024 the Company held the 15th (Extraordinary) Meeting of the 8th Board of Directors
and the 10th (Extraordinary) Meeting of the 8th Board of Supervisors deliberated and passed the Proposal on the
Company's 2024 Stock Option Incentive Plan (Draft) and its Summary the Proposal on the Company's Management
Measures for Assessment of the Stock Option Incentive Plan for 2024 and the Proposal on Requesting the General
Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's Stock
Option Incentive Plan for 2024 and agreed that the Company would intend to grant a total of no more than 33
million stock options to 1200 incentive objects. All shares of this plan come from the shares repurchased by the
Company's special repurchase account. The stock options granted this time will be exercised at a ratio of 30% 40%
and 30% within 12 months 24 months and 36 months from the date of completion of the granting and registration
of the stock options. The Company held the 10th (Extraordinary) Meeting of the 8th Board of Supervisors passed
the relevant proposals and verified the list of incentive objects in this incentive plan. The lawyer issued a legal
opinion and the independent financial consultant issued an independent financial consultant report.
(2) On November 11 2024 the Company publicly announced the names and positions of the incentive objects
in this incentive plan on the Company's internal OA office system with a publicity period from November 11 2024
to November 20 2024. No organization or individual raised any objection to the list of incentive objects during the
publicity period. On November 21 2024 the Company disclosed the Explanation and Verification Opinions of the
Board of Supervisors on the Publicity of the List of Incentive Objects in the Company's 2024 Stock Option Incentive
Plan. The Board of Supervisors believed that the proposed incentive objects in this incentive plan did not have the
situation that relevant laws and regulations do not allow them to be the incentive objects and met the participation
qualifications within the scope of the incentive objects in this incentive plan.
(3) On November 25 2024 the Company held the 2nd Extraordinary General Meeting of Shareholders
deliberated and passed the Proposal on the Company's 2024 Stock Option Incentive Plan (Draft) and its Summary
the Proposal on the Company's Management Measures for Assessment of the Stock Option Incentive Plan for 2024
the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle
Matters Related to the Company's Stock Option Incentive Plan for 2024 and other proposals related to the Incentive
Plan and authorized the Board of Directors to determine the grant date under the Incentive Plan grant stock options
124Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
to the incentive objects when the incentive objects meet the conditions and handle all matters necessary for the
granting of stock options.
(4) On December 9 2024 the Company held the 16th (Extraordinary) Meeting of the 8th Board of Directors
and the 11th (Extraordinary) Meeting of the 8th Board of Supervisors and deliberated and passed the Proposal on
Adjusting Matters Related to the 2024 Stock Option Incentive Plan and the Proposal on Granting Stock Options to
Incentive Objects. In view of the fact that as of the grant date of the stock options 4 of the incentive objects originally
deliberated and determined had resigned or had submitted resignation applications and did not meet the conditions
to become incentive objects and the fact that 7 incentive objects voluntarily gave up the qualification for the stock
options to be granted this time due to personal reasons a total of 100000 stock options to be granted to the above
11 incentive objects were canceled. After the adjustment the Company's stock option incentive objects this time
were 1050 people and the total number of stock options to be granted was adjusted from 33 million to 32.9 million.The Company's Board of Supervisors reviewed the list of incentive objects the lawyer issued a legal opinion and
the independent financial consultant issued an independent financial advisor report.
(5) On December 26 2024 upon review and confirmation by Shenzhen Stock Exchange and Shenzhen Branch
of China Securities Depository and Clearing Co. Ltd. the Company completed the granting and registration of 32.9
million stock options involved in the 2024 Stock Option Incentive Plan.Equity incentives received by the Company's directors and senior executives
□ Applicable □ Not applicable
Unit: Share
Numbe
Numbe Numbe
Numbe Numbe r of
r of Number Numb Stock r of Numb
r of r of The restrict
new of er of market restrict er of
stock shares numb ed Grant
stock shares stock price at ed restrict
options exercis Exercise er of stocks price of
options exercisa option the end of stocks ed
Positio held at ed price shares newly restricted
Name granted ble s held the held at stocks
n the during (RMB/sh releas granted stocks
during during at the Reporting the held at
beginni the are) ed in during (RMB/sh
the the end of Period beginni the end
ng of Reporti this the are)
Reporti Reportin the (RMB/sh ng of of the
the ng period Reporti
ng g Period period are) the period
year Period ng
Period period
Period
125Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Directo
r
Vice
Ma Preside 43120
00000000000
Wei nt 0
BG
Preside
nt
Directo
r
Vice
Zheng Preside 37310
00000000000
Sibin nt 0
BG
Preside
nt
Directo
Peng r
28000
Ganqu BG 0 0 0 0 0 0 0 0 0 0 0
0
an Preside
nt
Vice
Preside
nt
Secreta
Wen
ry of 12810
Zhaoh 0 0 0 0 0 0 0 0 0 0 0
the 0
ui
Board
of
Directo
rs
Chief
Luo Financi
Muche al 0 0 0 0 0 0 0 35000 0 0 0 0
n Directo
r
12474
Total -- 0 0 0 0 -- 0 -- 0 0 -- 0
00
On December 1 2023 the Company held the 4th (Extraordinary) Meeting of the 8th Board of Directors and the 3rd
(Extraordinary) Meeting of the 8th Board of Supervisors deliberated and passed the Proposal on Terminating the
Implementation of the Restricted Stock Incentive Plan for 2021 and Repurchasing and Cancelling Restricted Stocks
and agreed to repurchase and cancel 270900 restricted shares which had been granted to 20 incentive objects
(including Shen Haibing and Wang Sifu) resigned due to personal reasons but whose rights had not been exercised by
Remarks (if them at a price of RMB 7.12 per share; and agreed to repurchase and cancel 20496224 restricted shares which had
any) been granted to 1024 in-service incentive objects but whose sales restriction had not been lifted at a price of RMB
7.35 per share (generated after rounding with the payment subject to actual calculation). The above matters had been
deliberated and passed on the 3rd Extraordinary General Meeting of Shareholders in 2023.As of April 24 2024 the relevant procedures for the repurchase and cancellation of the above-mentioned restricted
shares had been handled at Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. The restricted
shares held by the above five executives have been canceled simultaneously.Evaluation and incentives of senior executives
The performance appraisal of the Company's core management personnel is based on the Company's operating
efficiency and strategic goals. It is based on the Company's annual production operation and management capacity
126Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
building and the completion of the goals of the managers' respective work. The appraisal is conducted in the
principles of combining distribution according to work with responsibilities rights and interests linking income
levels with the Company's performance and the goals of their respective work giving equal weight to incentives
and constraints and combining result appraisal with process management. The remuneration distribution of senior
executives is determined based on the appraisal results to promote the Company's long-term development and the
achievement of its strategic goals.The Company's senior executive remuneration is implemented on an annual salary basis which consists of
basic annual salary performance-based annual salary and long-term equity incentives. The basic annual salary is
mainly determined based on the Company's average salary level of senior executives in the previous year with
reference to factors such as industry characteristics and market salary trends. The performance-based annual salary
is determined based on the year-end management level operating efficiency and operating quality and is submitted
to the Board of Directors for review and distribution after assessment. The long-term equity incentive is formulated
by the Company's regular equity incentive assessment management measures.
2. Implementation of employee stock ownership plan
□ Applicable □ Not applicable
Status of all effective employee stock ownership plans during the Reporting Period
Proportion in the
Total number of Sources of funding
Scope of Number of total share capital
stocks held Changes for implementation
employees employees of the listed
(shares) of the plan
company
Directors Special incentive
(excluding funds provided by
independent the Company and
directors) funds raised by
45 5181200 Not applicable 0.42%
supervisors senior other means
executives and the permitted by laws
core backbone of and administrative
the Company regulations
Shareholdings of directors supervisors and senior executives in the Employee Stock Ownership Plan during the
Reporting Period
Number of stocks held Number of stocks held
Proportion in the total
at the beginning of the at the end of the
Name Position share capital of the
Reporting Period Reporting Period
listed company
(shares) (shares)
Directors: Ma Wei Directors supervisors
014600000.12%
Zheng Sibin and Peng and senior executives
127Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Ganquan; supervisors:
Dai Huijuan Chen
Jinzhou and Kang
Weiquan; senior
executives: Wen
Zhaohui and Luo
Muchen
Changes in asset management institutions during the Reporting Period
□ Applicable □ Not applicable
Changes in equity due to disposal of shares by holders during the Reporting Period
□ Applicable □ Not applicable
Exercise of shareholders' rights during the Reporting Period
Not applicable.Other relevant circumstances and explanations of the Employee Stock Ownership Plan during the Reporting
Period
□ Applicable □ Not applicable
Changes in members of the Employee Stock Ownership Plan Management Committee
□ Applicable □ Not applicable
Financial impact of the Employee Stock Ownership Plan on the listed company during the Reporting Period and
related accounting treatment
□ Applicable □ Not applicable
Termination of the Employee Stock Ownership Plan during the Reporting Period
□ Applicable □ Not applicable
Other descriptions:
None.
3. Other employee incentives
□ Applicable □ Not applicable
128Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XII. Construction and implementation of internal control system during the Reporting Period
1. Construction and implementation of internal control
During the Reporting Period the Company continued to update and improve its internal control system based
on the actual situation of the Company by the Basic Standards for Enterprise Internal Control Management
Measures for Independent Directors of Listed Companies Guidelines for the Application of Enterprise Internal
Control and other normative documents combined with the Company's internal control system and evaluation
methods based on daily supervision and special supervision of internal control. During the Reporting Period the
Company revised the Articles of Association Rules of Procedure for the General Meeting of Shareholders Rules
of Procedure for the Board of Directors and other systems by the latest provisions of the latest laws regulations and
regulatory requirements and based on the Company’s specific circumstances and new internal management
systems such as the Working System for Secretary of the Board Working System for Independent Directors and
Working System for Independent Directors' Special Committee. At the same time according to management needs
the Company set up an internal audit agency and Independent Directors' Special Committee. These mechanisms
coordinated with the audit committee and independent directors to supervise and inspect the implementation of
relevant systems. This can effectively ensure the implementation of the Company's rules and regulations reduce
operating risks and strengthen internal control. The Company continued to optimize its organizational structure
and clarified the responsibilities of each department and corresponding positions. In this way the Company
effectively controlled the implementation of internal controls involved in the entire process of business management
activities such as decision-making execution supervision and feedback effectively avoiding internal control
loopholes.The Company established a rigorous scientific effective internal control system suitable for its actual situation
and formulated effective internal control evaluation standards; The Company effectively prevented risks in business
management and promoted the achievement of internal control objectives through the operation analysis and
evaluation of its internal control system.
2. Details of major internal control deficiencies found during the Reporting Period
□ Yes □ No
129Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XIII. Management and control of the Company's subsidiaries during the Reporting Period
Problem
Measures taken Progress of Subsequent
Integration encountered
Company name Integration plan to solve the solving the plan of solving
progress during
problem problem the problem
integration
Use RMB 165.068
million of self-
owned or self-
Shenzhen
raised funds to
YAKO
acquire the
Automation Completed Not applicable Not applicable Not applicable Not applicable
remaining 28.46%
Technology
equity of Shenzhen
Co. Ltd.YAKO Automation
Technology Co.Ltd.XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date for disclosure of the full text of the
March 28 2025
internal control evaluation report
Index for disclosure of the full text of the
CNINFO (http://www.cninfo.com.cn)
internal control evaluation report
The proportion of total assets of the units
included in the evaluation scope to the
100.00%
total assets of the Company's
consolidated financial statements
The proportion of operating income of
the units included in the evaluation scope
to the operating income of the 100.00%
Company's consolidated financial
statements
Defect identification criteria
Category Financial report Non-financial report
Indications of major defect of financial The qualitative criteria for evaluating
reports include: internal control defects in non-financial
(1) Fraudulent conduct by the Company's reports determined by the Company are
directors supervisors and senior as follows:
executives; The non-financial report defect
(2) The Company has corrected its identification is mainly based on the
published financial reports; influence degree of the defect on the
(3) Material misstatements in the current validity of the business process and the
Qualitative criteria financial reports discovered by the possibility of occurrence.certified public accountants but not If the probability of a defect is relatively
identified by the Company's internal low and it will reduce work efficiency or
control; effect or increase the uncertainty of the
(4) The audit committee and audit effect or make it deviate from the
department were ineffective in expected goal it is recognized as a
supervising the Company's external general defect;
financial reports and internal control over If the probability of a defect is relatively
financial reports. high and it will significantly reduce work
130Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Indications of significant defect of efficiency or effect or significantly
financial reports include: increase the uncertainty of the effect or
(1) Failure to select and apply accounting make it significantly deviate from the
policies in accordance with generally expected goal it is recognized as a
accepted accounting principles; significant defect; If the probability of a
(2) Failure to establish anti-fraud defect is high and it will seriously reduce
procedures and control measures; work efficiency or effect or seriously
(3) Failure to establish corresponding increase the uncertainty of the effect or
control mechanisms for the accounting make it seriously deviate from the
treatment of non-routine or special expected goal it is recognized as a major
transactions or failure to implement and defect.having no corresponding compensatory
controls;
(4) There is one or more defects in the
control over the final financial reporting
process and there is no reasonable
assurance that the prepared financial
reports are true and complete.General defects refer to other control
defects other than the above-mentioned
major and important defects.The quantitative standard uses
The quantitative standard uses operating
consolidated operating income and total
income and total assets as measurement
assets as measurement indicators. If the
indicators. If the losses that may be
losses that may be caused or were caused
caused or were caused by internal control
by internal control defects are related to
defects are related to the profit statement
the profit statement they are measured
they are measured by the consolidated
by the consolidated operating income
operating income indicators. If the
indicators. If the amount of misstatement
amount of misstatement in the financial
in the financial reports that may be
reports that may be caused by the defect
caused by the defect alone or together
alone or together with other defects is
with other defects is less than 0.5% of
less than 0.5% of the consolidated
the consolidated operating income it is
operating income it is considered as a
considered as a general defect; if it
general defect; if it exceeds 0.5% but less
exceeds 0.5% but less than 1% of the
than 1% of the consolidated operating
consolidated operating income it is
income it is considered as a major
considered as a major defect; and if it
defect; and if it exceeds 1% of the
exceeds 1% of the consolidated operating
Quantitative standard consolidated operating income it is
income it is considered as a material
considered as a material defect.defect.If the losses that may be caused or were
If the losses that may be caused or were
caused by internal control defects are
caused by internal control defects are
related to asset management they are
related to asset management they are
measured by the indicator of total
measured by the indicator of total
consolidated assets. If the amount of
consolidated assets. If the amount of
misstatement in the financial reports that
misstatement in the financial reports that
may be caused by the defect alone or
may be caused by the defect alone or
together with other defects is less than
together with other defects is less than
0.5% of the total consolidated assets it is
0.5% of the total consolidated assets it is
considered as a general defect; if it
considered as a general defect; if it
exceeds 0.5% but less than 1% of the
exceeds 0.5% but less than 1% of the
total consolidated assets it is considered
total consolidated assets it is considered
as a major defect; and if it exceeds 1% of
as a major defect; and if it exceeds 1% of
the total consolidated assets it is
the total consolidated assets it is
considered as a material defect.considered as a material defect.Number of material defects in financial
0
reports (Nr.)
131Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Number of material defects in non-
0
financial reports (Nr.)
Number of major defects in financial
0
reports (Nr.)
Number of major defects in non-financial
0
reports (Nr.)
2. Internal control audit report
□ Applicable □ Not applicable
The deliberation opinion paragraph in the internal control audit report
We believed that Shenzhen Topband Co. Ltd. had maintained effective internal control over financial reports in all material
aspects as of December 31 2024 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of internal control audit report Disclosure
Date of full-text disclosure of internal audit report March 28 2025
Index of full-text disclosure of internal audit report CNINFO (http://www.cninfo.com.cn)
Internal control audit report opinion types Standard unmodified opinion
Are there material defects in the non-financial report No
Did the accounting firm issue an internal control audit report with a non-standard opinion
□ Yes □ No
Is the internal control audit report issued by the accounting firm consistent with the self-examination report of the
Board of Directors
□ Yes □ No
XV. Rectification of self-examination problems in special actions of governance of listed
companies
Not applicable.
132Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced by the
Environmental Protection Department
□ Yes □ No
Administrative punishment for environmental problems during the Reporting Period
□ Applicable □ Not applicable
Refer to other environmental information disclosed by key pollutant discharge companies
During the production of the Company there is no heavy pollution. Company has always paid attention to
public image considers environmental protection as an important part of its corporation social responsibilities and
ensures that industrial solid wastes are effective regulatory-compliant disposal and the discharge of pollutants meets
the national environmental protection standards.The Company has passed the ISO14001:2015 environmental management system certification also
implements the HSPMQC080000 hazardous substances process management system and has established a series
of procedure documents in respect of environmental factor identification and evaluation environmental monitoring
and measurement management environmental communication management treatment and control of
wastewater/exhaust gas/solid wastes identification and control of hazardous substances etc. to specify the
environmental protection organization and responsibilities under the environmental management system of the
Company. The certification of the system and the establishment of the related supporting systems by the Company
indicate that it has achieved institutionalized and practicable arrangements for environmental protection.Measures and effects taken to reduce carbon emissions during the Reporting Period
□ Applicable □ Not applicable
Reasons for not disclosing other environmental information
Not applicable.
133Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
II. Social responsibility
For details please see the full text of the Company's 2024 ESG and Social Responsibility Report published on
CNINFO (http://www.cninfo.com.cn) on March 28 2025.III. Consolidated and enhanced the achievements in poverty alleviation and rural revitalization
On November 19 2024 the Company actively responded to the rural revitalization policy and reached a
cooperation with the Huizhou Zhongkai High-tech Zone Charity Federation to assist the western and eastern
cooperation in Anlong County Southwest Guizhou Autonomous Prefecture Guizhou Province focusing on
industrial development rural revitalization and improvement of people's livelihood. It injected strong momentum
for Anlong County to achieve high-quality development donated money to the project promoted the development
of rural assistance activities implemented corporate social responsibility and contributed social strength.
134Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Section VI Important Matters
I. Fulfillment of commitments
1. Completed commitments during the Reporting Period and uncompleted commitments within the time limit
by the end of the Reporting Period by the Company's actual controller shareholders related parties
acquirers the Company and other committed related parties
□ Applicable □ Not applicable
Reasons for Commitment Commitment Commitment Commitment
Commitment content Performance
commitments Party type time period
Mr. Wu Yongqiang the actual
controller of the Company
has promised that during the
period of being the
Commitments controlling shareholder
made during and/or actual controller of the
Commitments Fulfill the
the initial Wu Company he would not June 12
to horizontal Long-term commitment
public Yongqiang directly or indirectly engage 2006
competition strictly
offering or in any business which was
refinancing the same similar or
substantially competitive with
the main business of the
Company at present and in
the future.
1. I would not abuse the
position of the controlling
shareholder/actual controller
to interfere with the operation
and management activities of
the Company beyond my
power and would not infringe
the Company's interests under
any circumstances.
2. I would try my best to
make the Company
Commitments
implement the compensation
made during
demand return measures. Fulfill the
the initial Wu Other April 29
3. I would work hard to link On-going commitment
public Yongqiang commitments 2020
the compensation system strictly
offering or
formulated by the Board of
refinancing
Directors or the
Compensation Committee
with the implementation of
the Company's compensation
return measures.
4. I would work hard to link
the exercise conditions (if
any) of the corporate equity
incentive to be published in
the future with the
implementation of the
135Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Company's compensation
return measures.
5. I would support the
relevant proposals related to
the implementation of the
Company's compensation
return measures and would
vote for them (if I have
voting right).
6. After the issuance of this
commitment if there are
other requirements in the
relevant provisions of the
regulatory institution on the
compensation return
measures and its commitment
and the above commitments
could not meet the relevant
requirements of the
regulatory institution I
promise that I would issue a
supplementary commitment
in accordance with the
relevant provisions at that
time.
7. If I violate the above
commitments I would make
an explanation and apologize
publicly at the General
Meeting of Shareholders and
the designated newspapers
and magazines designated by
the CSRC. I voluntarily
accept the self-discipline
supervision measures taken
by the stock exchange and
China Association for Public
Companies. If my breach of
the commitment causes losses
to the Company or the
shareholders I shall be liable
for compensation in
accordance with the law.
1. I would not deliver benefits
to other organizations or
individuals free of charge or
under unfair conditions and
not damage the interests of
Commitments
the Company in other means.made during All directors
2. I fully supported and Fulfill the
the initial and senior Other April 29
cooperated with the Company On-going commitment
public executives of commitments 2020
in regulating the duty strictly
offering or the Company
consumption behavior of
refinancing
directors and senior
executives. Any duty
consumption behaviors would
occur within the scope
necessary for fulfilling my
136Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
duty to the Company. I
strictly accepted the
supervision and management
of the Company to avoid
extravagance or excessive
consumption.
3. I would strictly abide by
the relevant laws and
regulations the regulations
and rules of the CSRC the
stock exchange and other
regulatory institutions as well
as the requirements of the
Company's rules and
regulations on the code of
conduct of directors and
senior executives. Besides I
would not use the Company's
assets to engage in
investment and consumption
activities unrelated to the
performance of my duties.
4. I would try my best to
make the Company
implement the compensation
demand return measures.
5. I would work hard to link
the compensation system
formulated by the Board of
Directors or the
Compensation Committee
with the implementation of
the Company's compensation
return measures. At the same
time I would vote in favor of
the compensation system
proposal when the Board of
Directors and the General
Meeting of Shareholders of
the Company deliberated (if I
have vote/voting right).
6. If the Company would
implement the employee
equity incentive in the future
I would fully support the
Company to link the
arrangement of exercise
conditions of the employee
incentive with the
implementation of the
Company's compensation
return measures. At the same
time I would vote in favor of
the employee equity incentive
proposal when the Board of
Directors and the General
Meeting of Shareholders of
the Company deliberated (if I
137Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
have vote/voting right).
7. If I violate the above
commitments I would make
an explanation and apologize
publicly at the General
Meeting of Shareholders and
the designated newspapers
and magazines designated by
the CSRC. I voluntarily
accept the self-discipline
supervision measures taken
by the stock exchange and
China Association for Public
Companies. If my breach of
the commitment causes losses
to the Company or the
shareholders I shall be liable
for compensation in
accordance with the law.Whether the
commitment
Yes
was fulfilled
on schedule
If the
commitment
was not
fulfilled
within the
time limit the
specific
Not applicable
reasons for
the failure
and the next
work plan
shall be
explained in
detail.
2. If there was a profit forecast for the Company's assets or projects and the Reporting Period was still in
the profit forecast period the Company shall explain why the assets or projects reached the original profit
forecast and the reasons.□ Applicable □ Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and their
related parties
□ Applicable □ Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and
their related parties in the Reporting Period of the Company.
138Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. External guarantee in violation of regulations
□ Applicable □ Not applicable
The Company had no external guarantee in violation of regulations during the Reporting Period.IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□ Applicable □ Not applicable
V. Explanation of the "non-standard audit report" of the Accounting Firm in the Reporting
Period by the Board of Directors the Board of Supervisors and Independent Directors (if any)
□ Applicable □ Not applicable
VI. Description of changes in accounting policies accounting estimates or corrections of
significant accounting errors compared with the previous year's financial report
□ Applicable □ Not applicable
There were no changes in accounting policies accounting estimates or corrections of significant accounting errors
during the Reporting Period.VII. Explanation of changes in the scope of the consolidated financial reports compared with
the previous year's financial report
□ Applicable □ Not applicable
There were no changes in the scope of the Company's consolidated financial reports during the Reporting Period.VIII. Appointment and dismissal of accounting firms
Currently employed accounting firm
Name of domestic accounting firm RSM China CPA LLP (Special General Partnership)
Remuneration of the domestic accounting firm (RMB ten
120
thousand)
Consecutive years for domestic accounting firms to provide
audit service
Name of the certified public accountant of the domestic
Tian Jingliang Zhu Aiyin and Fan Lihua
accounting firm
Consecutive years for Certified Public Accountants of domestic
1
accounting firms to provide audit service
139Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Whether to hire a new accounting firm during the current period
□ Yes □ No
Whether to hire a new accounting firm during the audit period
□ Yes □ No
Whether the approval procedures are followed when changing the accounting firm
□ Yes □ No
Detailed description of the hiring of a new accounting firm or the change of the accounting firm
The original audit institution Baker Tilly China Certified Public Accountants has provided audit services to
the Company for five consecutive years. According to the relevant provisions of the Management Measures for the
Selection and Appointment of Accounting Firms by State-owned Enterprises and Listed Companies in order to
ensure the compliance independence and objectivity of the Company's audit work the Company will no longer
renew the contract with Baker Tilly China Certified Public Accountants as the Company's annual audit institution.The Company plans to change its audit institution to RSM China. The Company has communicated with the
predecessor and successor accounting firms on matters related to the change of accounting firm. The predecessor
and successor accounting firms have clearly been aware of the change and confirmed that they have no objections.The Audit Committee of the Company believes that: given that Baker Tilly China Certified Public Accountants
has provided audit services to the Company for five consecutive years the Audit Committee of the Company's
Board of Directors has fully understood and reviewed the professional competence investor protection capabilities
independence and integrity of RSM China in accordance with the selection and appointment process in the
Management Measures for the Selection and Appointment of Accounting Firms by State-owned Enterprises and
Listed Companies and other relevant laws and regulations and believes that RSM China has the practice
qualifications and professional competence to provide audit services to listed companies and can meet the
Company's audit work requirements. The Company's reasons for changing its accounting firm were appropriate and
the procedures were compliant. The Company agreed to appoint RSM China as the audit institution for the
Company's 2024 financial reports and internal controls and agreed to submit the matter to the Company's Board of
Directors for deliberation.
140Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The Company deliberated and passed the Proposal on the Proposed Change of Accounting Firm and the
Appointment of the Company's 2024 Audit Institution at the 13th Meeting of the 8th Board of Directors on October
16 2024 and the 1st Extraordinary General Meeting of Shareholders on November 4 2024 respectively and agreed
to appoint RSM China as the audit institution for the Company's 2024 financial reports and internal controls.For details on the change of accounting firm and the appointment of the Company's 2024 audit institution
please refer to the Company's announcements disclosed on Securities Times and CNINFO
(http://www.cninfo.com.cn) on October 17 2024 and November 5 2024 respectively.Employment of accounting firm for audit of internal controls financial consultant or sponsor
□ Applicable □ Not applicable
IX. Delisting after disclosure of the annual report
□ Applicable □ Not applicable
X. Matters related to bankruptcy reorganization
□ Applicable □ Not applicable
There were no matter related to bankruptcy reorganization during the Reporting Period.XI. Major litigation and arbitration matters
□ Applicable □ Not applicable
The Company had no major litigation and arbitration matters during the Reporting Period.XII. Punishment and rectification
□ Applicable □ Not applicable
There were no penalties or rectifications during the Company's Reporting Period.XIII. Integrity condition of the Company its controlling shareholders and actual controllers
□ Applicable □ Not applicable
141Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XIV. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable □ Not applicable
The Company had no related transactions connected with daily operations during the Reporting Period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable □ Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the Reporting Period.
3. Related transactions of joint foreign investment
□ Applicable □ Not applicable
The Company had no related transaction of joint foreign investment during the Reporting Period.
4. Related creditor's right and debt transaction
□ Applicable □ Not applicable
The Company had no related creditor's right and debt transaction during the Reporting Period.
5. Transactions with associated financial companies
□ Applicable □ Not applicable
There was no deposit loan credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable □ Not applicable
There was no deposit loan credit or other financial business between financial companies controlled by the
Company and related parties.
142Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
7. Other major related transactions
□ Applicable □ Not applicable
The Company had no other material related-party transactions during the Reporting Period.XV. Major contracts and their performance
1. Trusteeship contracting and lease
(1) Trusteeship
□ Applicable □ Not applicable
The Company had no trusteeship during the Reporting Period.
(2) Contracting
□ Applicable □ Not applicable
The Company had no contracting during the Reporting Period.
(3) Lease
□ Applicable □ Not applicable
The Company did not carry out leasing during the Reporting Period.
2. Material guarantee
□Applicable □ Not applicable
Unit: RMB ten thousand
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
the
disclosure of Actual Counter Whether
Name of Guarantee Collater guarantee
the relevant Actual date of amount Guarant guarante Guarantee it was
guarantee amount al (if objects
announcement occurrence guarantee ee type e (if period complete
object limit any) were
of guarantee d any) d
related
amount limit
parties
Guarantee of the Company to its subsidiaries
143Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Whether
Date of
the
disclosure of Actual Counter Whether
Name of Guarantee Collater guarantee
the relevant Actual date of amount Guarant guarante Guarantee it was
guarantee amount al (if objects
announcement occurrence guarantee ee type e (if period complete
object limit any) were
of guarantee d any) d
related
amount limit
parties
Total actual amount
Total amount of approved
of guarantee for
guarantee for subsidiaries
0 subsidiaries during 0
during the Reporting Period
the Reporting
(B1)
Period (B2)
Total actual balance
Total amount of approved of guarantee for
guarantee for subsidiaries at subsidiaries at the
00
the end of the Reporting end of the
Period (B3) Reporting Period
(B4)
Guarantee of the subsidiary to its subsidiaries
Whether
Date of
the
disclosure of Actual Counter Whether
Name of Guarantee Collater guarantee
the relevant Actual date of amount Guarant guarante Guarantee it was
guarantee amount al (if objects
announcement occurrence guarantee ee type e (if period complete
object limit any) were
of guarantee d any) d
related
amount limit
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2023/01/16 3000 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2023/04/24 1200 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2023/06/29 2000 debts of No No
Automation guaranteed
parties
20000
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2023/07/31 1200 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2023/08/29 1779.74 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2024/01/08 1500 debts of No No
Automation guaranteed
parties
144Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2024/01/31 1685.98 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2024/03/28 1500 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2024/05/08 1250.82 debts of No No
Automation guaranteed
parties
3 years from
Huizhou maturity date of
YAKO 2023/01/11 2024/05/28 450.21 debts of No No
Automation guaranteed
parties
Total actual amount
Total amount of guarantee
of guarantee for
for subsidiaries approved
subsidiaries during 6387.01
during the Reporting Period
the Reporting
(C1)
Period (C2)
Total actual balance
Total amount of approved of guarantee for
guarantee for subsidiaries at subsidiaries at the
2000015566.75
the end of the Reporting end of the
Period (C3) Reporting Period
(C4)
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total incurred
Total amount of guarantees amount of actual
approved during the guarantees
6387.01
Reporting Period provided during the
(A1+B1+C1) Reporting Period
(A2+B2+C2)
Total actual balance
Total amount of guarantee
of guarantee at the
approved at the end of the
20000 end of the 15566.75
Reporting Period
Reporting Period
(A3+B3+C3)
(A4+B4+C4)
The proportion of the total actual amount of guarantee
2.33%
(A4+B4+C4) in the Company's net assets
Including:
3. Entrusting others to manage cash assets
(1) Entrusted financial management
□ Applicable □ Not applicable
145Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Overview of entrusted financial management during the Reporting Period
Unit: RMB ten thousand
Accrued
impairment
Amount of
Capital source of Overdue amount amount of overdue
Specific types entrusted financial Unexpired balance
entrusted financing not recovered and unrecovered
management
wealth
management
Bank financial
Self-own capitals 261435.01 39652.23 0 0
products
Total 261435.01 39652.23 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security
and poor liquidity
□ Applicable □ Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situations
that may lead to impairment
□ Applicable □ Not applicable
(2) Entrusted loans
□ Applicable □ Not applicable
The Company had no entrusted loans during the Reporting Period.
4. Others major contracts
□ Applicable □ Not applicable
There were no other significant contracts in the Reporting Period of the Company.XVI. Explanation of other major matters
□ Applicable □ Not applicable
The Company held the 6th (Extraordinary) Meeting of the 8th Board of Directors on January 23 2024
deliberated and passed the Proposal on the Plan to Repurchase Company Shares and disclosed the Share Repurchase
Report on January 24 2024. On February 5 2024 the Company held the 7th (Extraordinary) Meeting of the 8th
Board of Directors deliberated and passed the Proposal on Changing the Total Amount of Repurchase Funds in the
146Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Plan to Repurchase Company Shares and increased the total amount of funds in the share repurchase plan currently
being implemented in the Proposal on the Plan to Repurchase Company Shares deliberated and passed at the 6th
(Extraordinary) Meeting of the 8th Board of Directors from "not less than RMB 30 million and not more than RMB
50 million" to "not less than RMB 80 million and not more than RMB 150 million". The other terms in the share
repurchase plan such as the repurchase method implementation period and repurchase price remained unchanged.During the Reporting Period the Company accumulatively repurchased 11779000 shares through centralized
bidding with RMB 95702125.00 in total (excluding the transaction charge) accounting for 0.94% of the
Company's current total share capital with the highest transaction price at RMB 9.51 per share and the lowest
transaction price at RMB 6.34 per share.For details please refer to the relevant announcements published by the Company on Securities Times and
CNINFO (http://www.cninfo.com.cn) on January 24 2024 January 29 2024 January 30 2024 February 2 2024
February 6 2024 March 1 2024 April 2 2024 May 7 2024 June 4 2024 July 2 2024 August 2 2024 September
3 2024 October 9 2024 November 2 2024 and December 4 2024 respectively.
XVII. Major matters of subsidiaries of the Company
□ Applicable □ Not applicable
1. In August 2024 the Company's wholly-owned subsidiary Shenzhen Topband Digital Energy Co. Ltd.
invested in the establishment of a wholly-owned sub-subsidiary Topband Digital Energy Technology (Huizhou)
Co. Ltd. with a registered capital of RMB 1 million;
2. In September 2024 the Company's wholly-owned subsidiary Shenzhen Topband Digital Energy Co. Ltd.
invested in the establishment of a wholly-owned sub-subsidiary Chongqing Topband Yishu Energy Technology
Co. Ltd. with a registered capital of RMB 1 million.Section VII Share Change and Shareholders
I. Share change
1. Share change
Unit: Share
147Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Before change Increase or decrease of change this time (+ -) After change
Conversio
Issuan Stoc n of
ce of k Proporti
Number Proportion accumulat Others Subtotal Number
new divi on
ion fund
shares dend
into shares
I. Shares with non-tradable
22393635717.67%000-48191215-4819121517574514214.10%
conditions
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-
00.00%0000000.00%
owned legal persons
3. Shares held by other
22385865717.66%000-48113515-4811351517574514214.10%
domestic capital
Including: shares held
00.00%0000000.00%
by domestic legal persons
Shares held by domestic
22385865717.66%000-48113515-4811351517574514214.10%
natural person
4. Shares held by foreign
777000.01%000-77700-7770000.00%
investment
Including: shares held
00.00%0000000.00%
by overseas legal persons
Shares held by overseas
777000.01%000-77700-7770000.00%
natural persons
II. Shares with unlimited
104366575582.33%0002742409127424091107108984685.90%
tradable conditions
1. A shares 1043665755 82.33% 0 0 0 27424091 27424091 1071089846 85.90%
2. Domestic listed foreign
00.00%0000000.00%
shares
3. Overseas listed foreign
00.00%0000000.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
100.00
III. Total number of shares 1267602112 100.00% 0 0 0 -20767124 -20767124 1246834988
%
Reasons for share change
□ Applicable □ Not applicable
The change in the Company's share capital during the Reporting Period was caused by the repurchase and
cancellation of 20767124 restricted shares.Approval of share change
□ Applicable □ Not applicable
On December 1 2023 the Company held the 4th (Extraordinary) Meeting of the 8th Board of Directors and
148Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
the 3rd (Extraordinary) Meeting of the 8th Board of Supervisors deliberated and passed the Proposal on
Terminating the Implementation of the Restricted Stock Incentive Plan for 2021 and Repurchasing and Cancelling
Restricted Stocks and agreed to repurchase and cancel 270900 restricted shares which had been granted to 20
incentive objects (including Shen Haibing and Wang Sifu) resigned due to personal reasons but whose rights had
not been exercised by them at a price of RMB 7.12 per share; and agreed to repurchase and cancel 20496224
restricted shares which had been granted to 1024 in-service incentive objects but whose sales restriction had not
been lifted at a price of RMB 7.35 per share (generated after rounding with the payment subject to actual
calculation). The above matters had been deliberated and passed on the 3rd Extraordinary General Meeting of
Shareholders in 2023.As of April 24 2024 the relevant procedures for the repurchase and cancellation of the above-mentioned
20767124 restricted shares had been handled at Shenzhen Branch of China Securities Depository and Clearing Co.
