DSBJ Annual Report 2024
Suzhou Dongshan Precision Manufacturing Co. Ltd.Annual Report 2024
April 25 2025
1DSBJ Annual Report 2024
Annual Report 2024
Section I Important Note Table of Contents and Definitions
The Board of Directors the Board of Supervisors directors supervisors
and senior executives of the Company hereby warrant that the information
contained in this Annual Report is true accurate and complete without any
misrepresentation misleading statement or material omission and agree to
assume joint and several liabilities for this Annual Report.YUAN Yonggang Chairman of the Company CFO WANG Xu and
Accounting Supervisor ZHU Deguang hereby represent that the financial
statements contained in this Annual Report are true accurate and complete.All directors of the Company attended the meeting of the Board of Directors
reviewing this Report.Forward-looking statements such as those on future development plans in
this Report do not constitute substantial commitments by the Company to the
investors. Investors and relevant persons shall be sufficiently mindful of risks
and understand the differences between plans predictions and commitments.The Company has fully disclosed the potential risks associated with the
concentration of customers rapid upgrading and iteration of industrialtechnologies fluctuations in exchange rates etc. in this Report. Please see “XI.Prospects for Future Development of the Company” under “Section III.Management’s Discussion and Analysis”.
2DSBJ Annual Report 2024
According to the profit distribution proposal approved by the Board of
Directors the Company will distribute a cash dividend of RMB 0.70 (inclusive
of tax) per 10 shares to all shareholders on the basis of 1697077809 shares
(excluding the treasury shares) and will not distribute any bonus shares or
transfer any capital reserve to the share capital.Note:
This document is a translated version of the Chinese Annual Report 2024 ("2024 年年度报告"). In case of any
discrepancies the Annual Report 2024 published in the Chinese version shall prevail. The full Chinese Annual
Report 2024 is available at www.cninfo.com.cn.
3DSBJ Annual Report 2024
Table of Contents
Section I Important Note Table of Contents and Def... 2
Section II Company Profile and Financial Highlight... 8
Section III Management’s Discussion and Analysis ... 12
Section IV Corporate Governance .................... 51
Section V Environmental and Social Responsibilitie.. 69
Section VI Significant Matters ..................... 82
Section VII Changes in Shares and Shareholders ..... 97
Section VIII Preferred Shares...................... 104
Section IX Bonds .................................. 104
Section X Financial Report ........................ 105
4DSBJ Annual Report 2024
List of References
I. Financial statements signed and chopped by Mr. YUAN Yonggang legal representative Mr. WANG Xu CFO and Mr.ZHU Deguang Accounting Supervisor of the Company;
II. Originals of all documents of the Company publicly disclosed during the reporting period and related announcements;
III. Original of the Annual Report 2024 stamped with the seal and signed by the legal representative of the Company; and
IV. Place keeping such documents for inspection: Securities Department of the Company at Building 12# Yunhe Town
Headquarters Industrial Park No. 99 East Taihu Road Wuzhong District Suzhou.
5DSBJ Annual Report 2024
Definitions
mea
Term Definition
ns
mea
Company we or DSBJ Suzhou Dongshan Precision Manufacturing Co. Ltd.ns
mea one of our three major business segments including research and development (R&D) design
Electronic circuit
ns manufacturing and sale of FPCs rigid PCBs rigid-flex PCBs and other products.mea one of our three major business segments including R&D design manufacturing and sale of
Photoelectric display
ns LED devices touch panels LCMs and other products.Precision mea one of our three major business segments including design manufacturing and sale of precision
manufacturing ns metal structural components and assemblies and other products.Yongchuang mea Suzhou Yongchuang Communication Technology Co. Ltd. a wholly owned subsidiary of the
Communication ns Company.mea HongKong Dongshan Precision Union Optoelectronic Co. Limited a wholly owned subsidiary
HongKong Dongshan
ns of the Company.mea
Dragon Holdings Dragon Electronix Holdings Inc. a wholly owned subsidiary of HongKong Dongshan.ns
mea
MFLEX Multi-Fineline Electronix Inc. a wholly owned subsidiary of Dragon Holdings.ns
mea
MFLEX Suzhou MFLEX Suzhou Co. Ltd. a wholly owned subsidiary of MFLEX.ns
mea
MFLEX Yancheng MFLEX Yancheng Co. Ltd. a wholly owned subsidiary of MFLEX.ns
HongKong Dongshan mea
HongKong Dongshan Holding Limited a wholly owned subsidiary of the Company.Holding ns
mea Multek Group (Hong Kong) Limited a wholly owned subsidiary of HongKong Dongshan
Multek Group
ns Holding.mea
Multek Industries Multek Industries Limited a wholly owned subsidiary of Multek Group.ns
mea
Multek Electronics Multek Electronics Limited a wholly owned subsidiary of Multek Group.ns
mea
Multek China Multek China Limited a wholly owned subsidiary of Multek Group.ns
mea Yancheng Dongshan Precision Manufacturing Co. Ltd. a wholly owned subsidiary of the
Yancheng Dongshan
ns Company.mea
Mutto Optronics Mutto Optronics Technology Co. Ltd. a wholly owned subsidiary of the Company.ns
mea
RF Top Electronic Suzhou RF Top Electronic Communication Co. Ltd. a controlled subsidiary of the Company.ns
mea
Suzhou JDI Suzhou JDI Electronics Inc.ns
mea Aranda Tooling Inc. AutoTech Production Services Inc. and Autotech Production de Mexico
Aranda
ns S. de R. L. de C.V.mea
JDI Japan Display Inc.ns
mea
5G the 5th generation mobile communication technology.
ns
AI mea artificial intelligence the simulation of human intelligence using computer programs.
6DSBJ Annual Report 2024
mea
Term Definition
ns
ns
augmented reality a technology that combines and integrates the virtual world on screen with
mea
AR the real world based on precise calculation of position and angle of camera images and image
ns
analysis technology.mea virtual reality a computer-simulated 3D virtual world with scenes and objects that appear to be
VR
ns real.Internet of Things a system of interrelated computing devices mechanical and digital
mea
IoT machines that has a unique identifier (UID) and is capable of transmitting data over the
ns
network.printed circuit board a finished product with insulated substrates and conductors as materials
mea
PCB designed and made into printed circuits printed components or a combination of conductive
ns
patterns according to the pre-designed circuit schematic diagram.mea
FPC flexible printed circuit.ns
light-emitting diode a semiconductor diode that emits incoherent light when current flows
mea through it and the recombination of electrons and electron holes in the semiconductor produces
LED or LED device
ns radiation for the purpose of this Report including LED particles LED light bars LED
backlight modules LED lighting devices and other LED products.mea
Mini LED sub-millimeter light emitting diode an LED device with a grain size of about 50-200μm.ns
LCD module or LCD display module formed by assembling LCD display device with the
mea
LCM relevant connectors control driver and other peripheral circuits PCB circuit board backlight
ns
source structural components and other components.mea a device under the protection of transparent glass that detects touches using sensors and
Touch panel
ns processes and transmits the relevant information.mea
AOA Articles of Association of Suzhou Dongshan Precision Manufacturing Co. Ltd.ns
mea
CSRC China Securities Regulatory Commission.ns
mea
SZSE Shenzhen Stock Exchange.ns
mea
Reporting period From January 1 2024 to December 31 2024
ns
mea
RMB and RMB 0’000 Renminbi and ten thousand Yuan respectively.ns
7DSBJ Annual Report 2024
Section II Company Profile and Financial Highlights
I. Company Profile
Stock short name DSBJ Stock code 002384
Original stock short name (if
None
any)
Stock exchange Shenzhen Stock Exchange
Chinese name 苏州东山精密制造股份有限公司
Chinese short name 东山精密
English name (if any) Suzhou Dongshan Precision Manufacturing Co. Ltd.English short name (if any) DSBJ
Legal representative YUAN Yonggang
Registered address No. 288 Shanfeng Road Wuzhong Economic Development Zone Suzhou
Postal code of the registered
215124
address
Our registered address was at Shangwan Village Dongshan Wuzhong District Suzhou Jiangsu
when we were reorganized from Suzhou Dongshan Sheet Metal Co. Ltd. into Suzhou Dongshan
History of changes in the
Precision Manufacturing Co. Ltd. in 2007 and was changed into No. 88 Tangdong Road
registered address
Wuzhong Economic Development Zone Suzhou on December 27 2019 and changed to No.