Ltd.Transfer of share change
□ Applicable □ Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share
in the latest year and the latest period net assets per share attributable to ordinary shareholders of the Company
etc.□ Applicable □ Not applicable
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory
institution
□ Applicable □ Not applicable
2. Changes in non-tradable shares
□ Applicable □ Not applicable
Unit: Share
149Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Number of Increase Desterilization Number of
non-tradable number of number of non-tradable
Name of Reasons for
shares at the non-tradable non-tradable shares at the Date of lifting sales restriction
shareholder non-trading
beginning of shares in the shares in the end of the
the period current period current period period
Wu Executives
159006536 0 159006536 Not applicable
Yongqiang lock-in shares
April 24 2024. The unlocked portion of
Executives restricted shares granted under the 2021
Ma Wei 6713200 323400 6389800
lock-in shares stock incentive plan were repurchased and
canceled.April 24 2024. The unlocked portion of
Peng Executives restricted shares granted under the 2021
38526742099993642675
Ganquan lock-in shares stock incentive plan were repurchased and
canceled.April 24 2024. The unlocked portion of
Executives restricted shares granted under the 2021
Zheng Sibin 4752727 279825 4472902
lock-in shares stock incentive plan were repurchased and
canceled.April 24 2024. The unlocked portion of
Wen Executives restricted shares granted under the 2021
2078345960751982270
Zhaohui lock-in shares stock incentive plan were repurchased and
canceled.April 24 2024. The unlocked portion of
Executives restricted shares granted under the 2021
Dai Huijuan 239709 0 239709
lock-in shares stock incentive plan were repurchased and
canceled.April 24 2024. The unlocked portion of
Luo Executives restricted shares granted under the 2021
375002625011250
Muchen lock-in shares stock incentive plan were repurchased and
canceled.Executives March 26 2024. The sales restriction was
Xiang Wei 417300 417300 0
lock-in shares lifted half a year after resignation.Executives March 27 2024. The sales restriction was
Ji Shuhai 27318642 27318642 0
lock-in shares lifted half a year after resignation.The proposal to terminate the
implementation of the 2021 Restricted Stock
Incentive Plan and repurchase and cancel
restricted stocks was passed at the 4th
Incentive (Extraordinary) Meeting of the 8th Board of
objects of Directors the 3rd (Extraordinary) Meeting
Stock-option-
restricted of the 8th Board of Supervisors and the 3rd
19519724 19519724 0 incentive
stock Extraordinary General Meeting of
restricted stocks
incentive Shareholders in 2023. As of April 24 2024
plan the relevant procedures for the repurchase
and cancellation of the above-mentioned
20767124 restricted shares had been
handled at Shenzhen Branch of China
Securities Depository and Clearing Co. Ltd.Total 223936357 0 48191215 175745142 -- --
150Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the Reporting Period
□ Applicable □ Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure and changes
in the Company's structure of assets and liabilities
□ Applicable □ Not applicable
(1) Changes in the total number of shares and shareholder structure:
During the Reporting Period 20767124 restricted shares were repurchased and canceled resulting in a
decrease of 20767124 shares in the Company's total share capital from 1267602112 shares to 1246834988
shares.
(2) Changes in the Company's structure of assets and liabilities
As of the end of the period the total share capital of the Company was 1246834988 shares and the total
corporate assets at the end of 2024 were RMB 12848865960.25 with an assets-liabilities ratio of 48.07%.
3. Existing internal employee shares
□ Applicable □ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding situation of the Company
Unit: Share
151Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total
Total
number of
number of
preferred
ordinary
shareholder
shareholde The total number of preferred
s with
Total number of rs at the shareholders whose voting
voting
ordinary end of the rights were restored at the end
rights
shareholders at the 111507 previous 106351 0 of the previous month before 0
restored at
end of the month the disclosure date of the
the end of
Reporting Period before the annual report (if any) (see Note
the
disclosure 8)
Reporting
date of the
Period (if
annual
any) (see
report
Note 8)
Shareholding situation of shareholders holding more than 5% of the shares or top 10 shareholders (excluding shares lent through refinancing)
Number of Changes in Pledge marking or freezing
Number of Number of
Proportion shares held increase or
shares with shares with
Name of Nature of of at the end of decrease
limited unlimited
shareholder shareholders shareholdi the during the
tradable tradable Share status Number
ng Reporting Reporting
conditions conditions
Period Period
Domestic
Wu Yongqiang natural 17.00% 212008715 0 159006536 53002179 Pledge 38860000
person
Domestic
Xie Renguo natural 1.94% 24175088 3074100 0 24175088 Not applicable 0
person
Domestic
Ji Shuhai natural 1.90% 23629130 -3689512 0 23629130 Not applicable 0
person
Hong Kong
Overseas
Securities Clearing 1.46% 18245542 -5193859 0 18245542 Not applicable 0
legal person
Company Ltd.China Merchants
Bank Co. Ltd. -
Others 0.83% 10296900 9074900 0 10296900 Not applicable 0
China Southern
CSI 1000 ETF
Industrial Bank
Co. Ltd. -
Others 0.74% 9188200 7981500 0 9188200 Not applicable 0
ChinaAMC CSI
Robot ETF
Domestic
Ma Wei natural 0.68% 8519734 -431200 6389800 2129934 Not applicable 0
person
Domestic
Dongguan Helios non-state-
0.62% 7769800 -606600 0 7769800 Not applicable 0
Industry Co. Ltd. owned legal
person
Domestic
Zhong Mingyu natural 0.58% 7252357 -768500 0 7252357 Not applicable 0
person
Domestic
Xu Lixin natural 0.51% 6388400 2000 0 6388400 Not applicable 0
person
152Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The top 10 shareholders of strategic
investors or general legal persons
Not applicable
due to placement of new shares (if
any) (see Note 3)
Explanation of the above
shareholders' relationship or Not applicable
concerted action
Explanation of the above
shareholders' entrusting/entrusted
Not applicable
voting rights and waiver of voting
rights
Special explanations for the
existence of special repurchase As of the end of the Reporting Period the Company's special securities repurchase account held
accounts among the top 10 18045600 shares accounting for 1.45% of the Company's current total issued share capital.shareholders (if any) (see Note 10)
Shareholding of the top 10 shareholders with unlimited tradable conditions (excluding shares lent through refinancing and executives lock-in
shares)
Number of shares held with unlimited tradable conditions at the end of Type of shares
Name of shareholder
the Reporting Period Type of shares Number
Wu Yongqiang 53002179 A shares 53002179
Xie Renguo 24175088 A shares 24175088
Ji Shuhai 23629130 A shares 23629130
Hong Kong Securities Clearing
18245542 A shares 18245542
Company Ltd.China Merchants Bank Co. Ltd. -
10296900 A shares 10296900
China Southern CSI 1000 ETF
Industrial Bank Co. Ltd. -
9188200 A shares 9188200
ChinaAMC CSI Robot ETF
Dongguan Helios Industry Co.
7769800 A shares 7769800
Ltd.Zhong Mingyu 7252357 A shares 7252357
Xu Lixin 6388400 A shares 6388400
China Merchants Bank Co. Ltd. -
5521884 A shares 5521884
ChinaAMC CSI 1000 ETF
Explanation of the relationship or
concerted action between the top
10 shareholders with unlimited
tradable conditions and between Not applicable
the top 10 shareholders with
unlimited tradable conditions and
the top 10 shareholders
Explanation of the participation of
the top 10 ordinary shareholders in
Shareholder Mr. Xu Lixin holds 6388400 shares through the credit securities account.securities margin trading (if any)
(see Note 4)
Participation of shareholders holding more than 5% of the shares top 10 shareholders and top 10 shareholders with
unlimited tradable conditions in lending of shares through refinancing business
□ Applicable □ Not applicable
153Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Unit: Share
Participation of shareholders holding more than 5% of the shares top 10 shareholders and top 10 shareholders with unlimited tradable conditions
in lending of shares through refinancing business
Shares held through the Shares lent through Shares held through the
Shares lent through refinancing
ordinary account and refinancing but not ordinary account and
but not returned at the end of the
credit account at the returned at the beginning credit account at the end
period
Name of shareholder beginning of the period of the period of the period
(full name) Proportion Proportion Proportion
in the total in the total in the total Proportion in the
Total Total Total Total
share share share total share capital
capital capital capital
China Merchants
Bank Co. Ltd. -
12220000.10%2744000.02%102969000.83%00.00%
China Southern CSI
1000 ETF
Industrial Bank Co.Ltd. - ChinaAMC 1206700 0.10% 98000 0.01% 9188200 0.74% 0 0.00%
CSI Robot ETF
Changes in top 10 shareholders and top 10 shareholders with unlimited tradable conditions due to lending/return of
shares through refinancing compared with the end of the previous period
□ Applicable □ Not applicable
Did the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions conduct
the agreed repurchase transactions during the Reporting Period
□ Yes □ No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not
conduct the agreed repurchase transactions during the Reporting Period
2. Controlling shareholder of the Company
Nature of controlling shareholder: controlled by natural person
Type of controlling shareholder: natural person
Obtained the right of residence in
Name of controlling shareholder Nationality
another country or region
Wu Yongqiang China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co. Ltd. since 2009
Equity information on other domestic
and foreign listed companies controlled
None
or invested in by him during the
Reporting Period
Change of controlling shareholders during the Reporting Period
154Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Applicable □ Not applicable
The controlling shareholder of the Company did not change during the Reporting Period.
3. The Company's actual controller and its person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Obtained the right of
Relationship with actual
Name of actual controller Nationality residence in another country
controller
or region
Wu Yongqiang In person China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co. Ltd. since 2009
Information on domestic and
foreign listed companies
None
controlled by him in the past
10 years
Change of actual controller during the Reporting Period
□ Applicable □ Not applicable
The actual controller of the Company did not change during the Reporting Period.Block Diagram of Property Rights and Control Relationship between the Company and the Actual Controller
Wu Yongqiang
Shenzhen Topband Co. Ltd.The actual controller controls the Company by means of trust or other ways of assets management
□ Applicable □ Not applicable
4. The cumulative number of pledged shares held by the controlling shareholder or the largest shareholder
and its persons acting in concert accounts for 80% of the total number of shares held by them in the Company
□ Applicable □ Not applicable
155Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
5. Other institutional shareholders holding over 10% of the shares
□ Applicable □ Not applicable
6. Restrictions on the reduction of shares held by the controlling shareholder the actual controller the
reorganizer and other commitment entities
□ Applicable □ Not applicable
IV. Specific implementation of share repurchase during the Reporting Period
Implementation progress of share repurchase
□ Applicable □ Not applicable
Proportion of
repurchased
Amount of shares to
Number of Number of
Scheme Proportion in shares to be Proposed underlying
shares to be Repurchase shares
disclosure the total repurchased repurchase stocks
repurchased purpose repurchased
time share capital (RMB ten period involved in the
(shares) (shares)
thousand) equity
incentive plan
(if any)
Implement
equity
incentives or
6153800- 0.4936%- 2024/1/23- employee stock
2024/01/248000-1500011779000
11538500 0.9254% 2025/1/23 ownership plans
for the core
employees of
the Company.Progress in the implementation of the reduction of share repurchase through centralized bid trading
□ Applicable □ Not applicable
156Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Section VIII Information on Preferred Shares
□ Applicable □ Not applicable
The Company did not have preferred shares during the Reporting Period.Section IX Relevant Information of Bonds
□ Applicable □ Not applicable
157Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Section X Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing the audit report March 26 2025
Name of audit institution RSM China CPA LLP (Special General Partnership)
Document number of audit report RCSZ [2025] No. 518Z0805
Name of certified public accountant Tian Jingliang Zhu Aiyin and Fan Lihua
Audit Report
RCSZ [2025] No. 518Z0805
All shareholders of Shenzhen Topband Co. Ltd.:
I. Audit opinion
We have audited the financial statements of Shenzhen Topband Co. Ltd. (hereinafter referred to as "Topband")
including the consolidated and parent company balance sheet as of December 31 2024 and the consolidated and
parent company income statement the consolidated and parent company cash flow statement and the consolidated
and parent company statement of change in owner's equity of 2024 as well as related notes to the financial
statements.In our opinions the attached financial statements have been prepared in accordance with the Accounting
Standards for Business Enterprises in all significant aspects and given fair views on the consolidated and parent
company financial positions of Topband as of December 31 2024 and the consolidated and parent company
operating results as well as cash flow of 2024.II. Basis for the formation of audit opinions
We have carried out audit in compliance with Auditing Standards for Certified Public Accountants of China.Our responsibility under these standards is further described in "Certified Public Accountants' Responsibility for
the Financial Statements" in the audit report. In accordance with the Code of Professional Ethics for Chinese
Certified Public Accountants we are independent of Topband and have fulfilled other responsibilities in terms of
professional ethics. We believe that the audit evidence obtained by us is sufficient and appropriate and has provided
a basis for the expression of our audit opinion.
158Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. Key audit matters
The key items for audit are items that we consider the most important for the audit of the financial statements
of the current period according to the professional judgment. The response of these items is based on an audit of the
overall financial statements and the formation of audit opinions and we do not individually express views on these
items.(I) Revenue recognition
1. Description of matters
For relevant information disclosure details please refer to Notes "III. 27" and "V. 42" to the financial statement.Topband is mainly engaged in the R&D production and sales of intelligent control system solutions. It has
two sales models: domestic sales and export. There are differences in the time of revenue recognition for different
sales methods. Since operating revenue is one of the key performance indicators of Topband there may be an
inherent risk that the management of Topband (hereinafter referred to as the management) may achieve specific
goals or expectations through inappropriate revenue recognition. Therefore we identified revenue recognition as a
key audit matter.
2. Handling during the audit
The relevant procedures we have implemented for revenue recognition mainly include:
(1) Understand the key internal controls related to revenue recognition evaluate the design of these controls
and test the operating effectiveness of related internal controls;
(2) Understand and inquire with the relevant personnel of the Company check sales contracts or orders and
evaluate whether the revenue recognition method is appropriate based on the main contract terms and product
features;
(3) Implement analytical procedures for operating revenue and gross profit margin by month product and
customer to identify whether there are significant or abnormal fluctuations;
(4) For domestic sales revenue check the supporting documents related to revenue recognition by sampling
including sales contracts or orders sales invoices outbound delivery orders transport documents and customer
receipts/statements. For export revenue obtain the electronic port information and check it against the book records
and check the supporting documents such as sales contracts or orders export declarations and sales invoices by
sampling;
159Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(5) On the basis of the confirmation of accounts receivable send confirmation letters to major customers on a
sampling basis to evaluate the authenticity of sales revenue and the accuracy of revenue recognition;
(6) On a sampling basis check the operating revenue recognized before and after the balance sheet date against
the supporting documents such as outbound delivery orders customer receipts and export declarations to evaluate
whether the operating revenue is recognized in the appropriate period;
(7) Check whether the information related to operating revenue has been properly presented and disclosed in
the financial statement.Based on the above work results we believe that the relevant evidence can support the management's judgment
and estimates on revenue recognition.(II) Impairment of accounts receivable
1. Description of matters
For relevant information disclosure details please refer to Notes "III. 10" and "V. 4" to the financial statement.As of December 31 2024 the book balance of accounts receivable of Topband was RMB 3175971241.30
the bad debt provision was RMB 183186743.57 and the book value was RMB 2992784497.73. Due to the large
amount of accounts receivable and the fact that the impairment test of accounts receivable involves the
management's significant judgment we identified the impairment of accounts receivable as a key audit matter.
2. Handling during the audit
The relevant procedures we have implemented for impairment of accounts receivable mainly include:
(1) Understand the key internal controls related to impairment of accounts receivable evaluate the design of
these controls and test the operating effectiveness of related internal controls;
(2) Re-check the subsequent actual write-off or write-back of accounts receivable for which bad debt provisions
were made in previous years and evaluate the accuracy of the management's past forecasts;
(3) Re-check the management's relevant considerations and objective evidence in the impairment test of
accounts receivable and evaluate whether the management has adequately identified accounts receivable that have
been impaired;
(4) For accounts receivable with expected credit losses measured on a single basis obtain and examine the
management's forecast of expected cash flows received evaluate the reasonableness of key assumptions and the
accuracy of data used in the forecast and check with external evidence obtained;
(5) Regarding the provision for impairment of accounts receivable for accounts receivable with expected credit
losses measured on a portfolio basis evaluate the rationality of the management's division of portfolios based on
160Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
credit risk characteristics; evaluate the rationality of the comparison table of accounts receivable aging and loss
given default prepared by the management based on the historical credit loss experience and forward-looking
estimates of the portfolios with similar credit risk characteristics; re-check the accuracy and completeness of the
data used by the management (including accounts receivable aging historical loss rate and migration rate) and
whether the calculation of bad debt provisions is accurate;
(6) Perform independent confirmation procedures for significant accounts receivable;
(7) Check the post-period collection of accounts receivable and evaluate the rationality of the management's
provision for bad debts of accounts receivable;
(8) Check whether the information related to impairment of accounts receivable has been properly presented
in the financial statement.Based on the above work results we believe that the relevant evidence can support the management's judgment
and estimates on impairment of accounts receivable.IV. Other information
Topband's management (hereinafter referred to as the management) is responsible for other information. Other
information includes the information covered in Topband's annual report for 2024 but does not include financial
statements and our audit reports.We do not cover other information in the audit opinions issued for the financial statements nor do we have
any form of attestation conclusions on other information.In conjunction with our audit of the financial statements our responsibility is to read other information and in
this process consider whether other information is materially inconsistent with the financial statements or what we
have learned in the audit process or it appears to be significant misstatement.Based on the work we have carried out we shall report the fact if we determine the existence of a significant
misstatement in other information. We have nothing to report in this regard.V. Responsibility of the management and the governance to the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of the
Accounting Standards for Business Enterprises to make it fair reflection then designing implementing and
maintaining the necessary internal controls so that the financial statements do not have any significant misstatement
resulting from fraud or error.
161Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
When the financial statements were prepared the management was responsible for assessing Topband's ability
to continue as a going concern disclosing the matters related to the going concern (if applicable) and applying the
going concern assumption unless the management planned to liquidate Topband terminated operation or had no
other practical option.The governance level is responsible for overseeing the financial reporting process of Topband.VI. Certified public accountant's responsibility for audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement whether due to fraud or error and to issue an audit report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if individually or in the aggregate they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with the audits standards we exercise professional judgment and maintain
professional scepticism throughout the audit. Meanwhile we also execute the following works:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. Since fraud may involve collusion forgery intentional omission
false representation or not be subject to internal control the risk of failure to find the significant misstatement due
to fraud is higher than the risk of failure to find a major misstatement due to errors.
(2) Understand internal controls related to the audit in order to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
(4) Conclude on the appropriateness of using the going concern assumption by management. At the same time
on the basis of the acquired audit evidence make a conclusion whether there is a significant uncertainty in matters
or circumstances that cause significant doubts about constant operational capacity of Topband. If we come to the
conclusion that there are significant uncertainties the audit guidelines require that we draw the attention of the
report users to the relevant disclosures in the financial statements in the audit report; if the disclosure is not sufficient
we shall issue a modified audit report. Our conclusion is based on the information that was available as of the date
of the audit report. However future events or conditions may cause Topband to discontinue operation.
162Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business
activities of Topband to make an audit opinion on the financial statements. We are responsible for guiding
supervising and implementing the Company's audit and bear full responsibility for the audit opinion.We communicate with the governance regarding the planned scope and timing of the audit significant audit
findings and other matters including any notable deficiencies in internal control that we identify during audit.We also provide a statement to the governance level regarding compliance with the independence-related
professional ethics requirements and communicate with the governance level on all the relationships and other
matters that may reasonably be considered to affect our independence as well as relevant preventive measures (if
applicable).Among items discussed with the governance level we determine those items most important to the audit of the
financial statements of the current period and constitute a key item for audit. We describe these items in the audit
report unless laws and regulations prohibit the disclosure of these items or in rare cases the negative consequences
of communicating an item in the audit report are beyond the benefits of public interest we determine that the item
shall not be communicated in the audit report.II. Financial statements
The unit of statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co. Ltd.December 31 2024
Unit: RMB
Items Ending balance Beginning balance
Current assets:
Monetary capital 1713976263.34 1550450889.82
Settlement of provisions
Lending funds
Tradable financial assets 739448691.77 656704087.16
Derivative financial assets
Notes receivable 48461335.38 54198392.53
163Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Accounts receivable 2992784497.73 2431773877.56
Financing of accounts receivable 131217672.56 278520642.22
Prepayments 26932435.21 44088068.53
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 38621875.39 36524343.36
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 1810510580.57 1653816715.51
Including: data sources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 359556873.79 213212927.49
Total current assets 7861510225.74 6919289944.18
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 38959272.14 37748179.30
Other equity instrument investments 45012776.00 41192950.00
Other non-current financial assets
Investment property 100566027.85 103404402.85
Fixed assets 2737959115.57 2102862886.72
Construction in progress 768223670.57 568107950.65
Productive biological assets
Oil and gas assets
Right-of-use assets 67227073.11 101446985.74
Intangible assets 643784398.36 607110895.95
Including: data sources
Development expenditure 125214759.99 134191614.89
Including: data sources
Goodwill 108769151.72 110732042.84
Long-term deferred expenses 188924525.82 182804408.10
Deferred tax assets 102678537.20 155039996.53
Other non-current assets 60036426.17 120187135.05
Total non-current assets 4987355734.50 4264829448.62
164Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total assets 12848865960.24 11184119392.80
Current liabilities:
Short-term loans 1224214110.41 279348750.00
Loan from the Central Bank
Borrowed funds
Financial liabilities held for trading 444281.13
Derivative financial liabilities
Notes payable 1194662037.01 927833178.70
Accounts payable 2310872258.62 1957626396.34
Accounts collected in advance 3915096.80 2808227.54
Contractual liabilities 131435683.97 168681571.89
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 276437375.57 243267783.13
Taxes payable 48126598.87 92374605.57
Other account payable 450563068.15 151341029.40
Including: interest payable
Dividends payable
Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 136488765.75 370623598.03
Other current liabilities 77931203.31 32561693.03
Total current liabilities 5855090479.59 4226466833.63
Non-current liabilities:
Insurance contract reserve
Long-term loans 245740474.88 437747877.47
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 42076530.36 61429811.03
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 13358627.74 11146292.42
Deferred tax liabilities 20219592.39 77730856.81
Other non-current liabilities
Total non-current liabilities 321395225.37 588054837.73
165Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total liabilities 6176485704.96 4814521671.36
Owner's equity:
Share capital 1246834988.00 1246834988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2089578011.17 2212629919.51
Minus: treasury shares 155694936.18 112426101.24
Other comprehensive income -32276903.98 11932029.41
Special reserves
Surplus reserves 248359297.47 219446936.59
General risk provision
Retained earnings 3275527294.98 2706499696.23
Total owners' equity attributable to the parent company 6672327751.46 6284917468.50
Minority shareholders' equity 52503.82 84680252.94
Total owners' equity 6672380255.28 6369597721.44
Total liabilities and owners' equity 12848865960.24 11184119392.80
Legal Representative: Wu Accounting Head: Luo Muchen Accounting Department Head: Luo
Yongqiang Muchen
2. Balance Sheet of Parent Company
Unit: RMB
Items Ending balance Beginning balance
Current assets:
Monetary capital 737724723.09 564655392.19
Tradable financial assets 353132886.74 449502886.74
Derivative financial assets
Notes receivable 36071948.51 21283544.89
Accounts receivable 1749091674.76 1255501213.69
Financing of accounts receivable 36369236.89 187096121.14
Prepayments 16727322.45 9934227.02
Other receivables 269840253.20 359906911.54
Including: interest receivable
Dividends receivable
Inventory 376080117.00 144733773.21
Including: data sources
Contract assets
Assets held for sale
Non-current assets due within one year
166Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Other current assets 25734118.81 6508120.43
Total current assets 3600772281.45 2999122190.85
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 4299877436.17 3987403182.73
Other equity instrument investments
Other non-current financial assets
Investment property
Fixed assets 182839226.06 168610949.25
Construction in progress 10857827.42 12393132.55
Productive biological assets
Oil and gas assets
Right-of-use assets 12182431.45 9098366.55
Intangible assets 186874312.66 160674130.76
Including: data sources
Development expenditure 98813454.74 83523254.86
Including: data sources
Goodwill
Long-term deferred expenses 12473333.17 15656340.48
Deferred tax assets 4272297.23 44367498.96
Other non-current assets 12437360.68 9641839.34
Total non-current assets 4820627679.58 4491368695.48
Total assets 8421399961.03 7490490886.33
Current liabilities:
Short-term loans 100000000.00 204133333.33
Financial liabilities held for trading 345711.00
Derivative financial liabilities
Notes payable 1895000000.00 1136576558.75
Accounts payable 780481701.30 242320060.42
Accounts collected in advance
Contractual liabilities 40861225.32 95017210.64
Employee compensation payable 152318345.79 134992084.62
Taxes payable 22347082.81 17927120.33
Other account payable 365916776.73 470481715.23
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 4262274.85 307665202.21
167Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Other current liabilities 56848533.19 11806507.10
Total current liabilities 3418381650.99 2620919792.63
Non-current liabilities:
Long-term loans 30250000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 8978187.76 1591379.57
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 2953580.27 3806112.42
Deferred tax liabilities 32635559.80
Other non-current liabilities
Total non-current liabilities 42181768.03 38033051.79
Total liabilities 3460563419.02 2658952844.42
Owner's equity:
Share capital 1246834988.00 1246834988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2211676333.70 2254729914.19
Minus: treasury shares 155694936.18 112426101.24
Other comprehensive income
Special reserves
Surplus reserves 248330779.01 219418418.13
Retained earnings 1409689377.48 1222980822.83
Total owners' equity 4960836542.01 4831538041.91
Total liabilities and owners' equity 8421399961.03 7490490886.33
3. Consolidated income statement
Unit: RMB
Items In 2024 In 2023
I. Total operating income 10501219821.54 8992342169.08
Including: operating income 10501219821.54 8992342169.08
Interest income
Premium earned
Service charge and commission income
II. Total operating cost 9693118141.20 8440752000.64
168Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Including: operating cost 8088901865.21 6986324444.52
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for insurance liability contracts
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 67144726.40 55464701.92
Selling expenses 379247836.25 322340584.49
Overheads 401415660.16 438361342.66
R&D expenses 809006999.25 689969610.98
Finance expenses -52598946.07 -51708683.93
Including: interest expenses 47188375.93 38085866.07
Interest income 36970341.29 36588417.62
Plus: other income 73485447.86 65448854.90
Investment income (loss marked with "-") 3945501.92 -11234586.49
Including: income from investment in associated enterprises and
1211092.841126356.29
joint ventures
Derecognized gains from financial assets measured at
amortized cost
Exchange gains (loss marked with "-")
Net exposure hedging income (loss marked with "-")
Loss from changes in fair value (loss marked with "-") -5950391.17 12535503.26
Credit impairment losses (loss marked with "-") -20502203.70 -3019928.48
Asset impairment loss (loss marked with "-") -80133065.08 -70707401.38
Assets disposal revenue (loss marked with "-") -2689826.55 -1426087.98
III. Operating profits (loss marked with "-") 776257143.62 543186522.27
Plus: non-operating income 10883626.59 6779756.94
Minus: non-operating expenses 12316804.97 21281506.27
IV. Total profit (total loss marked with "-") 774823965.24 528684772.94
Minus: income tax expense 102939389.30 16736134.41
V. Net profit (net loss marked with "-") 671884575.94 511948638.53
(I) Classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") 671884575.94 511948638.53
2. Net profit of discontinued operation (net loss marked with "-")
(II) Classification according to ownership
1. Net income attributable to the shareholders of the parent company 671442652.91 515513995.18
2. Profits and losses of minority shareholders 441923.03 -3565356.65
VI. Net after-tax amount of other comprehensive income -44208933.39 20411651.76
169Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Net after-tax amount of other comprehensive income attributable to the owner
-44208933.3920411651.76
of the parent company
(I) Other comprehensive income that cannot be reclassified into profits or
2864869.500.00
losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to profits or
losses under equity method
3. Changes in fair value of other equity instrument investment 2864869.50 0.00
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into profits and losses -47073802.89 20411651.76
1. Other comprehensive income that can be transferred into profits or
losses under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provisions for credit impairment of other debt investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency financial statements -47073802.89 20411651.76
7. Others
Net after-tax amount of other comprehensive income attributed to the minority
of shareholders
VII. Total comprehensive income 627675642.55 532360290.29
Total consolidated income attributable to the owners of the parent company 627233719.52 535925646.94
Total consolidated income attributable to minority shareholders 441923.03 -3565356.65
VIII. Earnings per share
(I) Basic earnings per share 0.55 0.41
(II) Diluted earnings per share 0.55 0.41
In case of business consolidation under the same control in the current period the net profit realized by the combined
party before the consolidation is RMB 0.00 and the net profit realized by the combined party in the previous period
is RMB 0.00.Legal Representative: Wu Yongqiang Accounting Head: Luo Muchen Accounting Department Head: Luo
Muchen
4. Parent company income statement
Unit: RMB
Items In 2024 In 2023
I. Operating income 5738376664.57 4556604247.89
Minus: operating cost 4563890274.95 3771059615.43
Taxes and surcharges 21437728.60 12815647.25
Selling expenses 259782575.43 203292991.91
170Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Overheads 200460896.17 208265939.19
R&D expenses 407631380.87 354899847.25
Finance expenses -45239671.09 -28182271.87
Including: interest expenses 15821584.83 18633033.66
Interest income 15552814.78 17407950.27
Plus: other income 19335173.15 13658581.00
Investment income (loss marked with "-") -1408045.63 -13309330.46
Including: income from investment in associated enterprises and joint
-13252.87-47053.31
ventures
Derecognized gains from financial assets measured at
amortized cost (loss marked with "-")
Net exposure hedging income (loss marked with "-")
Loss from changes in fair value (loss marked with "-") -345711.00 5513413.26
Credit impairment losses (loss marked with "-") -9752828.03 5038682.32
Asset impairment loss (loss marked with "-") -25067799.74 -4422995.84
Assets disposal revenue (loss marked with "-") -34440.81 90933.75
II. Operating profit (loss marked with "-") 313139827.58 41021762.76
Plus: non-operating income 939545.20 656080.49
Minus: non-operating expenses 1589881.99 9348080.91
III. Total profit (total loss marked with "-") 312489490.79 32329762.34
Minus: income tax expense 23365881.98 -14497662.19
IV. Net profit (net loss marked with "-") 289123608.81 46827424.53
(I) Net profit from continuing operation (net loss marked with "-") 289123608.81 46827424.53
(II) Net profit from termination of operation (net loss marked with "-")
V. Net after-tax amount of other comprehensive income
(I) Other comprehensive income that cannot be reclassified into profits or
losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to profits or
losses under equity method
3. Changes in fair value of other equity instrument investment
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into profits and losses
1. Other comprehensive income that can be transferred into profits or
losses under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provisions for credit impairment of other debt investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency financial statements
7. Others
171Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
VI. Total comprehensive income 289123608.81 46827424.53
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Items In 2024 In 2023
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 10027635954.13 9179548776.38
Net increase in deposits with other banks
Net increase in borrowing from the central bank
Net increase in funds borrowed from other financial institutions
Cash from receipt of original insurance contract premiums
Receipt of net cash for reinsurance operations
Net increase in savings and investment funds of the insured
Cash from receipt of interest service charges and commissions
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received for acting trading securities
Refund of tax and levies 525526705.58 434533452.30
Other cash received related to operating activities 110235242.98 128571908.33
Subtotal of cash inflow from operating activities 10663397902.69 9742654137.01
Cash paid for purchasing goods and accepting labor services 7037594518.83 6199684459.33
Net increase in loans and advances of clients
Net increase in deposits with central banks and interbanks
Cash in compensation funds paid for the original insurance contract
Net increase in lending funds
Cash for payment of interest service charges and commissions
Cash for payment of policy dividends
Cash paid to and for employees 1790998914.62 1524104853.03
Tax payments 308701013.72 224407012.95
Other cash paid in connection with operating activities 434152737.27 328509312.52
Subtotal of cash outflow from operating activities 9571447184.44 8276705637.83
Net cash flow from operating activities 1091950718.25 1465948499.18
II. Cash flow from investing activities:
Cash received from investment recovery 768564670.00 21000265.52
Cash received as return on an investment 12332161.27 10790963.35
Net cash recouped from disposal of fixed assets intangible assets and other
6565626.237452254.91
long-term assets
172Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities 2235246.30 0.00
Subtotal of cash inflow from investment activities 789697703.80 39243483.78
Cash paid for the purchase and construction of fixed assets intangible assets
748083364.73796916014.71
and other long-term assets
Cash paid for investment 922446272.51 380124141.64
Net increase in pledged loans
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 924300.00 10589916.81
Subtotal of cash outflow from investment activities 1671453937.24 1187630073.16
Net cash flow from investment activities -881756233.44 -1148386589.38
III. Cash flow from financing activities:
Cash received from absorbing investment
Including: cash received by subsidiaries' absorption of minority shareholders'
investment
Cash received from loan 1124511608.03 975297372.48
Other cash received relating to financing activities 6009728.26 10045619.78
Subtotal of cash inflow from financing activities 1130521336.29 985342992.26
Cash paid for repayments of debts 881199244.99 832250000.01
Cash paid to distribute dividends profits or pay interest 117906350.13 104646124.41
Including: dividends and profits paid by subsidiaries to minority shareholders
Other cash paid related to financing activities 311536595.48 281629710.21
Subtotal of cash outflow from financing activities 1310642190.60 1218525834.63
Net cash flow from financing activities -180120854.31 -233182842.37
IV. Impact of exchange rate fluctuations on cash and cash equivalents 71535198.47 36082945.10
V. Net increase in cash and cash equivalents 101608828.97 120462012.53
Plus: balance of cash and cash equivalents at the beginning of the period 1494743705.76 1374281693.23
VI. Balance of cash and cash equivalents at the end of the period 1596352534.73 1494743705.76
6. Cash flow statement of the parent company
Unit: RMB
Items In 2024 In 2023
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 4793886475.54 5146532349.10
Refund of tax and levies 230485466.78 215907016.90
Other cash received related to operating activities 2460306547.03 1924186614.04
Subtotal of cash inflow from operating activities 7484678489.35 7286625980.04
Cash paid for purchasing goods and accepting labor services 3142647984.46 4086653994.37
Cash paid to and for employees 617078387.87 580575688.20
Tax payments 32363399.12 24471056.32
Other cash paid in connection with operating activities 2741016182.55 1993324411.74
173Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Subtotal of cash outflow from operating activities 6533105954.00 6685025150.63
Net cash flow from operating activities 951572535.35 601600829.41
II. Cash flow from investing activities:
Cash received from investment recovery 300000000.00 0.00
Cash received as return on an investment 3948764.24 6844619.62
Net cash recouped from disposal of fixed assets intangible assets and other
2209115.90315914.28
long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities 2235246.30 0.00
Subtotal of cash inflow from investment activities 308393126.44 7160533.90
Cash paid for the purchase and construction of fixed assets intangible assets
169407576.30125616454.72
and other long-term assets
Cash paid for investment 436555100.00 205000000.00
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 543000.00 43224116.81
Subtotal of cash outflow from investment activities 606505676.30 373840571.53
Net cash flow from investment activities -298112549.86 -366680037.63
III. Cash flow from financing activities:
Cash received from absorbing investment
Cash received from loan 161000000.00 230000000.00
Other cash received relating to financing activities 4508032.15
Subtotal of cash inflow from financing activities 161000000.00 234508032.15
Cash paid for repayments of debts 530250000.00 30010000.00
Cash paid to distribute dividends profits or pay interest 91801225.33 87648051.70
Other cash paid related to financing activities 107629519.50 229250301.23
Subtotal of cash outflow from financing activities 729680744.83 346908352.93
Net cash flow from financing activities -568680744.83 -112400320.78
IV. Impact of exchange rate fluctuations on cash and cash equivalents 39489370.97 13051509.87
V. Net increase in cash and cash equivalents 124268611.63 135571980.87
Plus: balance of cash and cash equivalents at the beginning of the period 530273423.70 394701442.83
VI. Balance of cash and cash equivalents at the end of the period 654542035.33 530273423.70
174Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
In 2024
Owner's equity attributable to the parent company
Other equity
instruments
Items Speci Gener Minority Total owners'
Perpet Minus: Other Ot
Pref Capital al Surplus al risk
shareholders'
Share capital ual treasury comprehensi Retained earnings he Subtotal equity
equity
erred Othe reserves reserv reserves provi
capital shares ve income rs
shar rs es sion
securit
es
ies
I. Ending balance of last
1246834988.002212629919.51112426101.2411932029.41219446936.592706499696.236284917468.5084680252.946369597721.44
year
Plus: changes in
accounting policies
Early error
correction
Others
II. Beginning balance of
1246834988.002212629919.51112426101.2411932029.41219446936.592706499696.236284917468.5084680252.946369597721.44
the current year
III. Amount of changes in
increase or decrease in the
-123051908.3443268834.94-44208933.3928912360.88569027598.75387410282.96-84627749.12302782533.84
current period (decrease
marked with "-")
(I) Total comprehensive
-44208933.39671442652.91627233719.52441923.03627675642.55
income
(II) Capital invested and
6685939.5195703328.59-89017389.08-89017389.08
reduced by owners
1. Ordinary shares
175Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
invested by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in 9380913.16 9380913.16 9380913.16
owner's equity
4. Others -2694973.65 95703328.59 -98398302.24 -98398302.24
(III) Profit distribution 28912360.88 -102415054.16 -73502693.28 -73502693.28
1. Withdrawal of surplus
28912360.88-28912360.88
reserve
2. Withdrawal of general
risk provision
3. Distribution to owners
-73502693.28-73502693.28-73502693.28
(or shareholders)
4. Others
(IV) Internal carryover of
-49739520.00-52434493.652694973.652694973.65
owner's equity
1. Conversion of surplus
reserves to additional
capital (or share capital)
2. Conversion of surplus
reserves to additional
capital (or share capital)
3. Surplus public reserve
to compensate losses
4. Change of defined
benefit plans carried
forward to retained
earnings
5. Other comprehensive
income carried forward
into retained earnings
6. Others -49739520.00 -52434493.65 2694973.65 2694973.65
176Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(V) Special reserves
1. Amount withdrawn in
the current period
2. Amount used in the
current period
(VI) Others -79998327.85 0.00 -79998327.85 -85069672.15 -165068000.00
IV. Ending balance of the