288 Shanfeng Road Wuzhong Economic Development Zone Suzhou on July 19 2024.
Building 12# Yunhe Town Headquarters Industrial Park No. 99 East Taihu Road Wuzhong
Office address
District Suzhou
Postal code of office address 215128
Company website www.dsbj.com
Email dsbj@dsbj.com
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name MAO Xiaoyan ZHOU Hao
Building 12# Yunhe Town Headquarters Building 12# Yunhe Town Headquarters
Address Industrial Park No. 99 East Taihu Road Industrial Park No. 99 East Taihu Road
Wuzhong District Suzhou Wuzhong District Suzhou
Telephone 0512-80190019 0512-80190019
Facsimile 0512-80190029 0512-80190029
Email maoxy@dsbj.com hao.zhou@dsbj.com
III. Media for Information Disclosure and Place for Keeping Annual Report
Website of the stock exchange disclosing the Company’s
Shenzhen Stock Exchange (www.szse.cn)
annual report
The Securities Times the China Securities Journal the
Media and website disclosing the Company’s annual report Shanghai Securities News the Securities Daily and
www.cninfo.com.cn
Place for keeping the Company’s annual report Securities Department of the Company
8DSBJ Annual Report 2024
IV. Changes in Registration Particulars
Unified social credit code 91320500703719732P
Since our IPO and listing we have strategically included
electronic circuit photoelectric display and other electronic
businesses in our industrial mix. We focus on the R&D and
Changes in primary business since the listing of the Company
manufacturing of technologically advanced core components
(if any)
for the intelligently interconnected world and the provision of
comprehensive intelligent interconnection solutions to
customers throughout the world.Changes in controlling shareholder (if any) None
V. Other Related Information
Accounting firm engaged by the Company:
Name of accounting firm Pan-China Certified Public Accountants LLP
No. 128 Xixi Road Lingyin Community Xihu District
Office address of accounting firm
Hangzhou City Zhejiang Province
Name of accountants signing this report ZHANG Yang and FU Zhenlong
Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period
□ Applicable □ N/A
Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting
period
□ Applicable □ N/A
VI. Key Accounting Data and Financial Indicators
Did the Company need to retrospectively adjust or restate any accounting data of prior years
□ Yes □ No
Y/Y %
202420232022
change
Operating revenue (RMB) 36770374347.58 33651205468.80 9.27% 31580146732.58
Net profit attributable to shareholders of the Listed
1085641847.891964525269.65-44.74%2368347970.02
Company (RMB)
Net profit attributable to shareholders of the Listed
Company after deduction of non-recurring gain or 898627278.48 1614534226.22 -44.34% 2126582862.82
loss (RMB)
Net cash flow from operating activities (RMB) 4986018688.48 5172419470.20 -3.60% 4629884011.38
Basic earnings per share (RMB/share) 0.64 1.15 -44.35% 1.39
Diluted earnings per share (RMB/share) 0.64 1.15 -44.35% 1.39
Weighted average return on net assets 5.89% 11.38% -5.49% 15.33%
December 31 December 31 Y/Y % December 31
2024 2023 change 2022
Total assets (RMB) 46014173064.47 44371719028.28 3.70% 40802606803.61
Net assets attributable to shareholders of the Listed
18826387269.3818143026745.543.77%16378630871.35
Company (RMB)
Whether the lower of the net profit before and after the deduction of non-recurring gain or loss in the past three accounting years
9DSBJ Annual Report 2024
has been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern
is uncertain
□ Yes □ No
Whether the lower of net profit before and after the deduction of non-recurring gain or loss is negative
□ Yes □ No
VII. Differences in Accounting Data under the Chinese Accounting Standards for Business
Enterprises (the “CASBEs”) and Overseas Accounting Standards
1. Differences in net profit and net assets disclosed in the financial report prepared under the
International Financial Reporting Standards (IFRS) and the CASBEs
□ Applicable □ N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the
IFRS and the CASBEs.
2. Differences in net profit and net assets disclosed in the financial report prepared under overseas
accounting standards and the CASBEs
□ Applicable □ N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under
overseas accounting standards and the CASBEs.VIII. Key Financial Indicators by Quarter
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 7744804604.28 8883781591.28 9837710076.75 10304078075.27
Net profit attributable to shareholders of the
289348487.81271252448.46506753281.7818287629.84
Listed Company
Net profit attributable to shareholders of the
Listed Company after deduction of non-recurring 261306973.35 254713523.24 492413794.62 -109807012.73
gain or loss
Net cash flows from operating activities 1557837879.15 531131520.13 769283296.76 2127765992.44
Whether there’s any material difference between the financial metrics or aggregate amounts thereof set out above and the
corresponding financial metrics set out in any quarterly report or semi-annual report of the Company already disclosed
□ Yes □ No
IX. Items and Amounts of Non-recurring Gains or Losses
□ Applicable □ N/A
In RMB
Item 2024 2023 2022 Remark
Gain or loss on disposal of non-current assets (including
-268961359.34-26367874.21-14220918.02
allowance for impairment of assets that has been written off)
Government grants recognized in profit or loss (excluding 483141623.05 249253139.50 317926133.80
10DSBJ Annual Report 2024
the government grants that are closely related to the business
of the Company conform to the applicable policies of the
country are provided in accordance with the established
standards and continuously affect the Company’s profit or
loss)
Gain or loss on changes in fair value of financial assets and
financial liabilities held by non-financial entities and gain or
loss on disposal of financial assets and financial liabilities -7601380.66 14283973.00 -63657229.48
except for effective hedges held in the ordinary course of
business
Gain or loss on assets under entrusted investment or
10408683.62
management
Reversal of allowance for impairment loss on accounts
1250000.009500583.33
receivable assessed individually
Other non-operating revenues and expenses -3547316.95 -398583.47 3073832.45
Other gain or loss within the meaning of non-recurring gain
134812863.84956961.84
or loss
Less: Effect on income tax 13516787.94 22244723.86 21900816.79
Effect on minority interests (exclusive of tax) 2500208.75 597751.37 322123.55
Total 187014569.41 349991043.43 241765107.20 --
Other items of gain or loss within the meaning of non-recurring gain or loss:
□ Applicable □ N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss
□ Applicable □ N/A
We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss.
11DSBJ Annual Report 2024
Section III Management’s Discussion and Analysis
I. Situations of Our Industry During the Reporting Period
We are primarily engaged in the R&D manufacturing and sale of electronic circuits precision components touch panel
modules and LED display devices etc. According to the Industrial Classification for National Economic Activities (GB/T 4754-
2017) our main business belongs to “electronic circuit manufacturing” under “manufacturing of electronic components andelectronic special materials” with the industry code C3982.
1. Electronic circuits
Our electronic circuit products are printed circuit board (PCB) which is a general substrate board provided with point-to-
point connections and printed components according to a predefined design. As an electric connection among various electronic
components it mainly functions for relay transmission. As substrates carrying electronic components and key connectors the
manufacturing quality of PCBs not only directly affects the reliability of electronic products but also affects the overall
competitiveness of system products and therefore are referred to as the “mother of electronic system products”. To a certain extent
the development level of the PCB industry reflects the development speed and technical level of the electronic industry in a
country or region.At present PCBs are in use for almost all electronic products including consumer electronics new energy vehicles
communication equipment industrial control medical and other industries which leads to very strong market demands. The PCB
industry as one of the most important segment in the global electronic component sector can be classified into flexible printed
circuits (FPC) rigid circuit boards and rigid-flexible circuit boards. The specific classification and market prospects are as follows:
(1) Types and uses of PCBs
Thanks to the expansion of PCB applications and technology innovation the PCB production process has been greatly
improved since its release with multiple derivative types coming out mainly including:
Type Feature Main application areas
Smartphones tablet
A printed circuit board made of a flexible substrate consisting computers new energy
Flexible printed circuit (FPC) of three components – metal foil adhesive and base film. It has vehicles wearable devices
the features of lightness thinness and bendability. VR drones touch screens
etc.Only one side of the circuit board is provided with wires so that
Ordinary household
Single-sided all electronic components are concentrated on one side. As the
appliances remote controls
board most basic PCB type it is widely used in early electronic
fax machines etc.products.Dual-sided Given the wires provided on both sides electronic components Computer peripherals
board can be arranged on both sides as necessary. household appliances etc.A circuit board laminated with over three conductive pattern Consumer electronics
Ordinary multi- layers that are separated by insulating material layers between communication equipment
layer board them and the conductive patterns between layers can be and automotive electronics
Rigid circuit
connected as required. etc.board
A high-layer board generally contains over 18 layers with a
thickness of less than 100mil with the minimum wire Line cards and back boards of
width/minimum routing safety spacing of 0.075mm/0.075mm servers high-end routers
High-layer board
and the aspect ratio greater than 12:1. More PCB layers lead to memory base stations and
faster signal transmission which improves the data processing supercomputers etc.performance.A high density interconnect board is a high-density precision Smartphones laptop
HDI/ELIC
board suitable for high-density wiring. Compared with computers digital cameras
Board
conventional multi-layer boards an HDI board can greatly etc.
12DSBJ Annual Report 2024
increase the wiring density on the board and achieve printed
board products with high density small size and multiple
functions. For high-end communication products the HDI
technology can improve the signal integrity of such products
hence facilitating strict impedance control and improving
product performance. ELIC stands for Every Layer
Interconnection which is a high-end product in HDI boards.As a combination of a rigid board and a flexible board it has
Communication equipment
both the support function of the rigid board and the bending
computers industrial control
characteristics of the flexible board and is suitable for certain
Rigid-flexible circuit board and medical field aerospace
products with special requirements. It can save internal space
automotive electronics
of products reduce the size of the finished product and
consumer electronics etc.improve product performance.
(2) Prospects of the PCB market
* Overall market prospects of the PCB industry
PCBs are widely used in consumer electronics new energy vehicles communication equipment industrial control medical
and other fields throughout the world. Along with intensive research and development (R&D) and continuous technology
upgrading PCB products are developing towards high density small aperture and large capacity and becoming lighter and thinner.Moreover the rapid development of new energy vehicles the Internet of Things smart homes wearable devices and other fields
together with the industrial innovation facilitated by AI technologies has created a new round of development cycle for the PCB
industry. According to the statistics of Prismark a research institution in February 2025 the total output value of the global PCB
industry reached USD 73.565 billion in 2024 a year-on-year increase of 5.82%. In the future given the accelerated penetration of
AI technologies in terminal devices the rapid expansion of global AI end products will become an important driver for the
development of the PCB industry. Prismark predicts that the total output value of the global PCB industry will reach USD 78.562
billion and USD 94.661 billion in 2025 and 2029 respectively with a compound annual growth rate of 4.8%.Global market size and growth rate of PCBs in 2023–2029
Market size/USD 100
Growth rate
million
Source: Prismark
* Prospects of the FPC market
A. The functional innovation of smartphones and the development of AI technologies create additional demands for FPC
13DSBJ Annual Report 2024
The innovative development of smartphones the addition of functions and configurations such as OLED screens face
recognition multiple cameras wireless charging foldable screens etc. and the iteration of technologies leads to additional
components in smartphones and increasing capacity of batteries which crowds the internal space of mobile phones and leads to
increasing demands for lightweight thin and small-size FPCs with high-intensity wires. In addition high-end Android models are
also gradually using more FPCs in individual devices. In the future the innovation of mobile phone functions and the greater
integration will drive the rapid increase in the number of FPCs in a single device and will raise more refined requirements on FPC
products. During this process top FPC manufacturers are actively making capital investment to rapidly improve their market
competitiveness in the hope of acquiring more market shares.In addition on the background of the rapid development of AI technologies in recent years more and more smartphone
manufacturers are releasing AI mobile phones. IDC predicts that there will be 827 million AI mobile phones in 2027 reflecting a
compound annual growth rate of 100.7% from 2023 to 2027. AI mobile phones come with both additional computing power and
additional energy consumption. This change raises higher requirements on transmission requiring high frequency high speed and
high density. Therefore the FPC thanks to its unique advantages in high-frequency high-speed and high-density transmission has
a favorable prospect for its application. A replacement cycle driven by AI mobile phones and the use of more FPCs (and value) in
AI mobile phones will create a new growth opportunity with certain certainty for FPCs. Since the addition of AI functions
increases the difficulty in both soft board designing and processing which leads to more intense high-end production capabilities
top manufacturers will stand out with their competitiveness.B. The rapid development of innovative consumer electronics products led to more FPC demands
During the elimination of old models and release of new models on the consumer electronics market in recent years the
emerging markets of AR/VR wearable devices mobile phones with foldable screens etc. experienced rapid growth which led to
further FPC demands on the market.In the AR/VR field the AR/VR industry has entered a period of rapid growth driven by the constant advancement of chips
display technologies and communication means and the development of meta universe. According to IDC driven by innovation in
software and hardware technologies AI support and the entry of terminal manufacturers the overall AR/VR market will develop
rapidly and the AR/VR shipment in China will increase by 114.7% in 2025 compared with 2024. In the field of wearable devices
the products need to carry more components to achieve more functions and need to be lightweight and integrated at the same time;
this raises additional requirements for the wire density which will increase the use of FPCs in individual devices. Meanwhile in
the field of mobile phones with foldable screens the application of dual screens dual motherboards multiple cameras and other
structures will further increase the use of FPCs.C. The rapid development of the new energy vehicle market led to the rapid growth of upstream FPC demands for new
energy vehicles
Thanks to its outstanding features of high wire density light weight thinness being foldable and bendable three-
dimensional wiring and high safety in new energy vehicles FPCs can be used in systems for automatic driving entertainment
lighting display power and battery management and for devices such as sensors. On the background that mainstream automakers
both in China and abroad have increased their efforts for the strategic layout of new energy vehicles the new energy vehicle
industry entered a high-speed growth period driven by the market which leads to the rapid growth of upstream FPC demands for
new energy vehicles.In 2024 the global and Chinese automotive sales were 95.31 million and 31.44 million respectively up by 2.6% and 4.5%
year-on-year; the global and Chinese new energy vehicle production and sales were 18.24 million and 12.87 million respectively
up by 24.5% and 35.5% year-on-year continuing to maintain the rapid growth. This indicates the ratio of 19.1% and 40.9%
respectively for new energy vehicle sales against the total automotive sales respectively indicating that China has become an
14DSBJ Annual Report 2024
important force leading the transformation of the global automotive industry.Chinese and global automotive sales and penetration of new energy vehicles
Global automotive Chinese automotive Ratio of global new energy Ratio of Chinese new
sales/10000 units sales/10000 units vehicles energy vehicles
Source: China Association of Automobile Manufacturers OICA EVTank
Chinese and global new energy vehicle sales
Global new energy vehicle sales/10000 units Chinese new energy vehicle sales/10000 units
Source: China Association of Automobile Manufacturers EVTank
15DSBJ Annual Report 2024
D. The development of electric intelligent integrated and lightweight new energy vehicles leads to increasing demands on
on-board FPC market
FPC given its advantages that are unavailable in other circuit board types is more suitable for the development trend of
lightweight intelligent and integrated electronic products in the downstream industries and therefore is more suitable for new
energy vehicles.On the one hand on the ground of development towards electric and intelligent automotive the proportion of automotive
electronics in the cost of the whole vehicle is gradually increasing and according to the CCID Thinktank Electronic Information
Research Institute is expected to reach 50% in 2030. The improved electrification level leads to greater demands for electronic
components for various automotive devices including automatic driving entertainment system lighting system display system
power system battery management system and sensors which correspondingly requires more wire carriers to connect the
electronic components. Therefore the demand for vehicle FPC will further increase. According to iFixit it is expected that FPCs
used in a new energy vehicle will exceed 100 items and up to 70 FPCs may be used for battery voltage monitoring.On the other hand the power batteries of early new energy vehicles mainly used conventional wiring harnesses which were
relatively bulky and complex in connection and therefore could not meet the development trend of increasing electronic
components for new energy vehicles. Instead the automotive FPC thanks to its lightweight simple structure convenient
connection and other advantages has been widely used in new energy vehicles. By now the FPC connection solution has become
a major solution in power batteries of new energy vehicles; it is developing towards integration as a cells contact system (CCS). A
CCS consists of an FPC plastic structural parts copper and aluminum bars etc. The FPC is connected to copper and aluminum
bars and plastic structural parts to create an electrical connection and structural component for signal detection. It is highly
customizable simple in installation can be directly placed on a battery package and therefore is more suitable for automatic
production of power batteries and leads to greater value of individual vehicles.According to CITIC Securities Research Institute the global market size of power battery CCS will reach RMB 28.12
billion in 2025 indicating a compound annual growth rate of 62.33% from 2021 to 2025. In addition it is expected that the
replacement of conventional wiring harnesses with FPC in batteries will further extend to the field of energy storage hence further
increasing the FPC market demands. According to the CITIC Securities Research Institute the market size of energy storage
batteries CCS was RMB 180 million in 2021 and will reach RMB 4.43 billion in 2025 indicating a compound annual growth rate
of 122.73% from 2021 to 2025.
2. Precision components
In recent years on the background that China’s new energy vehicle industry experienced continuous growth at a high speed
thanks to the green and low-carbon transformation we have actively made arrangement of the precision component business for
the new energy vehicle industry and enhanced both capital investment and the efforts for business development which resulted in
rapid growth of the revenue from relevant products. By now our precision component products are mostly precision metal
structural products for new energy vehicles including heat radiators battery housing white vehicle body battery structural parts
and other auto parts for new energy vehicles. The rapid development of the new energy vehicle industry created new development
opportunities for the relevant precision component market.
(1) Developing new energy vehicles is the only way for China to move from a big automotive consumer country to a strong
automotive manufacturing country and the only way to respond to climate change and promote green development
At present on the background of a new round of global scientific and technological revolution and industrial transformation
the integration of automotive with energy transportation information communication and other relevant areas is accelerating
where the development trend is electric connected and intelligent vehicles in the industry. New energy vehicles integrate multiple
16DSBJ Annual Report 2024
transformative technologies including new energy new materials the Internet big data artificial intelligence etc. which
promotes automotive to transform from a simple means of transportation to mobile smart terminals energy storage units and
digital space drives the transformation and upgrade of the energy transportation information and communication infrastructure
promotes the optimization of energy consumption structure and improves the intelligent transportation system and urban operation.It is of great significance to building a clean and beautiful world and building a community for human beings as a whole. In recent
years given the enhanced strategic planning and strengthened policy support by major automotive powers and the increased R&D
investment and comprehensive industry deployment by multinational automotive manufacturers new energy vehicles have
become a major direction for the transformation of the global automotive industry and a significant engine for driving the
continuous growth of the world economy. To promote the development of new energy vehicles is the only way for China to move
from a big automotive consumer country to a strong automotive country and the only way to respond to climate change and
promote green development.
(2) The new energy vehicle industry is in a period of rapid growth with new development opportunities for the industry
chain
Under the wave of automotive electrification around the world mainstream automakers both in China and abroad have
increased their efforts for the strategic layout of new energy vehicles which promoted the new energy vehicle industry to enter a
high-speed growth period driven by the market.The rapid growth of the new energy vehicle market created many growth opportunities for relevant companies in the
industry chain such as precision metal structural parts. While the engine gearbox and auxiliary parts of conventional vehicles are
replaced by the core components of new energy vehicles – the three major systems including power batteries drive motors and
electronic control systems and auxiliary parts thereof the market demand for related parts are increasing. In addition given the
development trend of electric and intelligent vehicles the rapid evolution of core technologies in the automotive industry and the
rise of new forces in automotive manufacturing the supply chain pattern has also been reshaped – where automotive parts meeting
the lightweight electric and intelligent demands of automotive parts come out one after the other which created an opportunity for
China’s manufacturers capable of developing and producing relevant products to enter the industry chain of automotive parts and
develop into a global leading manufacturer of automotive parts.
3. Touch panel modules
Our touch panel modules are widely used in laptop tablet smart watch on-board display and other fields which develop
along with the development of the relevant downstream industries.
(1) Consumer electronics
With the development of smartphones and tablet computers consumers have formed a habit of touch operation all major
laptop brands have launched laptops with touch panels. The emergence of convertible laptops 2 in 1 laptops and other innovative
products will continuously increase the penetration of laptops with touch panels and further drive the market demands for touch
panel module products. According to Wind the global shipment of laptop computers in 2022 2023 and 2024 was 186 million
166 million and 202 million respectively while the global shipment of tablet computers was 150 million 135 million and 144
million indicating a rising trend of market demands.