1246834988.002089578011.17155694936.18-32276903.98248359297.473275527294.986672327751.4652503.826672380255.28
current year
Amount in the previous period
Unit: RMB
In 2023
Owner's equity attributable to the parent company
Other equity
instruments
Pr Gen
Items Spec Minority Perp Other eral Ot Total owners' efe Minus: treasury ial Surplus Retained shareholders'
Share capital etual rre Ot Capital reserves comprehensiv risk he Subtotal
equity
capit shares reser reserves earnings
equity
d he e income prov rs
al ves
sh rs ision
secur
are
ities
s
I. Ending balance of last
1269535372.002266142198.44284257854.91-8479622.35214764194.142271529693.825729233981.1493392211.975822626193.11
year
Plus: changes in
accounting policies
Early error
correction
Others
II. Beginning balance of
1269535372.002266142198.44284257854.91-8479622.35214764194.142271529693.825729233981.1493392211.975822626193.11
the current year
177Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. Amount of changes in
increase or decrease in the
-22700384.00-53512278.93-171831753.6720411651.764682742.45434970002.41555683487.36-8711959.03546971528.33
current period (decrease
marked with "-")
(I) Total comprehensive
20411651.76515513995.18535925646.94-3565356.65532360290.29
income
(II) Capital invested and
-22700384.00-53356916.24-171831753.6795774453.432498034.9398272488.36
reduced by owners
1. Ordinary shares
invested by owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment included in 85569433.84 85569433.84 2498034.93 88067468.77
owner's equity
4. Others -22700384.00 -138926350.08 -171831753.67 10205019.59 10205019.59
(III) Profit distribution 4682742.45 -80543992.77 -75861250.32 -75861250.32
1. Withdrawal of surplus
4682742.45-4682742.45
reserve
2. Withdrawal of general
risk provision
3. Distribution to owners
-75861250.32-75861250.320.00-75861250.32
(or shareholders)
4. Others
(IV) Internal carryover of
owner's equity
1. Conversion of surplus
reserves to additional
capital (or share capital)
2. Conversion of surplus
reserves to additional
capital (or share capital)
178Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3. Surplus public reserve
to compensate losses
4. Change of defined
benefit plans carried
forward to retained
earnings
5. Other comprehensive
income carried forward
into retained earnings
6. Others
(V) Special reserves
1. Amount withdrawn in
the current period
2. Amount used in the
current period
(VI) Others -155362.69 -155362.69 -7644637.31 -7800000.00
IV. Ending balance of the
1246834988.002212629919.51112426101.2411932029.41219446936.592706499696.236284917468.5084680252.946369597721.44
current year
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
In 2024
Other equity instruments
Items Other
Perpetual Minus: Special Surplus Retained Total owners' Share capital Preferred Capital reserves comprehensive Others
capital Others treasury shares reserves reserves earnings equity
shares income
securities
I. Ending
balance of last 1246834988.00 2254729914.19 112426101.24 0.00 0.00 219418418.13 1222980822.83 4831538041.91
year
179Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Plus:
changes in
accounting
policies
Early
error correction
Others
II. Beginning
balance of the 1246834988.00 2254729914.19 112426101.24 0.00 0.00 219418418.13 1222980822.83 4831538041.91
current year
III. Amount of
changes in
increase or
decrease in the
-43053580.4943268834.940.000.0028912360.88186708554.65129298500.10
current period
(decrease
marked with "-
")
(I) Total
comprehensive 289123608.81 289123608.81
income
(II) Capital
invested and
6685939.5195703328.59-89017389.08
reduced by
owners
1. Ordinary
shares invested
by owners
2. Capital
contributed by
holders of other
equity
instruments
180Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3. Amount of
share-based
payment 9380913.16 9380913.16
included in
owner's equity
4. Others -2694973.65 95703328.59 -98398302.24
(III) Profit
28912360.88-102415054.16-73502693.28
distribution
1. Withdrawal
of surplus 28912360.88 -28912360.88
reserve
2. Distribution
to owners (or -73502693.28 -73502693.28
shareholders)
3. Others 0.00
(IV) Internal
carryover of -49739520.00 -52434493.65 2694973.65
owner's equity
1. Conversion
of surplus
reserves to
additional
capital (or share
capital)
2. Conversion
of surplus
reserves to
additional
capital (or share
capital)
3. Surplus
public reserve to
compensate
losses
181Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
4. Change of
defined benefit
plans carried
forward to
retained
earnings
5. Other
comprehensive
income carried
forward into
retained
earnings
6. Others -49739520.00 -52434493.65 2694973.65
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount used
in the current
period
(VI) Others
IV. Ending
balance of the 1246834988.00 2211676333.70 155694936.18 248330779.01 1409689377.48 4960836542.01
current year
Amount in the previous period
Unit: RMB
In 2023
Other equity instruments
Items Other
Perpetual Minus: treasury Special Surplus Total owners' Share capital Preferred Capital reserves comprehensive Retained earnings Others
capital Others shares reserves reserves equity
shares income
securities
182Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
I. Ending
balance of last 1269535372.00 2314366149.44 284257854.91 214735675.68 1256697391.07 4771076733.28
year
Plus:
changes in
accounting
policies
Early
error correction
Others
II. Beginning
balance of the 1269535372.00 2314366149.44 284257854.91 214735675.68 1256697391.07 4771076733.28
current year
III. Amount of
changes in
increase or
decrease in the
-22700384.00-59636235.25-171831753.674682742.45-33716568.2460461308.63
current period
(decrease
marked with "-
")
(I) Total
comprehensive 46827424.53 46827424.53
income
(II) Capital
invested and
-22700384.00-59636235.25-171831753.6789495134.42
reduced by
owners
1. Ordinary
shares invested
by owners
2. Capital
contributed by
holders of other
equity
instruments
183Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3. Amount of
share-based
payment 79290114.83 79290114.83
included in
owner's equity
4. Others -22700384.00 0.00 0.00 0.00 -138926350.08 -171831753.67 10205019.59
(III) Profit
4682742.45-80543992.77-75861250.32
distribution
1. Withdrawal
of surplus 4682742.45 -4682742.45 0.00
reserve
2. Distribution
to owners (or -75861250.32 -75861250.32
shareholders)
3. Others
(IV) Internal
carryover of
owner's equity
1. Conversion
of surplus
reserves to
additional
capital (or share
capital)
2. Conversion
of surplus
reserves to
additional
capital (or share
capital)
3. Surplus
public reserve to
compensate
losses
4. Change of
defined benefit
184Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
plans carried
forward to
retained
earnings
5. Other
comprehensive
income carried
forward into
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount used
in the current
period
(VI) Others
IV. Ending
balance of the 1246834988.00 2254729914.19 112426101.24 0.00 0.00 219418418.13 1222980822.83 4831538041.91
current year
185Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. Basic information of the Company
Shenzhen Topband Co. Ltd. (hereinafter referred to as "the Company") formerly known as Shenzhen Topband
Electronic Equipment Co. Ltd. is a limited liability company approved by Shenzhen Administration for Industry
and Commerce on February 9 1996. It has obtained the Business License of Enterprise Legal Person with the
registration number of 19241377-3. On January 10 2001 upon approval the name of Shenzhen Topband Electronic
Equipment Co. Ltd. was changed to Shenzhen Topband Electronic Technology Co. Ltd. On July 15 2002 with
the approval of Shenzhen Municipal People's Government by issuing the Reply to the Approval of the
Reorganization and Establishment of Shenzhen Topband Electronic Technology Co. Ltd. (SFG [2002] No. 24)
five shareholders acted as sponsors to reorganize Shenzhen Topband Electronic Technology Co. Ltd. into a joint
stock limited company. On June 26 2007 with the approval of the Notice on Approving the Initial Public Offering
of Shenzhen Topband Electronic Technology Co. Ltd. (ZJH No. 2007135) issued by the China Securities
Regulatory Commission the Company issued shares to the public and was listed on Shenzhen Stock Exchange with
the stock code of 002139.In September 2009 the Company's name was changed to Shenzhen Topband Co. Ltd.The Company's registered address is F1 Topband Industrial Park Phase II Keji Second Road Tangtou
Community Shiyan Sub-district Bao'an District Shenzhen. The unified social credit code of the business license
is 91440300192413773Q. The legal representative of the Company is Wu Yongqiang. As of December 31 2024
the share capital is RMB 1246834988.00.The Company's main business activities: The Company is a business with rich technical experience and product
solutions in the intelligent control industry. With the core technology system of "four electrics and one network"
(electric control motor battery power and IoT) the Company is specialized in developing manufacturing and
selling components and systems. The components mainly include intelligent controllers high efficiency motors
battery packs and power products. The systems mainly include AC/DC charging piles integrated industrial and
commercial energy storage systems integrated household energy storage systems and AI systems. The products are
widely used in three major fields: power tools and home appliances digital energy and intelligent vehicles and
robots. We offer innovative efficient and reliable customized services to global customers and at the same time
bring green intelligent and innovative products to consumers.Date of approval for submission of financial statement: The financial statements have been approved for
submission by the Company's Board of Directors on March 26 2025.
186Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
IV. Preparation basis of the financial statement
1. Basis of preparation
On a going concern basis the Company recognizes and measures actual transactions and events in accordance
with the Accounting Standards for Business Enterprises and their application guidelines and interpretations of the
Standards and prepares its financial statements accordingly. In addition the Company also disclosures relevant
financial information in accordance with the Compilation Rules No. 15 for Information Disclosure by Companies
Offering Securities to the Public - General Provisions on Financial Reports (2023 Revision) issued by CSRC.
2. Continuation
The Company has evaluated its ability to continue as a going concern in the 12 months from the end of the
Reporting Period and has not identified matters affecting the Company's ability to continue as a going concern. It is
reasonable for the Company to prepare its financial statements on a going concern basis.V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates reminders:
The following important accounting policies and estimates of the Company were determined in accordance
with the Accounting Standards for Business Enterprises. The businesses not mentioned are executed in accordance
with the relevant accounting policies in the Accounting Standards for Business Enterprises.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of Accounting Standards for
Business Enterprises and truly and completely reflect the Company's financial position operating results changes
in owners' equity and cash flows.
2. Accounting period
The fiscal year of the Company begins on January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
The normal operation cycle of the Company is one year.
187Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
4. Recording currency
The recording currency of the Company is RMB and the overseas branches and subsidiaries may determine
their own recording currencies according to the currency of the main economic environment in which they operate.
5. Method for determining materiality criteria and basis for selection
□ Applicable □ Not applicable
Items Materiality criteria
Accounts receivable with major single The ending balance of individual accounts receivable and other
provision for bad debts receivables is greater than RMB 1 million
Recovery or reversal of bad debt The amount of single recovery or reversal is greater than RMB 1
provisions for material receivables million
Write off of material receivables The amount of single write-off is greater than RMB 1 million
Material contract liabilities aged over 1 The amount of a single contract liability aged over 1 year is greater
year than RMB 5 million
The amount of a single accounts payable/other payable aged over 1
Material payables and other payables
year is greater than RMB 5 million
Important projects under construction The budget of a single project is over RMB 100 million
Major non-wholly-owned subsidiaries The minority equity is more than RMB 50 million
6. Accounting treatment for consolidation under the same control and under different control
(1) Business merger under common control
The assets and liabilities acquired by the Company in the business merger are measured at the date of the
merger at the book value of the merged party in the consolidated financial statements of the ultimate controlling
party. If the accounting policies and accounting periods adopted by the merged party and the Company before the
business merger are different the accounting policies and accounting periods shall be unified based on the
materiality principle that is the book values of the assets and liabilities of the merged party shall be adjusted in
accordance with the accounting policies and accounting periods of the Company. In case of a difference between
the book value of the net assets acquired by the Company in the business merger and the book value of the
consideration paid the capital reserve (capital premium or equity premium) shall be adjusted first. If the balance of
the capital reserve (capital premium or equity premium) is insufficient for writing down the surplus reserve and
undistributed profits shall be written down successively.See 7 (5) of Section X Financial Report for the accounting treatment of business mergers under common
control through stepwise transactions.
(2) Business merger under different control
188Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
The identifiable assets and liabilities of the acquiree acquired by the Company in the business merger are
measured at their fair value at the date of acquisition. If the accounting policies and accounting periods adopted by
the acquiree and the Company before the business merger are different the accounting policies and accounting
periods shall be unified based on the materiality principle that is the book values of the assets and liabilities of the
acquiree shall be adjusted in accordance with the accounting policies and accounting periods of the Company. If
the merger cost of the Company on the acquisition date is larger than the fair value of the identifiable assets and
liabilities acquired in the business merger the difference is recognized as goodwill; if the merger cost is less than
the fair value of the identifiable assets and liabilities acquired in the business merger the merger cost and the fair
value of the acquiree's identifiable assets and liabilities acquired in the business merger shall be reviewed first and
if the merger cost is still less than the fair value of the acquired acquiree's identifiable assets and liabilities after the
review the difference is recognized as a profit or loss for the period of the merger.See 7 (5) of Section X Financial Report for the accounting treatment of business mergers under different control
through stepwise transactions.
(3) Treatment of relevant transaction costs in business merger
Intermediary fees such as audit legal service evaluation and consulting fees and other related management
expenses incurred are credited to the current profit or loss when incurred. Transaction costs of equity securities or
debt securities issued as merger consideration are credited to the initial amount recognized for the equity securities
or debt securities.
7. Criteria for determining control and methods for preparing consolidated financial statements
(1) Judging criteria of control and determination of merger scope
Control means that the Company has power over the investee enjoys variable returns by participating in related
activities of the investee and has the ability to use its power over the investee to influence the amount of returns.The definition of control includes three basic elements: firstly means the power the investor possesses over the
investee; secondly variable returns enjoyed by participating in related activities of the investee; thirdly the ability
to use its power over the investee to influence the amount of returns. When an investment of the Company in an
investee has the above three elements it means the Company is able to control the investee.The consolidated scope of the consolidated financial statements is determined on a control basis and includes
not only subsidiaries determined based on voting rights (or similar voting rights) themselves or in combination with
189Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
other arrangements but also structured entities determined on the basis of one or more contractual arrangements.A subsidiary refers to an entity controlled by the Company (including enterprise the severable part of investee
the structured entity controlled by enterprise etc.) and a structured entity refers to an entity designed without voting
rights or similar rights as a decisive factor in determining its controlling party (note: sometimes referred to as a
special purpose entity).
(2) Compilation methods of consolidated financial statements
The Company prepares consolidated financial statements based on its own and its subsidiaries' financial
statements and other relevant information.The consolidated financial statements are prepared by the Company with the entire enterprise group as one
accounting entity in accordance with the recognition measurement and presentation requirements of the relevant
accounting standards for business enterprises and based on uniform accounting policies and accounting periods to
reflect the overall financial position operating results and cash flows of the enterprise group.* Consolidate the assets liabilities owner's equity revenues expenses and cash flows of the parent company
and its subsidiaries.* Offset long-term equity investments of the parent company in its subsidiaries against the share of the parent
company in subsidiaries' owner's equity.* Offset the impact of internal transactions between the parent company and its subsidiaries and between
subsidiaries. Where an internal transaction indicates an impairment loss of the relevant asset the loss shall be fully
recognized.* Adjust special transactions from the perspective of the enterprise group.
(3) Treatment of increase/decrease of subsidiaries during Reporting Period
* Increase of subsidiaries or businesses
A. Subsidiaries or businesses increased by business merger under common control
(a) When preparing the consolidated balance sheet adjust the opening balance of the consolidated balance
sheet and adjust the relevant items in the comparative statement as if the reporting entity after the merger had been
in existence since the point at which control by the ultimate controlling party began.(b) When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the beginning of the period in which the business merger occurs to the end of the Reporting
190Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Period in the consolidated income statement and adjust the relevant items in the comparative statement as if the
reporting entity after the merger had been in existence since the point at which control by the ultimate controlling
party began.(c) When preparing the consolidated cash flow statement include the cash flows of the subsidiary and from
the beginning of the period in which the business merger occurs to the end of the Reporting Period in the
consolidated cash flow statement and adjust the relevant items in the comparative statement as if the reporting
entity after the merger had been in existence since the point at which control by the ultimate controlling party began.B. Subsidiaries or businesses increased by business merger under different control
(a) No adjustment is made to the opening balance of the consolidated balance sheet when preparing it.(b) When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the date of acquisition to the end of the Reporting Period in the consolidated income statement.(c) When preparing the consolidated cash flow statement include the cash flows of the subsidiary from the
date of acquisition to the end of the Reporting Period in the consolidated cash flow statement.* Disposal of subsidiaries or businesses
A. No adjustment is made to the opening balance of the consolidated balance sheet when preparing it.B. When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the beginning of the operating period to the date of disposal in the consolidated income
statement.C. When preparing the consolidated cash flow statement include the cash flows of the subsidiary and from the
beginning of the operating period to the date of disposal in the consolidated cash flow statement.
(4) Special considerations in consolidated offset
* Long-term equity investments of the Company held by subsidiaries shall be treated as treasury shares of the
Company and presented as "Less: treasury shares" under the Owners' Equity item in the consolidated balance sheet
as a deduction from the owners' equity.For long-term equity investments mutually held by subsidiaries the long-term equity investments shall be
mutually offset against the shares of the corresponding owner's equity of the subsidiary in accordance with the
method of offsetting the Company's equity investments in subsidiaries.* The items of "special reserve" and "general risk provision" are not paid-in capital (or share capital) or capital
191Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
reserve and are different from retained earnings and undistributed profits. After the offset of long-term equity
investment against owners' equity of subsidiaries the two items shall be restored according to the share attributable
to the owner of the parent company.* The Company recognizes deferred income tax assets or liabilities in the consolidated balance sheet and
adjusts the income tax expense in the consolidated income statement if there is a temporary difference between the
book value of the assets or liabilities in the consolidated balance sheet and the tax basis of the taxable entity
concerned due to the offset of unrealized gains and losses on internal sales except deferred income taxes related to
transactions or matters directly credited to owners' equity and related to business merger.* Unrealized gains or losses on internal transactions arising from the sale of assets by the Company to a
subsidiary shall be fully offset against the "net profit attributable to the owner of the parent company". Unrealized
gains and losses on internal transactions arising from the sale of assets by a subsidiary to the Company shall be
offset between "net profit attributable to the owner of the parent company" and "profit or loss of minority
shareholders" in accordance with the proportion of the Company's distribution to the subsidiary. Unrealized gains
and losses on internal transactions arising from the sale of assets between subsidiaries shall be offset between "net
profit attributable to the owner of the parent company" and "profit or loss of minority shareholders" in accordance
with the proportion of the Company's distribution to the selling subsidiary.* Where the loss shared by the minority shareholders of a subsidiary in the current period exceeds the minority
shareholders' share in the owner's equity of the subsidiary at the beginning of the period the balance shall still be
written down under the minority equity.
(5) Accounting treatment of special transactions
* Purchase of minority equity
When the Company purchases shares in subsidiaries owned by minority shareholders in individual financial
statements the investment cost of the newly acquired long-term equity investment for the purchase of minority
shares is measured at the fair value of the consideration paid. In the consolidated financial statements the capital
reserve (capital premium or equity premium) shall be adjusted for the difference between the newly acquired long-
term equity investment due to the purchase of minority shares and the net asset share of the subsidiary that has been
continuously calculated since the acquisition date or the merger date according to the proportion of newly acquired
shares. If the capital reserve is insufficient for writing off the surplus reserve and undistributed profit shall be
written off successively.
192Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
* Acquiring control of a subsidiary by steps through multiple transactions
A. Business merger under common control realized by steps through multiple transactions
At the merger date the Company determines the initial investment cost of long-term equity investment in
individual financial statements based on the share of the net assets of the subsidiary to be enjoyed after the merger
in the book value of the consolidated financial statements of the ultimate controlling party; the capital reserve
(capital premium or equity premium) shall be adjusted for the difference between the initial investment cost and the
book value of the long-term equity investment before reaching the merger plus the book value of the newly paid
consideration for further shares acquired on the merger date. If the capital reserve (capital premium or equity
premium) is insufficient for writing off the surplus reserve and undistributed profit shall be written off successively.In the consolidated financial statements the assets and liabilities of the mergee acquired by the merging party
in the merger are measured at the book value in the consolidated financial statements of the ultimate controlling
party at the date of the merger except for adjustments due to different accounting policies and accounting periods;
the capital reserve (equity premium/capital premium) shall be adjusted for the difference between the book value of
the investment held before the merger plus the book value of the newly paid consideration on the merger date and
the book value of the net assets acquired in the merger. If the capital reserve is insufficient for writing off the
retained earnings shall be adjusted.For equity investments held by the merging party prior to the acquisition of control of the mergee changes in
the gains and losses other comprehensive income and other owners' equity that have been recognized between the
merger date and the date of acquisition of the original equity or the date on which the merging party and the mergee
are ultimately under common control whichever is later shall be respectively deducted against the opening retained
earnings or current profit or loss of the comparative statement period.B. Business merger under different control realized by steps through multiple transactions
In individual financial statements the sum of the book values of the long-term equity investments originally
held plus the cost of the new investment on the merger date is taken as the initial investment cost of the long-term
equity investment on the merger date.In the consolidated financial statements the acquiree's equity held prior to the acquisition date shall be
remeasured at the fair value of the equity held prior to the acquisition date and if the acquiree's equity held prior to
the acquisition date is designated as a financial asset measured at fair value and its changes are credited to other
comprehensive income the difference between the fair value and the book value shall be credited to retained
193Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
earnings and the cumulative change in fair value of the equity originally credited to other comprehensive income
shall be carried over to retained earnings; if the acquiree's equity held before the acquisition date is regarded as a
financial asset measured at fair value and its changes are credited to the current profit or loss of financial assets or
long-term equity investment accounted for by the equity method the difference between the fair value and the book
value shall be credited to the current investment income; if the acquiree's equity held prior to the acquisition date
involves changes in other comprehensive income accounted for by the equity method and other owners' equity
accounted for by the equity method other than net profit or loss other comprehensive income and profit distribution
other related comprehensive income shall be accounted for on the same basis as the investee's direct disposal of the
relevant assets or liabilities on the acquisition date and other related changes in the owners' equity shall be changed
over to investment income of the period of the acquisition date.* Disposal of long-term equity investments in subsidiaries by the Company without losing control
If the parent company disposes part of the long-term equity investment in a subsidiary without losing control
the capital reserve (capital premium or equity premium) shall be adjusted for the difference between the disposal
price and the share of corresponding net assets continuously calculated by the subsidiary in relation to the long-term
equity investment disposed since the acquisition date or the merger date and if the capital reserve is insufficient for
writing off the retained earnings shall be adjusted.* Disposal of long-term equity investments in subsidiaries by the Company with control lost
A. Disposal of single transaction
If the Company loses the control of the investee due to the disposal of part of the equity investment or other
reasons the remaining equity shall be remeasured at the fair value on the date of loss of control when preparing the
consolidated financial statements. The sum of the consideration obtained from the equity disposal and the fair value
of the remaining equity minus the difference between the share of the original subsidiary's net assets that shall have
been continuously calculated from the acquisition date or the merger date based on the original shareholding ratio
and the sum of goodwill shall be credited to the investment income of the period in which the control is lost.Other comprehensive income related to the equity investment in the original subsidiary shall be accounted for
on the same basis as the direct disposal of related assets or liabilities by the original subsidiary at the time of loss of
control and other changes in owner's equity related to the original subsidiary accounted for with the equity method
are changed over to the current profit or loss at the time of loss of control.B. Disposal of multiple transactions by steps
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In the consolidated financial statements whether a by-step transaction is a "package transaction" shall be
determined first.If the by-step transaction is not a "package transaction" in individual financial statements the transactions
before the loss of control of the subsidiary shall be carried forward to the book value of the long-term equity
investment corresponding to each disposal of equity and the difference between the proceeds and the book value
of the disposed long-term equity investment shall be credited to the current investment income; in the consolidated
financial statements the treatment shall be made in accordance with the relevant provisions of "Disposal of long-
term equity investment in subsidiaries by the parent company without losing control".If the by-step transaction is a "package transaction" each transaction shall be accounted for as one transaction
in which the subsidiary is disposed of with control lost; in individual financial statements the difference between
the disposal price before the loss of control and the book value of the long-term equity investment corresponding to
the disposed equity shall be first recognized as other comprehensive income and then changed over to the current
profit or loss when the control is lost. In the consolidated financial statements for each transaction prior to the loss
of control the difference between the disposal price and the share of the subsidiary's entitled net assets
corresponding to the investment disposed of shall be recognized as other comprehensive income and changed over
to the profit or loss of the period in which the control is lost.Multiple transactions are usually accounted for as "package transactions" if the terms conditions and economic
impact of each transaction meet one or more of the following conditions:
(a) These transactions are entered into concurrently or with consideration of their effects on each other.(b) A complete business result can be realized only with these transactions as a whole.(c) The occurrence of a transaction is dependent on the occurrence of at least another one.(d) One transaction is not economic when it is considered individually but is economic when considered
together with other transactions.* Dilution of the proportion of equity owned by the parent company due to capital increase by minority
shareholders of a subsidiary
When other shareholders (minority shareholders) of a subsidiary increase the capital the equity proportion of
the parent company in the subsidiary would be diluted. In the consolidated financial statements the share in the net
assets of the subsidiary before the capital increase is calculated according to the equity proportion of the parent
company before the capital increase and the capital reserve (capital premium or equity premium) shall be adjusted
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for the difference between this share and the share in the net assets of the subsidiary after the capital increase
calculated according to the shareholding ratio of the parent company and if the capital reserve (capital premium or
equity premium) is insufficient for writing off the retained earnings shall be adjusted.
8. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint venture
arrangement has the following features: (1) all parties are bound by the arrangement; (2) two or more parties jointly
control the arrangement. No single party can control the arrangement solely and any party with joint control over
the arrangement can prevent other parties or a combination of party alliance from controlling the arrangement alone.Joint control refers to the common control of an arrangement in accordance with relevant agreements and the
activities related to the arrangement must be agreed upon by the parties holding control right before the decision
can be made.Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venture
arrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the relevant
liabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights only to the
net assets of the arrangement.
2. Accounting treatment for joint venture arrangement
Parties in joint operation shall recognize the following items related to their share of interests in joint operation
and perform accounting treatment in accordance with the relevant provisions of the Accounting Standards for
Business Enterprises: (1) recognize the assets held separately and those held jointly as per their share; (2) recognize
the liabilities assumed separately and those assumed jointly as per their share; (3) recognize the income generated
from the sale of its share of joint operation output; (4) recognize the income from the sale of the output of the joint
operation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operation
as per its share.The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment.
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9. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments with short term (generally due within three months from the date of purchase) strong liquidity easy to
convert into known amount of cash and low risk of value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Method of determining the conversion rate in foreign currency transactions
In the initial recognition of foreign currency transactions the Company adopts the spot exchange rate on the
occurrence date of the transaction or an exchange rate determined in accordance with systematic and reasonable
methods which is approximate to the spot exchange rate on the occurrence date of the transaction (hereinafter
referred to as the approximate exchange rate of the spot rate) to convert into the recording currency.
(2) Translation method of monetary items in foreign currencies at the balance sheet date
At the balance sheet date the spot exchange rate of that day is used for monetary items in foreign currencies.Any exchange difference arising from the difference between the spot rate at the balance sheet date and that at the
initial recognition or the previous balance sheet date is credited to the current profit or loss. For foreign-currency
monetary items measured with historical costs the spot exchange rate at the date of the transaction is still used; for
inventories measured with the lower of costs or net realizable value when an inventory is purchased in a foreign
currency and the net realizable value of the inventory at the balance sheet date is reflected in a foreign currency the
net realizable value of the inventory is first converted into an amount in the recording currency at the spot exchange
rate at the balance sheet date and then compared with the cost of the inventory reflected in the recording currency
to determine the ending value of the inventory; for foreign currency non-monetary items measured at fair value the
spot exchange rate on the date of fair value determination is used for translation; for financial assets measured at
fair value and whose changes are credited to the current profit or loss the difference between the amount in the
recording currency after translation and the amount in the original recording currency is credited to the current profit
or loss; for investments in non-trading equity instruments designated to be measured at fair value and whose changes
are credited to other comprehensive income the difference between the amount in the recording currency after
translation and the amount in the original recording currency is credited to other comprehensive income.
(3) Translation method of financial statements in a foreign currency
Before translating the financial statements of the enterprise's overseas operations the accounting period and
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accounting policies of the overseas operations shall be adjusted to make them consistent with those of the enterprise
financial statements in the corresponding currency (currency other than the recording currency) shall be prepared
according to the adjusted accounting policies and accounting periods and then the financial statements of the
overseas operations shall be translated in accordance with the following methods:
* The assets and liabilities in the balance sheet are translated at the spot exchange rate at the balance sheet
date and the owner's equity items except the item of "undistributed profit" are translated at the spot exchange rate
at the time of occurrence.* The income and expense items in the income statement are translated at the spot exchange rate or a rate
approximate to the spot exchange rate at the date of the transaction.* Cash flows in foreign currencies and cash flows of overseas subsidiaries are translated at the spot exchange
rate or a rate approximate to the spot exchange rate at the occurrence date of cash flows. The impact of exchange
rate changes on cash shall be presented separately in the statement of cash flows as a reconciliation item.* When preparing the consolidated financial statements the resulting difference in the translation of financial
statements in a foreign currency is presented in the "Other comprehensive income" item under owner's equity in the
consolidated balance sheet.When an overseas operation is disposed of with control lost the difference in translation of foreign-currency
statements related to the overseas operation as presented under the owner's equity item in the balance sheet is
changed over to the current profit or loss of the disposal in full or in proportion to the disposed overseas operation.
11. Financial instruments
1. Recognition and derecognition of financial instruments
When the Company becomes one party of the financial instrument contract it shall recognize a financial asset
or financial liability.The trading of financial assets in a conventional manner shall be recognized and derecognized according to the
accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of financial
assets within the time limit specified by laws and regulations or common practice in accordance with the terms of
the contract. Trading day refers to the date when the Company promises to buy or sell financial assets.If the following conditions are met the financial assets (or a part of financial assets or a part of a set of similar
financial assets) shall be derecognized i.e. they shall be written off from its accounts and balance sheets:
198Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred or the Company has assumed the
obligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";
and (a) has transferred substantially all the risks and rewards from the ownership of financial assets or (b)
abandoned the control of the financial asset though almost all risks and rewards from the ownership of the financial
asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition the financial assets of the Company are classified according to the Company's
business model for the management of financial assets and the contractual cash flow characteristics of financial
assets as follows: financial assets measured at amortized cost financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through current profits and losses. The
subsequent measurement of financial assets depends on its classification.The classification of financial assets is based on the Company's business model for the management of financial
assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at amortized cost: the Company's business mode of managing the financial assets is to collect the contract cash flow
as the target; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only
the payment of principal and interest based on the amount of outstanding principal. For such financial assets the
effective interest rate method is adopted and subsequent measurement is made at amortized cost and the gains or
losses arising from amortization or impairment are included in the current profits and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value with their changes included in other comprehensive income: the Company's business mode of managing
the financial assets aims to collect the contract cash flow and sell them; the contract terms of the financial asset
stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the
amount of outstanding principal. For such financial assets fair value is adopted for subsequent measurement. The
discount or premium is amortized using the effective interest rate method and recognized as interest income or
expense. Except the impairment loss and the exchange difference of foreign currency monetary financial assets are
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recognized as the current profits and losses the changes in the fair value of such financial assets are recognized as
other comprehensive income until their accumulated gains or losses are transferred into the current profits and losses
when the financial asset is derecognized. Interest income related to such financial assets is included in the current
profits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive income
The Company irrevocably chooses to designate part of the non-tradable equity instrument investment as
financial assets measured at fair value through other comprehensive income. Only the relevant dividend income is
included in the current profits and losses and the changes in fair value are recognized as other comprehensive
income until their accumulated gains or losses are transferred into retained earnings when the financial asset is
derecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changes included
in the current profits and losses. At the time of initial recognition for the purpose of elimination or significant
reduction of accounting mismatch financial assets can be designated as those measured at fair value with changes
included in the current profits and losses. For such financial assets fair value is used for subsequent measurement
and all changes in fair value are included in the current profits and losses.If and only when the Company changes the business model for managing financial assets it will reclassify all
the affected financial assets.For the financial assets measured at fair value and whose changes are included in the current profits and losses
the relevant transaction costs are directly included in the current profits and losses and such costs of other types of
financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
During initial recognition the Company's financial liabilities are classified as: "financial liabilities measured
at amortization cost" and "financial liabilities measured at fair value with their changes included into the current
profit and loss".Financial liabilities satisfying one of the following requirements can be designated as financial liabilities
measured at fair value with their changes included in the current profit and loss during initial measurement: (1) Such
designation can eliminate or remarkably reduce the accounting mismatch; (2) According to group risk management
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or investment strategy in the formal written documents the management and performance evaluation of the portfolio
of financial liabilities or portfolio of financial assets and financial liabilities are conducted on the basis of fair price
and within the Group it is reported to the key management personnel on such basis; (3) Such financial liabilities
include embedded derivatives requiring separate splitting.The Company determines the classification of financial liabilities at the time of the initial recognition. For the
financial liabilities measured at fair value with changes included in the current profits and losses the relevant
transaction costs are directly included in the current profits and losses and such costs of other financial liabilities
are included in the initial recognition amount.The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities the effective interest rate method is adopted and the subsequent measurement is
conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair price and with changes credited to the current profit or loss including
trading financial liabilities (including derivative instruments classified as financial liabilities) and financial
liabilities that are designated at the initial recognition to be measured at fair price and with changes credited to the
current profit or loss.