(2) Automotive
On-board displays mainly include central control displays dashboards and emerging head-up displays (HUD) electronic
rearview mirrors passenger/rear seat displays which are key interactive hardware for automotive intelligentization. With the
17DSBJ Annual Report 2024
development of technologies automotive especially new energy vehicle manufacturers actively strive to improve their brand
competencies through intelligentization driving the rapid development of on-board display modules. According to the CITIC
Securities Research Institute and Zhongshang Industry Research Institute the global on-board display market size was about USD
9.5 billion in 2023 and is expected to achieve USD 13.840 billion in 2025 representing a compound annual growth rate of about
20.7% from 2023 to 2025.
4. LED display devices
Our LED display device products mainly include small-pitch LEDs Mini LEDs and other products packaged in granule
form. These products are mainly used in among others indoor and outdoor small-pitch high-definition display screens. The year
2024 witnessed both challenges and opportunities for the LED industry – on the one hand the industry experienced intensified
competition and reduced average prices on the other hand the market competition and technology advancement created new
development opportunities for the market. The trend of LED development is to continuously reduce the size of and pitch between
beads – the pitch is greater than 2.5mm in conventional LEDs smaller than 2.5mm for small-pitch LEDs 0.3mm–1mm for Mini
LEDs and even smaller for Micro LEDs. Compared with Mini LEDs the number of chips in a Micro LED will be nearly a
hundred times of that in a Mini LED of the same area. Given that Mini/Micro LEDs are an important direction for the
development of future display technologies as the technology advances and the scale effects of the industry chain expand the
demands for various new application areas will be released so that Mini/Micro LEDs may become a future breaking point in the
industry. In the display backlight area thanks to their better image rendering effects for LCDs Mini LED backlight products are
gradually replacing conventional LED light sources on the TV monitor and on-board display markets – Mini LED backlight
products are penetrating rapidly on the market. Relying on the advantages of long service life small size high brightness low
power consumption self-luminous etc. Micro LEDs are known as the “ultimate display technology”. At present it has achieved
breakthrough in AR/VR and large-screen direct display areas and it is expected that the market application will accelerate given
the advancement of technologies and reduction in costs.II. Situations of our Primary Business during the Reporting Period
(I) During the reporting period our primary business has not undergone any material change.We focus on the R&D and manufacturing of technologically advanced core components for the intelligently interconnected
world and the provision of comprehensive intelligent interconnection solutions to customers throughout the world. We are
primarily engaged in the R&D manufacturing and sale of electronic circuits precision components touch panel modules and LED
display devices which are widely used in consumer electronics new energy vehicles communication equipment industrial
equipment AI medical appliances and other fields.(II) During the reporting period our main business model has not undergone any material change.We leverage our complete business chain to provide our customers with comprehensive one-stop industrial-leading services
continuously increase the depth of cooperation and adhesion with our customers and maintain long-term stable cooperation with
premium customers taking the lead in the global consumer electronics new energy vehicle and communication equipment
industries.We manufacture main products based on market demands and adopt the production model that determines production
according to sales under which we develop production plans and deliver products taking into account the purchase orders placed
by customers the product quantities demanded by the customers under such purchase orders as well as our production capacity
and supply of raw materials.
(1) Our main products and their applications:
Product Type Product features Main application
18DSBJ Annual Report 2024
Widely used in electronic
devices such as computers
Printed circuit board made of a rigid substrate that is hard to
network equipment
Rigid board bend with certain toughness with the advantages of
communication equipment
supporting the electronic components attached to it
industrial control automotive
military aviation etc.Printed circuit boards made of flexible substrates with the
Widely used mainly in smart
advantages of being light thin bendable and suitable for
phones tablet computers
Flexible board three-dimensional assembly and optimal for electronic
Electronic wearable devices new energy
products with requirements for miniaturization lightweight
circuit etc. at present
and mobility
Also known as “soft and hard board” meaning the creation
of a three-dimensional circuit board by laminating different
flexible boards with rigid boards where the circuit Mainly used in medical
Rigid-flexible interconnection between the rigid printed circuit board and equipment navigation systems
board flexible printed circuit board is implemented through hole consumer electronics and other
metallization process so that the flexible board portion is products
bendable while the rigid board portion can support heavy
devices
With RF technology and precision manufacturing as the
Communication Mainly used in wireless
core provide customers with antennas filters and other
products communication base stations
products related to wireless base stations
Precision
Process aluminum alloy materials into automotive parts ormanufacturing Mainly used in the “threeAutomotive products with precise shapes precise dimensions and highelectric systems” of new
products surface quality through die casting stamping sheet metal
energy vehicles
precision machining and other processes
Integrate display screen driver IC and backlight system
Widely used in smart phones
Display module (partially required) together to convert electrical signals into
tablet computers laptop
visible optical images
computers automotive
An electronic component combining a touch screen with a
Photoelectric Touch panel industrial control medical
display screen (such as LCD OLED etc.) which can realize
display modules field smart homes etc.the display and touch input functions at the same time
Mainly used in indoor and
Process LED chips into independent light-emitting devices outdoor small-pitch high-
LED devices
available for installation through packaging process definition display screens and
display backlight products
(2) Applications of our products in new energy vehicles:
HUDs dashboards and central control
displays
Passenger/rear seat entertainment White body parts
displays and multi-connected displays
Streaming electronic rearview mirrors Seat framework assemblies
and armrest displays Automotive electronics (BMS MCU
Cold plates (automatic drive and central ECU etc.)
control)
Heat dissipation modules
Rigid PCBs and rigid-flex PCBs for
central control system/GPS
Rigid PCBs and rigid-flex PCBs for
Electric drive and electronic control information & entertainment
systems/Internet of Vehicles
casings (all-in-one)
Domain control casings
Charging station framework and casing
assemblies
Camera brackets and assemblies
Rigid PCBs and rigid-flex PCBs for
cameras
Casings and rigid PCBs for laser radars and
Cell casings
millimeter wave radars
Rigid PCBs for advanced driving assistance Battery pack trays and assemblies
system and central computing unit
FPCs and CCS for battery packs
19DSBJ Annual Report 2024
(3) Our situation in the industry:
In the field of electronic circuits according to the research data published by Prismark in terms of sales revenues we are
ranked second in the field of FPC and third in the field of PCB in the world for several consecutive years. We have strong
technology R&D quality control and smart factory management capabilities in the electronic circuit industry and are able to
provide customers with high-quality products and services. Our major electronic circuit customers are well-known global
consumer electronics and new energy vehicle manufacturers so we have a good customer base and strong competitive powers.In the field of precision components we are one of the largest specialized precision component suppliers provide structural
components for new energy vehicles communication equipment and other fields and mainly serve well-known global new energy
vehicle and communication equipment manufacturers so we have strong competitive advantages in the industry.In the field of touch panel modules and LED display devices we are one of the largest touch panel modules and LED display
device manufacturers in China. With the completion of our acquisition and integration of Suzhou JDI we further expand our on-
board display module business and strengthen our overall competence in the field of touch panel modules.Thanks to the launch of the second racetrack (new energy) we have rapidly become one of the few vendors able to provide
the new energy vehicle manufacturers with PCBs (including FPCs) on-board displays functional and structural components and
other products and integrated solutions. At present we have achieved good operating results in our new energy business in aspects
of the product strategy technology accumulation customer development etc. In the future we will leverage our advantages in the
coverage of multiple industry chains and the provision of integrated solutions to further improve customer adhesion.III. Core Competencies of DSBJ
(I) Advantage in customers: Premium domestic and foreign customer base
After years of hard work we have attracted top global customers in the industry and accumulated high-quality customer
resources which produced good demonstration effects and improved our reputation. This not only improves our ability to develop
new customers and facilitate the acquisition of more support from customers in competition in the future but also facilitates the in-
depth of collaborative innovation between us and existing leading customers and the deployment in emerging fields. Our rich
customer base covers multiple industries including consumer electronics new energy vehicles and communication equipment
which can help us resist the quarterly and cyclical effects of operations in different industries and enhance our core
competitiveness.(II) Advantage in management: Advanced concepts complete systems and efficient execution
We advocate the corporate spirit of “openness inclusion pragmatism and enterprising” stick to the management principle of
“overall planning the delegation of powers in business operation support by the platform and centralized supervision” give full
play to the initiative and creativity of all organizations and have built a scientific and efficient management system. Our
management team has practical experience in the management of the advanced manufacturing industry has wide global visions is
able to make accurate strategic judgments and decisions on the trends of industry and opportunities for development and has
strong cohesion and executive ability. Given our rich experience in cross-border mergers and acquisitions restructuring and
integration we can successfully advocate our corporate culture and business models to the acquired and restructured companies
with the concept of China’s manufacturing industry so as to enhance agglomeration effects and comprehensive value of resources
and help the target companies improve operating performance rapidly. By implementing institutional transformation under the
concept of people orientation we take initiative to adapt to changes in environment match with business demands properly build
reserve forces and accumulate talents for corporate development hence building the core driving force for future development.
20DSBJ Annual Report 2024
(III) Advantage in products: Wide range of products and integrated industry chain
In recent years we have continuously improved our industrial and product mix through acquisitions and internal development
broken development bottlenecks and introduced superior businesses to build up new growth drivers. At present our product
offerings cover three business segments namely electronic circuit photoelectric display and precision manufacturing. We are able
to provide consumer electronics new energy customers and other industry customers with a variety of basic and core components
for intelligent interconnection. In the field of electronic circuit we have grown into a leading company in the industry. In terms of
the new energy business we have established our advantageous position in the industry with our on-board FPC liquid cooling
plate battery housing and other products which have become a strong engine for our future development. In addition we also
actively give full play to the synergy of various business segments in R&D technology supply chain products and markets and
integrate internal resources to actively provide customers with competitive products and solutions through forward-looking
research and development of the industry.(IV) Advantage in technologies: Stick to the principle that technological innovation capability is the primary production
factor
We attach great importance to technological innovation in our business development and drive our development through
innovation. Through participation in the preliminary development projects of the industry-leading customers we keep in step with
the development of cutting-edging technologies and have built a complete R&D system and efficient R&D mechanisms and a
global R&D team with outstanding professional level rich industrial experience and strong innovation capabilities. Through
continuous funding for R&D of new materials new technologies and new production processes we have vigorously explored
frontier production technologies for core components in the field of intelligent interconnection and laid solid foundations for
serving emerging businesses such as AI AR/VR IoT Mini LED and new energy vehicles. While improving product technologies
we attach great importance to the innovation and upgrading of production technologies and have gained certain effects in the
integrated development of informatization and industrialization. By promoting the integrated development of industrialization and
informatization we have vigorously implemented intelligent manufacturing and built smart factories.(V) Advantage in scale: Promote development in reliance on advantage in scale and increase benefits based on synergistic
effect
Our customers are well-known domestic and international hi-tech companies that have high purchase quantities strict
requirements for the delivery of products and high requirements for the scale of production and production efficiency of suppliers.Through years of development and accumulation we have grown into a supplier of core components for intelligent
interconnection with relatively strong overall capabilities in China. Our large scale of production can satisfy the purchase demands
of major downstream customers creating a big advantage in scale. On the one hand our scale advantage is helpful to reduce the
unit product production costs thanks to our strong purchasing bargaining power; on the other hand we have gradually built global
procurement capabilities so that we have left competitors behind by integrating global resources which further consolidates and
improves our position in the industry and enhances our core competitiveness.(VI) Advantage in internationalization: Promote the establishment of a “dual circulation” development pattern
We closely follow the national development strategies actively take part in global economic competitions and continuously
enhance the integration of high-quality resources of the industry. In recent years we have established operating entities withdifferent functions in North America Europe Southeast Asia and other countries and regions. Under the main strategy of “two-wheel drive” we focus on the two key fields of consumer electronics and new energy vehicles. In order to actively respond to the
demands of customers we have accelerated the development of overseas production bases. In this year the Thailand base has
started construction with topping out completed and the bases in Mexico and the United States are running smoothly. We
continuously enhance our overseas talent force to further improve our international operating capabilities which facilitates a new
21DSBJ Annual Report 2024
layout of domestic and international development enhancing each other so as to actively respond to the complex competition
environment.IV. Analysis of Primary business
1. Overview
Given the complex and changing global economic situations during the reporting period we operated in a steady proactive
and diligent manner to face challenges from the outside. Focusing on the “two-wheel drive” development strategy of consumer
electronics and new energy we maintained stable growth of the electronic circuit business while actively seeking new growth
opportunities from new energy and other emerging businesses. We paid great attention to the growth of our own capabilities and
the improvement of our core competitiveness to maintain continuous investment in research production and sales. In 2024we
moved steadily in private placement efforts achieved obvious results in system governance and data governance and performed
well in environmental social and governance efforts. In 2024 we recorded an operating revenue of RMB 36770374300 a year-
on-year increase of 9.27%. Consequently for 2024 we have achieved a net profit of RMB 1085641800 reflecting a year-on-
year decrease of 44.74%. The main reason is that based on the principle of prudence we optimized the LED business operation
and management by integrating and optimizing certain inefficient equipment which led to the loss of assets disposal in the amount
of RMB 164 million and the provision for impairment losses of assets in the amount of RMB 595 million for the LED business.With the impact of the factors above eliminated the net profit in 2024 decreased by about 5% year on year. Below is a summary of
our main business activities in the reporting period:
I. Continuous industry investment to consolidate the foundation for future development
Striving to grasp the opportunities of the era under the macro background of a new round of accelerated iteration of science
and technologies based on our rich experience in consumer electronics and new energy we enhanced investment both in R&D
innovation and in new production capabilities and new products especially in forward-looking products and technologies intended
for the future which guaranteed the growth of our operating income despite the adverse environment. We actively embrace AI and
enhance data governance to build digital infrastructure and achieve system integration and explore new applications of AI
technologies in smart manufacturing and R&D innovation scenarios. Meanwhile we strengthened the industry-university alliance
to promote innovation and upgrade and worked with scientific research institutions for active deployment of innovative
technologies to promote in-depth integration between scientific and technological innovation and industrial innovation. The
continuous investments help to lay a solid ground for the future development of the Company.II. The new energy business manifested its growth advantages and strong synergy with the core business
We closely followed the industry development trend of new energy vehicles and rapidly entered this new racetrack by means
of new investment acquisition merger etc. At present we have achieved good operating results in our new energy business in
aspects of the product strategy technology accumulation customer development etc. During the reporting period our new energy
business achieved an overall revenue of RMB 8.65 billion a year-on-year increase of 36.98% accounting for 23.52% of our
revenue. We have built an advantageous position in the industry of on-board FPC liquid-cooling boards battery housing on-
board display and other products which products were highly recognized by customers. By now the new energy business has
become a strong engine for our future development and given the strong synergy of the new energy business with various
business segments in terms of products customers and production capacity this business showed favorable resilience and
competitiveness and will facilitate the high-quality and sustainable development of our businesses.III. People-oriented institutional reform to build the core development driver
22DSBJ Annual Report 2024
Keeping our development strategy and market demands in mind in this year we made great efforts to implement factory
relocation and integration and the continuous institutional optimization which greatly improved our operating efficiency.Meanwhile we enhanced our efforts for talent building by combining recruitment with personnel growth. On the one hand we
started the “Evergreen Plan” to attract outstanding graduating students and made greater efforts for recruiting medium- and high-
profile talents; on the other hand we actively deepened the efforts for building an internal talent growth system and conducted a
series of courses and activities focusing on the competence improvement of engineers and the cultivation of the engineer culture
so as to provide the talent guarantee for the high-quality development of the Company. Moreover by advocating our culture andbuilding a matching system we enhanced the efforts for implementing our core values of “openness inclusion pragmatism andenterprising” hence enhancing the sense of belonging for our employees and cohesiveness of the team.IV. Implemented a stable financial strategy to support the fulfillment of our strategic objectives
During the reporting period we continued to implement an active and stable financial strategy. We paid close attention to
changes in the external environment made adjustment as appropriate worked for continuous improvement and constantly
improved the financial management and control procedures to further improve our capabilities against operating risks and support
the fulfillment of our business development and strategic objectives. Adhering to the strategy of cash first we continuously
optimized our capital structure liquidity planning and budget system and implemented a variety of prudent financial measures to
meet the capital needs for our business development and ensure liquidity security. Based on a series of management mechanisms
covering the regulations procedures and operation guidelines of foreign exchange and commodities we adhered to the principle
of risk neutrality and made use of effective hedging instruments to hedge market fluctuation risks. We started efforts for
integration of business and finance to promote the synergy between business and financial efforts improve quality and efficiency
and effectively achieve a closed-loop from strategy formulation to implementation.
2. Revenue and costs
(1) Components of operating revenue
In RMB
20242023
Y/Y %
% of operating % of operating
Amount Amount change
revenue revenue
Total operating revenue 36770374347.58 100% 33651205468.80 100% 9.27%
By segment
Computer communication and
36479191979.2099.21%33475973831.4799.48%8.97%
other electronics
Others 291182368.38 0.79% 175231637.33 0.52% 66.17%
By product
Electronic circuits 24800813670.87 67.45% 23261396022.09 69.13% 6.62%
LED display devices 768133556.04 2.09% 1190456597.34 3.54% -35.48%
Touch panels and LCMs 6369925398.02 17.32% 4861904092.14 14.45% 31.02%
Precision components 4540319354.27 12.35% 4162217119.90 12.37% 9.08%
Other businesses 291182368.38 0.79% 175231637.33 0.52% 66.17%
By region
Domestic market 6187309236.49 16.83% 5649268947.33 16.79% 9.52%
Overseas market 30583065111.09 83.17% 28001936521.47 83.21% 9.22%
By sales model
Direct sales 36770374347.58 100.00% 33651205468.80 100.00% 9.27%
23DSBJ Annual Report 2024
(2) Segments products regions or sales models representing more than 10% of operating revenue or profit
□ Applicable □ N/A
In RMB
Y/Y % change Y/Y % change Y/Y %
Gross
Operating revenue Operating cost in operating in operating change in
margin
revenue cost gross margin
By segment
Computer
communication and 36479191979.20 31384152613.81 13.97% 8.97% 10.41% -1.12%
other electronics
By product
Electronic circuits 24800813670.87 20252229450.04 18.34% 6.62% 9.92% -2.45%
LED display devices 768133556.04 1082588478.06 -40.94% -35.48% -28.21% -14.27%
Touch panels and
6369925398.026158426707.633.32%31.02%28.95%1.55%
LCMs
Precision components 4540319354.27 3890907978.08 14.30% 9.08% 4.70% 3.59%
By region
Domestic market 6187309236.49 5936342692.90 4.06% 9.52% 10.03% -0.43%
Overseas market 30583065111.09 25678665936.49 16.04% 9.22% 10.94% -1.30%
By sales model
Direct sales 36770374347.58 31615008629.39 14.02% 9.27% 10.77% -1.16%
Note:
1. The gross profit of LED display devices decreased by 14.27% year-on-year primarily due to the overall demand of the industry
that is lower than expected intensified competition further decline in sales and product unit prices and continuous decline in
capacity utilization. Despite our continuous efforts to reduce costs and increase efficiency the decline in the unit price of products
was greater than the decline in unit costs which further reduced the gross profit in 2024.
2. The gross margin of precision components increased by 3.59% year-on-year primarily due to the newly built Kunshan and
Yancheng production bases for expanding the business of new energy vehicle parts which were put into production in the first
half of 2024 and major customers that achieved mass production which improved the gross margin.