4. Set off of financial instruments
If the following conditions are met at the same time financial assets and financial liabilities are presented in
the balance sheet at the net amount after offsetting each other: the Company has the legal right to offset the
recognized amount which is currently enforceable; they plan to settle at the net amount or realize the financial
assets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets measured
at the amortized cost the debt instrument investment and financial guarantee contract measured at the fair value
and whose changes are included in other comprehensive income. The term "credit loss" refers to the difference
between all the contractual cash flows that the Company discounted at the original effective interest rate and
received according to the contract and all the expected cash flows i.e. the present value of all the cash shortage.Upon considering all reasonable and well-founded information (including forward-looking information) the
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Company estimates the expected credit impairment loss is withdrawn for "financial assets measured at amortized
cost" and "financial asset (debt instruments) measured at fair value with their changes included in other
comprehensive income" in single or combined manner.
(1) General model of expected credit loss
If the credit risk of this financial instrument has increased obviously since initial recognition the Company
will measure the loss reserves according to the expected credit loss amount of such financial instrument in the whole
duration; if the credit risk of this financial instrument hasn't increased obviously since initial recognition the
Company will measure the loss reserves according to the expected credit loss amount of such financial instrument
in the next 12 months. The increased or reversed amount of the loss provisions arising therefrom shall be included
in the current profits and losses as impairment losses or gains. The specific assessment of credit risk by the Company
is detailed in the Note "XI. Risks Associated with Financial Instruments".Generally in case of overdue for more than 30 days the Company will consider that the credit risk of such
financial instrument has increased obviously unless conclusive evidence is available to prove that the credit risk of
such financial instrument hasn't obviously increased since the initial recognition.To be specific the Company divides the credit impairment process of financial instruments that have not been
impaired at the time of purchase or origination into three stages with different accounting treatment for the
impairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
expected credit loss in the next 12 months and calculate the interest income as per its book balance (i.e. without
deducting the provision for impairment) and the actual interest rate (if the instrument is a financial asset the same
below).Second stage: the credit risk has increased significantly since the initial recognition but the credit impairment
has not occurred
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration and calculate the interest income as per its book
balance and the actual interest rate.Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
202Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
expected credit loss of the instrument thought the whole duration but the calculation of interest income is different
from the financial assets at the first two stages. For the financial assets with credit impairment the enterprise shall
calculate the interest income according to its amortized cost (book balance minus accrued provision for impairment
i.e. book value) and the actual interest rate.For the financial assets with credit impairment at the time of purchase or origination the enterprise shall only
recognize the change of expected credit loss in the whole duration after initial recognition as loss provision and
calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards).The Company makes accounting policy choices to adopt a simplified model for expected credit loss i.e.measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole duration
for receivables including significant financing components and lease receivables regulated by Accounting Standards
for Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
The financial assets shall be derecognized when the Company has transferred all the risks and rewards on the
ownership of the financial assets to the transferee. The financial assets shall not be derecognized if the Company
retains all the risks and rewards on the ownership of the financial assets.If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financial
asset the following conditions shall be referred to: if it gives up the control over the financial asset it shall terminate
the recognition of the financial asset and recognize the assets and liabilities generated; if it does not abandon the
control over the financial asset the relevant financial assets shall be recognized according to the extent to which it
continues to be involved in the transferred financial asset and the relevant liabilities shall be recognized accordingly.If the financial guarantee is provided to the transferred financial assets to continue to be involved the assets
generated from the continued involvement shall be recognized according to the lower of the book value of the
financial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum amount
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that will be required to be repaid out of consideration received.
12. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial acceptance
bills by type of financial instrument.For notes receivable divided into portfolios the Company calculates expected credit losses based on default
risk exposures and expected credit loss rates over the entire duration taking into account historical credit loss
experiences present conditions and projections of future economic conditions.With respect to bank acceptance bills the Company considers the overdue default risk to be 0 for its risk of
overdue credit losses is low and has not significantly increased since the initial recognition because the acceptance
bank pays the payee or holder a certain amount unconditionally when the bill is due.In respect of commercial acceptance bills the Company believes that the probability of default is correlated
with aging and bad debts shall be accrued for the expected credit loss of accounts receivables according to the
accounting policy.
13. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards). The increased or reversed amount of loss provisions generated therefrom shall be included in the current
profits and losses as impairment losses or gains.The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of Financial
Instruments (CK [2017] No. 7) since January 1 2019. The Company believes that the probability of default is related
to the aging which is still a mark of whether the credit risk of the Company's accounts receivable increases
significantly after it has reviewed the appropriateness of the provision for bad debts receivable in previous years
based on the Company's historical bad debt losses. Therefore credit risk loss of the Company's accounts receivable
is still estimated on the basis of aging according to the original loss ratio of previous years. The accounting policies
for measuring overdue credit loss of accounts receivable adopted by the Company are as follows:
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For accounts receivable that there is objective evidence of impairment and other accounts that are suitable for
a single assessment impairment tests shall conducted separately to confirm expected credit losses and make
impairment provisions for individual items. For accounts receivable for which there is no objective evidence of
impairment or when the expected credit loss of a single financial asset cannot be assessed at a reasonable cost the
Company divides accounts receivable into several portfolios according to the characteristics of credit risks and
calculates the expected credit loss based on the portfolios.
1. Accounts receivable with single provision for bad debts
At the end of the period the amount of individual accounts receivable is tested separately for impairment. If
there is objective evidence that it is impaired the impairment loss shall be recognized with provision for bad debts
according to the difference between the present value of future cash flow and the book value.
2. Receivables with provision for bad debts by portfolio
The receivables without impairment according to the separate test at the end of the period are divided into
several portfolios according to aging as a credit risk characteristic impairment losses are calculated and determined
at a certain ratio of the balance of these receivables at the end of the period (which can be separately tested for
impairment) and the provision for bad debts is made.Except for the receivables for which provision for impairment has been made separately the Company
determines the proportion for following bad debt provision based on the actual loss rate of the portfolio of the same
or similar receivables in previous years with the aging of receivables as the credit risk feature and in combination
with the current situation:
Expected rate of credit loss of accounts receivable (%)
Aging
(note)
Within 1 year (including 1 year) 3.10%
1-2 years (including 2 years) 9.04%
2-3 years (including 3 years) 22.11%
3-4 years (including 4 years) 47.51%
4-5 years (including 5 years) 84.26%
Above 5 years 100.00%
Including: those that have been determined to
Write-off
be irrecoverable
Note: when measuring the expected credit loss of receivables the Company has referred to the historical
experience of credit loss and adjusted it based on forward-looking estimates.
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14. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value with their changes included in other comprehensive income: the Company's business mode of managing
the financial assets aims to collect the contract cash flow and sell them; the contract terms of the financial asset
stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the
amount of outstanding principal.If the Company transfers accounts receivable bank acceptance bills etc. held by the Company in the form of
discount or endorsement and such transactions are frequent and involve a large amount its business management
model is essentially to both collect and sell cash flows arising from contracts which are classified as financial assets
whose changes are measured at fair value and credited to other comprehensive income in accordance with the
relevant provisions of the financial instruments criteria.For accounts receivable financing divided into portfolios the Company calculates expected credit losses based
on default risk exposures and expected credit loss rates over the entire duration taking into account historical credit
loss experiences present conditions and projections of future economic conditions.With respect to bank acceptance bills the Company considers the overdue default risk to be 0 for its risk of
overdue credit losses is low and has not significantly increased since the initial recognition because the acceptance
bank pays the payee or holder a certain amount unconditionally when the bill is due.In respect of those divided into the aging-based portfolio the Company believes that the probability of default
is correlated with aging and bad debts shall be accrued for the expected credit loss of accounts receivables according
to the accounting policy.
15. Other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The Company
measures the impairment loss by an amount equivalent to the expected credit loss within the next 12 months or over
the entire duration depending on whether the credit risk of other receivables has increased significantly since the
initial recognition. In addition to other receivables with individual credit risk assessment they are divided into
different portfolios based on their credit risk characteristics:
Description of Basis for determining the
Provision methods
portfolio portfolios
Risk-free amounts receivable from related parties within the scope
Portfolio I Risk-free portfolio
of the consolidation
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Portfolio II Aging portfolio The credit risk of the portfolio is characterized by the aging.For other accounts receivable divided into a portfolio the Company calculates expected credit losses based on
default risk exposures and expected credit loss rates in future 12 months or over the entire duration taking into
account historical credit loss experiences present conditions and projections of future economic conditions and
determines the ratio of bad debt provision to be accrued in combination with current conditions:
Aging Expected rate of credit loss of other accounts receivable
Within 1 year (including 1 year) 5.00%
1-2 years (including 2 years) 10.00%
2-3 years (including 3 years) 30.00%
3-4 years (including 4 years) 50.00%
4-5 years (including 5 years) 80.00%
Above 5 years 100.00%
Including: those that have been determined to be
Write-off
irrecoverable
16. Contract assets
1. Recognition methods and standards for the contractual assets
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's right to receive consideration for goods
or services transferred to customers (excluding receivables) is listed as contractual assets.
2. The recognition method and accounting treatment for expected credit loss of contractual assets
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards). The increased or reversed amount of loss provisions generated therefrom shall be included in the current
profits and losses as impairment losses or gains.The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for contractual assets including significant financing
components.
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17. Inventories
(1) Classification of inventories
Inventory refers to finished products or commodities held by the Company for sale in daily activities products
in the process of production materials and supplies consumed in the process of production or provision of services
including raw materials products in process semi-finished products goods in stock materials for consigned
processing low-value consumable goods etc.
(2) Pricing method of delivered inventories
Inventories of the Company are priced with the weighted-average method when delivered.
(3) Inventory system
The Company adopts the perpetual inventory system takes inventory at least once a year and credits the
amount of inventory gains and losses to the profit and loss of the current year.
(4) Recognition criteria and accrual method of provision for impairment on inventories
On the balance sheet date inventories are measured at the lower of cost and net realizable value and if the cost
of the inventory is higher than its net realizable value a provision is made for impairment on inventories and credited
to the current profit/loss.Determining the net realizable value of the inventory shall be based on the available reliable evidence with
consideration to such factors as the purpose of holding the inventory and the impact of events after the balance sheet
date.* The net realizable value of inventories directly used for sale such as finished products commodities and
materials used for sale is determined by the estimated selling price of the inventory less estimated selling expenses
and related taxes in the normal course of production and operation. For inventories held for the purpose of executing
sales contracts or service contracts the contract price is used as the measurement basis for their net realizable value;
if the quantity of inventory held exceeds the quantity ordered under the sales contract the net realizable value of
the excess inventory is measured based on the general selling price. For materials held for sale their net realizable
value is measured based on the market price.* The net realizable value of the inventory of materials to be processed is determined in the normal course of
production and operations by the estimated selling price of the finished goods produced less the estimated costs to
be incurred at completion estimated selling expenses and related taxes. If the net realizable value of the finished
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product produced with it is higher than the cost the material is measured at cost; If a decline in the price of the
material indicates that the net realizable value of the finished product is lower than the cost the material is measured
at net realizable value and a provision is made for impairment on inventory based on its difference.* The Company generally makes provisions for impairment on inventory on the basis of individual inventory
items; in the case of inventories that are large in quantity and low in unit price provisions are made according to
the classes of inventories.* At the balance sheet date if the factors affecting the previous write-down of the value of the inventory have
disappeared the amount of the write-down shall be restored and reversed within the amount of the original provision
for the impairment on inventory and the reversed amount shall be credited to the current profit/loss.
(5) Amortization method of revolving materials
* Amortization method of low-value consumables: One-off writing off upon issuance.* Amortization method of packaging materials: One-off writing off upon issuance.
18. Assets held for sale
None.
19. Debt investment
None.
20. Other debt investment
None.
21. Long-term receivables
None.
22. Long-term equity investment
Long-term equity investments of the Company include equity investments that control and have significant
influence on the investee and equity investments in joint ventures. Investees that can be significantly influenced by
the Company are joint ventures of the Company.
(1) Basis for determination of common control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with relevant agreements and the
209Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
activities related to the arrangement must be agreed upon by the parties holding control right before the decision
can be made. In determining whether there is common control it is first determined whether all participants or a
combination of participants collectively control the arrangement and if all participants or a group of participants
must act in concert to determine the activities related to an arrangement it is deemed that all participants or a group
of participants collectively control the arrangement. It is then determined whether decisions about the activities
related to the arrangement must be made by consensus among the participants who collectively control the
arrangement. It does not constitute common control if there are two or more combinations of participants that
collectively control an arrangement. In determining whether there is common control the protective rights enjoyed
are not taken into account.Significant influence refers to that the investor has the right to participate in making decisions on the financial
and operating policies of the investee but has no right to control or jointly control the formulation of these policies
with other parties. In determining whether significant influence can be exerted on the investee consideration shall
be given to the impact when the voting shares directly or indirectly held by the investor in the investee and the
current exercisable potential voting rights held by the investor and other parties are assumed to be converted to
equity in the investee including the impact of the current convertible warrants stock options and convertible
corporate bonds issued by the investee.When the Company owns more than 20% (including 20%) but less than 50% of the voting shares of the investee
directly or indirectly through a subsidiary it is generally considered the Company can exert a significant influence
on the investee unless there is clear evidence that the Company cannot participate in making production and
operation decisions of the investee under such circumstances in which case there is no significant influence.
(2) Determination of initial investment cost
For long-term equity investments arising from business merger the investment cost is determined according
to the following regulations:
A. In a business merger under the same control where the merging party pays cash transfers non-cash assets
or assumes debt as the merger consideration the initial investment cost of the long-term equity investment is based
on the share of the mergee's owner's equity in the book value in the consolidated financial statements of the ultimate
controlling party on the merger date. In case of a difference between the initial investment cost of a long-term equity
investment and the cash paid the transferred non-cash assets or the book value of the debt assumed the capital
reserve shall be adjusted; if the capital reserve is insufficient for writing down the retained earnings shall be adjusted;
210Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
B. In a business merger under the same control where the merging party issues equity securities as the merger
consideration the initial investment cost of the long-term equity investment is based on the share of the mergee's
owner's equity in the book value in the consolidated financial statements of the ultimate controlling party on the
merger date. With the total carrying value of the issued shares as the share capital in case of a difference between
the initial investment cost of a long-term equity investment and the total carrying value of the shares issued the
capital reserve shall be adjusted; if the capital reserve is insufficient for writing down the retained earnings shall be
adjusted;
C. In a business merger not under the same control the merger cost as the initial investment cost of long-term
equity investment is determined with the fair value of the assets paid liabilities incurred or assumed and equity
securities issued to obtain the control of the acquiree on the purchase date. Intermediary fees such as audit legal
service evaluation and consulting fees and other related management expenses incurred by the merging party are
credited to the current profit or loss when incurred.Except long-term equity investments arising from business merger the investment cost of long-term equity
investments acquired by other means is determined according to the following regulations:
A. For long-term equity investments acquired by cash payments the purchase price actually paid is the
investment cost. Initial investment costs include fees taxes and other necessary expenses directly related to the
acquired long-term equity investments;
B. For long-term equity investments acquired by issuing equity securities the fair value of the issued equity
securities is the initial investment cost;
C. For long-term equity investments acquired by exchange of non-monetary assets if the exchange has
commercial substance and the fair value of the asset received or given up can be measured reliably the fair value
of the given up asset and related taxes are taken as the initial investment cost and the difference between the fair
value and the carrying value of the given up asset is recorded in the current profit or loss; if the exchange of non-
monetary assets does not meet the above two conditions at the same time the book value of the given up assets and
related taxes are taken as the initial investment cost.D. For long-term equity assets acquired by debt restructuring the entry value is determined based on the fair
value of the given up debt and other costs such as taxes that are directly attributable to the asset and the difference
between the fair value of the given up debt and the book value is credited to the current profit or loss.
(3) Subsequent measurement and recognition methods for profits and losses
211Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Long-term equity investments that the Company has the control over the investee are accounted for with the
cost method; long-term equity investments of associated enterprises and joint ventures are accounted for with the
equity method.* Cost method
For long-term equity investments accounted for with the cost method the cost of long-term equity investments
is adjusted when adding or withdrawing investments; the cash dividends or profits declared and distributed by the
investee are recognized as current investment income.* Equity method
For long-term equity investments accounted for with the equity method the general accounting treatment is as
follows:
If the investment cost of a long-term equity investment of the Company is greater than the fair value share of
the investee's identifiable net assets to which it is entitled at the time of investment the initial investment cost of
the long-term equity investment shall not be adjusted; if the initial investment cost of a long-term equity investment
is less than the fair value share of the identifiable net assets of the investee to which it is entitled at the time of
investment the difference is credited to the current profit or loss and the cost of the long-term equity investment is
adjusted at the same time.The Company recognizes investment income and other comprehensive income respectively and adjusts the
book value of long-term equity investments in accordance with the share of net profit/loss and other comprehensive
income realized by the investee to which it is entitled or shall contribute; the Company calculates the portion of
profits or cash dividends declared and distributed by the investee to which it is entitled and reduces the book value
of the long-term equity investment accordingly; in case of other changes in owners' equity other than net profit/loss
other comprehensive income and profit distribution of the investee the book value of the long-term equity
investment shall be adjusted and credited to owners' equity. When recognizing the share of the investee's net profit
or loss to which it is entitled the net profit of the investee is recognized after adjustment based on the fair value of
the investee's identifiable net assets at the time of acquisition of the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of
the investee shall be adjusted in accordance with the accounting policies and accounting periods of the Company
and the investment income other comprehensive income etc. shall be recognized accordingly. Gains and losses on
unrealized internal transactions between the Company and associated enterprises and joint ventures are offset in
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accordance with the proportion attributable to the Company as it is entitled to on the basis of which investment
gains and losses are recognized. If an unrealized internal transaction loss between the Company and the investee is
an asset impairment loss it shall be fully recognized.If significant influence can be exerted on the investee or common control but not control can be exercised due
to additional investment or other reasons the sum of the fair value of the originally held equity investment and the
cost of the new investment shall be the initial investment cost as being accounted for with the equity method instead.Where the equity investment originally held is classified as an investment in other equity instruments the difference
between its fair value and book value as well as the accumulated gains or losses originally credited to other
comprehensive income shall be transferred from other comprehensive income and credited to retained earnings in
the current period as being accounted for with the equity method instead.If the common control or significant influence on the investee is lost due to the disposal of part of the equity
investment or other reasons the remaining equity after such disposal is measured at fair value instead and the
difference between the fair value and book value on the date when the common control or significant influence is
lost is credited to the current profit or loss. Other comprehensive incomes recognized as a result of accounting for
the original equity investment with the equity method shall be accounted for on the same basis as the direct disposal
of the relevant assets or liabilities by the investee upon termination of applying the equity method for accounting.
(4) Equity investments held for sale
Where all or part of the equity investments of associated enterprises or joint ventures are classified as assets
held for sale refer to VII. 18 of the Financial Report for relevant accounting treatment.The equity method shall be applied for the accounting treatment of the remaining equity investments not
classified as assets held for sale.If an equity investment in an associated enterprise or joint venture that has been classified as an asset held for
sale no longer meets the conditions for being so classified it shall be adjusted retroactively with the equity method
from the date it is classified as an asset held for sale. The financial statements of the period when it is classified as
held for sale shall be adjusted accordingly.
(5) Methods for impairment test and provision for impairment
For investments in subsidiaries associated enterprises and joint ventures refer to VII. 30 of the Financial
Report for the method for provision for assets impairment.
213Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
23. Investment property
Measurement model of investment property
Measurement with cost method
Depreciation or amortization method
1. Investment property includes leased land use rights land use rights held and ready to be assigned after
appreciation and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model and the provision for
depreciation and amortization of the investment property is made in the same way as for fixed assets and intangible
assets. If there is any sign showing that the investment property is impaired on the balance sheet date the provision
of impairment reserve shall be made accordingly based on the difference between the book value and the recoverable
amount.See VII. 30. Long-term assets impairment for details about the methods for impairment test and provision for
impairment applicable to investment properties.If the real estate for private use or inventory is converted to an investment property or the investment property
is converted to a real estate for private use the book value before such conversion shall be deemed as the entry
value after the conversion.If the purpose of an investment property is changed to private use this investment property shall be converted
into a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent gains or
capital appreciation from private use the fixed asset or intangible asset shall be converted into an investment
property from the date of change. If the purpose of a property is changed to rent gains or capital appreciation from
private use the fixed asset or intangible asset shall be converted into an investment property from the date of change.If any asset is converted into an investment property measured with the cost model the book value before the
conversion shall be deemed as the entry value after the conversion. If any asset is converted into an investment
property measured with the fair value model the fair value on the conversion date shall be deemed as the entry
value after the conversion.An investment property shall be derecognized if this investment property is disposed of or permanently retired
and it is expected that no economic benefits can be obtained from its disposal. The disposal income from the sale
transfer scrapping or damage of an investment property shall be included in the current profits and losses after
deducting its book value and relevant taxes and dues.
214Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
24. Fixed assets
(1) Conditions for recognition
Fixed assets refer to the tangible assets that are held for production of goods provision of labor services lease
or operation management and of which the service life exceeds one fiscal year.Fixed assets shall be recorded at the actual cost upon the acquisition and subject to the provision for straight-
line depreciation from the next month following the date when they are ready for use as intended.
(2) Depreciation method
Category Depreciation method Depreciable life Residual rate Annual depreciation rate
Houses and buildings Straight-line method 20-40 years 5 2.375-4.75
Machinery and
Straight-line method 10 years 5 9.50
equipment
Transportation
Straight-line method 5 years 5 19.00
equipment
Electronics and other
Straight-line method 5 years 5 19.00
equipment
25. Construction in progress
(1) Construction in progress shall be classified and accounted for by approved projects.
(2) Criteria and time for carrying construction in progress over to fixed assets
The entry value of fixed assets shall be the total expenditure incurred before the asset constructed reaches the
predetermined usable state of the project under construction including construction costs original cost of machinery
and equipment and other necessary expenditures incurred to bring the project under construction to the
predetermined usable state as well as borrowing costs incurred to borrow specifically for the project before the
asset reaches the predetermined usable state and borrowing costs incurred for the general borrowings used. When
a project reaches the predetermined usable state after completion of installation or construction the project under
construction is carried over to fixed assets by the Company. Fixed assets constructed that have reached the
predetermined usable state but have not yet been arranged for the final settlement of account shall from the date
when the predetermined usable state is reached be carried over to fixed assets at the estimated value according to
the project budget construction cost or actual project cost etc. and a provision for the depreciation of the fixed
assets shall be made in accordance with the Company's fixed assets depreciation policy. After the final settlement
of account the original provisional value shall then be adjusted according to the actual cost but the amount of
215Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
depreciation originally accrued shall not be adjusted.
26. Borrowing costs
(1) Principles for recognition of borrowing costs capitalization and capitalization period
Borrowing costs incurred by the Company that can be directly attributable to the acquisition construction or
production of assets eligible for capitalization are capitalized and credited to the relevant asset cost when the
following conditions are all met:
* Asset expenditures have incurred;
* Borrowing costs have incurred;
* Acquisition construction or production activities necessary for assets to reach the predetermined usable
state have begun.Other borrowing interests discounts or premiums and currency translation differences are credited to current
profit or loss.The capitalization of borrowing costs shall be suspended if the acquisition construction or production of assets
eligible for capitalization is abnormally interrupted for more than 3 successive months.When the acquisition construction or production of assets eligible for capitalization reach the predetermined
usable or marketable state the capitalization of its borrowing costs shall cease; subsequent borrowing costs shall be
recognized as expenses in the incurring period.
(2) Capitalization rate of borrowing costs and calculation method of capitalized amount
Where specific borrowings are made for the acquisition construction or production of assets eligible for
capitalization the amount of interest expense actually incurred during the period of the specific borrowings minus
the interest income derived from depositing the loan funds not yet used in the bank or the investment income derived
from temporary investment shall be determined as the capitalized amount of interest expense of specific borrowings.Where general borrowings are used for the acquisition construction or production of assets eligible for
capitalization the amount of interest to be capitalized on the general borrowings shall be calculated and determined
by multiplying the weighted average amount of the accumulated asset expenditure in excess of the specific
borrowings by the capitalization rate of the general borrowings. The capitalization rate is determined by calculating
the weighted average interest rate on general borrowings.
216Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
27. Biological assets
None.
28. Oil and gas assets
None.
29. Intangible assets
(1) Service life and its basis for determination estimation amortization method or review procedure
(1) Pricing method of intangible assets
It is recorded at actual cost at the time of acquisition.
(2) Service life and amortization of intangible assets
* Estimation of useful life of intangible assets with a limited useful life:
The land usage right shall be averagely amortized within the remaining service life (generally 50 years) the
software shall be averagely amortized within 3-5 years and the patent rights and non-patent technologies within 5-
10 years.
At the end of each year the Company reviews the useful life and amortization method of intangible assets with
a limited useful life. Upon review the useful life and amortization method of intangible assets at the end of the
current period are no different from those previously estimated.* Intangible assets that cannot be predicted to bring economic benefits to the enterprise shall be regarded as
intangible assets with uncertain useful life. For intangible assets with uncertain useful life the Company reviews
the useful life of those intangible assets at the end of each year. If the intangible assets with uncertain useful life
remain uncertain after re-review the impairment test shall be conducted at the balance sheet date.* Amortization of intangible assets
For intangible assets with limited useful life the Company determines their useful life at the time of acquisition
and amortizes them reasonably within the useful life with the straight-line method and the amortized amounts are
credited to the current profit/loss or the cost of the related assets according to the beneficial items. The specific
amortized amount is the amount of its cost less the estimated salvage value. For intangible assets for which
impairment provisions have been made the accumulated amount of impairment provisions for the assets shall also
be deducted. The salvage value of an intangible asset with a limited useful life is deemed to be zero except where
217Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
a third party has committed to acquire the intangible asset at the end of its useful life or information about the
estimated salvage value is available based on an active market and such market is likely to exist at the end of the
useful life of the asset.Intangible assets with uncertain useful life shall not be amortized. At the end of each year the useful life of
intangible assets with uncertain useful life is reviewed and if there is evidence that its useful service life is limited
its useful life is estimated and systematically amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment methods
The Company includes all expenses directly related to the development of R&D activities as R&D expenses
including salaries of R&D personnel direct input costs depreciation costs and long-term amortized expenses
design costs equipment commissioning costs intangible assets amortized costs commissioned external R&D costs
and other expenses.
1. Specific criteria for dividing research and development stages of internal R&D projects
* The Company regards the period for developing information and conducting related preparations for further
development activities as the research stage and the expenditure incurred in the research stage of intangible assets
is credited to the current profit or loss when incurred.* The period in which development activities are carried out after the Company has completed the work in
the research stage is regarded as the development stage.
2. Specific criteria for capitalization of expenditures in the development stage
Expenditures incurred at the development stage are recognized as intangible assets only when all of the
following conditions are met:
A. The intangible asset is completed to be technically feasible for use or selling;
B. There is an intention to complete and use or sell the intangible asset;
C. Intangible assets generate economic benefits in a manner that can prove the existence of a market for
products produced with the intangible asset or the existence of a market for the intangible asset itself and the
usefulness of the intangible asset if used internally;
D. The development of the intangible asset is supported by adequate technical financial and other resources
and the capability to use or sold the intangible asset is available;
E. Expenditures attributable to the development stage of the intangible asset can be well measured.
218Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
30. Long-term assets impairment
Asset impairment of long-term equity investments of subsidiaries associated enterprises and joint ventures
and asset impairment of investment real estates fixed assets construction in progress right-of-use assets intangible
assets goodwill etc. (except inventories investment real estates measured at fair value deferred tax assets and
financial assets) shall be determined by the following method:
At the balance sheet date the Company determines whether there is any indication for possible impairment of
the asset. If there is any indication of impairment the Company will estimate the recoverable amount and conduct
an impairment test. For goodwill arising from a business merger intangible assets with uncertain useful life and
intangible assets that have not reached the useful condition the impairment tests shall be carried out every year
whether there are indications of impairment or not.The recoverable amount is determined by the higher of the net amount of the asset i.e. fair value minus disposal
expenses and the present value of the expected future cash flows of the asset. The Company estimates the
recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a single
asset the recoverable amount of the asset group shall be determined on the basis of the asset group to which the
asset is classified. The determination of an asset group is based on whether the major cash inflow generated by the
asset group is independent of the cash inflow of other assets or other asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company will write
down its book value to the recoverable amount credit the amount reduced to the current profit or loss and make
the corresponding asset impairment provision.For the impairment test of goodwill the book value of goodwill arising from the business merger is apportioned
to the relevant asset group in a reasonable manner from the date of acquisition; if it is difficult to apportion to the
relevant asset group it is apportioned to the relevant portfolio of asset groups. The relevant asset group or portfolio
of asset groups is one that can benefit from the synergies of the business merger and is not larger than the reporting
segment identified by the Company.During the impairment test if there are indications of impairment in the asset group or portfolio of asset groups
related to goodwill the impairment test is first carried out on the asset groups or portfolios without goodwill to
calculate the recoverable amount and determine the corresponding impairment loss. Then the impairment test is
carried on the asset groups or portfolios with goodwill to compare their book value and recoverable amount and
determine the impairment loss of goodwill if the recoverable amount is lower than the book value.
219Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Once an asset impairment loss is recognized it will not be reversed in future accounting periods.
31. Long-term deferred expenses
Long-term deferred expenses refer to various expenses that have been incurred by the Company and shall be
amortized in the current period and the following periods if the total amortization period is longer than 1 year.The actual amount is accounted for and amortized evenly over the benefit period or specified period. In case
future accounting period cannot benefit from long-term deferred expenses all unamortized value of the item shall
be transferred into the current profits and losses.
32. Contractual liabilities
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's obligation to transfer commodities or
services to customers for consideration received or receivable by the Company is listed as contract liability.
33. Employee compensation
(1) Accounting treatment of short-term compensation
* Basic pay of employee (salary bonus allowance and subsidy)
During the accounting periods in which employees provide services the Company recognizes the short-term
compensation actually incurred as a liability and includes it in the current profit or loss unless it is required or
allowed to be credited to the cost of assets by other accounting standards.* In-service employee benefits
Employee benefits incurred by the Company are credited to the profit or loss for the period in which they are
actually incurred based on the actual amounts incurred. In case of non-monetary employee benefits they shall be
measured at fair value.* Medical insurance premiums work-related injury insurance premiums maternity insurance and other social
insurance premiums and housing provident funds as well as trade union funds and employee education funds
For medical insurance premiums work-related injury insurance premiums maternity insurance premiums
other social insurance premiums and housing provident funds as well as the funds for the trade union and the
education paid by the Company for employees the Company calculates the corresponding amount of the employees'
220Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
compensation and recognizes the corresponding liabilities according to the prescribed accrual basis and proportion
and credits them to the current profit or loss or related asset costs.* Short-term compensated absences
When an employee provides services that increase his or her future entitlement to compensated absences the
Company recognizes the employee's compensation associated with accumulated compensated absences and
measures it against the expected increase in the amount of payments due to accumulated unexercised entitlement.The Company recognizes employee compensation related to non-cumulative compensated absence during the
accounting period in which the employee's absence actually occurred.* Short-term profit sharing plan
When a profit sharing plan meets all of the following requirements the Company recognizes the relevant
employees' compensation payable:
A. The enterprise has the statutory or presumptive obligation to pay the employees' compensation due to past
events;
B. The amount of obligatory employee compensation payable due as a result of the profit sharing plan can be
reliably estimated.
(2) Accounting treatment of post-employment benefits
* Defined contribution plan
In accounting periods in which services are provided by employees the Company recognizes the contribution
amount calculated according to the formulated contribution plan as a liability and credited it to the current profit or
loss or the relevant asset cost.If according to the defined contribution plan it is not expected to pay the full amount of contribution due
within twelve months after the end of the annual reporting period in which the employee provides the relevant
services the Company measures the employee pay payable with the discounted total contribution amount by
reference to the corresponding discount rate (determined by the market yield of national bonds or high-quality
corporate bonds in the active market that match the term and currency of the defined contribution plan obligations
at the balance sheet date).* Defined benefit plan
A. Determination of present value and current service costs of obligations under the defined benefit plan
221Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Unbiased and mutually consistent actuarial assumptions are used to estimate the relevant demographic and
financial variables measure the obligations arising from the defined benefit plan and determine the vesting period
of the related obligations under the expected cumulative benefit unit approach. The Company discounts the
obligations under the defined benefit plan at the corresponding discount rate (determined by the market yield of
national bonds or high-quality corporate bonds in the active market that match the term and currency of the defined
contribution plan obligations at the balance sheet date) to determine the present value of the obligations and the
current service costs.B. Determination of net liabilities or net assets of defined benefit plan
If there are assets in a defined benefit plan the Company recognizes the deficit or surplus resulting from the
present value of defined benefit plan obligations less the fair value of defined benefit plan assets as a net liability or
net asset of the defined benefit plan.If there is a surplus in a defined benefit plan the Company measures the net assets of the defined benefit plan
to the lesser of the surplus of the defined benefit plan and the asset ceiling.C. Determination of amount to be credited to assets cost or current profit or loss
Service costs include current service costs past service costs and settlement gains or losses. Except the service
costs in the current period which are required or allowed to be credited to asset costs under other accounting
standards other service costs are credited to the current profit or loss.The net interest on net liabilities or net assets of defined benefit plans including interest gains on the assets in
the plan interest expenses on defined benefit plan obligations and interests affected by the asset ceiling are credited
to the current profit or loss.D. Determination of amount to be credited to other comprehensive income
Changes resulting from the remeasurement of net liabilities or net assets of defined benefit plans include:
(a) Actuarial gain or loss which is an increase or decrease in the present value of previously measured defined
benefit plan obligations due to actuarial assumptions and empirical adjustments;
(b) Return on plan assets less the amount included in the net interest on net liabilities or net assets of the
defined benefit plan;
(c) Changes due to impact of the asset ceiling less the amount included in the net interest on net liabilities or
net assets of the defined benefit plan.Changes resulting from the above remeasurement of net liabilities or net assets of defined benefit plans are
222Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
directly credited to other comprehensive income and are not allowed to be carried back to profit or loss in subsequent
accounting periods. Upon termination of the original defined benefit plan the Company carries forward to
undistributed profit in full the portion originally credited to other comprehensive income within the scope of equity.
(3) Accounting treatment of dismissal benefits
If the Company provides dismissal benefits to an employee the employee compensation liability arising from
the dismissal benefits is recognized at the sooner of the following two events and shall be credited to the current
profit or loss:
* When the Company cannot unilaterally withdraw the dismissal benefits provided by termination of a labor
relation plan or by the cut-down proposal;
* When the Company recognizes the costs or expenses associated with the restructuring involving the
payment of dismissal benefits.If it is expected that the dismissal benefits cannot be paid in full amount within twelve months after the end
of the annual reporting period the Company discounts the amount of the dismissal benefits by reference to the
corresponding discount rate (determined by the market yield of national bonds or high-quality corporate bonds in
the active market that match the term and currency of the defined contribution plan obligations at the balance sheet
date) and measures the employee pay payable with the discounted amount.
(4) Accounting treatment of other long-term employee benefits.
None.
34. Estimated liabilities
(1) Recognition criteria of estimated liabilities
The Company recognizes obligations related to contingencies as estimated liabilities if they also meet the
following conditions:
* The obligation is a current obligation assumed by the Company;
* The performance of the obligation is likely to result in the outflow of economic benefits from the Company;
* The amount of the obligation can be reliably measured.
(2) Measurement method of estimated liabilities
223Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Estimated liabilities are initially measured according to the best estimate of expenditures required to meet the
relevant current obligations taking into account such factors as risks uncertainties and the time value of money
associated with contingencies. The book value of estimated liabilities is reviewed at each balance sheet date. If there
is solid evidence that the book value does not reflect the current best estimate the book value is adjusted according
to the current best estimate.
35. Share-based payment
(1) Type of share-based payment
Share-based payments of the Company include share-based payments settled in cash and those settled in equity.
(2) Determination method of fair value of equity instrument
* For shares granted to employees the fair value is measured at the market price of the Company's shares
and is adjusted to take into account the terms and conditions under which the shares are granted (excluding vesting
conditions other than market conditions). * For stock options granted to employees it is difficult to obtain their
market price in many cases. If there are no trading options with similar terms and conditions the Company chooses
an applicable option pricing model to estimate the fair value of the options granted.
(3) Basis for determining the best estimate of equity instruments with viable options
At each balance sheet date in the waiting period the Company will make the best estimate based on the latest
available subsequent information such as the change in the number of employees with viable options and revise the
number of equity instruments with options expected to be exercised to make the best estimate of the equity
instruments with viable options.
(4) Accounting treatment of implementation of share-based payment plan
Share-based payments settled in cash
* Share-based payments settled in cash where the vested options can be immediately exercised after being
granted is credited to the relevant cost or expense at the fair value of the liability assumed by the Company on the
grant date increasing the liability accordingly. The fair value of the liability is remeasured at each balance sheet
date prior to settlement and at the settlement date and its changes are credited to profit or loss.* For cash-settled share-based payments where the vested option cannot be exercised until the completion of
services or the fulfillment of specified performance conditions within the waiting period at each balance sheet date
in the waiting period services acquired during the period are credited to costs or expenses and corresponding
224Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
liabilities at the fair value amount of the liability assumed by the Company based on the best estimate of exercising
the option.Share-based payments settled in equity
* Share-based payments settled in equity where the vested option can be immediately exercised after being
granted in exchange of employees' services is credited to the relevant cost or expense at the fair value of the equity
instruments on the grant date increasing the capital reserve accordingly.* For equity-settled share-based payments where the vested option cannot be exercised in exchange of
employees' services until the completion of services or the fulfillment of specified performance conditions within
the waiting period at each balance sheet date in the waiting period services acquired during the period are credited
to costs or expenses and capital reserve at the fair value at the granting date of equity instruments based on the best
estimate of the number of equity instruments with exercisable option.
(5) Accounting treatment of modification of share-based payment plan
When the Company makes a modification to a share-based payment plan if the modification increases the fair
value of the equity instrument granted the increase in the services obtained is recognized according to the increase
in the fair value of the equity instrument; if the modification increases the number of equity instruments granted
the fair value of the increased equity instruments is recognized accordingly as an increase in the acquired services.The increase in the fair value of equity instruments refers to the difference between the original and modified fair
values of equity instruments at the date of the modification. If a modification reduces the total fair value of a share-
based payment or the terms and conditions of a share-based payment plan is modified to the detriment of employees
further accounting treatment will be made for the services obtained like such modification has never occurred unless
the Company cancels some or all of the equity instruments granted.
(6) Accounting treatment of termination of share-based payment plan
If equity instruments granted are canceled or settled in the waiting period (except those canceled due to failure
to fulfill the conditions for exercising the option) the Company will:
* Treat the cancellation or settlement as accelerated option exercising and immediately recognize the amount
that shall be recognized during the remaining waiting period;
* Treat all payments made to employees at the time of cancellation or settlement as repurchases of equity
and credit the portion of the amount paid for the repurchase exceeding the fair value of the equity instrument at the
repurchase date to the current expense.
225Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
In case of repurchasing the equity instruments that its employees have exercised the Company writes off the
owner's equity; the portion of any amount paid for the repurchase exceeding the fair value of the equity instrument
at the repurchase date is credited to the current profit or loss.
36. Preferred shares perpetual bonds and other financial instruments
None.
37. Revenue
Disclosing the accounting policies adopted for revenue recognition and measurement by business type
(1) General principles
Income is the total inflow of economic benefits generated in the daily activities of the Company which can
result in an increase in shareholders' equity and is not related to shareholders' invested capital.The Company has fulfilled performance obligation in the Contract that is recognizing revenue when the
customer obtains the control right of relevant commodities. Obtaining of the control right of relevant commodities
means to be able to dominate the use of the commodities and obtain almost all economic benefits arising therefrom.If two or more performance obligations are included in a contract the Company apportions the transaction
price to each performed obligation in proportion to the individual selling price of the commodities or services
promised by each performed obligation and measures the revenue according to the transaction price apportioned to
each performed obligation.Transaction price is the amount of consideration that the Company expects to be entitled to receive in
connection with the transfer of commodities or services to a customer excluding payments received on behalf of
third parties. In case of a variable consideration when determining the transaction price in a contract the Company
determines the best estimation of the variable consideration based on the expected value or the most likely amount
and includes in the transaction price an amount not exceeding which is highly unlikely to result in a material reversal
of the accumulated recognized revenue at the time the relevant uncertainty is eliminated. If there is a significant
financing component in a contract the Company will determine the transaction price based on the amount payable
by the customer in cash upon its acquisition of control of the commodity and amortize the difference between the
transaction price and the contract consideration with the effective interest method over the term of the contract. The
Company does not take into account the financing component if the interval between the transfer of control and the
226Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
payment of the price by the customer is less than one year.If one of the following conditions is met the contract performance obligations are performed within a certain
period of time; otherwise the obligations are performed at a certain point of time:
* Customers obtain and consume economic benefits arising from performance of the Company during the
Company's performance of the Contract.* The customer can control the in-process commodity during contract performance by the Company;
* The purpose of the commodity produced by the Company during contract performance is irreplaceable and
the Company is entitled to receive payments throughout the contract period for the performance completed so far.For performance obligations fulfilled within a certain period of time the Company shall recognize revenue
according to the performance progress within that period except that the performance progress cannot be reasonably
determined. The Company determines the performance progress of services provided with the input method (or
output method). When the performance progress cannot be reasonably determined the income is recognized based
on the amount of costs incurred by the Company if compensation of such costs is expected until the performance
progress can be reasonably determined.For contract performance obligations fulfilled at a certain point of time the Company recognizes the income
at the time when the customer obtains the control right of relevant commodities. When judging whether a customer
has obtained the control of a commodity or service the Company takes the following indications into account:
* The Company is currently entitled to receive payments in respect of the commodity or service i.e. the
customer has a current payment obligation in respect of the commodity;
* The Company has transferred the legal ownership of the commodity to the customer i.e. the customer has
had the legal ownership of the commodity;
* The Company has transferred the material object of the commodity to the customer i.e. the customer has
owned the material object of the commodity;
* The Company has transferred the major risks and compensation on the ownership of the commodity to the
customer i.e. the customer has received the major risks and compensation on the ownership of the commodity;
* Customers have accepted the commodities.Sales return terms
For sales with sales return terms the Company recognizes the income based on the consideration amount to
227Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
which the Company is expected to be entitled for the commodity handed over to the customer when it obtains the
control of the relevant commodity and recognizes the estimated liability based on the amount to be returned due to
the expected sales return; meanwhile the balance of the book value of the commodity expected to be returned less
the expected cost to be incurred for collection of the returned commodity (including the impaired value of the
returned commodity) is recognized as an asset i.e. return cost receivable and according to the book value of the
transferred commodity at the time of transfer the net amount less the cost of the above asset is carried over to the
cost. At each balance sheet date the Company re-estimates the return of future sales and re-measures the assets and
liabilities described above.Quality assurance obligations
The Company provides quality assurance for the commodities sold and the projects constructed in accordance
with contractual agreements and the provisions of law. For warranty type quality assurance to assure customers that
the commodities sold meet the established standards the Company conducts accounting treatment in accordance
with Accounting Standards for Business Enterprises No. 13 - Contingencies. For service type quality assurance that
provides a separate service in addition to assuring customers that the commodities sold meet the established
standards the Company regards it as a single performance obligation amortize a portion of the transaction price to
the service type quality assurance in proportion to the individual selling price for providing commodities and
services quality assurance and recognizes the income when the customer obtains the control of the service. In
assessing whether the quality assurance provides a separate service in addition to assuring the customer that the
commodities sold meet established standards the Company considers factors such as whether the quality assurance
is a statutory requirement the warranty period and the nature of the Company's commitment to perform the task.Principal responsible person and agent
Whether the Company is the principal responsible person or agent in a transaction is determined by whether
the Company has control of the commodities or services before they are transferred to the customer. Where the
Company is able to control the commodities or services prior to the transfer of the commodities or services to the
customer the Company is the principle responsible person and recognizes the income based on the total amount of
consideration received or receivable. Otherwise the Company acts as the agent recognizes the income on the basis
of the amount of commission or service charges it is expected to be entitled to receive which shall be the net amount
of the total consideration received or receivable less the price payable to other interested parties or be determined
based on the amount or proportion of commissions established etc.
228Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Consideration payable to customers
Where there is a consideration payable to a customer in a contract unless the consideration is for the purpose
of obtaining other clearly distinguishable commodities or services for the customer the Company writes off the
consideration payable from the transaction price and writes off the current income at the time when the relevant
income is recognized or when the consideration is paid (or committed to be paid) to the customer whichever is later.
(2) Specific method
In case the sales contract between the Company and customers has been deemed as a performance obligation
fulfilled at a certain time point the specific revenue recognition method shall be formulated according to the actual
situation of the Company's product sales as follows:
Domestic sales: * The customer picks up the goods in cash. After the payment and delivery it is considered
that the customer has obtained the control of the relevant goods and the Company has recognized the sales revenue;
* If the advance payment is used for settlement and the other party's customer confirmation receipt is obtained
after the delivery it is considered that the customer has obtained the control of the relevant commodities and the
Company has recognized the sales revenue; * If the credit sale is adopted according to a certain payment period
within which the customer settles and after the delivery the other party's customer confirmation receipt is obtained
it is considered that the customer has obtained the control of the relevant goods and the Company has recognized
the sales revenue.Foreign sales: the Company shall deliver commodities according to the signed order hold special export
invoice delivery note and other original documents for customs clearance and export pass customs audit complete
export declaration procedures obtain the customs declaration documents as the point of transfer of control of the
relevant goods and recognize the sales revenue by recording the revenue based on the delivery order special export
invoice and customs declaration form.
38. Contractual costs
Contractual costs are divided into contract performance costs and contract acquisition costs.The cost incurred by the Company for contract performance is deemed as a contract performance cost and
recognized as an asset if all of the following conditions are met:
* The cost is directly related to a current contract or a contract expected to be acquired including direct labor
cost direct material cost manufacturing (or similar) cost cost clearly stated to be borne by the customer and other
229Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
costs incurred only as a result of the contract;
* The cost increases the resources for fulfilling the performance obligation by the Company in the future;
* The cost is expected to be recoverable.When an incremental cost incurred by the Company for acquiring a contract is expected to be recoverable it
is treated as a contract acquisition cost and recognized as an asset.Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or
services related to that asset; However if the amortization period of contract acquisition costs does not exceed one
year the Company credits it to the current profit or loss when it occurs.If the book value of an asset related to the contract cost is higher than the difference between the following two
items the Company makes an impairment provision for the excess recognizes it as an asset impairment loss and
further considers whether a provision shall be made for projected liabilities relating to the loss contract:
* Remaining consideration expected to be obtained as a result of the transfer of commodities or services
related to the asset;
* Cost estimated to be incurred for the transfer of the relevant commodities or services.If the above-mentioned provision for asset impairment is subsequently reversed the book value of the asset
after the reversal shall not exceed the book value of the asset on the reversal date assuming no provision for
impairment was made.Contract performance costs recognized as assets with an amortization period of not more than one year or one
normal operating cycle as determined in the initial recognition are presented under the "Inventory" item and those
with an amortization period of more than one year or one normal operating cycle as determined in the initial
recognition are presented under the "Other non-current assets" item.Contract acquisition costs recognized as assets with an amortization period of not more than one year or one
normal operating cycle as determined in the initial recognition are presented under the "Other current assets" item
and those with an amortization period of more than one year or one normal operating cycle as determined in the
initial recognition are presented under the "Other non-current assets" item.
39. Government subsidies
(1) Recognition of government subsidies
A government subsidy can be recognized only when all of the following conditions are met:
230Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
* The Company is able to meet the conditions attached to the government subsidy;
* The Company is able to receive the government subsidy.
(2) Measurement of government subsidies
In case a government subsidy can be classified as a monetary asset it shall be measured according to the
amount received or receivable; In case a government subsidy can be classified as non-monetary asset it shall be
measured at fair value and once the fair value cannot be obtained reliably it shall be measured in the nominal
amount of RMB 1.
(3) Accounting treatment of government subsidies
* Assets-related government subsidies
Government subsidies that the Company obtains for acquisition or construction or otherwise for developing
long-term assets are classified as assets-related government subsidies. When an assets-related government subsidy
is recognized as a deferred income it shall be amortized with a rational and systematic method and credited to an
income or loss within the service life of the related asset. Government subsidies measured in the nominal amount
shall be directly credited to a current income/loss. In case relevant assets are sold transferred scrapped or damaged
prior to the end of their service life the balance of relevant deferred income that has not been allocated shall be
transferred to the profits and losses of the current period of asset disposal.* Revenue-related government subsidies
Government subsidies other than those related to assets are classified as revenue-related government subsidies.Revenue-related government subsidies shall be accounted for in accordance with the following provisions on a case-
by-case basis:
When a revenue-related government subsidy is used to compensate relevant expenses or losses of the Company
in the following period it shall be recognized as a deferred income and credited to a current income/loss in the
period when the related cost or loss is recognized;
When such a subsidy is used to offset relevant incurred costs and expenses or losses of the Company it shall
be directly credited to the current income/loss.For government subsidies including both assets-related and revenue-related subsidies they shall be divided for
separate accounting treatment; if it is difficult to separate them they shall be classified as revenue-related
government subsidies as a whole.Government subsidies associated with the routine activities of the Company shall be credited to Other Income
231Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
according to the substance of economic operations. Those that are not associated with the routine activities of the
Company shall be credited to Non-Operating Income/Expense.* Discounted interests of preferential policy loans
In case the Ministry of Finance directly appropriates the discount funds to the Company the Company will
write down the corresponding discount interests against relevant borrowing costs.* Refund of government subsidies
In case a recognized government subsidy needs to be refunded the book value of the asset concerned shall be
adjusted if the book value of the asset was written down when it was initially recognized; if there is a balance for
the relevant deferred income it shall be used to reduce the balanced book value of the deferred income and any
excess shall be credited to a current income/loss; for other cases it shall be directly credited to a current income/loss.
40. Deferred tax assets/deferred tax liabilities
The Company generally applies the balance sheet liability method to recognize and measure the income tax
amount affected by the taxable temporary difference or deductible temporary difference as a deferred income tax
liability or deferred income tax asset based on the temporary difference between the book value of assets and
liabilities on the balance sheet date and the tax basis. The Company does not discount deferred income tax assets
and deferred income tax liabilities.
(1) Recognition of deferred income tax assets
For deductible losses and tax credits that are deductible for temporary differences and can be carried forward
to subsequent years the income tax amount so affected shall be calculated at the income tax rate of the expected
carry-back period and the amount of impact shall be recognized as a deferred income tax asset provided that the
Company is likely to obtain future taxable incomes to offset the deductible temporary differences deductible losses
and tax credits.In transactions or matters with the following characteristics the income tax amount affected by a deductible
temporary difference caused by the initial recognition of an asset or liability shall not be recognized as a deferred
income tax asset;
A. The transaction is not a business merger;
B. The occurrence of the transaction does not affect the accounting profit or the taxable income (or deductible
loss).
232Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
However this exemption from the initial recognition of deferred income tax liabilities and deferred income tax
assets shall not apply to a single transaction in which both the above two conditions are met and the initial
recognition of assets and liabilities results in an equal amount of taxable temporary differences and deductible
temporary differences. For taxable temporary differences and deductible temporary differences arising from the
initial recognition of assets and liabilities of the transaction the Company recognizes the corresponding deferred
income tax liabilities and deferred income tax assets respectively when the transaction takes place.For deductible temporary differences related to investments of subsidiaries associated enterprises and joint
ventures the Company recognizes the amount of income tax impact as a deferred income tax asset (only) when the
following two conditions are both met:
A. The temporary difference is very likely to be reversed in the foreseeable future;
B. Taxable incomes are very likely to be obtained to offset the deductible temporary difference in the future.On the balance sheet date if there is conclusive evidence that enough taxable incomes are very likely to be
obtained in future periods to offset the deductible temporary differences the deferred income tax assets not
recognized in the previous period shall be recognized.The Company checks the book value of deferred income tax assets on the balance sheet date In case it is very
unlikely to obtain enough taxable incomes to offset the benefits of the deferred tax assets in future periods the book
value of the deferred tax assets shall be written down. If it is very likely to obtain enough taxable incomes the write-
down amount shall be reversed.
(2) Recognition of deferred income tax liabilities
For all taxable temporary differences of the Company the amount of income tax impact is measured at the
income tax rate for the expected carry-back period and the amount of impact shall be recognized as a deferred
income tax liability except:
* Income tax impact caused by taxable temporary differences arising from the following transactions or
matters shall not be recognized as a deferred income tax liability:
A. Initial recognition of goodwill;
B. Initial recognition of assets or liabilities arising from transactions with the following characteristics: the
transaction is not a business merger and the occurrence of the transaction does not affect the accounting profit or
the taxable income or deductible loss.* For taxable temporary differences related to investments of subsidiaries associated enterprises and joint
233Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
ventures the Company generally recognizes the amount of income tax impact as a deferred income tax liability
(only) except those meeting both the following two conditions:
A. The Company can control the reversal time of the temporary difference;
B. The temporary difference is very unlikely to be reversed in the foreseeable future;
(3) Recognition of deferred income tax liabilities or assets involved in certain transactions or matters
* Deferred income tax liabilities or assets related to business mergers
For taxable temporary differences or deductible temporary differences arising from business mergers not
involving enterprises under common control the goodwill recognized in the business mergers are generally adjusted
for the relevant deferred income tax expenses while recognizing the deferred income tax liabilities or assets.* Items directly credited to owner's equity
Income tax and deferred income tax of the current period related to transactions or matters that are directly
credited to the owner's equity shall be credited to the owner's equity. Transactions or matters with the income tax
impact of temporary differences credited to owners' equity include: other comprehensive income resulting from
changes in the fair value of other debt investments adjusted beginning retained income made with the retrospective
adjustment method for changes in accounting policies or corrected with the retrospective restatement method to
correct differences of (significant) accounting errors in previous period and owner's equity credited at the time of
initial recognition of mixed financial instruments containing both liability components and equity components.* Recoverable losses and tax credits
A. Recoverable losses and tax credits arising from the Company's own operations
Deductible loss refers to the loss which is allowed to be offset by a taxable income of subsequent years
calculated and determined in accordance with the provisions of the tax law. Losses to offset (deductible losses) and
tax credits that can be carried forward to subsequent years according to the provisions of the tax law shall be treated
as deductible temporary differences. When sufficient taxable income is likely to be obtained during future periods
in which it is expected that a loss to offset or tax credit will be available the corresponding deferred income tax
asset shall be recognized to the extent of the taxable income likely to be obtained while the income tax expense in
the current income statement shall be reduced.B. Recoverable loss to offset of the merged business arising from business merger
The Company obtains deductible temporary differences from the acquiree in business merger which shall not
be recognized if the conditions for recognition of deferred tax assets are not met by the acquisition date. Within 12
234Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
months after the acquisition date if new or further information is obtained indicating that the relevant circumstances
already existed by the acquisition date and the economic benefits brought about by the deductible temporary
difference is expected to be realized by the acquiree by the acquisition date the relevant deferred tax assets shall be
recognized and goodwill shall be reduced at the same time. If there is insufficient goodwill to offset the difference
shall be recognized as a current profit/loss; in addition to the above circumstances deferred tax assets related to
business merger shall be recognized and credited to the current profit/loss.* Temporary differences arising from offsets in consolidated statements
When preparing the consolidated financial statements the Company recognizes deferred income tax assets or
liabilities in the consolidated balance sheet and adjusts the income tax expense in the consolidated income statement
if there is a temporary difference between the carrying value of the assets or liabilities in the consolidated balance
sheet and the tax basis of the taxable entity concerned due to the offset of unrealized gains and losses on internal
sales except deferred income taxes related to transactions or matters directly credited to owners' equity and related
to business merger.* Equity-settled share-based payments
If the tax law allows pre-tax deductions for expenses related to share-based payments when recognizing costs
and expenses in accordance with the accounting standards the Company calculates and determines the tax basis
and the resulting temporary differences based on the pre-tax deductible amount estimated with the information
obtained at the end of the accounting period and recognizes the relevant deferred income tax if the conditions for
recognition are met. If the amount that is expected to be deductible before tax in future periods exceeds the costs
and expenses related to the share-based payments recognized in accordance with the provisions of the accounting
standards the income tax impact of the excess shall be directly credited to owners' equity.* Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments by the Company as the issuer where the relevant
dividend payout is deducted before corporate income tax in accordance with the relevant provisions of tax policies
the Company recognizes the income tax impact related to the dividend when recognizing the dividend payable. The
income tax impact of dividends shall be credited to the current profit/loss if the profit distributed is derived from a
transaction or matter previously generated profit or loss; the income tax impact of dividends shall be credited to
owners' equity if the profit distributed is derived from a transaction or matter previously recognized in owners'
equity.
235Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(4) Basis for presentation of net balances of deferred income tax assets and liabilities
When all of the following conditions are met the Company presents net balances of deferred income tax assets
and liabilities after offsetting:
* The Company is entitled to settle current income tax assets and liabilities on a net basis;
* Deferred income tax assets and liabilities are related to the income tax levied by the same taxation authority
on the same taxpayer or to different taxpayers but during the period in which each future deferred income tax asset
and liability of significance is reversed the involved taxpayer intends to settle current income tax assets and
liabilities on a net basis or acquire assets and pay off debts at the same time.
41. Lease
(1) Accounting treatment of lease as the lessee
On the commencement date of the lease term the Company considers a lease with lease term no more than 12
months and which does not include a purchase option to be a short-term lease and a lease with a low value when a
single leased asset is a new asset as a low-value asset lease. Where the Company subleases or intends to sublease a
leased asset the original lease is not deemed to be a low-value asset lease.For all short-term leases and low-value asset leases the Company credits the lease payments to the cost of the
underlying asset or to current profit/loss on a straight-line basis during each period of the lease term.With the exception of the above short-term leases and low-value asset leases treated by simplified treatment
the Company recognizes the right-of-use assets and lease liabilities on the lease on the commencement date of the
lease term.* Right-of-use assets
A right-of-use asset refers to the lessee's right to use the leased asset during the lease term.On the commencement date of the lease term an initial measurement of right-of-use assets shall be carried out
according to the cost. The cost is composed of:
The initially measured amount of the lease liability;
Lease payment paid on or before the commencement date of the lease term minus relevant amount of the
enjoyed lease incentives (if any)
Initial direct expenses incurred by the leasee;
236Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
An estimate of costs to be incurred by the leasee in dismantling and removing the lease asset restoring the site
where the lease asset resides or restoring the lease asset to the condition required by the terms and conditions of the
lease. The Company recognizes and measures the costs according to the recognition criteria and measurement
method for estimated liabilities. Refer to Note III.25 for details. The aforementioned costs are incurred for the
production of inventory and will be credited to the cost of inventory.The straight-line depreciation method shall be applied for the depreciation classification and provision of right-
of-use assets. If it can be reasonably ascertained that the ownership of the leased asset will be acquired at the end of
the lease term the depreciation rate shall be determined according to the class of the right-of-use asset and the
estimated net salvage value rate during the expected remaining useful life of the leased asset; otherwise the
depreciation rate shall be determined on the basis of the class of the use-of-right asset during the shorter of the lease
term and the remaining useful life of the leased asset.* Lease liabilities
The initial measurement of lease liabilities shall be based on the present value of the lease payment payable on
the commencement date of the lease term. The amount of lease payments shall consist of the following five
components:
? Fixed payment amount and substantial fixed payment amount and if there are lease incentives minus the
amount related to lease incentives;
? Variable lease payment amount depending on the index or rate;
? Exercise price of the purchase option provided that the lessee reasonably determines to exercise the option;
? Amount payable to exercise the option to terminate the lease provided that it is reflected in the lease term
that the lessee will exercise the option to terminate the lease;
? Amount expected to be paid based on the remaining value of the security provided by the lessee.When computing the present value of a lease payment the implicit interest rate of the lease shall be used as
the discount rate; when such implicit interest rate cannot be determined the incremental borrowing rate of the
Company shall be used as the discount rate. The difference between the lease payment amount and its present value
shall be recognized as an unrecognized financing expense and the interest expense shall be recognized at the
discount rate of the present value of the lease payment amount during each period of the lease term and credited to
the current profit/loss. Variable lease payments not included in the measurement of lease liabilities shall be credited
to the current profit/loss at the actual time of incurring.
237Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
After the commencement of the lease term when there is a change in the substantial fixed payment amount a
change in the estimated amount payable on the security balance a change in the index or ratio used to determine
the lease payment amount a change in the evaluation result of the purchase option the renewal option or the
termination option or a change in the actual exercise of the option the Company will remeasure the lease liability
at the present value of the changed lease payment amount and adjust the book value of the right-of-use assets
accordingly.
(2) Accounting treatment of lease as the lessor
On the commencement date of the lease the Company classifies leases that substantially transfer virtually all
of the risks and compensations associated with ownership of the leased assets as finance leases and all other leases
as operating leases.* Operating lease
The Company recognizes lease receipts as rental income on a straight-line basis during each period of the lease
term capitalize and apportion the initial direct expenses incurred on the same basis as rental income recognition
and credit the direct expenses to the current profit/loss in installments. The Company credits to the current profit/loss
the amount of variable lease payments acquired in relation to operating leases that are not included in lease receipts
when actually incurred.* Finance lease
On the commencement date of the lease the Company recognizes finance lease receivables on the basis of net
lease investment (the sum of the unsecured balance value and the present value of the lease proceeds not yet received
by the commencement date of the lease term discounted at the implicit interest rate of the lease) and terminates the
recognition of the finance lease assets. In each period of the lease term the Company calculates and recognizes the
interest income at the implicit interest rate of the lease.Variable lease payments acquired by the Company and not included in the measurement of the net lease
investment shall be credited to the current profit/loss at the actual time of incurring.
42. Other important accounting policies and accounting estimation
Share repurchase
(1) Where the Company has reported and has been approved to purchase the Company's shares for capital
238Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
reduction in accordance with legal procedures the share capital shall be reduced by the total par value of the shares
cancelled the owners' equity shall be adjusted in case of a difference between the price paid for the repurchase of
the shares (including transaction fees) and the par value of the shares; the portion in excess of the total par value
shall write down the capital reserve (share capital premium) surplus reserve and undistributed profits in turn and
the portion less than the total par value shall be added to the capital reserve (equity premium).
(2) The shares repurchased by the Company shall be managed as treasury shares before being cancelled or
transferred and all expenses incurred for repurchasing the shares shall be changed as treasury share costs.
(3) In case of a transfer of treasury shares the portion of the transfer income higher than the cost of treasury
share is added to the capital reserve (equity premium); the portion lower than the cost of Treasury shares shall write
down the capital reserve (equity premium) surplus reserve and undistributed profit in turn.Restricted share
In the equity incentive plan the Company grants restricted shares to the incentivized subjects who shall
subscribe for the shares first and if the unlocking conditions stipulated in the equity incentive plan are not met later
the Company will repurchase the shares at the price agreed in advance. Where the restricted shares issued to the
employees have gone through the registration and other capital increase procedures in accordance with relevant
regulations the Company shall on the grant date recognize the share capital and capital reserve (capital premium)
based on the subscription payment received from the employees and also recognize the treasury shares and other
payables for the repurchase obligations.
43. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
□ Applicable □ Not applicable
Unit: RMB
Name of the statement item
Contents and reasons of the accounting policy change
that is significantly affected
The Ministry of Finance released the Interpretation No. 17 of Accounting Standards
for Business Enterprises (CK [2023] No. 21 hereinafter referred to as Interpretation
No. 17) on October 25 2023 which has been implemented since January 1 2024. No significant impact
The Company has implemented the provisions of Interpretation No. 17 since January
12024.
The Ministry of Finance release the 2024 Guide to the Application of Accounting
Standards for Business Enterprises in March 2024 and the Interpretation No. 18 of
No significant impact
Accounting Standards for Business Enterprises on December 6 2024 stipulating that
warranty type quality assurance expenses shall be credited to operating costs.
239Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Important accounting estimation changes
□ Applicable □ Not applicable
(3) Relevant items in financial statements at the beginning of 2024 when such adjustments were made for the
first time for initial implementation of the new accounting standard
□ Applicable □ Not applicable
VI. Tax
1. Main tax types and tax rate
Tax type Tax basis Tax rate
VAT (value-added tax) Revenue from sales of goods 13.00% 9.00% 6.00% 3.00% and 0% (Note 1)
Urban maintenance and construction tax Paid turnover tax amount 7.00% 5.00%
Education surcharge Paid turnover tax amount 3.00% 2.00%
See the table below (Note 2) for taxpayers subject
Corporate income tax Taxable income to different corporate income tax rates and their
tax rates.Note 1: Shenzhen YAKO Automation Technology Co. Ltd. was recognized as a software enterprise by Shenzhen
Economic Trade and Information Commission on April 27 2013 and received the software enterprise certification
No. Shen R-2010-0237; Shenzhen Topband Software Technology Co. Ltd. was recognized as a software enterprise
by Shenzhen Economic Trade and Information Commission on Friday June 28 2013 and received the software
enterprise certification No. Shen R-2013-0616; Shenzhen Yansheng Software Co. Ltd. was recognized as a
software enterprise by Shenzhen Software Industry Association on August 31 2017 and received the software
enterprise certification No. Shen RQ-2017-0587; Shenzhen Allied Control System Co. Ltd. was recognized as a
software enterprise by Shenzhen Economic Trade and Information Commission on June 28 2013 and received the
software enterprise certification No. Shen R-2013-0775. According to relevant provisions of the Notice on the
Distribution of Several Policies on Further Encouraging the Development of the Software and Integrated Circuit
Industries issued by the State Council (GF [2011] No. 4) after the sales revenue of the above products is levied for
value-added tax at the statutory tax rate of 13.00% during the Reporting Period the refund-upon-collection policy
shall be applied to the portion of the actual VAT burden in excess of 3.00%.According to the Notice of the Ministry of Finance and the State Taxation Administration on VAT Policies for
Software Products (CS [2011] No. 100) the refund-upon-collection policy shall be applied to the portion of the
240Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
actual VAT burden of software products in excess of 3.00%. The provision of the policy is applicable to Shenzhen
Meanstone Intelligent Technology Co. Ltd. a subsidiary of the Company.(Note 2) Taxpayers of the Company subject to different corporate income tax rates and their tax rates are as
follows
Name of taxpayer Corporate income tax rate
Shenzhen Topband Co. Ltd. 15%
Shenzhen Topband Software Technology Co. Ltd. 15%
Shenzhen Topband Automation Technology Co. Ltd. 15%
Shenzhen Topband Battery Co. Ltd. 15%
Huizhou Topband Battery Co. Ltd. 20%
Taixing Topband Lithium Battery Co. Ltd. 15%
Nantong Topband Lithium Battery Co. Ltd. 25%
Yolaness Technology (HK) Co. Limited 16.5%
YOLANESS AFRICA （PTY） LTD 27%
Chongqing Topband Industrial Co. Ltd. 25%
Topband (Hong Kong) Co. Ltd. 8.25% 16.50%
Topband Germany GmbH 16%
TOPBAND SMART DONG NAI（VIETNAM）COMPANY LIMITED 20%
TOPBAND JAPAN Co. Ltd 23%
Q.B.PTE.LTD 17%
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. 16%
TOPBAND MEXICO S.DE R.L.DE C.V. 30%
Huizhou Topband Electrical Technology Co. Ltd. 15%
TOPBAND INDIA PRIVATE LIMITED 25%
Shenzhen YAKO Automation Technology Co. Ltd. 15%
Shenzhen Yansheng Software Co. Ltd. 15%
Hangzhou Zhidong Motor Technology Co. Ltd. 20%
Huizhou YAKO Automation Technology Co. Ltd. 25%
Shenzhen Allied Control System Co. Ltd. 25%
Ningbo Topband Intelligent Control Co. Ltd. 25%
Shenzhen Meanstone Intelligent Technology Co. Ltd. 15%
Shenzhen Topband Supply Chain Services Co. Ltd. 25%
Shenzhen Topband Investment Co. Ltd. 25%
Shenzhen Tunnu Innovation Co. Ltd. 20%
Tunnu Innovation (Hong Kong) Limited 16.5%
TUNNU INNOVATION INC 21%
Shenzhen Zhongli Consulting Co. Ltd. 20%
Shenzhen Yueshang Robot Co. Ltd. 20%
241Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Shenzhen Topband Digital Energy Co. Ltd. 20%
Topband Digital Energy Technology (Huizhou) Co. Ltd. 25%
Chongqing Topband Yishu Energy Technology Co. Ltd. 25%
Shenzhen Senxuan Technology Co. Ltd. 20%
Shenzhen Tengyi Industrial Co. Ltd. 20%
Topband (Qingdao) Intelligent Control Co. Ltd. 20%
Shenzhen Topband Automotive Electronics Co. Ltd. 20%
Shenzhen Jingfei Investment Co. Ltd. 20%
Huizhou Jiuwan Lvyuan Agriculture Co. Ltd. 20%
Shenzhen Topband Motor Co. Ltd. 15%
Huizhou Chiding Technology Co. Ltd. 20%
2. Tax preference
(1) On November 15 2023 the Company received the Hi-tech Enterprise Certificate (No. GR202344206777)
issued by Shenzhen Science and Technology Innovation Commission Finance Bureau of Shenzhen Municipality
and Shenzhen Tax Service State Taxation Administration which is valid for three years. According to the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China the Rules for the Implementation
of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition of High and New
Technology Enterprises the corporate income tax rate applicable to the Company for the years 2023 to 2025 is
15.00%.