3. In 2024 our new energy business achieved an overall revenue of RMB 8.65 billion a year-on-year increase of 36.98%
accounting for 23.52% of our revenue.In case of any adjustment to the statistic scale for primary business data the primary business data of the most recent reporting
period as adjusted according to the statistic scale applied at the end of the reporting period:
□ Applicable □ N/A
(3) Whether the Company’s revenue from the sale of tangible goods is higher than the revenue from labor services
□ Yes □ No
Y/Y %
Segment Item Unit 2024 2023
change
Sales
m2 5544309.55 3978943.86 39.34%
volume
Electronic circuits
Output m2 5579598.88 3952946.76 41.15%
Inventories m2 144171.33 108882.00 32.41%
Sales
PC 14178588.00 11373591.00 24.66%
LCM volume
Output PC 14511811.00 11318183.00 28.22%
24DSBJ Annual Report 2024
Y/Y %
Segment Item Unit 2024 2023
change
Inventories PC 4153831.00 3820609.00 8.72%
Sales
PC 115582164575.00 139815431644.00 -17.33%
volume
LED display
devices Output PC 101072744899.00 133986681041.00 -24.57%
Inventories PC 5192324156.00 19701743832.00 -73.65%
Sales
PC 142828973.00 106339767.00 34.31%
volume
Precision
components Output PC 143509247.00 106794715.00 34.38%
Inventories PC 31487670.00 30807396.00 2.21%
Analysis of changes in the relevant data over 30% compared to the previous year:
□ Applicable □ N/A
(4) Performance of material sales contracts and material purchase contracts by the Company as of the end of the reporting
period
□ Applicable □ N/A
(5) Components of operating costs
In RMB
20242023
% of % of Y/Y % Category of products Item
Amount operating Amount operating change
costs costs
Direct
22405786966.8371.39%21024091679.6673.96%6.57%
material costs
Computer Direct labor
2243766105.867.15%1967953288.586.92%14.02%
communication and other costs
electronics Manufacturing
and other 6734599541.12 21.46% 5433115374.42 19.11% 23.95%
costs
(6) Changes in the scope of consolidation during the reporting period
□ Yes □ No
1. Subsidiaries newly included in the scope of consolidation
Method of Date of Percentage of
Contribution
Company name acquisition of acquisition of capital
amount
shares shares contribution
3 million
Multi-Fineline Electronics Hungary KFT. Established 2024/10/1 100.00%
forint
2. Subsidiaries removed from the scope of consolidation
Method of Date of Net profit from January 1
Net assets at the date of
Company name disposal of disposal of 2024 to the date of disposal
disposal (RMB)
shares shares (RMB)
25DSBJ Annual Report 2024
Method of Date of Net profit from January 1
Net assets at the date of
Company name disposal of disposal of 2024 to the date of disposal
disposal (RMB)
shares shares (RMB)
Suzhou Dongjiyuan Metal
Deregistration 2024/10/31 20717958.77 -5095836.89
Technology Co. Ltd.Suzhou Dongyan Electronic
Deregistration 2024/9/30 4444.91 -2454766.61
Technology Co. Ltd.Suzhou Dongbo Precision
Deregistration 2024/10/31 -8396.69 -2129557.91
Manufacturing Co. Ltd.Dongwei Smart Suzhou Co.Deregistration 2024/11/30 1498438.09 362699.56
Ltd.MFLX B.V. Deregistration 2024/11/30 5450708.20 36652.32
Multek Zhuhai Limited Disposed 2024/11/29 45512563.11 -26482744.30
(7) Material changes or adjustments in respect of business products or services of the Company during the reporting
period
□ Applicable □ N/A
(8) Major customers and suppliers
Major customers of the Company
Aggregate sales revenue from top 5 customers (RMB) 26122314433.03
Proportion of aggregate sales revenue from top 5 customers to annual sales revenue 71.04%
Proportion of aggregate sales revenue from related parties among top 5 customers to annual
0.00%
sales revenue
Particulars of top 5 customers
No. Name of customer Sales revenue (RMB) % of annual sales revenue
1 Top 1 18857615031.18 51.28%
2 Top 2 3262286704.78 8.87%
3 Top 3 2015190094.50 5.48%
4 Top 4 1194968640.10 3.25%
5 Top 5 792253962.47 2.15%
Total -- 26122314433.03 71.04%
Other information of major customers
□ Applicable □ N/A
Major suppliers of the Company
Aggregate purchase amount from top 5 suppliers (RMB) 6214361954.86
Proportion of aggregate purchase amount from top 5 suppliers to annual purchase cost 26.08%
Proportion of aggregate purchase amount from related parties among top 5 suppliers to annual
0.00%
purchase cost
Particulars of top 5 suppliers
No. Name of supplier Purchase amount (RMB) % of annual purchase cost
1 Top 1 1674439965.00 7.03%
2 Top 2 1347591878.62 5.66%
3 Top 3 1318214361.05 5.53%
26DSBJ Annual Report 2024
4 Top 4 942614865.50 3.96%
5 Top 5 931500884.69 3.90%
Total -- 6214361954.86 26.08%
Other information of major suppliers
□ Applicable □ N/A
3. Expenses
In RMB
Y/Y %
2024 2023 Reason of material changes
change
Selling expenses 454017787.21 362094101.76 25.39%
Administrative
1112402085.44957323918.8616.20%
expenses
Mainly due to exchange rate fluctuations in the
Financial expenses -58736447.60 189131736.69 -131.06%
current period resulting in exchange gains.R&D expenses 1266812544.23 1161190274.48 9.10%
4. R&D expenses
□ Applicable □ N/A
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
The technology
Development of and market
indoor/outdoor RGB high To improve competitive advantage by improving the brightness competitiveness
Completed
contrast brightening design under the same configuration of the relevant
structure technologies products will be
improved.The technology
and market
Indoor RGB pin size increase
To improve the pin thrust of products for rent to protect lamp competitiveness
(single lamp benchmark two- Completed
beads in use from being knocked off of the relevant
in-one)
products will be
improved.The technology
and market
Research of 3030 high Cutting-edge technology research for the future high-voltage and competitiveness
Completed
power > 3w high-power market of the relevant
products will be
improved.The technology
and market
Research of white light POB To respond to further cost reduction in the future market which competitiveness
Completed
visual effects ensures visual effects while improving the O/P ratio of the relevant
products will be
improved.To customize lamp beads and focus the light effect depending on The technology
Outdoor high-spot light bead
customers’ use scenarios so as to greatly improve the brightness Completed and market
dispensing solution
of the lamp beads competitiveness
27DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
of the relevant
products will be
improved.The technology
To integrate the most cutting-edge MIP technology of LED and market
Research of integrated lamp display screen with AM IC to improve product stability solve the competitiveness
In progress
and drive (AMIP) problems caused by conventional drivers eliminate the caterpillar of the relevant
effect and achieve better display effects products will be
improved.The technology
and market
Research of Micro LED To respond to the development of micro LED in new fields in the competitiveness
In progress
technologies future to move along the technical route in a timely manner of the relevant
products will be
improved.The technology
and market
Reduction of the length of
competitiveness
through-hole back drilling To simplify the process by eliminating the back drilling step Completed
of the relevant
stubs
products will be
improved.The technology
and market
Embedded vertical competitiveness
To provide the customers with buried components solutions Completed
components of the relevant
products will be
improved.The technology
and market
Development of dimple To reduce board thickness and circuit board size to improve the competitiveness
Completed
board process technologies integration and space utilization of circuit boards of the relevant
products will be
improved.The technology
and market
To improve system integration to improve the efficiency and competitiveness
Chip-embedded circuit board In progress
reliability of the system of the relevant
products will be
improved.The technology
and market
R&D of head-up display Customized development of 4.1-inch head-up display screen to competitiveness
Completed
screen (HUD) be used for automotive head-up display of the relevant
products will be
improved.The technology
and market
R&D of automotive display Customized development of 10.25-inch touch-integrated display competitiveness
Completed
screen screen to be used as automotive instrument display screen of the relevant
products will be
improved.R&D of high-definition Customized development of 15.6-inch 2.5K touch-integrated Under The technology
automotive display screen display screen to be used as automotive central control and rear verification and market
28DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
display screens competitiveness
of the relevant
products will be
improved.The technology
and market
Training table for competitiveness
To provide customers with training and operation platforms Completed
experiments of the relevant
products will be
improved.The technology
and market
Stage of
Intelligent nut tightening To design and assemble a nut tightening mechanism and feeding competitiveness
sample
actuator mechanism for customers’ humanoid robots of the relevant
production
products will be
improved.The technology
and market
Stage of
competitiveness
Liquid-cooled AI server To improve the design capabilities of the liquid cooling industry sample
of the relevant
optimization
products will be
improved.The technology
R&D of high-efficiency and market
thermal resistance testing A thermal resistance test method for component bonding degree competitiveness
In progress
technology for a chip’s water based on natural convection cooling of the relevant
cooling plate products will be
improved.The technology
and market
To improve whole examination efficiency and reduce labor competitiveness
Clips AOI detection Completed
efforts of the relevant
products will be
improved.The technology
and market
4680 LID fully automatic
competitiveness
hydrocarbon cleaning To improve product cleaning efficiency and cleanliness Completed
of the relevant
machine
products will be
improved.The technology
and market
4680 LID automatic helium competitiveness
To optimize the process and procedure and reduce labor efforts Completed
inspection line of the relevant
products will be
improved.The technology
and market
4680 LID single-chip AOI To improve whole examination efficiency and reduce labor competitiveness
Completed
inspection efforts of the relevant
products will be
improved.
4680 LID helium inspection To optimize the process and procedure and reduce labor efforts Completed The technology
29DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
automatic feeder and market
competitiveness
of the relevant
products will be
improved.The technology
and market
4680 LID AOI automatic competitiveness
To optimize the process and procedure and reduce labor efforts Completed
receiving machine of the relevant
products will be
improved.The technology
and market
Automatic coding and sorting To develop the automatic production process and procedure for
Plan under competitiveness
line for large cylindrical the whole shell line so as to reduce labor efforts and improve
assessment of the relevant
housing production efficiency
products will be
improved.The technology
and market
To develop the automatic production process and procedure for
Automatic cleaning line for Plan under competitiveness
the whole shell line so as to reduce labor efforts and improve
large cylindrical housing assessment of the relevant
production efficiency
products will be
improved.The technology
and market
To develop the automatic production process and procedure for
AOI inspection for large Plan under competitiveness
the whole shell line so as to reduce labor efforts and improve
cylindrical housing assessment of the relevant
production efficiency
products will be
improved.The technology
Plan
and market
To develop the automatic production process and procedure for completed
Riveting line for large competitiveness
the whole shell line so as to reduce labor efforts and improve riveting
cylindrical housing of the relevant
production efficiency proofing in
products will be
progress
improved.The technology
and market
Automatic helium inspection To develop the automatic production process and procedure for
Plan under competitiveness
line for large cylindrical the whole shell line so as to reduce labor efforts and improve
assessment of the relevant
housing production efficiency
products will be
improved.The technology
and market
Mono multi-band integrated competitiveness
To provide customers with small-size solutions In progress
design of the relevant
products will be
improved.To improve
FDD multi-band dielectric competitiveness
Technical expansion Completed
wave guide in the future
market
Dual-mode multi-channel The technology
New technology breakthrough In progress
mixed-mode multiplexer and market
30DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
competitiveness
of the relevant
products will be
improved.The technology
and market
Low-frequency duplexer for competitiveness
Breakthrough in product performance Completed
TM2 ceramic solutions of the relevant
products will be
improved.The technology
and market
Multi-frequency antenna
competitiveness
high-frequency ultra- New technology breakthrough Completed
of the relevant
wideband radiation unit
products will be
improved.The technology
and market
Multi-frequency antenna
competitiveness
low-frequency filtering New technology breakthrough Completed
of the relevant
radiation unit
products will be
improved.To expand the
product
Multi-frequency antenna with
Technical expansion Completed portfolio and
16 ports-2L4H
improve
competitiveness
To expand the
product
Massive MIMO-5G antenna
To meet customers’ demand for products for Massive MIMO Completed portfolio and
calibration network
improve
competitiveness
The technology
and market
Multi-frequency new dual- competitiveness
To reduce costs and increase efficiency In progress
polarization phase shifter of the relevant
products will be
improved.The technology
and market
CO2/UV laser protective film To open a window in the CO2/UV laser protective film which competitiveness
In progress
window opening eliminates the welding process and reduces costs of the relevant
products will be
improved.The technology
and market
Multi-layer FPC with To embed components into FPC through flexible board process to competitiveness
In progress
embedded components expand the application of FPC of the relevant
products will be
improved.Simulation analysis and The technology
To optimize the design of CVL and reduce the trial and error cost
design method of CVL liner In progress and market
of the process through simulation
peeling process failure competitiveness
31DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
of the relevant
products will be
improved.The technology
Development and application and market
of FCCL/CVL materials for competitiveness
To provide customers with thinner FPC solutions In progress
dynamic bending and of the relevant
thinning products will be
improved.The technology
and market
FPC dynamic bending life To provide customers with solutions for the reliability of dynamic competitiveness
In progress
improvement technology bending FPC of the relevant
products will be
improved.The technology
Development mass and market
production and application of competitiveness
To develop the roughening solution independently to reduce costs In progress
ink pre-middle roughening of the relevant
solution products will be
improved.The technology
and market
25 micron/25 micron line
The project uses existing process equipment to develop fine competitiveness
development by subtractive In progress
circuits by adjusting the process of the relevant
layer process
products will be
improved.The technology
To make use of the solution without a through hole to solve a and market
R&D of electromagnetic series of problems such as high cost high production difficulty competitiveness
Completed
touch screens high power consumption and opacity in conventional of the relevant
electromagnetic films with a through hole products will be
improved.The technology
To simplify the grid process of photovoltaic cells improve the and market
R&D to improve the light
yield of the process and improve the efficiency of photoelectric competitiveness
conversion rate of Completed
conversion hence increasing the electrical energy converted from of the relevant
photovoltaic cells
photoelectricity products will be
improved.The technology
To improve the durability of Metal Mesh touch screens to prevent and market
R&D to improve the discoloration and functional failure of touch screens in outdoor competitiveness
Completed
durability of touch screens environments with high UV intensity and high humidity hence of the relevant
extending the service life of touch screens products will be
improved.The technology
To improve FPC pull-out force and copper adhesion to prevent
and market
FPC from tearing or falling off and improve the yield of the
R&D to improve the competitiveness
process and production efficiency; meanwhile the improved Completed
conductivity of touch screens of the relevant
conductivity performance will lead to improved touch effects of
products will be
touch screens
improved.R&D of integrated black To solve the poor effects of the integrated black effect in The technology
Completed
touch screens conventional touch screens by eliminating the obvious boundary and market
32DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
line between the visible area and the ink area hence improving competitiveness
visual experience for users of the relevant
products will be
improved.The technology
and market
R&D of touch screens To solve the problem of short circuit of the touch screen under
competitiveness
preventing short circuit and long-term exposure to ultraviolet light hence preventing Completed
of the relevant
disconnection functional failures
products will be
improved.The technology
To solve the problems of insufficient precision time-consuming and market
R&D for fully automated and labor-intensive and electrostatic damage in the target competitiveness
Completed
production of touch screens shooting process improve product production efficiency and of the relevant
yield of the process and reduce production costs products will be
improved.The technology
and market
R&D of membrane switch To solve the problem of switch function failures caused by push- competitiveness
Completed
touch screens type or rotary switches in use for a long period of time of the relevant
products will be
improved.The technology
To eliminate the bubbles inside the coating blade which cannot be and market
R&D of non-coating bubble completely discharged during the coating production process competitiveness
Completed
device resulting in the disconnection of the circuit or metal grid after of the relevant
etching and improve the yield of the process products will be
improved.The technology
To prevent the photoresist from falling off the surface of the
and market
developed Metal Mesh copper plating layer prevent the Metal
R&D for optimizing relevant competitiveness
Mesh from breaking during the etching process prevent Metal Completed
devices of touch screens of the relevant
Mesh functional failures and improve the yield of the Metal
products will be
Mesh process
improved.The technology
To prevent the accumulation of static electricity during the and market
R&D of anti-static touch production process from causing static damage to the front lines competitiveness
Completed
screens of the Metal Mesh sensor and FPC and improve the anti-static of the relevant
performance of the Metal Mesh sensor and FPC products will be
improved.The technology
and market
R&D for optimizing the To simplify the process to greatly reduce labor costs reduce the
competitiveness
tearing process for touch risk of scratches and folds and improve production yield and In progress
of the relevant
screens process yield
products will be
improved.The technology
and market
To solve the problem that the touch screen cannot adjust the
R&D of photosensitive touch competitiveness
screen brightness automatically under environments of different In progress
screens of the relevant
brightness
products will be
improved.R&D for optimizing the To solve the problem that the adjacent deviation and capacitance In progress The technology
33DSBJ Annual Report 2024
Expected effect
Description of major R&D on the future
Purpose Progress
project development of
the Company
electrical test of touch value of the single-sided broken line product cannot be controlled and market
screens through false piezoelectric measurement hence preventing competitiveness
identifying defective products with a single-sided broken line as of the relevant
qualified and reducing production costs of the subsequent process products will be
and improving the actual yield of the process improved.The technology
To reduce the Mesh line width of Metal Mesh and randomize
and market
metal mesh shape hence eliminating moiré patterns on the touch
R&D of ultra-fine metal competitiveness
screen; meanwhile to improve the screen-to-body ratio and In progress
mesh touch screens of the relevant
transmittance rate of touch screens by increasing the luminous
products will be
flux hence enhancing visual experience for users
improved.Particulars of R&D personnel
2024 2023 Y/Y % change
Number of R&D personnel 4619 4148 11.35%
Ratio of R&D personnel to
19.64%18.39%1.25%
the total number of employees
Education background of R&D personnel
Undergraduate 1908 1639 16.41%
Master 120 84 42.86%
Age of R&D personnel
Below 30 1375 1085 26.73%
30-40207419963.91%
Particulars of R&D expenses
2024 2023 Y/Y % change
Amount of R&D expenses
1266812544.231161190274.489.10%
(RMB)
Ratio of R&D expenses to
3.45%3.45%0.00%
operating revenue
Amount of R&D expenses
0.000.000.00%
capitalized (RMB)
Ratio of capitalized R&D
expenses to total R&D 0.00% 0.00% 0.00%
expenses
Reasons and impacts of major changes in the composition of the Company’s R&D personnel
□ Applicable □ N/A
Reasons for the significant change in the ratio of total R&D expenses to operating revenue compared with the previous year
□ Applicable □ N/A
Reasons for the significant change in the capitalization rate of R&D expenses and explanation of the reasonableness thereof
□ Applicable □ N/A
5. Cash flows
In RMB
34DSBJ Annual Report 2024
Item 2024 2023 Y/Y % change
Cash provided by operating activities 39078913419.97 34941233653.10 11.84%
Cash used in operating activities 34092894731.49 29768814182.90 14.53%
Net cash flows from operating activities 4986018688.48 5172419470.20 -3.60%
Cash provided by investing activities 1465360913.36 1064753668.60 37.62%
Cash used in investing activities 5559047058.72 5903655994.11 -5.84%
Net cash flows from investing activities -4093686145.36 -4838902325.51 15.40%
Cash provided by financing activities 10305980684.26 14694460630.69 -29.86%
Cash used in financing activities 11625348087.09 14937008144.70 -22.17%
Net cash flows from financing activities -1319367402.83 -242547514.01 -443.96%
Net increase in cash and cash equivalents -300886635.94 187460195.61 -260.51%
Explanation about the main factors affecting the significant year-on-year changes in relevant data
□ Applicable □ N/A
1. The net cash flows from financing activities decreased by 443.96% year-on-year primarily due to the decrease in both financing
inflow and outflow given the overall stability of free cash flow during the reporting period the repayment of certain short-term
due debts the continuous optimization of debt structure and the overall extension of maturity for the debts and the high amount
cash dividends to shareholders in 2024.