(2) On December 19 2022 Shenzhen Topband Software Technology Co. Ltd. received the Hi-tech Enterprise
Certificate (No. GR202244203890) issued by Shenzhen Science and Technology Innovation Commission Finance
Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is valid for
three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of
China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration
of the Recognition of High and New Technology Enterprises the corporate income tax rate applicable for the years
2022 to 2024 is 15.00%.
(3) On December 26 2024 Shenzhen Topband Battery Co. Ltd. received the Hi-tech Enterprise Certificate
(No. GR202444206593) issued by the Industry and Information Technology Bureau of Shenzhen Municipality
Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is valid
for three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of
242Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration
of the Recognition of High and New Technology Enterprises the corporate income tax rate applicable for the years
2024 to 2026 is 15.00%.
(4) On December 11 2024 Huizhou Topband Electrical Technology Co. Ltd. received the Certificate for
High-tech Enterprise (No. GR202444009232) issued by the Department of Science and Technology of Guangdong
Province the Department of Finance of Guangdong Province and Guangdong Provincial Tax Service under the
State Taxation Administration which is valid for three years. According to the relevant provisions of the Enterprise
Income Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax
Law and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2024 to 2026 is 15.00%.
(5) On December 26 2024 Shenzhen YAKO Automation Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202444202027) issued by the Industry and Information Technology Bureau of
Shenzhen Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises the corporate income
tax rate applicable for the years 2024 to 2026 is 15.00%.
(6) On December 26 2024 Shenzhen Yansheng Software Co. Ltd. received the Hi-tech Enterprise Certificate
(No. GR202444205050) issued by the Industry and Information Technology Bureau of Shenzhen Municipality
Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is valid
for three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of
China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration
of the Recognition of High and New Technology Enterprises the corporate income tax rate applicable for the years
2024 to 2026 is 15.00%.
(7) On November 19 2024 Taixing Topband Lithium Battery Co. Ltd. received the Certificate for High-tech
Enterprise (No. GR202432004814) issued by the Jiangsu Provincial Department of Science and Technology the
Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service under State Taxation
243Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises the corporate income
tax rate applicable for the years 2024 to 2026 is 15.00%.
(8) On November 15 2023 Shenzhen Topband Automation Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202344204958) issued by Shenzhen Science and Technology Innovation
Commission Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration
which is valid for three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's
Republic of China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the
Administration of the Recognition of High and New Technology Enterprises the corporate income tax rate
applicable for the years 2023 to 2025 is 15.00%.
(9) On December 26 2024 Shenzhen Topband Motor Co. Ltd. received the Hi-tech Enterprise Certificate
(No. GR202444207996) issued by the Industry and Information Technology Bureau of Shenzhen Municipality
Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is valid
for three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of
China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration
of the Recognition of High and New Technology Enterprises the corporate income tax rate applicable for the years
2024 to 2026 is 15.00%.
(10) On December 26 2024 Shenzhen Meanstone Intelligent Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202444200497) issued by the Industry and Information Technology Bureau of
Shenzhen Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income Tax
Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law and the
Measures for the Administration of the Recognition of High and New Technology Enterprises the corporate income
tax rate applicable for the years 2024 to 2026 is 15.00%.
(11) Topband (Hong Kong) Co. Ltd. Yolaness Technology (HK) Co. Limited and Tunnu Innovation (Hong
Kong) Limited which are subsidiaries of the Company established in Hong Kong Special Administrative Region
244Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
of China are applicable to the profits tax rate of 16.50%. Meanwhile due to the implementation of the "two-tier
profits tax" policy in Hong Kong for the portion of annual profits not exceeding HKD 2 million Topband (Hong
Kong) Co. Ltd. Is applicable to the profits tax rate of 8.25% and for the excess port the tax rate is 16.50%.
(12) According to the provisions of the Announcement on Tax and Fee Policies for Further Supporting the
Development of Small and Micro Enterprises and Individual Businesses issued by the Ministry of Finance and the
State Taxation Administration (Announcement 2023 No. 12 by the Ministry of Finance and the State Taxation
Administration) small low-profit enterprises shall calculate their taxable income at a reduced rate of 25.00% and
pay the corporate income tax at a rate of 20.00% and this policy is extended till December 31 2027. The provisions
of this policy are applicable the subsidiaries and sub-subsidiaries of the Company including Hangzhou Zhidong
Motor Technology Co. Ltd. Shenzhen Topband Digital Energy Co. Ltd. Shenzhen Tunnu Innovation Co. Ltd.Huizhou Topband Battery Co. Ltd. Shenzhen Zhongli Consulting Co. Ltd. Shenzhen Senxuan Technology Co.Ltd. Shenzhen Tengyi Industrial Co. Ltd. Topband (Qingdao) Intelligent Control Co. Ltd. Shenzhen Topband
Automobile Electronics Co. Ltd. Shenzhen Yueshang Robot Co. Ltd. Shenzhen Jingfei Investment Co. Ltd.Huizhou Chiding Technology Co. Ltd. and Huizhou Jiuwan Lvyuan Agriculture Co. Ltd.
3. Others
None.VII. Notes to items of consolidated financial statements
1. Monetary capital
Unit: RMB
Items Ending balance Beginning balance
Cash on hand 800122.43 1069045.22
Bank deposit 1690347796.36 1352610241.43
Other monetary capital 22828344.55 196771603.17
Total 1713976263.34 1550450889.82
Including: total amount deposited abroad 521804112.38 270380160.96
Other descriptions:
(1) At the end of the period the amount of mortgage pledges frozen or other funds with restrictions on use is RMB
100701385.53. Refer to VII. 31 of this report for details.
245Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) At the end of the period there is no amount deposited overseas or with the repatriation restricted.
2. Tradable financial assets
Unit: RMB
Items Ending balance Beginning balance
Financial assets measured at fair value and whose changes
739448691.77656704087.16
are recorded in current profit or loss
Including:
Including: financial products 396522333.21 303000000.00
Equity instrument investment 342926358.56 352334087.16
Forward foreign exchange contract 1370000.00
Total 739448691.77 656704087.16
3. Derivative financial assets
None.
4. Notes receivable
(1) List of classification of notes receivable
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance instruments 38725822.76 48332530.42
Commercial acceptance bill 9735512.62 5865862.11
Total 48461335.38 54198392.53
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category
Proporti Book value Proporti Book value
on of on of
Amount Proportion Amount Amount Proportion Amount
provisio provisio
n n
Notes
receivable with
single
provision for
bad debts
Including:
Notes 48772791.41 100.00% 311456.03 0.64% 48461335.38 54386051.69 100.00% 187659.16 0.35% 54198392.53
246Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
receivable with
provision for
bad debts by
portfolio
Including:
Bank
38725822.7679.40%38725822.7648332530.4288.87%48332530.42
acceptance bill
Commercial
10046968.6520.60%311456.033.10%9735512.626053521.2711.13%187659.163.10%5865862.11
acceptance bill
Total 48772791.41 100.00% 311456.03 0.64% 48461335.38 54386051.69 100.00% 187659.16 0.35% 54198392.53
Provision for bad debts by portfolio: 331456.03
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Bank acceptance bill 38725822.76
Commercial acceptance bill 10046968.65 311456.03 3.10%
Total 48772791.41 311456.03
If the provision for bad debts of notes receivable is made according to the general model of expected credit losses:
□ Applicable □ Not applicable
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance balance Provision Write-off Others
reversal
Provision for
187659.16123796.87311456.03
bad debts
Total 187659.16 123796.87 311456.03
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable □ Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Unit: RMB
Items Pledged amount at end of period
Bank acceptance instruments 0.00
Commercial acceptance bill 0.00
Total 0.00
247Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not due yet on
balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance instruments 26471117.10
Commercial acceptance bill 100000.00
Total 26571117.10
5. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within 1 year (including 1 year) 3051190543.53 2501663449.76
1-2 years 38379992.73 26101888.01
2-3 years 17917449.39 34426751.55
Above 3 years 68483255.65 38418609.23
3-4 years 30183662.92 36343415.96
4-5 years 36243544.76 742628.55
Above 5 years 2056047.97 1332564.72
Total 3175971241.30 2600610698.55
248Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportio Proportion of Book value Proportion of Book value
Amount Amount Amount Proportion Amount
n provision provision
Accounts
receivable
with single
84435157.562.66%84435157.56100.00%0.0090294270.193.47%90294270.19100.00%0.00
provision
for bad
debts
Including
:
Single
84435157.562.66%84435157.56100.00%0.0090294270.193.47%90294270.19100.00%0.00
provision
Accounts
receivable
with
299278442510316428.32431773877.5
provision 3091536083.74 97.34% 98751586.01 3.19% 96.53% 78542550.80 3.13%
97.7366
for bad
debts by
portfolio
Including
:
Accounts
receivables
with
provision 29927844 2510316428.3 2431773877.5
3091536083.7497.34%98751586.013.19%96.53%78542550.803.13%
for bad 97.73 6 6
debts by
aging
portfolio
249Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
299278442600610698.52431773877.5
Total 3175971241.30 100.00% 183186743.57 5.77% 100.00% 168836820.99 6.49%
97.7356
250Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Single provision for bad debt: 84435157.56
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
Single
It is difficult to
provision for 90294270.19 90294270.19 84435157.56 84435157.56 100.00%
recover
bad debts
Total 90294270.19 90294270.19 84435157.56 84435157.56
Provision for bad debts by portfolio: 98751586.01
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivables with
provision for bad debts by 3091536083.74 98751586.01 3.19%
aging portfolio
Total 3091536083.74 98751586.01
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance balance Provision Write-off Others
reversal
Single
provision for 90294270.19 268251.18 3769982.90 2357380.91 84435157.56
bad debts
Provision for
bad debts by 78542550.80 21382145.11 272434.44 -900675.46 98751586.01
portfolio
Total 168836820.99 21650396.29 3769982.90 2629815.35 -900675.46 183186743.57
(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 2629815.35
Among them the important accounts receivable write-offs are:
Nature of
Amount of Reason for Write-off procedure Whether the payment arose
Name of unit accounts
write-off write-off implemented from a related transaction
receivable
251Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Accounts Approval by the
Entity 1 2234218.21 Irrecoverable No
receivable management
Total 2234218.21
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending balances of
Ending balance of ending balances of for accounts
Ending balance of accounts
Name of unit accounts accounts receivable and
contract assets receivable and
receivable receivable and provision for
contract assets
contract assets impairment of
contract assets
No. 1 792615088.78 0.00 792615088.78 24.96% 24586223.15
No. 2 184815580.16 0.00 184815580.16 5.82% 5729282.98
No. 3 127197331.94 0.00 127197331.94 4.00% 3943117.29
No. 4 90629038.79 0.00 90629038.79 2.85% 2814694.68
No. 5 76333174.15 0.00 76333174.15 2.40% 2366328.40
Total 1271590213.82 0.00 1271590213.82 40.03% 39439646.50
6. Contract assets
None.
7. Receivables financing
(1) Classification of accounts receivable financing
Unit: RMB
Items Ending balance Beginning balance
Notes receivable 101957511.11 126350412.69
Supply chain notes receivable 29260161.45 40202216.82
Factored accounts receivable 111968012.71
Total 131217672.56 278520642.22
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category
Propor Book value Propor Book value
Proporti tion of Proporti tion of
Amount Amount Amount Amount
on provis on provis
ion ion
252Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Single
provision
40202216.8214.25%40202216.82
for bad
debts
Including:
notes of 40202216.82 14.25% 40202216.82
supply chain
Provision
for bad
132153756.15100.00%936083.590.71%131217672.56241900477.4085.75%3582052.001.48%238318425.40
debts by
portfolio
Including:
Bank
acceptance 101957511.11 77.15% 101957511.11 126350412.69 44.79% 126350412.69
bill
Aging
30196245.0422.85%936083.593.10%29260161.45115550064.7140.96%3582052.003.10%111968012.71
portfolio
Total 132153756.15 100.00% 936083.59 0.71% 131217672.56 282102694.22 100.00% 3582052.00 1.27% 278520642.22
Provision for bad debts by portfolio: 936083.59
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Bank acceptance bill 101957511.11
Aging portfolio 30196245.04 936083.59 3.10%
Total 132153756.15 936083.59
Provision for bad debts based on the general model of expected credit losses
Unit: RMB
First stage Second stage Third stage
Expected credit loss for
Provision for bad debts Expected credit Expected credit loss for the entire duration Total
loss in the next 12 the entire duration (no
(credit impairment
months credit impairment)
occurred)
Balance as of January 1 2024 3582052.00 3582052.00
Balance as of January 1 2024 in
current period
Accrual in the current period -2645968.41 -2645968.41
Balance as of December 31 2024 936083.59 936083.59
(3) Provision for bad debts accrued recovered or reversed in current period
Unit: RMB
Amount changed in the current period
Beginning
Category
balance Recover or Reversal or
Ending balance
Provision Other changes
reversal write-off
Provision for
3582052.00-2645968.41936083.59
impairment
253Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total 3582052.00 -2645968.41 936083.59
(4) Financing of accounts receivable pledged by the Company at the end of period
None.
(5) Financing of accounts receivable endorsed or discounted by the Company at end of period and not due
on balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance bill 836307079.51
Notes of supply chain 8154880.45
Total 844461959.96
(6) Financing of accounts receivable actually written off in the current period
None.
(7) Increase/decrease in accounts receivables financing in the current period and changes in fair value
None.
(8) Other notes
None.
8. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 38621875.39 36524343.36
Total 38621875.39 36524343.36
(1) Interest receivable
None.
(2) Dividends receivable
None.
254Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Book balance at the beginning of the
Nature of payment Book balance at the end of the period
period
Margin deposit 26075323.05 24942814.39
Borrowing and imprest of employees 5876690.76 7837283.76
Export tax rebate receivable 16656194.89 8682341.31
Compensation 2217210.33
Others 3067192.41 2698876.37
Total 51675401.11 46378526.16
2) Disclosure by aging
Unit: RMB
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within 1 year (including 1 year) 28620600.31 21094463.33
1-2 years 3259904.20 8282956.38
2-3 years 3590857.49 10637952.10
Above 3 years 16204039.11 6363154.35
3-4 years 10050869.49 824947.24
4-5 years 632732.91 3683926.82
Above 5 years 5520436.71 1854280.29
Total 51675401.11 46378526.16
3) Disclosure by bad debt provision method
□ Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Provision for bad
Book balance Book balance Provision for bad debts
debts
Categ
ory Propor Book value Proporti Book value
Proporti tion of Proporti on of
Amount Amount Amount Amount
on provis on provisio
ion n
Single
provis
ion for 16656194.89 32.23% 16656194.89 8682341.31 18.72% 8682341.31
bad
debts
Provis 35019206.22 67.77% 13053525.72 37.28% 21965680.50 37696184.85 81.28% 9854182.80 26.14% 27842002.05
255Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
ion for
bad
debts
by
portfol
io
Total 51675401.11 100.00% 13053525.72 25.26% 38621875.39 46378526.16 100.00% 9854182.80 21.25% 36524343.36
Single provision for bad debts: 0
Unit: RMB
Beginning balance Ending balance
Name Provision Provision Proportion
Book balance for bad Book balance for bad of Reasons for provision
debts debts provision
Export tax
No loss is expected in export tax
rebate 8682341.31 16656194.89
rebates
receivable
Provision for bad debts by portfolio: 13053525.72
Unit: RMB
Ending balance
Name Provision for bad Proportion of
Book balance
debts provision
Accounts receivable for which bad debt provision is
35019206.2213053525.7237.28%
made by credit risk feature portfolio
Total 35019206.22 13053525.72
Explanation of the basis for determining the portfolio:
None
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
First stage Second stage Third stage
Expected credit loss Expected credit loss
Provision for bad debts Expected credit loss for the entire duration for the entire duration Total
in the next 12 months (no credit (credit impairment
impairment) occurred)
Balance as of January 1 2024 7999902.51 1854280.29 9854182.80
Balance as of January 1 2024 in
current period
- Transfer to Stage 2
- Transfer to Stage 3 -2932925.14 2932925.14
Accrual in the current period 4410730.57 733231.28 5143961.85
Write-off in the current period 1620800.00 1620800.00
Other changes -323818.93 -323818.93
Balance as of December 31 2024 7533089.01 5520436.71 13053525.72
256Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Basis for division into different stages and bad debt provision ratio
None
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable □ Not applicable
4) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balance balance Provision Others
reversal write-off
Provision for
9854182.805143961.851620800.00-323818.9313053525.72
bad debts
Total 9854182.80 5143961.85 1620800.00 -323818.93 13053525.72
5) Other receivables actually written off in the current period
Unit: RMB
Items Amount of write-off
Other accounts receivable actually written off 1620800.00
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to total Ending balance of
Name of unit Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No. 1 Export rebate 16656194.89 Within 1 year 32.23%
Performance
No. 2 3500000.00 3-4 years 6.77% 1750000.00
bonds
House leasing
No. 3 3611983.10 3-4 years 6.99% 1805991.55
deposit
House leasing
No. 4 1520178.00 Above 5 years 2.94% 1520178.00
deposit
House leasing
No. 5 1270343.02 2-3 years 2.46% 381102.91
deposit
Total 26558699.01 51.39% 5457272.46
9. Prepayments
(1) List of advance payments by aging
Unit: RMB
257Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 24610656.44 91.38% 41217371.39 93.49%
1-2 years 1933909.54 7.18% 2649254.74 6.01%
2-3 years 364869.23 1.35% 173711.61 0.39%
Above 3 years 23000.00 0.09% 47730.79 0.11%
Total 26932435.21 44088068.53
Explanation of the cause for untimely settlement of advance payments aging more than one year with important
amounts: The terms of settlement have not been met.
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of the Company's top five year-end balances of advance payments grouped by debtors is
RMB 5687839.48 in the year accounting for 21.12% of the total year-end balance of advance payments.Other descriptions: None
10. Inventories
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
decline in decline in
value of value of
Items inventories or inventories or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance performance
cost cost
Purchase
of raw 969273726.88 96936222.89 872337503.99 883406451.52 84959315.65 798447135.87
materials
Goods in
148251757.87148251757.87187129741.78187129741.78
process
Goods on
583197273.8927930951.02555266322.87477050469.5722099671.18454950798.39
hand
258Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Goods
shipped in 164769170.25 4059078.37 160710091.88 118434872.84 4566699.62 113868173.22
transit
Materials
entrusted
7874525.26235709.717638815.5516730489.9416730489.94
for
processing
Self-
manufactu
red semi- 69367934.12 3074437.53 66293496.59 86682330.39 4046746.35 82635584.04
finished
product
Low-
value
12591.8212591.8254792.2754792.27
consumab
les
Total 1942746980.09 132236399.52 1810510580.57 1769489148.31 115672432.80 1653816715.51
(2) Provision for decline in value of inventories and provision for impairment of contract performance cost
Unit: RMB
Decrease amount in the current
Increase in the current period
Beginning period
Items Ending balance
balance Reversal or
Provision Others Others
write-off
Purchase of raw
84959315.6544014009.2231724864.00312237.9896936222.89
materials
Goods on hand 22099671.18 27349433.51 21518153.67 27930951.02
Self-
manufactured
4046746.352428749.943401058.763074437.53
semi-finished
product
Materials
entrusted for 235709.71 235709.71
processing
Goods shipped
4566699.624142271.584649892.834059078.37
in transit
Total 115672432.80 78170173.96 61293969.26 312237.98 132236399.52
11. Assets held for sale
□ Applicable □ Not applicable
12. Non-current assets due within one year
□ Applicable □ Not applicable
13. Other current assets
Unit: RMB
259Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Items Ending balance Beginning balance
Certificates of deposit 10442575.72
VAT to be deducted 336018148.49 201581758.39
Other prepaid taxes 6776410.91 6944576.68
Deferred expenses 6319738.67 4686592.42
Total 359556873.79 213212927.49
14. Debt investment
□ Applicable □ Not applicable
15. Other debt investment
□ Applicable □ Not applicable
16. Other equity instrument investment
Unit: RMB
Reasons
Losses
Gains and specified as
Gains Losses accumulated
losses Dividen measured at
included in recognized at the end of
included in d fair value
other in other the period
Project Ending Beginning other revenue with
comprehens comprehens and
name balance balance comprehens recogniz changes
ive revenue ive revenue included in
ive revenue ed in this included in
for the for the other
at the end of period other
period period comprehens
the period comprehens
ive revenue
ive income
Suzhou
Strategic
Legendse
investment
mi 21374810. 20000000. 1374810.0 1374810.0
expected to
Technolo 00 00 0 0
be held for a
gy Co.long time
Ltd.Suzhou Strategic
Suyu investment
23637966.21192950.2445016.02445016.0
Technolo expected to
000000
gy Co. be held for a
Ltd. long time
45012776.41192950.3819826.03819826.0
Total
000000
17. Long-term receivables
□ Applicable □ Not applicable
260Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
18. Long-term equity investment
Unit: RMB
Changes in increase or decrease in the current period
Declar Pr
ation ovi
Beginning Addi Decr Profits and Adjust Ending
Beginning of sio Ending
balance of tiona ease losses on ment to Other distribu n Ot balance of Investee balance
provision for l in investment other change
balance (book
(book value) tion for for her
provision for
inves inves recognized compre s in value) impairment cash im s impairment
tmen tmen under equity hensive equity
dividen pai
t t method income
ds or rm
profits ent
I. Joint venture
II. Associated enterprises
Tai'an Yuchengxin
Power Supply 9764719.19 9764719.19
Technology Co. Ltd.Shenzhen Daka
Optoelectronics Co. 5839292.85 -13252.87 5826039.98
Ltd.Shanghai Yidong
Power Technology 9722015.21 -203366.56 9518648.65
Co. Ltd.Dongguan Jujin
Plastic Technology 22186871.24 1427712.27 23614583.51
Co. Ltd.Subtotal 37748179.30 9764719.19 1211092.84 38959272.14 9764719.19
Total 37748179.30 9764719.19 1211092.84 38959272.14 9764719.19
19. Other non-current financial assets
None.
20. Investment property
(1) Investment property with cost measurement model
□ Applicable □ Not applicable
Unit: RMB
Houses and Land usage Construction
Items Total
buildings right in progress
I. Original book value
1. Beginning balance 119070562.06 119070562.06
2. Increase in the current period
(1) Outsourcing
(2) Transfer in of inventory fixed assets
and construction in progress
261Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(3) Increment from consolidation
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 119070562.06 119070562.06
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 15666159.21 15666159.21
2. Increase in the current period 2838375.00 2838375.00
(1) Provision or amortization 2838375.00 2838375.00
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 18504534.21 18504534.21
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 100566027.85 100566027.85
2. Beginning book value 103404402.85 103404402.85
21. Fixed assets
Unit: RMB
Items Ending balance Beginning balance
Fixed assets 2737959115.57 2102862886.72
Disposal of fixed assets
Total 2737959115.57 2102862886.72
(1) Situation about fixed assets
Unit: RMB
Office
Houses and Machinery and Transportation
Items equipment and Total
buildings equipment equipment
others
I. Original book value:
1. Beginning balance 1345250527.85 1372182154.73 3590498.65 73330922.05 2794354103.28
262Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2. Increase in the
399135227.46436287927.64865575.5914175124.04850463854.73
current period
(1) Purchase 4862135.36 247897659.33 865575.59 10104785.47 263730155.75
(2) Transfer into
394273092.10188390268.314070338.57586733698.98
projects under construction
(3) Increment from
consolidation
3. Decrease in the
3871566.0443001619.22261746.032077913.6449212844.93
current period
(1) Disposal or
35483355.41226367.351716891.9637426614.72
scrapping
(2) Exchange rate
3871566.047518263.8135378.68361021.6811786230.21
changes
4. Ending balance 1740514189.27 1765468463.15 4194328.21 85428132.45 3595605113.08
II. Accumulated
depreciation
1. Beginning balance 175071877.29 474301808.15 2620340.89 39497190.23 691491216.56
2. Increase in the
38026221.31145702976.70301522.4611175376.53195206097.00
current period
(1) Accrual 38026221.31 145702976.70 301522.46 11175376.53 195206097.00
3. Decrease in the
378364.8626997898.2053224.191621828.8029051316.05
current period
(1) Disposal or
25594404.4144047.221510574.7127149026.34
scrapping
(2) Exchange rate
378364.861403493.799176.97111254.091902289.71
changes
4. Ending balance 212719733.74 593006886.65 2868639.16 49050737.96 857645997.51
III. Provision for
impairment
1. Beginning balance
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal or
scrapping
4. Ending balance
IV. Book value
1. Ending book value 1527794455.53 1172461576.50 1325689.05 36377394.49 2737959115.57
2. Beginning book
1170178650.56897880346.58970157.7633833731.822102862886.72
value
(2) Temporary idle fixed assets
□ Applicable □ Not applicable
263Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(3) Fixed assets leased out through operating lease
□ Applicable □ Not applicable
(4) Fixed assets without certificate of title
Unit: RMB
Reasons for not obtaining the title
Items Book value
certificate
Dong Nai Factory Vietnam 65466612.25 In the process of application
It shall be handled together after the
Huizhou YAKO Automation Plant 121093334.49
second phase of the factory is completed
Total 186559946.74 —
(5) Impairment test of fixed assets
□ Applicable □Not applicable
22. Construction in progress
Unit: RMB
Items Ending balance Beginning balance
Construction in progress 768223670.57 568107950.65
Total 768223670.57 568107950.65
(1) Projects under construction
Unit: RMB
Ending balance Beginning balance
Items Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Topband Huizhou No. 2
427581637.03427581637.0327708391.4027708391.40
Industrial Park
Huizhou YAKO
266707288.28266707288.28112992616.66112992616.66
Automation Plant
Test equipment to be
61734340.6661734340.66163408253.23163408253.23
commissioned
Nantong Lithium Battery
244737333.79244737333.79
Industrial Park
Ningbo Topband
16898437.2616898437.26
Industrial Park
Qingdao Plant 2438792.94 2438792.94 1835469.17 1835469.17
Sporadic items 9761611.66 9761611.66 527449.14 527449.14
Total 768223670.57 768223670.57 568107950.65 568107950.65
264Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Changes in the important projects under construction in the current period
Unit: RMB
Proportion Including:
Interest
Amount of of Accumulated interest
Other capitalization Source
Project Beginning Increase in the transfer into accumulated Project amount of capitalization
Budget decrements Ending balance rate in the of
name balance current period fixed assets project progress interest amount in
this period current capitals
this period investment capitalization the current
period
in budget period
Topband
Huizhou Self-
No. 2 800000000.00 27708391.40 399873245.63 427581637.03 53.45% 55% own
Industrial capitals
Park
Nantong
Lithium
Raised
Battery 800000000.00 244737333.79 146381335.61 386860554.98 4258114.42 100.00% 100% 403534.38 403534.38 3.10%
capitals
Industrial
Park
Huizhou
Self-
YAKO
370000000.00 112992616.66 153714671.62 266707288.28 72.08% 70% 3452201.60 2914493.47 3.90% own
Automation
capitals
Plant
Ningbo
Topband Raised
465704300.0016898437.26855399.127176230.6610577605.72100.00%100%6883762.50
Industrial capitals
Park
Total 2435704300.00 402336779.11 700824651.98 394036785.64 14835720.14 694288925.31 10739498.48 3318027.85
265Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable □ Not applicable
(2) Impairment test of productive biological assets measured by cost
□ Applicable □ Not applicable
(3) Productive biological assets measured by fair value
□ Applicable □ Not applicable
24. Oil and gas assets
□ Applicable □ Not applicable
25. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Items Houses and buildings Land Total
I. Original book value
1. Beginning balance 180033528.88 5875457.96 185908986.84
2. Increase in the current period 18941859.64 18941859.64
(1) New lease 18941859.64 18941859.64
3. Decrease in the current period 39671488.92 39671488.92
(1) Termination of contract 32444904.08 32444904.08
(2) Impact of exchange rate changes 7226584.84 7226584.84
4. Ending balance 159303899.60 5875457.96 165179357.56
II. Accumulated depreciation
1. Beginning balance 84290633.58 171367.52 84462001.10
2. Increase in the current period 45743489.81 293772.90 46037262.71
(1) Accrual 45743489.81 293772.90 46037262.71
3. Decrease in the current period 32546979.36 32546979.36
(1) Disposal
(2) Termination of contract 29519273.40 29519273.40
(3) Impact of exchange rate
3027705.963027705.96
changes
4. Ending balance 97487144.03 465140.42 97952284.45
266Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 61816755.57 5410317.54 67227073.11
2. Beginning book value 95742895.30 5704090.44 101446985.74
(2) Impairment test of right-of-use assets
□ Applicable □ Not applicable
26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
Patent and non-
Land usage
Items Software patented Trademark Total
right
technology
I. Original book value
1. Beginning balance 391220157.09 29150685.42 600367172.80 9728450.00 1030466465.31
2. Increase in the
6422209.06152075199.94158497409.00
current period
(1) Purchase 6422209.06 6422209.06
(2) Internal R&D 152075199.94 152075199.94
(3) Increment from
consolidation
3. Decrease in the
1624474.731624474.73
current period
(1) Disposal
(2) Impact of exchange
1624474.731624474.73
rate changes
4. Ending balance 389595682.36 35572894.48 752442372.74 9728450.00 1187339399.58
II. Accumulated
amortization
1. Beginning balance 29135751.55 25040270.49 363013660.80 6165886.52 423355569.36
2. Increase in the
8012457.061207590.44109581080.691562563.48120363691.67
current period
(1) Accrual 8012457.06 1207590.44 109581080.69 1562563.48 120363691.67
3. Decrease in the
164259.81164259.81
current period
267Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(1) Disposal
(2) Impact of exchange
164259.81164259.81
rate changes
4. Ending balance 36983948.80 26247860.93 472594741.49 7728450.00 543555001.22
III. Provision for
impairment
1. Beginning balance
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 352611733.56 9325033.55 279847631.25 2000000.00 643784398.36
2. Beginning book
362084405.544110414.93237353512.003562563.48607110895.95
value
The intangible assets arising from internal development of the Company accounts for 43.47% of the balance of
intangible assets at the end of the current period.
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increase in the current Decrement in the
period current period
Name of investees or items forming Beginning
Ending balance
goodwill balance Disposal
formed by Disposal
consolidation
Shenzhen YAKO Automation
107314446.71107314446.71
Technology Co. Ltd.Shenzhen Allied Control System Co.
53768699.6853768699.68
Ltd.Shenzhen Meanstone Intelligent
3006892.593006892.59
Technology Co. Ltd.Hangzhou Zhidong Motor Technology
1322921.771322921.77
Co. Ltd.Taixing Topband Lithium Battery Co.
1962891.121962891.12
Ltd.Shenzhen Tengyi Industrial Co. Ltd. 131783.24 131783.24
Total 167507635.11 167507635.11
(2) Impairment of goodwill
Unit: RMB
268Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Increase in the current Decrement in the
Name of investees or items forming Beginning period current period Ending balance
goodwill balance
Provision Disposal
Shenzhen Allied Control System Co.
53768699.6853768699.68
Ltd.Shenzhen Meanstone Intelligent
3006892.593006892.59
Technology Co. Ltd.Taixing Topband Lithium Battery
1962891.121962891.12
Co. Ltd.Total 56775592.27 1962891.12 58738483.39
(3) Information about the asset group or portfolio of goodwill
Other descriptions
The goodwill of the Company is developed upon the acquisition of the equity of the above companies classified
as an asset portfolio and the asset portfolio of the goodwill at the end of the period is consistent with the portfolio
determined on the acquisition date.
(4) Specific method for determining recoverable amount
The recoverable amount was determined as the net amount of fair value less disposal costs.□ Applicable □Not applicable
The recoverable amount was determined based on the present value of expected future cash flows.□ Applicable □ Not applicable
Unit: RMB
Basis for
Key parameters Key determination
Recoverable Amount of Forecast
Items Book value of forecast parameters of of key
amount impairment period (year)
period stable period parameters of
stable period
Revenue Revenue
growth rate growth rate
Shenzhen 5.16%~37.62% 0%
YAKO profit margin According to profit margin
Automation 36064.32 39930.00 0.00 5 years 3.32%~16.97% the industry
16.97%
Technology characteristics
pre-tax pre-tax Co. Ltd.discount rate discount rate
13.15%13.15%
Total 36064.32 39930.00 0.00
Reasons for the significant inconsistency between the above-mentioned information and the information used in the
impairment test in previous years or external information
269Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
None.Reasons for the significant inconsistency between the information used in the impairment test of the Company in
previous years and the actual situation of the current year
None.
(5) Completion of performance commitments and corresponding goodwill impairment
There was a performance commitment when goodwill was formed and the Reporting Period or the period before
the Reporting Period was within the performance commitment period
□ Applicable □ Not applicable
Other descriptions:
None.
28. Long-term deferred expenses
Unit: RMB
Increase in the Amortization in Other reduced
Items Beginning balance Ending balance
current period the current period amount
Decoration costs 182289438.61 79187930.45 67430868.19 5710547.66 188335953.21
Others 514969.49 219063.88 145460.76 0.00 588572.61
Total 182804408.10 79406994.33 67576328.95 5710547.66 188924525.82
Other descriptions:
None
29. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Items Deductible Deductible
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for asset impairment 127531858.62 20774380.93 125437152.02 19538189.21
Deductible loss 313584186.89 58225899.51 390699314.09 65486472.23
Credit impairment provision 191335395.86 29239518.64 169108322.54 27140265.64
Amortization difference of
177349288.9126602393.33133446425.9220016963.88
intangible assets
270Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Deferred income 8191864.81 1456584.20 11071292.42 1881581.86
Equity incentive expenses 9764719.19 1487405.57
New leasing criteria book-tax
63314507.4011885057.66107881215.3520976523.71
difference
Depreciation difference of fixed
3284129.18492619.38
assets
Change in fair value of trading
345711.0051856.65
financial liabilities
Total 894701661.86 150215715.87 937643722.34 155039996.53
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Items Taxable Taxable Deferred tax Deferred tax
temporary temporary
liabilities liabilities
difference difference
Change in fair value of other equity instrument
3819826.00954956.50
investments
Changes in fair value of tradable financial
238079377.1339541458.56248096517.7341833063.71
assets
Book-tax difference of fixed assets depreciation 65883076.22 14093480.22 71278660.11 14299191.58
New leasing criteria book-tax difference 61729856.37 11769067.19 102290793.51 20006539.83
Book-tax difference of rental income 5951758.83 1397808.59 6120608.60 1530152.15
Assessed appreciation of fixed assets arising
412730.2861909.54
from business merger under different control
Total 375463894.55 67756771.06 428199310.23 77730856.81
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: RMB
Amount of mutual
Amount of offset
Ending balance of offset between deferred Beginning balance of
between deferred tax
Items deferred tax assets or tax assets and liabilities deferred tax assets or
assets and liabilities at
liabilities after offset at the beginning of the liabilities after offset
the end of the period
period
Deferred tax assets 47537178.67 102678537.20 155039996.53
Deferred tax liabilities 47537178.67 20219592.39 77730856.81
(4) Details of unrecognized deferred tax assets
Unit: RMB
Items Ending balance Beginning balance
Deductible temporary differences 26889124.56 13441041.61
Deductible loss 229540094.40 170793360.18
Total 256429218.96 184234401.79
271Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2024796.72
20255044922.322106518.93
202617774444.7414899970.42
202749665097.6026254597.91
202871076386.1427003257.68
202985979243.60
No time limit 164199004.76 100528218.52 Note
Total 393739099.16 170793360.18
Note: The deductible loss of unrecognized deferred income tax assets with no maturity period is the compensable
loss of an overseas subsidiary and no deductible period is required by local policies.
30. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Items Provision Provision for
Book balance for Book value Book balance Book value
impairment
impairment
Prepayment of
53787605.5753787605.57110640575.83110640575.83
long-term assets
Project
6248820.606248820.609546559.229546559.22
prepayment
Total 60036426.17 60036426.17 120187135.05 120187135.05
31. Assets with limited ownership or use right
Unit: RMB
End of the period Beginning of the period
Items Restriction Restriction Restriction Restriction
Book balance Book value Book balance Book value
type situation type situation
Financial Payment for Financial Payment for
management subscription management subscription
Monetary
50000000.00 50000000.00 products in of financial 15000000.00 15000000.00 products in of financial
capital
subscription management subscription management
period products period products
Deposit for Deposit for
application application
Monetary
19672873.14 19672873.14 Deposit of notes and 20089235.12 20089235.12 Deposit of notes and
capital
guarantees guarantees
from banks from banks
272Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Amount Amount
Monetary
31028512.39 31028512.39 Freezing frozen by 4498565.37 4498565.37 Freezing frozen by
capital
court court
Mortgage Mortgage
Fixed assets 509977235.97 502711310.29 Mortgage 120856655.54 119899873.68 Mortgage
loan loan
Intangible Mortgage Mortgage
61302043.62 58266861.10 Mortgage 61302043.62 59492901.97 Mortgage
assets loan loan
Construction Mortgage Mortgage
266707288.28 266707288.28 Mortgage 112992616.66 112992616.66 Mortgage
in progress loan loan
Total 938687953.40 928386845.20 334739116.31 331973192.80
32. Short-term loans
(1) Classification of short-term loans
Unit: RMB
Items Ending balance Beginning balance
Credit loan 421633604.78 218148750.00
Letter of credit 750000000.00 60000000.00
Discounted unexpired notes receivable 52580505.63 1200000.00
Total 1224214110.41 279348750.00
33. Tradable financial liabilities
Unit: RMB
Items Ending balance Beginning balance
Financial liabilities held for trading 444281.13
Including:
Future foreign exchange
444281.13
settlement
Total 444281.13
34. Derivative financial liabilities
None.
35. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 1194662037.01 927833178.70
Total 1194662037.01 927833178.70
273Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
36. Accounts payable
(1) Accounts payable listed
Unit: RMB
Items Ending balance Beginning balance
Accounts payable 2310872258.62 1957626396.34
Total 2310872258.62 1957626396.34
37. Other payables
Unit: RMB
Items Ending balance Beginning balance
Other account payable 450563068.15 151341029.40
Total 450563068.15 151341029.40
(1) Other accounts payable
1) Other payables listed by fund nature
Unit: RMB
Items Ending balance Beginning balance
Long-term assets 374192197.01 60945718.78
Expenses 42597479.86 23067327.79
Current accounts 13880170.02 37115852.17
Margin deposit 11103580.42 9559259.36
Equity acquisition payments payable 5512900.00
Restricted stock repurchase obligations 343896.00
Others 3276740.84 20308975.30
Total 450563068.15 151341029.40
38. Advance collections
(1) Presentation of advance collections
Unit: RMB
Items Ending balance Beginning balance
Accounts collected in advance 3915096.80 2808227.54
Total 3915096.80 2808227.54
39. Contractual liabilities
Unit: RMB
Items Ending balance Beginning balance
274Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Product payment received in advance 131435683.97 168681571.89
Total 131435683.97 168681571.89
40. Employee pay payable
(1) Presentation of employee pay payable
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance
current period current period
I. Short-term compensation 243115049.48 1825899700.11 1792759649.44 276255100.15
II. Post-employment benefits -
152733.65113798665.86113769124.09182275.42
defined contribution plan
Total 243267783.13 1939698365.97 1906528773.53 276437375.57
(2) Presentation of short-term remuneration
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Wages bonuses allowances
238419554.351677644058.611644705045.07271358567.89
and subsidies
2. Employee benefits 112922.58 51675679.52 51777375.10 11227.00
3. Social insurance expense 1513581.33 40308108.57 40592702.18 1228987.72
Including: medical
1509551.7131625514.8531912025.911223040.65
insurance premiums
Industrial injury
4029.624020674.994018757.545947.07
insurance expense
Maternity
4661918.734661918.73
insurance expense
4. Housing provident fund 53592867.58 53573929.58 18938.00
5. Trade union funds and staff
489.281650338.831650328.91499.20
education funds
6. Others 3068501.94 1028647.00 460268.60 3636880.34
Total 243115049.48 1825899700.11 1792759649.44 276255100.15
(3) List of defined contribution plan
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Basic endowment
146223.44108304025.57108280329.60169919.41
insurance
2. Unemployment
6510.215494640.295488794.4912356.01
insurance expense
Total 152733.65 113798665.86 113769124.09 182275.42
275Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
41. Taxes payable
Unit: RMB
Items Ending balance Beginning balance
VAT (value-added tax) 1694033.15 38272199.07
Corporate income tax 28835268.14 27477646.56
Individual income tax 8926503.48 14288257.83
Urban maintenance and construction tax 785710.34 1068455.46
Education surcharge 561221.65 763182.49
Property tax 4960315.63 8767641.43
Land use tax 274690.37 1184938.91
Stamp duty and others 2088856.11 552283.82
Total 48126598.87 92374605.57
Other descriptions:
None.
42. Liabilities held for sale
None.
43. Non-current liabilities due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term borrowings due within one year 106787755.00 326208942.16
Lease liabilities due within one year 29701010.75 44414655.87
Total 136488765.75 370623598.03
Other descriptions:
None.
44. Other current liabilities
Unit: RMB
Items Ending balance Beginning balance
Tax amount to be resold 51360086.21 3598492.74
Notes receivable that have been endorsed
26571117.1028963200.29
but not derecognized
Total 77931203.31 32561693.03
276Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
45. Long-term loans
(1) Classification of long-term loan
Unit: RMB
Items Ending balance Beginning balance
Mortgage loan 70500000.00 500000.00
Credit loan 126750000.00 671559999.99
Mortgage + guaranteed loan 155278229.88 91896819.64
Subtotal 352528229.88 763956819.63
Less: long-term borrowings to be due within 1
106787755.00326208942.16
year
Total 245740474.88 437747877.47
46. Bonds payable
None.
47. Lease liabilities
Unit: RMB
Items Ending balance Beginning balance
Rental payment 47285577.72 69176893.60
Unrecognized financing expenses -5209047.36 -7747082.57
Total 42076530.36 61429811.03
48. Long-term payables
None.
49. Long-term employee compensation payable
None.
50. Estimated liabilities
None.
51. Deferred income
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance Reasons of formation
current period current period
277Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Governmental
Governmental
11146292.42 7091762.93 4879427.61 13358627.74 subsidies related to
subsidies
assets
Total 11146292.42 7091762.93 4879427.61 13358627.74 --
52. Other non-current liabilities
None.
53. Share capital
Unit: RMB
Increase or decrease of change this time (+ -)
Beginning Conversion of
balance Issuance of Stock
Ending balance
accumulation Others Subtotal
new shares dividend
fund into shares
Total
number of 1246834988.00 1246834988.00
shares
54. Other equity instruments
None.
55. Capital reserve
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Capital premium (share
2056248939.0382693301.501973555637.53
premium)
Other capital reserves 156380980.48 9380913.16 49739520.00 116022373.64
Total 2212629919.51 9380913.16 132432821.50 2089578011.17
Other descriptions:
In the decreased equity premium of the current period RMB 79998327.85 represents the premium for the
acquisition of minority shareholders of the controlling subsidiary against the equity premium; RMB 2694973.65
represents the difference between the incentive fund accrued for the implementation of the employee stock
ownership plan of the Company and the original price of the repurchased treasury shares against the equity premium.The increase in other capital reserves in the current period is the increase in the equity incentive expenses
recognized by the Company and in deferred tax assets recognized by future deductible expenses before tax; the
decrease in the current period is attributable to the incentive fund accrued for the employee stock ownership plan of
278Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
the Company.
56. Treasury shares
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Treasury shares 112426101.24 95703328.59 52434493.65 155694936.18
Total 112426101.24 95703328.59 52434493.65 155694936.18
Other descriptions:
The increase in treasury shares in the current period represents RMB 95703328.59 of shares repurchased
by the Company; the decrease in treasury shares in the current period is attributable to the use of the treasury shares
for the implementation of the employee stock ownership plan by the Company.
57. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Minus:
profits and Minus:
losses current
included retained
in other earnings Attribut
Beginning Amount of pre- comprehe included able to
Items Minus: Attributable to
balance income tax nsive in other minority
Ending balance
income tax parent company
incurred in the income compreh sharehol
expense after tax
current period previously ensive ders
and income after tax
transferred in the
in the previous
current period
period
I. Other
comprehensive
income that
cannot be 3819826.00 954956.50 2864869.50 2864869.50
reclassified
into profits or
losses
Change in
fair value of
other equity 3819826.00 954956.50 2864869.50 2864869.50
instrument
investments
II. Other
comprehensive
11932029.41-47073802.89-47073802.89-35141773.48
income that is
reclassified
279Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
into profits
and losses
Differenc
e in translation
of foreign
11932029.41-47073802.89-47073802.89-35141773.48
currency
financial
statements
Total amount
of other
11932029.41-43253976.89954956.50-44208933.39-32276903.98
comprehensive
income
58. Special reserve
None.
59. Surplus reserves
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Statutory surplus reserve 219446936.59 28912360.88 248359297.47
Total 219446936.59 28912360.88 248359297.47
The increase in the current surplus reserve is due to withdrawing 10% of the current net profit from the statutory
surplus reserve in accordance with the relevant provisions of the Company Law and the Articles of Association of
the Company.
60. Retained earnings
Unit: RMB
Items Current period Previous period
Retained earnings at the end of the previous period before adjustment 2706499696.23 2271529693.82
Total adjusted amount of beginning undistributed profit (+ for increase
and - for decrease in the adjustment)
Retained earnings at the beginning of last period after adjustment 2706499696.23 2271529693.82
Plus: net profit attributable to owners of parent company in current
671442652.91515513995.18
year
Minus: appropriation of statutory surplus reserves 28912360.88 4682742.45
Withdrawal of discretionary surplus reserve
Common stock dividends payable 73502693.28 75861250.32
Retained earnings at the end of the period 3275527294.98 2706499696.23
280Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
61. Operating income and operating costs
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 10399740859.97 8043453974.89 8934867692.01 6955649634.03
Other business 101478961.57 45447890.32 57474477.07 30674810.49
Total 10501219821.54 8088901865.21 8992342169.08 6986324444.52
Is the audited net profit before and after deducting the non-recurring profit and loss (whichever is lower) negative
□ Yes □ No
62. Taxes and surcharges
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Urban maintenance and construction tax 24841682.37 20889516.99
Education surcharge 17745296.10 14922148.34
Property tax 13303366.60 10911411.26
Land use tax 2111546.91 1939963.52
Stamp duty 9095541.16 6713329.11
Others 47293.26 88332.70
Total 67144726.40 55464701.92
63. Overheads
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 247379353.10 237347006.91
Depreciation and amortization 40319253.79 57553657.92
Decoration costs 30218304.25 27505219.23
Rent and utilities 17929073.29 15076698.26
Intermediary service expenses 16200047.50 18641303.03
Travel expenses 8636727.63 10496552.41
Office expenses 8504767.31 8159259.57
Property insurance expenses 5947822.95 6696256.30
Maintenance fees 5003900.57 4717311.59
Low-value consumables 4996087.11 10420181.65
Royalties 2288327.60 3012624.33
Entertainment fees 3322728.51 4526740.60
Equity incentive expenses 2010527.37 20519411.61
281Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Recruitment expenses 1128412.66 668210.10
Others 7530326.52 13020909.15
Total 401415660.16 438361342.66
64. Sales expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 216057301.03 177930070.58
Business entertainment expenses 30524256.22 24191961.31
Intermediary service expenses 32395087.20 24056095.72
Travel expenses 27763607.38 21837455.26
Exhibition and advertising fees 19553727.25 11939949.08
Material and sample costs 23147338.89 20867711.91
Rent and utilities 4011697.11 2795464.97
Depreciation and amortization 2232367.28 1092899.05
Share-based payments 2443977.62 16782757.00
Mail expenses 2852311.58 2127799.43
Others 18266164.69 18718420.18
Total 379247836.25 322340584.49
65. R&D expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 501219982.86 402934357.32
Depreciation and amortization 134795616.02 114207065.14
Material expenses 56443253.89 46759862.86
Mold fee 23339825.18 19041570.90
Rent and utilities 21068938.08 10501013.89
Intermediary service expenses 16408867.59 12732354.18
Low-value consumables 10122656.50 9121231.77
Travel expenses 10971949.81 7391806.97
Testing expense 4355372.28 10684965.27
Equity incentive expenses 3505146.93 34765522.02
Decoration costs 1012579.66 4179747.04
Others 25762810.45 17650113.62
Total 809006999.25 689969610.98
66. Financial expenses
Unit: RMB
282Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Items Amount incurred in the current period Amount incurred in prior period
Interest expense 47188375.93 38085866.07
Interest revenue (income marked with "-
-36970341.29-36588417.62
")
Exchange gains (income marked with "-
-66326263.13-55439182.32
")
Bank procedure fees and others 3509282.42 2233049.94
Total -52598946.07 -51708683.93
67. Other revenues
Unit: RMB
Source for other revenues Amount incurred in the current period Amount incurred in prior period
Governmental subsidies 36473349.43 32905181.89
VAT refund upon collection 10805586.43 7901050.41
Return of individual income tax service
1150853.841169120.09
charge
Additional deduction of input tax 25055658.16 23473502.51
Total 73485447.86 65448854.90
68. Net exposure hedging revenue
None.
69. Fair value change revenue
Unit: RMB
Sources of income from change in fair
Amount incurred in the current period Amount incurred in prior period
value
Tradable financial assets -5506110.04 12535503.26
Financial liabilities held for trading -444281.13
Total -5950391.17 12535503.26
70. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income
1211092.841126356.29
accounted by the equity method
Investment income from disposal of
-2928835.90
long-term equity investments
Investment income from disposal of
-1097536.56-12299596.79
trading financial assets
Debt restructuring gains -1281246.63
Investment income of financial products 9551460.27 4405964.89
283Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Gains/losses on foreign exchange
-4438268.00-1538474.98
derivatives
Total 3945501.92 -11234586.49
71. Credit impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Bad debt loss on notes receivable -123796.87 187784.00
Bad debt loss of accounts receivable -17880413.39 -3041800.93
Bad debt loss of other receivables -5143961.85 -2130985.29
Impairment loss of accounts receivable
2645968.411965073.74
financing
Total -20502203.70 -3019928.48
72. Asset impairment loss
Unit: RMB
Amount incurred in the current
Items Amount incurred in prior period
period
I. Loss on inventory valuation and contract
-78170173.96-70707401.38
performance cost impairment loss
X. Goodwill impairment loss -1962891.12
Total -80133065.08 -70707401.38
73. Assets disposal revenue
Unit: RMB
Amount incurred in the current
Source of assets disposal revenue Amount incurred in prior period
period
Non-current assets disposal revenue -2689826.55 -1426087.98
74. Non-operating income
Unit: RMB
Amount included in the
Amount incurred in the Amount incurred in prior
Items current non-recurring profit
current period period
and loss
Gains on damage and
scrapping of non-current 66849.76 6918.33 66849.76
assets
Income from indemnity and
9966457.043889644.169966457.04
liquidated damages
Others 850319.79 2883194.45 850319.79
Total 10883626.59 6779756.94 10883626.59
284Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
75. Non-operating expenses
Unit: RMB
Amount included in the
Amount incurred in the Amount incurred in prior
Items current non-recurring profit
current period period
and loss
Loss on damage and
scrapping of non-current 9649850.72 9980597.19 9649850.72
assets
Public welfare donation
820559.04100000.00820559.04
expenditure
Abnormal loss 273792.77 273792.77
Interest and fine on late
425767.737815885.53425767.73
payment
Others 1146834.71 3385023.55 1146834.71
Total 12316804.97 21281506.27 12316804.97
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Current income tax expenses 108609200.48 35722550.85
Deferred tax expense -5669811.18 -18986416.44
Total 102939389.30 16736134.41
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Amount incurred in the current
Items
period
Total profit 774823965.24
Income tax expenses calculated at statutory/applicable tax rates 116223594.79
Influence of different tax rates applicable to subsidiary -16984620.81
Effect of income tax adjustment in previous period 18779540.72
Impact of non-taxable income -3324925.98
Impact of non-deductible cost expense and loss 3317167.69
Effect of using deductible losses on deferred tax assets not recognized in the prior period -1394596.24
Impact of deductible temporary differences or deductible losses of unrecognized deferred
52033623.86
tax assets in the current period
Additionally calculated and deducted R&D expenses -63916112.30
Change in the balance of beginning deferred tax assets/liabilities due to a tax rate
-1794282.43
adjustment
Income tax expenses 102939389.30
Other descriptions:
285Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
None.
77. Other comprehensive income
Refer to Note 57 for details.
78. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest income 50723986.61 30275917.62
Governmental subsidies 38837497.41 39284724.17
Current accounts 9115855.13 48543069.12
Deposits and security deposits received 4014198.73 7526394.61
Recovery of frozen funds 3556610.00
Return of individual income tax service
1150980.721169120.09
charge
Others 2836114.38 1772682.72
Total 110235242.98 128571908.33
Other cash paid in connection with operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Service charge 3509282.43 2233049.94
Out-of-pocket expenses 391168818.37 305150285.53
Margin and deposit expenses 6478353.42 5334308.14
Others 2516120.66 15791668.91
Frozen funds 30480162.39
Total 434152737.27 328509312.52
(2) Other cash received relating to investment activities
Other cash received relating to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Forex margin 2235246.30
Total 2235246.30
Other cash paid related to investment activities
286Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Forex margin 2234116.83
Forward foreign exchange liquidation
924300.008355799.98
losses paid
Total 924300.00 10589916.81
(3) Cash relating to financing activities
Other cash received relating to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Discounted notes receivable that cannot
6009728.2610045619.78
be terminated for recognition
Total 6009728.26 10045619.78
Other cash paid related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Share repurchase funds 96046021.00 221263958.01
Payment for principal and interest of
55433474.4852565752.20
lease liabilities
Acquisition of equity of holding
159555100.007800000.00
subsidiaries
Payment for lease deposit 502000.00
Total 311536595.48 281629710.21
Changes in liabilities arising from financing activities
Unit:
RMB
Decrement in the current
Increase in the current period
Beginning period
Items Ending balance
balance Change not in Change not
Change in cash Change in cash
cash in cash
Short-term
279348750.00960154505.63294239612.07305713000.003815757.291224214110.41
loans
Long-term
borrowings
(including
other non-
763956819.63164870102.40576199244.9999447.16352528229.88
current
liabilities to be
due within 1
year)
Lease liabilities
and
unrecognized
financing
expenses 105844466.90 21927936.87 55433474.48 561388.18 71777541.11
(including
other non-
current
liabilities to be
287Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
due within 1
year)
Total 1149150036.53 1125024608.03 316167548.94 937345719.47 4476592.63 1648519881.40
(4) Description on presenting cash flows on a net basis
Items Relevant facts Basis for net presentation Financial impact
Cash inflows and outflows for The net amount listed for
Cash flow from purchasing
projects with fast turnover "Cash flow from payments
Cash paid for investment and redeeming financial
large amounts and short for investments" is RMB
products
terms 1755000000.00.
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
Amount in the Amount in the
Supplementary information
current period previous period
1. Adjusting net profit to cash flow from operating activities
Net profit 671884575.94 511948638.53
Plus: provision for asset impairment 80133065.08 70707401.38
Credit impairment provision 20502203.70 3019928.48
Depreciation of fixed assets depletion of oil and gas assets depreciation of
198044472.00172559699.78
productive biological assets
Depreciation of right-of-use assets 46037262.71 44961252.63
Amortization of intangible assets 120363691.67 103132673.05
Amortization of long-term deferred expenses 67576328.95 52087562.28
Loss from disposal of fixed assets intangible assets and other long-term
2689826.551483081.27
assets (income marked with "-")
Losses on scrapping of fixed assets (income marked with "-") 9583000.96 9967980.43
Loss from changes in fair value (income marked with "-") 5950391.17 -12535503.26
Financial expenses (income marked with "-") 47180304.79 6073896.85
Investment income (income marked with "-") -3945501.92 11234586.49
Decrease in deferred tax assets (increase marked with "-") 52131201.21 -24180744.09
Increase in deferred tax liabilities (decrease marked with "-") -57801012.39 5194327.64
Decrease in inventory (increase marked with "-") -234551801.04 270031968.61
Decrease in operating receivables (increase marked with "-") -770365429.50 -172697744.27
Increase in operating payables (decrease marked with "-") 825349295.25 324892024.61
Others 11188843.12 88067468.77
Net cash flow from operating activities 1091950718.25 1465948499.18
2. Major investment and financing activities not involving cash receipts and
payments
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under finance leases
288Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3. Net change in cash and cash equivalents:
Ending balance of cash 1596352534.73 1494743705.76
Minus: beginning balance of cash 1494743705.76 1374281693.23
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 101608828.97 120462012.53
(2) Composition of cash and cash equivalents
Unit: RMB
Items Ending balance Beginning balance
I. Cash 1596352534.73 1494743705.76
Including: cash in stock 800122.43 1069045.22
Bank deposit available for payment at any time 1592396940.89 1333111676.06
Other monetary capital for payment at any time 3155471.41 160562984.48
III. Balance of cash and cash equivalents at the end of the period 1596352534.73 1494743705.76
(3) Monetary funds not falling under cash and cash equivalents
Unit: RMB
Amount in the Amount in the
Items Reasons for not being cash and cash equivalents
current period previous period
Financial management products in subscription period
Bank deposit 97950855.47 19498565.37 fixed-term deposit funds frozen by court interests
accrued at the end of the period but not yet received etc.Other monetary
19672873.14 36208618.69 Deposit
capital
Total 117623728.61 55707184.06
80. Notes to items in change statement of owner's equity
None.
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Foreign currency balance at Balance converted into RMB
Items Exchange rate for conversion
the end of the period at the end of the period
Monetary capital 572080654.15
Including: US dollars 51566465.62 7.1884 370098402.58
Euros 1123424.20 7.5257 8457832.68
Hong Kong dollars 2622598.14 0.9260 2428431.14
289Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Japanese Yen 102624735.00 0.0462 4746253.85
Indian Rupee 1267825128.78 0.0840 106544236.29
Vietnamese Dong 212882659937.00 0.0003 60046525.90
Romanian New Leu 12251764.62 1.5036 18422110.73
Mexican Peso 3821877.84 0.3498 1336788.33
South African Rand 189.00 0.3844 72.65
Accounts receivable 1873984751.98
Including: US dollars 232414405.49 7.1884 1670687712.42
Euros 1535401.52 7.5257 11554971.22
Hong Kong dollars 3686.32 0.9260 3413.68
Japanese Yen 154703070.07 0.0462 7152387.03
Indian Rupee 1620319418.77 0.0840 136166803.36
Mexican Peso 13312.75 0.3498 4656.44
Vietnamese Dong 158621996802.00 0.0003 44741548.41
Romanian New Leu 2442929.07 1.5036 3673259.42
Other receivables 9725342.12
Including: US dollars 610811.17 7.1884 4390754.89
Euros 7079.91 7.5258 53282.25
Japanese Yen 3032584.00 0.0462 140205.46
Indian Rupee 16989461.28 0.0840 1427743.61
Mexican Peso 5406605.28 0.3498 1891082.63
Vietnamese Dong 349575000.00 0.0003 98602.51
Romanian New Leu 1146340.33 1.5036 1723670.77
Accounts payable 146839723.30
Including: US dollars 14428024.90 7.1884 103714414.19
Euros 354592.24 7.5257 2668554.82
Hong Kong dollars 49812.69 0.9260 46126.55
Japanese Yen 224979005.00 0.0462 10394030.03
Indian Rupee 145188356.35 0.0840 12195821.93
Mexican Peso 804356.84 0.3498 281364.02
Vietnamese Dong 44099068944.94 0.0003 13229720.68
Romanian New Leu 2866248.38 1.5036 4309691.06
Other account payable 42686571.35
Including: US dollars 2696056.03 7.1884 19379781.16
Euros 350753.00 7.5257 2639661.86
Hong Kong dollars 52638.00 0.9260 48744.89
Japanese Yen 23000.00 0.0462 1063.36
Indian Rupee 7328310.23 0.0840 615849.29
Mexican Peso 10713171.02 0.3498 3747174.06
Vietnamese Dong 34183147839.00 0.0003 9641833.99
290Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Romanian New Leu 4397668.56 1.5036 6612462.74
(2) Explanation of overseas business entities including for important overseas business entities disclosure of
main overseas business locations recording currency and selection basis as well as disclosure of reasons for
changes in recording currency.□ Applicable □ Not applicable
1. Topband India Private Limited a subsidiary of the Company is mainly located in Pune City Maharashtra
India with Indian Rupee as the recording currency;
2. Topband (Vietnam) Co. Ltd. a sub-subsidiary of the Company is located in Binh Duong Province Vietnam
with Vietnamese Dong as the recording currency;
3. TOPBAND SMART DONG NAI (VIETNAM) Co. Ltd. a sub-subsidiary of the Company is mainly
located in Dong Nai Province Vietnam with Vietnamese Dong as the recording currency;
4. Topband Germany GmbH a sub-subsidiary of the Company is mainly located in Unterf?hring Germany
with Euro as the recording currency;
5. TOPBAND JAPAN Co. Ltd. a sub-subsidiary of the Company is mainly located in Nagoya Japan with
Japanese Yen as the recording currency;
6. Q.B.PTE.LTD a sub-subsidiary of the Company is located in Singapore with Singapore dollar as the
bookkeeping base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. a sub-subsidiary of the Company is located
in Timisoara Romania with Leu as the recording currency;
8. TOPBAND MEXICO S.DER.L.DEC.V the sub-subsidiary of the Company is located in Monterrey
Mexico with peso as the recording currency.
82. Lease
(1) The Company as the Lessee
□ Applicable □ Not applicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable □ Not applicable
Rental expenses of simplified short-term leases or low-value assets
291Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Applicable □ Not applicable
The simply treated expenses of short-term leases credited to current profit or loss is RMB 1550087.68.Situations involving sale and leaseback transactions
None.
(2) The Company as the Lessor
Operating lease as lessor
□ Applicable □ Not applicable
Unit: RMB
Including: revenue related to variable
Items Rental revenue lease payments not included in lease
collection amount
Operating lease 24405347.57 /
Total 24405347.57 /
Finance lease as lessor
□ Applicable □ Not applicable
Undiscounted lease collection amount for each of the next five years
□ Applicable □ Not applicable
Unit: RMB
Undiscounted rental receipts of each year
Items
Ending amount
Year 1 25882409.51
Year 2 22268501.65
Year 3 18779404.62
Year 4 16023848.21
Year 5 12351375.56
Total amount of undiscounted rental receipts after five years 19969212.34
Reconciliation statement of undiscounted rental receipts and net lease investment
None.
(3) Recognition of finance lease sales gains and losses as a manufacturer or distributor
□ Applicable □ Not applicable
292Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
83. Data resources
None.
84. Others
None.VIII. R&D expenditure
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 623404178.58 527263890.90
Depreciation and amortization 137093963.35 115822616.82
Material expenses 65491329.66 55454167.38
Equity incentive expenses 3505146.93 34765522.02
Mold fee 29177739.78 21905175.37
Intermediary service expenses 17256872.82 14203295.26
Low-value consumables 10177164.29 9723117.58
Testing expense 5979237.21 11494607.23
Decoration costs 1012579.66 4472201.29
Rent and utilities 21068938.08 11029383.78
Travel expenses 12173093.04 8479596.38
Others 25765100.89 19792769.70
Total 952105344.29 834406343.71
Including: expensed R&D expenditure 809006999.25 689969610.98
Capitalized R&D expenditures 143098345.04 144436732.73
1. R&D projects that meet capitalization conditions
Unit: RMB
Decrease amount in the current
Increase in the current period
period
Beginning
Items Transferred
balance Internal Recognized as
Ending balance
to current
development Others intangible
profit and
expenditure assets
loss
Intelligent controller
87956121.4564289557.4298585801.8053659877.07
project
Motor and control
5516130.5820843765.2311641139.8114718756.00
system project
New energy project 40719362.86 57965022.39 41848258.33 56836126.92
Total 134191614.89 143098345.04 152075199.94 125214759.99
293Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2. Important outsourced projects under development
None.IX. Changes in the scope of consolidation
1. Consolidation under different control
None.
2. Consolidation under the same control
None.
3. Reverse purchase
None.
4. Disposal of subsidiaries
Whether there are any transactions or events in this period in which the control of the subsidiary is lost
□ Yes □ No
Whether there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss of
control in the current period
□ Yes □ No
5. Changes in the scope of consolidation due to other reasons
Explanations for the changes in the scope of the consolidation caused by other reasons (e.g. establishment of new
subsidiaries or liquidation of subsidiaries etc.) and relevant circumstances:
During the Reporting Period the Company established 2 new sub-subsidiaries the details of which are as follows:
Proportion of shareholding
No. Name of subsidiary Registered place Registration date
Direct Indirect
Topband Digital Energy Technology Huizhou
12024/8/13100%
(Huizhou) Co. Ltd. Guangdong
Chongqing Topband Yishu Energy Technology
2 Chongqing 2024/9/4 100%
Co. Ltd.
294Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
6. Others
None.X. Interests in other entities
1. Equities in subsidiaries
(1) Composition of enterprise group
Unit: RMB
Principal Proportion of
Registered Registered Nature of Acquisition
Name of subsidiary place of shareholding
capital place business method
business Direct Indirect
Shenzhen Topband Software Production
1000000.00 Shenzhen Shenzhen 100.00% Establishment
Technology Co. Ltd. and sales
Shenzhen Topband
Production
Automation Technology 35000000.00 Shenzhen Shenzhen 100.00% Establishment
and sales
Co. Ltd.Shenzhen Topband Battery Production
100000000.00 Shenzhen Shenzhen 100.00% Establishment
Co. Ltd. and sales
Chongqing Topband Production
50000000.00 Chongqing Chongqing 100.00% Establishment
Industrial Co. Ltd. and sales
Topband (Hong Kong) Co. HKD 155 Hong Hong
Investment 100.00% Establishment
Ltd. million Kong Kong
Huizhou Topband Electrical Production
300000000.00 Huizhou Huizhou 100.00% Establishment
Technology Co. Ltd. and sales
TOPBAND INDIA INR 1.96 Production
India India 100.00% Establishment
PRIVATE LIMITED billion and sales
Consolidation
Shenzhen YAKO
Production under
Automation Technology 60000000.00 Shenzhen Shenzhen 100.00%
and sales different
Co. Ltd.control
Consolidation
Shenzhen Allied Control Production under
55999998.00 Shenzhen Shenzhen 100.00%
System Co. Ltd. and sales different
control
Huizhou Topband Battery Production
2000000.00 Huizhou Huizhou 100.00% Establishment
Co. Ltd. and sales
Ningbo Topband Intelligent Production
300000000.00 Ningbo Ningbo 100.00% Establishment
Control Co. Ltd. and sales
Consolidation
Shenzhen Meanstone
Production under
Intelligent Technology Co. 7600000.00 Shenzhen Shenzhen 77.25%
and sales different
Ltd.control
Consolidation
Shenzhen Yansheng Production under
1500000.00 Shenzhen Shenzhen 100.00%
Software Co. Ltd. and sales different
control
Consolidation
Hangzhou Zhidong Motor Production under
1500000.00 Hangzhou Hangzhou 75.00%
Technology Co. Ltd. and sales different
control
295Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
TOPBAND SMART
DONGNAI USD 33.5 Production
Vietnam Vietnam 100.00% Establishment（VIETNAM） million and sales
COMPANY LIMITED
Topband Germany GmbH EUR 25000 Germany Germany Sales 100.00% Establishment
TOPBAND JAPAN Co.JPY 30 million Japan Japan Sales 100.00% Establishment
Ltd
Shenzhen Topband Supply
5000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Chain Services Co. Ltd.Shenzhen Topband
50000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Investment Co. Ltd.Shenzhen Topband Digital
10000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Energy Co. Ltd.Shenzhen Tunnu Innovation
10000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co. Ltd.Shenzhen Senxuan
10000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Technology Co. Ltd.Topband (Qingdao) Production
10000000.00 Qingdao Qingdao 100.00% Establishment
Intelligent Control Co. Ltd. and sales
Shenzhen Tengyi Industrial
1000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Co. Ltd.Consolidation
Taixing Topband Lithium Production under
105000000.00 Taixing Taixing 100.00%
Battery Co. Ltd. and sales different
control
Shenzhen Topband
Automotive Electronics Co. 10000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Ltd.Q.B.PTE.LTD SGD 10000 Singapore Singapore Sales 100.00% Establishment
TOPBAND MEXICOS.DE MXN 20 Production
Mexico Mexico 100.00% Establishment
R.L.DEC.V. million and sales
Tunnu Innovation (Hong Hong Hong
10000000.00 Sales 100.00% Establishment
Kong) Limited Kong Kong
TOPBAND SMART
RON 20.1816
EUROPE COMPANY Romania Romania Sales 100.00% Establishment
million
LIMITED S.R.L.Huizhou YAKO Automation Production
50000000.00 Shenzhen Shenzhen 100.00% Establishment
Technology Co. Ltd. and sales
Shenzhen Zhongli
2000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Consulting Co. Ltd.TUNNU
USD 10000 USA USA Sales 100.00% Establishment
INNOVATIONINC
Nantong Topband Lithium Production
100000000.00 Nantong Nantong 100.00% Establishment
Battery Co. Ltd. and sales
Shenzhen Topband Motor Production
10000000.00 Shenzhen Shenzhen 100.00% Establishment
Co. Ltd. and sales
Shenzhen Yueshang Robot Production
10000000.00 Shenzhen Shenzhen 100.00% Establishment
Co. Ltd. and sales
Shenzhen Jingfei
10000000.00 Shenzhen Shenzhen Sales 100.00% Establishment
Investment Co. Ltd.Huizhou Chiding Production
5000000.00 Huizhou Huizhou 100.00% Establishment
Technology Co. Ltd. and sales
Yolaness Technology (HK) Hong Hong
USD 500000 Sales 100.00% Establishment
Co. Limited Kong Kong
Huizhou Jiuwan Lvyuan Production
5000000.00 Huizhou Huizhou 100.00% Establishment
Agriculture Co. Ltd. and sales
296Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
YOLANESS AFRICA South South
Sales 100.00% Establishment
(PTY) LTD Africa Africa
Chongqing Topband Yishu
Energy Technology Co. 1000000.00 Chongqing Chongqing Sales 100.00% Establishment
Ltd.Topband Digital Energy
Technology (Huizhou) Co. 1000000.00 Huizhou Huizhou Sales 100.00% Establishment
Ltd.
2. Transactions causing the owner's equity share change but still controlling the subsidiary
(1) Changes in the owner's equity in subsidiaries
In May 2024 the Company entered into an Equity Transfer Agreement with Mr. Zhu Juzhong a shareholder
of Yako Automation Yanxun Investment and Yanyun Investment for the acquisition of 28.46% equity of Yako
Automation. After completion of the transaction the Company holds 100% equity of Yako Automation.Company name Percentage of equity before change Percentage of equity after change
Shenzhen YAKO Automation Technology Co.
71.54%100.00%
Ltd.
(2) Impact of the transaction on minority shareholders' equity and owner's equity attributable to the parent company
Unit: RMB
Items Shenzhen YAKO Automation Technology Co. Ltd.Acquisition cost/disposal consideration 165068000.00
-- Cash 165068000.00
-- Fair value of non-cash assets
Total of acquisition costs/disposal considerations 165068000.00
Less: share of subsidiary net assets calculated in proportion to
85069672.15
equity acquired/disposed of
Difference 79998327.85
Including: adjusted capital reserve -79998327.85
Adjusted surplus reserves
Adjusted undistributed profit
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
None.
(2) Major financial information of important joint ventures
None.
297Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(3) Major financial information of important associated enterprises
None.
(4) Summarized financial information of unimportant joint ventures and associated enterprises
Unit: RMB
Ending balance/amount incurred in Beginning balance/amount
current period incurred in the previous period
Joint venture:
Sum of the following items calculated according to
the shareholding ratio
Associated enterprises:
Total book value of investment 38959272.14 37748179.30
Sum of the following items calculated according to
the shareholding ratio
--Net profit 1211092.84 1126356.29
(5) Statement that there is a material limitation on the ability of the joint venture or associated enterprise to
transfer funds to the Company
The Company is not subject to a material restriction on the ability of an associated enterprise to transfer funds to
the Company.
(6) Excess losses incurred by the joint ventures or associated enterprises
The Company does not have any associated enterprises suffering from any excess losses.
(7) Unconfirmed commitments related to the investment of joint ventures
The Company does not have any unrecognized commitments related to investments in joint ventures.
(8) Contingent liabilities related to the investment of joint ventures or associated enterprises
The Company does not have any contingencies related to investments in associated enterprises.XI. Government subsidies
1. Government grants recognized as receivable at the end of the Reporting Period
□ Applicable □ Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected time
298Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
□ Applicable □ Not applicable
2. Liabilities involving government subsidies
□Applicable □ Not applicable
Unit: RMB
Amount
Amount
Newly accounted
included in
increased into non- Other Asset-
Accounting Beginning other income Ending
subsidy in operating changes in related/revenue-
items balance in the balance
the current income in this period related
current
period the current
period
period
Deferred
11146292.42 7091762.93 4879427.61 13358627.74 Asset-related
income
3. Government subsidies included in the current profits and losses
□ Applicable □ Not applicable
Unit: RMB
Accounting items Amount incurred in the current period Amount incurred in prior period
Other income 36473349.43 32905181.89
XII. Risks associated with financial instruments
1. Risks arising from financial instruments
The risks of the Company related to financial instruments are derived from various types of financial assets
and financial liabilities recognized during the operation of the Company including: credit risk liquidity risk and
market risk.The management objectives policies and systems of the Company for various types of risks associated with
financial instruments are the responsibility of the Company's management. The management is responsible for daily
risk management through functional departments (for example the Credit Management Department of the Company
reviews credit sales of the Company on a case-by-case basis). The Internal Audit Department of the Company shall
supervise the implementation of the Company's risk management policies and procedures in its daily work and
reports relevant findings to the Audit Committee of the Company in a timely manner.The overall objective of the Company for risk management is to develop risk management policies that
minimize the risks associated with various financial instruments without unduly affecting the Company's
299Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
competitiveness and resilience.Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations resulting in
financial losses to the other party. Credit risks of the Company mainly arise from monetary funds notes receivable
accounts receivable receivables financing other receivables etc. The credit risk of these financial assets is derived
from defaults by the counterparty and the maximum risk exposure is equal to the book amount of these instruments.The monetary funds of the Company are mainly deposited in commercial banks and other financial institutions
which the Company believes have a high reputation sound financial standing and low credit risks.For notes receivable accounts receivable receivables financing and other receivables the Company
establishes policies to control the credit risk exposure. The Company evaluates the credit qualification of customers
and sets the corresponding credit period based on their financial condition the possibility of obtaining guarantees
from third parties credit record and other factors such as current market conditions. The Company regularly
monitors the credit record of customers and for customers with poor credit history the Company ensures the overall
credit risk of the Company to be under control by sending reminders of payment collection shortening the credit
period or canceling the credit period.
(1) Determination criteria for significant increase of credit risk
At each balance sheet date the Company evaluates whether the credit risk of the relevant financial instruments
has significantly increased since the initial recognition. In determining whether credit risk has increased
significantly since the initial recognition the Company considers obtaining reasonable and evidence-based
information at no unnecessary additional cost or effort including qualitative and quantitative analysis based on the
historical data of the Company external credit risk ratings and forward-looking information. Based on a single
financial instrument or a portfolio of financial instruments with similar credit risk characteristics the Company
compares the risk of default of the financial instrument on the balance sheet date with the risk of default on the
initial recognition date to determine the change in the risk of default during the expected duration of the financial
instruments.When one or more of the following quantitative and qualitative criteria are triggered the Company considers
that the credit risk of a financial instrument has significantly increased: the quantitative criterion is mainly that the
default probability in the remaining duration has increased by more than a certain percentage on the balance sheet
date than that at the initial recognition; the qualitative criterion is the occurrence of major adverse changes in the
300Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
operation or financial condition of the principal debtor the list of early warning customers etc.
(2) Definition of assets with credit impairment occurred
To determine whether credit impairment has occurred the determination criteria adopted by the Company are
consistent with its internal credit risk management objectives for the relevant financial instruments taking into
account both quantitative and qualitative indicators.In assessing whether a debtor has suffered credit impairment the Company mainly considers the following
factors: whether the issuer or the debtor has experienced major financial difficulties; whether a debtor breaches the
contract such as default or delay in payment of interest or principal; whether the creditor grants concessions to the
debtor that it would not have made in any other circumstances for economic or contractual reasons related to the
debtor's financial difficulties; whether the debtor is likely to become insolvent or undergo other financial
restructuring; whether the financial difficulties of the issuer or debtor cause the disappearance of an active market
for the financial asset; whether a financial asset is acquired or derived a substantial discount that reflects the fact
that a credit loss has occurred.The credit impairment of financial assets may be caused by the combination of multiple events not necessarily
by individually identifiable events.
(3) Parameters for measurement of expected credit loss
Depending on whether there has been a significant increase in credit risk and whether credit impairment has
occurred the Company measures the impairment provision for different assets in terms of expected credit losses for
12 months or the entire duration respectively. The key parameters for measurement of expected credit loss include
default probability default loss rate and default risk exposure. The Company takes into account quantitative analysis
and forward-looking information of historical statistical data (e.g. ratings of counterparty types of guarantees and
collateral repayment methods etc.) to establish default probability default loss rate and default risk exposure
models.The relevant definitions are as follows:
The default probability refers to the probability that the debtor will not be able to meet its payment obligations
in the next 12 months or throughout the remaining duration.Default loss rate refers to the Company's expectation of the degree of loss from the exposure to a default risk.Default loss rates vary depending on the type of counterparty the method and priority of recourse and the collateral.Default loss ratio is the percentage of loss from the risk exposure when the default occurs calculated on the basis
301Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
of the next 12 months or the entire duration;
Exposure at default refers to the amount to be compensated to the Company in the event of a default in the next
12 months or throughout the remaining duration. Forward-looking Information - Forward-looking information is
involved in the assessment of significant increases in credit risk and the calculation of expected credit losses.Through historical data analysis the Company identifies key economic indicators that affect the credit risk and
expected credit losses of various business types.The Company's maximum credit exposure is the carrying amount of each financial asset in the balance sheet.The Company does not provide any other guarantees that may expose the Company to credit risks.Liquidity risk
Liquidity risk refers to the risk of capital shortage when an enterprise meets its obligation to settle by delivery
of cash or other financial assets. The Company is comprehensively responsible for the cash management of its
subsidiaries including short-term investment of cash surplus and financing of loans to meet anticipated cash needs.It is the policy of the Company to regularly monitor short-term and long-term working capital demands and
compliance with borrowing agreements to ensure the maintenance of sufficient cash reserves and readily available
marketable securities.As of December 31 2024 the maturity of the financial liabilities of the Company are as follows:
December 31 2024
Items
Within 1 year 1-2 years 2-3 years Above 3 years
Short-term loans 1224214110.41
Financial liabilities held for
444281.13
trading
Notes payable 1194662037.01
Accounts payable 2310872258.62
Other account payable 450563068.15
Long-term loans 106787755.00 70599137.97 34365145.48 140776191.43
Lease liabilities 29701010.75 18471131.90 8803857.04 14801541.42
Total 5317244521.07 89070269.87 43169002.52 155577732.85
(Continued)
December 31 2023
Items
Within 1 year 1-2 years 2-3 years Above 3 years
Short-term loans 279348750.00
Financial liabilities held for
trading
Notes payable 927833178.70
302Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Accounts payable 1957626396.34
Other account payable 151341029.40
Long-term loans 326208942.16 157194737.25 16558527.05 263994613.17
Lease liabilities 44414655.87 26399844.11 13437647.54 21592319.38
Total 3686772952.47 183594581.36 29996174.59 285586932.55
Market risk
(1) Foreign exchange risk
The exchange rate risk of the Company is primarily attributable to foreign currency assets and liabilities held
by the Company and its subsidiaries that are not denominated in their recording currency. The Company's exposure
to foreign exchange risks is mainly related to Hong Kong dollars and US dollars. Except the Company and its
subsidiary Topband (HK) Co. Limited that purchase and sell some materials and products in US dollars Euros and
Hong Kong dollars its subsidiary TOPBAND INDIA PRIVATE LIMITED that uses Indian Rupee its sub-
subsidiary TOPBAND SMART DONG NAI (VIETNAM) Co. Ltd. that use Vietnamese Dong its sub-subsidiary
Topband Germany GmbH that uses Euros its sub-subsidiary TOPBAND JAPAN Co. Ltd. that uses Japanese Yen
its sub-subsidiary Q.B.PTE.LTD that uses Singapore dollars its sub-subsidiary TOPBAND MEXICO S.DE
R.L.DE C.V. that uses Mexican Peso its sub-subsidiary TOPBAND SMART EUROPE COMPANY LIMITED
S.R.L. that uses Romanian Leu its sub-subsidiary Tunnu Innovation (Hong Kong) Limited that uses Hong Kong
dollars its sub-subsidiary TUNNU INNOVATION INC that uses US dollars and its sub-subsidiary YOLANESS
AFRICA (PTY) LTD that uses Rand as the settlement currency other major business activities of the Company are
settled in RMB.* As of December 31 2024 see VII. 81 of the Financial Reports for details about the monetary assets and
liabilities in foreign currency of the Company at end of the period.The Company continuously monitors the size of its transactions assets and liabilities in foreign currencies in
order to minimize its exposure to foreign exchange risks; for this purpose the Company may enter into forward
foreign exchange contracts to avoid foreign exchange risks.* Sensitive analysis
On December 31 2024 with other risk variables unchanged if the RMB appreciated or depreciated by 10%
against the US dollar on that date the net profit of the Company for the year would increase or decrease by RMB
163.377 million; if the RMB appreciated or depreciated by 10% against the Indian Rupee on that day the net profit
of the Company for the year would increase or decrease by RMB 19.6628 million.
303Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Interest rate risk
The interest rate risk of the Company is mainly derived from long-term bank loans. Financial liabilities with
floating interest rate expose the Company to cash flow interest rate risks and financial liabilities with fixed interest
rate expose the Company to fair value interest rate risks. The Company determines the relative proportion of
contracts with fixed rate and floating rate based on the prevailing market environment.The Headquarters Financial Department of the Company monitors the interest rate level of the group on a
continuous basis. An increase in interest rates will increase the cost of new interest-bearing debts and interest
expense on the Company's outstanding interest-bearing debt with floating interest rates and will have a material
adverse effect on the Company's financial results to which the management will adjust in a timely manner based
on the latest market conditions.During the period ended December 31 2024 the bank borrowings with fixed interest rates of the Company
was RMB 282.8522 million and the bank borrowings with floating interest rates was RMB 197.25 million. If the
borrowing rate calculated at floating interest rates increase or decrease by 100 basis points with other risk variables
remain unchanged the total profit of the Company for the year would decrease or increase by RMB 1.9725 million.
2. Hedging
None.XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Items The first level of The second-level The third level of
fair value fair value fair value Total
measurement measurement measurement
I. Continuous fair value measurement -- -- -- --
(I) Tradable financial assets 396522333.21 342926358.56 739448691.77
1. Financial asset at fair value and
changes through current profits and 396522333.21 342926358.56 739448691.77
losses
(1) Debt instrument investment 396522333.21 396522333.21
(2) Equity instrument investment 342926358.56 342926358.56
(II) Receivables financing 131217672.56 131217672.56
304Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(III) Investments in other equity
45012776.0045012776.00
instruments
Total assets continuously measured at
396522333.21519156807.12915679140.33
fair value
(III) Trading financial liabilities 444281.13 444281.13
Total liabilities continuously measured
444281.13444281.13
at fair value
II. Non-continuous fair value
--------
measurement
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
For financial liabilities measured at fair value and whose changes are credited to current profit or loss their
fair value is determined mainly based on market prices quoted by the bank.
3. Continuous and non-continuous second-level fair value measurement items valuation techniques adopted
and qualitative and quantitative information of important parameters
If there are open market quotations for investments in liability instruments measured at fair value and whose
changes are credited to current profit or loss their fair value is determined based on market prices quoted by the
bank with consideration of liquidity premium.
4. Continuous and non-continuous third-level fair value measurement items valuation techniques adopted
and qualitative and quantitative information of important parameters
For financial liabilities and other equity instrument investments measured at fair value and whose changes are
credited to current profit or loss and for other non-current financial assets measured at fair price and whose changes
are credited to current profit or loss since the operating environment operating conditions and financial conditions
of the invested products or enterprises are free of material changes the Company measures at the cost of the
investment or the most recent transaction price as a reasonable estimate of fair value.The receivables financing of the Company mainly consists of unmatured bank acceptance bills and supply
chain notes receivable. As the bill acceptor's credit status is good and there is no material adverse change in operating
or financial conditions the risk of collection at maturity is expected to be low and the Company measures by taking
the book value as a reasonable estimate of fair value.
305Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
5. Continuous third-level fair value measurement items adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
Not applicable.
6. For continuous fair value measurement items if the conversion occurs among different levels in the current
period the reasons for the conversion and the policies for determining the conversion time point
Not applicable.
7. Technical changes in valuation during the current period and the reasons for such changes
Not applicable.
8. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and financial liabilities of the Company measured at the amortized cost mainly include:
money funds notes receivable accounts receivable other receivables short-term borrowings notes payable
accounts payable other payables long-term borrowings due within one year and long-term borrowings.
9. Others
None.XIV. Related parties and related transactions
1. Profile of parent company of the Company
Proportion of the
Shareholding ratio
Name of parent parent company's
Registered place Nature of business Registered capital of parent company
company voting rights in the
to the Company
Enterprise
Wu Yongqiang Shenzhen 17.00% 17.00%
Profile of parent company of the Company
Ultimate controlling party of the Company: The ultimate controlling party of the Company is Wu Yongqiang.As of December 31 2024 Wu Yongqiang held 17.00% of the shares of the Company.
2. Profile of subsidiaries of the Company
For details of the subsidiaries of the Company please see Note X.1.
306Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
3. Information on the joint ventures and associated enterprises of the Company
See the Note X.3 on key joint ventures or associated enterprises of the Company.Other joint ventures or associated enterprises having related-party transaction in current period or in previous period
to form balance are listed as follows:
Name of joint venture or associated enterprise Relationship with the Company
Dongguan Jujin Plastic Technology Co. Ltd. Associated enterprises of the Company
4. Other related parties
Names of other related parties Relationship between other related parties and the Enterprise
A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co. Ltd.Company's legal representative
Shenzhen Lianghui Technology Co. Ltd. Shareholding companies of the Company
Shenzhen ORVIBO Technology Co. Ltd. Shareholding companies of the Company
Shenzhen HANSC Intelligent Technology Co. Ltd. Shareholding companies of the Company
Guangdong Zhongchuang Zhijia Scientific Research Co. Ltd. Shareholding companies of the Company
Guangdong Huixin Semiconductor Co. Ltd. Shareholding companies of the Company
Fujian Blue Ocean Shuneng Technology Co. Ltd. Shareholding companies of the Company
Chengdu Senwei Technology Co. Ltd. Shareholding companies of the Company
Shenzhen Youbi Technology Co. Ltd. Shareholding companies of the Company
Jiangsu Donghai Semiconductor Co. Ltd. Shareholding companies of the Company
Jiangxi Sarui Microelectronics Technology Co. Ltd. Shareholding companies of the Company
Shanghai Xinggan Semiconductor Co. Ltd. Shareholding companies of the Company
Shenzhen Jizhi Laser Technology Co. Ltd. Shareholding companies of the Company
Dongguan Jujin Plastic Technology Co. Ltd. Shareholding companies of the Company
Shanghai Yidong Power Technology Co. Ltd. Shareholding companies of the Company
Shenzhen Daka Optoelectronics Co. Ltd. Shareholding companies of the Company
Suzhou Legendsemi Technology Co. Ltd. Shareholding companies of the Company
Suzhou Suyu Technology Co. Ltd. Shareholding companies of the Company
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of services
List of goods purchased/services received
Unit: RMB
Is the
Related Amount Amount
Approved transaction
Related party transaction incurred in the incurred in
transaction limit limit
content current period prior period
exceeded
307Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Shenzhen Jizhiguang Electronics Co. Purchase of raw
17041086.70 34000000.00 No 12448395.74
Ltd. materials
Shenzhen ORVIBO Technology Co. Purchase of raw
No 5534.37
Ltd. materials
Jiangsu Donghai Semiconductor Co. Purchase of raw
58452.75 No 95491.50
Ltd. materials
Jiangxi Sarui Microelectronics Purchase of raw
3967.43 No 87.00
Technology Co. Ltd. materials
Dongguan Jujin Plastic Technology Purchase of raw
40335862.83 No 17192446.68
Co. Ltd. materials
Guangdong Huixin Semiconductor Purchase of raw
1232.01 No
Co. Ltd. materials
List of goods sold/services provided
Unit: RMB
Amount incurred in Amount incurred
Related party Related transaction content
the current period in prior period
Shenzhen ORVIBO Technology Co. Ltd. Sales of commodities 7502911.98 12408176.66
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
None.
(3) Related lease
None.
(4) Related party guarantee situation
None.
(5) Interbank lending of related parties
None.
(6) Asset transfer and debt restructuring of related parties
None.
(7) Remuneration of key management personnel
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Remuneration of key management
14608200.0014263600.00
personnel
308Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(8) Other related transactions
None.
6. Receivables and payables due to related parties
(1) Item receivable
Unit: RMB
Ending balance Beginning balance
Project
Related party
name Provision for Provision for Book balance Book balance
bad debts bad debts
Accounts Shenzhen ORVIBO Technology Co.
716304.6322205.443747603.20116175.70
receivable Ltd.Shenzhen ORVIBO Technology Co.Prepayments 3037.05
Ltd.
(2) Payables
Unit: RMB
Book balance at the end of the Book balance at the beginning
Project name Related party
period of the period
Shenzhen Jizhiguang Electronics Co.Accounts payable 1699834.24 866888.49
Ltd.Accounts payable Jiangsu Donghai Semiconductor Co. Ltd. 39655.01 51217.50
Guangdong Huixin Semiconductor Co.Accounts payable 1212.77 311.50
Ltd.Jiangxi Sarui Microelectronics
Accounts payable 100087.00
Technology Co. Ltd.Dongguan Jujin Plastic Technology Co.Accounts payable 818690.92 8514044.84
Ltd.Other account Dongguan Jujin Plastic Technology Co.
495000.0039000.00
payable Ltd.
7. Commitment of related parties
Not applicable.
8. Others
Not applicable.XV. Share-based payment
1. General situation of share-based payments
□ Applicable □ Not applicable
309Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Unit: RMB
Exercised in the Released in the Invalidated in the
Granted in the current period
Grant object category current period current period current period
Number Amount Number Amount Number Amount Number Amount
Object of 2024 stock
option incentives:
employees of the Company 32900000.00 129099600.00
at the core and key
positions
Object of incentives in
2024 employee stock
ownership plan: directors
(excluding independent
directors) supervisors 5181200.00 59428364.00
senior executives and
employees at the core and
key positions of the
Company
Total 38081200.00 188527964.00
Stock options or other equity instruments outstanding at the end of the period
□ Applicable □ Not applicable
Stock options outstanding the at the end of the Other equity instruments outstanding at the end of
period the period
Grant object category
Remaining period of Remaining period of
Range of exercise price Range of exercise price
contract contract
Employees at the key
management and
technical positions and RMB 9.60/share 12 24 and 36 months RMB 9.60/share 12 and 24 months
other key business
operating personnel
2. Equity-settled share-based payments
□ Applicable □ Not applicable
Unit: RMB
Method for determining the fair value of the equity instrument
Black-Scholes option pricing model
on the grant date
Important parameters of fair value of equity instruments on the
Historic volatility risk-free rate of return and dividend yield
grant date
Make the best estimate based on the latest available follow-up
Basis for determining the number of exercisable equity
information such as changes in the number of vested
instruments
employees
Reasons for the significant difference between the estimates of
None
the current period and that of the previous period
Accumulated amount of equity-settled share-based payments
8976507.80
included in capital reserves
310Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Total amount of expenses recognized by equity-settled share-
8976507.80
based payments in the current period
3. Cash-settled share-based payments
□ Applicable □ Not applicable
4. Share-based payment for the current period
□ Applicable □ Not applicable
Unit: RMB
Grant object category Equity-settled share-based payment Cash-settled share-based payment
Management personnel 2010527.37
Salesperson 2443977.61
R&D personnel 3505146.93
Production personnel 1016855.89
Total 8976507.80
Other descriptions:
(1) Employee Stock Ownership Plan
On November 6 2024 the Company held the 15th (Extraordinary) Meeting of the 8th Board of Directors and
the 10th (Extraordinary) Meeting of the 8th Board of Supervisors. On November 25 2024 the Company held the
2nd Extraordinary General Meeting of Shareholders in 2024 in which the Proposal on the Company's 2024
Employee Stock Ownership Plan (Draft) and its Summary and other relevant motions were deliberated and approved.The actual number of shares subscribed under the Employee Stock Ownership Plan was 5181200 shares with the
total amount of RMB 49739520.00 for the shares actual subscribed. The funds for the Employee Stock Ownership
Plan mainly came from the special incentive fund accrued by the Company. After review and approval of the
Employee Stock Ownership Plan by the General Meeting of Shareholders of the Company the shares will be
unlocked in two phases 12 months and 24 months after the Company announces the transfer of the underlying shares
to the names given in the Employee Stock Ownership Plan respectively with 40% of the underlying shares to be
unlocked in Phase 1 and 60% in Phase 2. On December 23 2024 the Company received the Letter of Securities
Transfer Registration Confirmation issued by the Shenzhen Branch of CSDC stating that the 5181200 shares of
the Company (approximately 0.42% of the current total share capital of the Company) held in the special securities
buyback account of the Company had been transferred to its account for the 2024 Employee Stock Ownership Plan
without trading on December 23 2024.
311Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Stock Option Incentive Plan
Under the authorization of the 2nd Extraordinary General Meeting of Shareholders in 2024 of the Company
the Company held the 16th (Extraordinary) Meeting of the 8th Board of Directors and the 11th (Extraordinary)
Meeting of the 8th Board of Supervisors on December 9 2024 in which the Proposal on Granting Stock Options
to Incentive Objects was deliberated and adopted. It was determined that the grant date of the stock options under
the Incentive Plan shall be December 9 2024 and 32.9 million stock options shall be granted to 1050 eligible
objects. The waiting periods for the stock options granted under this Incentive Plan are 12 months 24 months and
36 months respectively from the date of grant and the percentages of unlocking for the periods are 30% 30% and
40% respectively.
5. Modification and termination of share-based payments
None.
6. Others
None.XVI. Commitments and contingencies
1. Important commitments
As of December 31 2024 the Company had no material commitments that need to be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
As of December 31 2024 the Company had no material contingencies that need to be disclosed.
(2) The important contingencies not required to be disclosed shall be explained as well
As of December 31 2024 the Company had no material contingencies that need to be disclosed.
3. Others
None.
312Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
XVII. Events after the balance sheet date
None.XVIII. Other important matters
None.XIX. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within 1 year (including 1 year) 1790348068.30 1287212115.69
1-2 years 6158056.10 5268760.84
2-3 years 2067104.65 791447.31
Above 3 years 2525306.52 2078206.45
3-4 years 469739.39 97063.40
4-5 years 93569.38 648578.33
Above 5 years 1961997.75 1332564.72
Total 1801098535.57 1295350530.29
313Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable
with single 2994574.69 0.17% 2994574.69 100.00% 0.00 2994574.69 0.23% 2994574.69 100.00% 0.00
provision for
bad debts
Including:
Single
2994574.690.17%2994574.69100.00%0.002994574.690.23%2994574.69100.00%0.00
provision
Accounts
receivable
with
provision for 1798103960.88 99.83% 49012286.12 2.73% 1749091674.76 1292355955.60 99.77% 36854741.91 2.85% 1255501213.69
bad debts by
portfolio
Including:
Aging
1554811170.5186.33%49012286.123.15%1505798884.391174404974.9590.66%36854741.913.14%1137550233.04
portfolio
Related party
portfolio
within the 243292790.37 13.51% 243292790.37 117950980.65 9.11% 117950980.65
scope of the
consolidation
Total 1801098535.57 100.00% 52006860.81 2.89% 1749091674.76 1295350530.29 100.00% 39849316.60 3.08% 1255501213.69
314Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Single provision for bad debts: 2994574.69
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
Difficult to
Single
2994574.69 2994574.69 2994574.69 2994574.69 100.00% collect as
provision
estimated
Provision for bad debts by portfolio: 49012286.12
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio 1554811170.51 49012286.12 3.15%
Related party portfolio within
243292790.37
the scope of the consolidation
Total 1798103960.88 49012286.12
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance balance Provision Write-off Others
reversal
Single provision for bad
2994574.692994574.69
debts
Provision for bad debts
36854741.9112174591.0317046.8249012286.12
by portfolio
Total 39849316.60 12174591.03 17046.82 52006860.81
(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 17046.82
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
315Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Ending balance of
Proportion to total bad debt provision
Ending balances of
Ending balance of ending balances of for accounts
Ending balance of accounts
Name of unit accounts accounts receivable and
contract assets receivable and
receivable receivable and provision for
contract assets
contract assets impairment of
contract assets
No. 1 393980903.84 393980903.84 21.87% 12228563.42
No. 2 184815580.16 184815580.16 10.26% 5729282.98
No. 3 101067011.63 101067011.63 5.61%
No. 4 87699194.06 87699194.06 4.87% 2718675.02
No. 5 65624772.67 65624772.67 3.64% 2034367.95
Total 833187462.36 0.00 833187462.36 46.25% 22710889.37
2. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 269840253.20 359906911.54
Total 269840253.20 359906911.54
(1) Interest receivable
None.
(2) Dividends receivable
None.
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Book balance at the beginning of the
Nature of payment Book balance at the end of the period
period
Current accounts 246649557.31 352237197.66
Margin deposit 7462044.17 6217086.47
Borrowing and imprest of employees 3629450.71 5471420.24
Export rebate 16656194.89
Others 3157.74 3000.00
Total 274400404.82 363928704.37
316Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
2) Disclosure by aging
Unit: RMB
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within 1 year (including 1 year) 268679998.14 357493959.23
1-2 years 857259.62 1691269.55
2-3 years 755346.47 547927.64
Above 3 years 4107800.59 4195547.95
3-4 years 99501.60 556684.11
4-5 years 394701.85 2458782.00
Above 5 years 3613597.14 1180081.84
Total 274400404.82 363928704.37
3) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category
Propor Book value Propor Book value
Proporti tion of Proporti tion of
Amount Amount Amount Amount
on provis on provis
ion ion
Single
provision
16656194.896.07%16656194.89
for bad
debts
Provision
for bad
257744209.9393.93%4560151.621.77%253184058.31363928704.37100.00%4021792.831.11%359906911.54
debts by
portfolio
Including:
Aging 4.04% 4560151.62 41.10% 11691506.71 3.21% 4021792.83 34.40% 7669713.88
11094652.626534501.00
portfolio
Related
party
portfolio
within the 89.89% 352237197.66 96.79% 352237197.66
246649557.31246649557.31
scope of
the
consolidat
ion
Total 274400404.82 100.00% 4560151.62 1.66% 269840253.20 363928704.37 100.00% 4021792.83 1.11% 359906911.54
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
Provision for bad debts First stage Second stage Third stage Total
317Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Expected credit loss Expected credit loss
Expected credit loss for the entire for the entire duration
in the next 12 months duration (no credit (credit impairment
impairment) occurred)
Balance as of January 1 2024 2841710.99 1180081.84 4021792.83
Balance as of January 1 2024 in
current period
- Transfer to Stage 2
- Transfer to Stage 3 -1946812.24 1946812.24
Accrual in the current period 51655.73 486703.06 538358.79
Balance as of December 31 2024 946554.48 3613597.14 4560151.62
Basis for division into different stages and bad debt provision ratio
None
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable □ Not applicable
4) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balance balance Provision Others
reversal write-off
Provision for
4021792.83538358.794560151.62
bad debts
Total 4021792.83 538358.79 4560151.62
5) Other receivables actually written off in the current period
None.
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to
Ending balance
total ending
Name of unit Nature of payment Ending balance Aging of provision for
balances of other
bad debts
receivables
No. 1 Current accounts 83000000.00 Within 1 year 30.25%
No. 2 Current accounts 69120972.00 Within 1 year 25.19%
No. 3 Export rebate 16656194.89 Within 1 year 6.07%
318Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
No. 14 Current accounts 16038361.75 Within 1 year 5.84%
No. 5 Current accounts 15704452.80 Within 1 year 5.72%
Total 200519981.44 73.07%
7) Reported in other receivables due to centralized fund management
None.
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investme
nt in 4294051396.1
4294051396.193981563889.883981563889.88
subsidiari 9
es
Investme
nt in
associate
d
18259695.0312433655.055826039.9818272947.9012433655.055839292.85
enterprise
s and
joint
ventures
Total 4312311091.22 12433655.05 4299877436.17 3999836837.78 12433655.05 3987403182.73
(1) Investment in subsidiaries
Unit: RMB
Changes in increase or decrease in the Ending
Beginning
current period balance
balance of
of
Beginning balance provision Ending balance
Investee Provisi provisio
(book value) for Additional Decrease in on for Othe (book value) n for
impairmen investment investment impair rs impairm
t ment ent
Shenzhen Topband Software
26150537.86169885.6026320423.46
Technology Co. Ltd.Shenzhen Topband Battery
628362316.54257209.98628619526.52
Co. Ltd.Shenzhen Topband
Automation Technology Co. 36511327.16 66433.90 36577761.06
Ltd.Chongqing Topband Industrial
211708311.7515130.23211723441.98
Co. Ltd.Topband (Hong Kong) Co. 138663000
528408500.00667071500.00
Ltd. .00
Huizhou Topband Electrical 1035973832.2
1035280971.92692860.34
Technology Co. Ltd. 6
319Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Ningbo Topband Intelligent
671193958.6953042.74671247001.43
Control Co. Ltd.Shenzhen Allied Control
128405047.58177327.90128582375.48
System Co. Ltd.Shenzhen Meanstone
Intelligent Technology Co. 10000000.00 10000000.00
Ltd.Topband
195026748.97195026748.97
INDIA PRIVATE LIMITED
Shenzhen YAKO Automation 165168974
350014659.96515183634.34
Technology Co. Ltd. .38
Shenzhen Topband 10259965.
99314771.9889054806.08
Investment Co. Ltd. 90
Shenzhen Topband Supply
5000000.005000000.00
Chain Services Co. Ltd.Shenzhen Senxuan 2000000.0
8035325.0310035325.03
Technology Co. Ltd. 0
Topband (Qingdao) Intelligent
30000000.0030000000.00
Control Co. Ltd.Shenzhen Topband Motor Co.
12151412.44220510.8512371923.29
Ltd.Huizhou Chiding Technology
5000000.003130.395003130.39
Co. Ltd.Shenzhen Topband Digital 15259965.
15259965.90
Energy Co. Ltd. 9
Shenzhen Jingfei Investment
1000000.001000000.00
Co. Ltd.
32274747210259965.4294051396.1
Total 3981563889.88.21909
(2) Investment in associated enterprises and joint ventures
Unit: RMB
Changes in increase or decrease in the current period
Adjust
Ad Declarati
Profits and ment Oth
Beginning diti Decr on of
Beginning losses on to er Ending balance
balance of ona ease distributi Provisio Ending balance
Investee balance (book investment other cha
provision for l in on for n for Other
of provision for
(book value)
value) recognized compr nge impairment
impairment inv inve cash impairm s under ehensi s in
est stme dividend ent
equity ve equ
me nt s or
method incom ity
nt profits
e
I. Joint venture
II. Associated enterprises
Shenzhen Daka
Optoelectronics Co. 5839292.85 -13252.87 5826039.98
Ltd.Tai'an Yuchengxin
Power Supply 12433655.05 12433655.05
Technology Co. Ltd.Subtotal 5839292.85 12433655.05 -13252.87 5826039.98 12433655.05
Total 5839292.85 12433655.05 -13252.87 5826039.98 12433655.05
320Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
4. Operating income and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 5479031123.90 4372678938.57 4375490048.36 3610380372.83
Other business 259345540.67 191211336.38 181114199.53 160679242.60
Total 5738376664.57 4563890274.95 4556604247.89 3771059615.43
5. Investment income
Unit: RMB
Amount incurred in the
Items Amount incurred in prior period
current period
Long-term equity investment income accounted by the equity
-13252.87-47053.31
method
Investment income from disposal of trading financial assets -12299596.79
Interest income from equity investments in holding period -182700.00 182700.00
Gains/losses on foreign exchange derivatives -5053368.00 -3529674.98
Income of financial products 3841275.24 2384294.62
Total -1408045.63 -13309330.46
6. Others
None.XX. Supplementary information
1. Schedule of current non-recurring profit and loss
□ Applicable □ Not applicable
Unit: RMB
Items Amount Description
Non-current assets disposal profit and loss -12272827.51
Government subsidies included in current profits and losses (except those that are
closely related to the normal business of the Company conform to national policies
36473349.43
and regulations are enjoyed according to certain standards and have a lasting impact
on the Company's profits and losses)
Profits and losses due to fair value changes arising from the financial assets and
liabilities held by the non-financial business as well as the profits and losses arising
-1934735.46
from the disposal of financial assets and liabilities except for the effective hedging
business related to the normal business of the Company
Reversal of provision for impairment of accounts receivable that has been separately
3769982.90
tested for impairment
321Full Text of Annual Report 2024 of Shenzhen Topband Co. Ltd.
Debt restructuring gains and losses -1281246.63
Other non-operating income and expenses other than those mentioned above 8149822.58
Other profits and losses that conform to the definition of non-recurring profit and
1150853.84
loss
Minus: amount affected by income tax 4660769.24
Amount affected by minority shareholders' equity (after tax) 1494.52
Total 29392935.39 --
2. Return on equity and earnings per share
Earnings per share
Weighted return on
Profits of the Reporting Period Basic earnings Diluted earnings
average equity per share per share
(RMB/share) (RMB/share)
Net income attributable to the ordinary shareholders of the
10.44%0.550.55
Company
Net profit attributable to the ordinary shareholders of the
9.98%0.520.52
Company after deduction of non-recurring profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable □ Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with both
foreign accounting standards and Chinese accounting standards at the same time
□ Applicable □ Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the data
audited by an overseas audit institution is adjusted for differences the name of the overseas audit institution
shall be indicated
4. Others
None.
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