2. The net increase in cash and cash equivalents decreased by 260.51% year-on-year primarily due to certain additional financing
for acquisition projects in the previous year which resulted in the net inflow from financing activities that was obviously greater
than the current reporting period. In addition the net cash flow from operating activities of the Company during the reporting
period was slightly lower than the same period last year.Reasons for the significant difference between the net cash flow from operating activities of the Company during the reporting
period and the net profit of the year
□ Applicable □ N/A
V. Analysis of Non-primary Business
□ Applicable □ N/A
VI. Analysis of Assets and Liabilities
1. Material changes in the components of assets
In RMB
December 31 2024 January 1 2024
% of Y/Y % Reason of material % of total
Amount total Amount change changes
assets
assets
Cash and bank
7172331252.2915.59%7190036231.0616.20%-0.61%
balances
Accounts
7663458025.4916.65%7713164772.0517.38%-0.73%
receivable
Inventories 6152655607.85 13.37% 6293879276.54 14.18% -0.81%
Investment 781129.10 0.00% 1038840.26 0.00% 0.00%
35DSBJ Annual Report 2024
properties
Long-term equity
155008795.680.34%155406879.890.35%-0.01%
investment
Fixed assets 13595191232.40 29.55% 12415251689.80 27.98% 1.57%
Primarily because the
newly invested
Construction in
2575154318.35 5.60% 1842525188.54 4.15% 1.45% overseas production
progress
base was under
construction.Right-of-use assets 1313776299.13 2.86% 1252668050.83 2.82% 0.04%
Short-term
4810954130.6910.46%5156100217.0111.62%-1.16%
borrowings
Primarily due to the
increase in
consideration
received or receivable
from customers
Contract liabilities 122562435.14 0.27% 28982676.07 0.07% 0.20%
recognized in
accordance with the
revenue standards
during the reporting
period
Long-term
5289187891.3311.49%4706280338.7610.61%0.88%
borrowings
Lease liabilities 1351518837.18 2.94% 1842799193.80 4.15% -1.21%
Analysis of the high proportion of overseas assets
□ Applicable □ N/A
Controls Whether it
for Proportion involves
Method of Amount Mode of guaranteein of overseas risk of
Assets Location Income
acquisition (RMB) operation g the assets to material
security of net assets impairment
assets loss
Its
HongKong
Hong manufactur
Dongshan 27166736 R&D and 1074281
Established Kong ing entity is 51.60% No
Precision 144.40 sales 312.46
China located in
Union
China
Its
Hong manufactur
Multek 46041505 R&D and 53844299
Established Kong ing entity is 14.16% No
Group 53.76 sales .68
China located in
China
Other
N/A
information
2. Assets and liabilities measured at fair value
□ Applicable □ N/A
In RMB
Item Opening Gain or Aggregate Impairment Amount Amount Other Closing
36DSBJ Annual Report 2024
balance loss on changes in loss acquired in sold in the changes balance
changes in fair value recognized the current current
fair value recorded in in the period period
equity current
period
Financial assets
1. Financial
assets held
for trading -
47442038.34198124.
(excluding 13243914. 0.00
6158
derivative 03
financial
assets)
2.
-
Derivative 26920185. 31711924 32758447 14931966.
542533.292731300.0665778.00
financial 50 2.88 3.64 03
0
assets
4.
Investment
71779147.13697316.22264087.63212376.
in other
66926692
equity
instruments
Subtotal of - -
14614137330816553840466878144342.
financial 12701380. 2731300.0 665778.00
1.779.805.8895
assets 74 0
--
14614137330816553840466878144342.
Total 12701380. 2731300.0 665778.00
1.779.805.8895
740
Financial 10417407 5196713.4 3878954.0 2653788.4 32981142. 82922390.liabilities 6.23 8 6 2 02 17
Is there a significant change in the measurement attributes for the Company’s main assets during the reporting period
□ Yes □ No
3. Encumbrances on assets as of the end of the reporting period
Restriction on assets at the end of the reporting period
Closing book balance Closing carrying value
Item Type of restriction Reason for restriction
(RMB) (RMB)
Cash and bank Security deposit for
1828730869.92 1828730869.92 Pledge
balances notes etc.Accounts receivable 90000000.00 90000000.00 Pledge Factoring
Accounts receivable
47745743.70 47745743.70 Pledge Pledge of notes
financing
Security for loans sales
Fixed assets 690336250.99 190880378.32 Mortgage
and leaseback
Right-of-use assets 1582499405.56 1258999636.74 Mortgage Finance lease
Total 4239312270.17 3416356628.68
37DSBJ Annual Report 2024
VII. Analysis of Investments
1. Overview
□ Applicable □ N/A
Amount of investment in the reporting Amount of investment in the previous
Y/Y % change
period (RMB) period (RMB)
569000000.002016314450.00-71.78%
2. Major equity investments acquired during the reporting period
□ Applicable □ N/A
3. Major non-equity investments that have not yet been completed in the current period
□ Applicable □ N/A
4. Investment in financial assets
(1) Investment in securities
□ Applicable □ N/A
We have not invested in any securities during the reporting period.
(2) Investment in derivatives
□ Applicable □ N/A
1) Investment in derivatives for hedging purposes during the reporting period
□ Applicable □ N/A
In RMB 0’000
% of net
Aggregate
Gain or Amount Amount assets at
Initial changes in
Type of investment in Opening loss on acquired in sold in the Closing the end of
investment fair value
derivatives balance changes in the current current balance the
amount recorded in
fair value period period reporting
equity
period
Commodity futures 16561.58 9940.16 3106.79 0 63559.13 62263.88 14342.2 0.76%
Total 16561.58 9940.16 3106.79 0 63559.13 62263.88 14342.2 0.76%
Hedge accounting
policies and principles
adopted for the
reporting period and
significant changes in None
such policies and
principles compared
to the previous
reporting period
38DSBJ Annual Report 2024
Actual profit or loss
for the reporting The loss on commodity futures transactions recorded in profit or loss was RMB 31067900.period
We conduct hedging transactions for the purpose of leveraging the hedging function of futures mitigating the
Effect of hedging effect of market price fluctuations of raw materials and products on our production and operating costs and prices
of our main products enhancing our overall risk resistance capacity and improving our financial soundness.Source of funds for
investment in Self-owned funds
derivatives
Analysis of risks
associated with the
derivatives held in the
current period
(including without
Refer to the Announcement of Commodity Futures Hedging Transactions disclosed by us for the relevant risk
limitation market risk
analysis and controls.liquidity risk credit
risk operational risk
and legal risk) and
related risk control
measures
Changes in the market
price or fair value of
the derivatives held in
the current period (in
the analysis of the fair We are mainly engaged in hedging transactions with mainstream products on major domestic futures markets. The
value of derivatives derivatives traded by us have a transparent and active market and their transaction prices and settlement prices can
the specific fully reflect their fair value.approaches
assumptions and
parameters used shall
be disclosed)
Litigations involved
None
(if applicable)
Disclosure date of the
announcement of the
board of directors
December 30 2023
approving the
investment in
derivatives (if any)
2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable □ N/A
The Company did not have any derivative investment for speculative purposes during the reporting period.
5. Use of offering proceeds
□ Applicable □ N/A
(1) Summary of use of offering proceeds
□ Applicable □ N/A
In RMB 0’000
39DSBJ Annual Report 2024
Total
Total
Ratio amou Aggre
Perce amou
of nt of gate
ntage nt of
Total used offeri amou
Aggre of Purpo offeri
amou offeri ng nt of
gate offeri Total se and ng
nt of ng proce offeri
amou ng amou where proce
Net offeri proce eds ng
Listin Total nt of proce nt of abouts eds
Year Metho offeri ng eds at the proce
g date offeri offeri eds unuse of that
of d of ng proce the purpo eds
of ng ng the d unuse has
offeri offeri proce eds end of se of the
securi proce proce purpo offeri d remai
ng ng eds used the which purpo
ties eds eds se of ng offeri ned
(1) in the report was se of
alread which proce ng unuse
curren ing chang which
y used has eds proce d for
t period ed in has
(2) been eds more
period (3) = the been
chang than
(2) / curren chang
ed two
(1) t ed
years
period
Privat
e
Augus
place 2892 2863 2611 2872 100.3 2244 8401 29.34
2020 t 6 0 N/A 0
ment 25.58 95.39 4.53 49.89 0% 9.78 5.25 %
2020
of
shares
2892286326112872100.32244840129.34
Total -- -- 0 -- 0
25.5895.394.5349.890%9.785.25%
Description of the overall use of offering proceeds
With the approval of the CSRC under the Reply on Approval of Private Placement of Shares by Suzhou Dongshan Precision
Manufacturing Co. Ltd. (Zheng Jian Xu Ke [2020] No. 980) we privately offered 103294850 RMB-denominated ordinary A-
shares at the offer price of RMB 28.00 per share to specified investors through the lead underwriter Tianfeng Securities Co. Ltd.and raised RMB 2892255800 in total and after deduction of the underwriter’s fee and sponsor’s fee totaling RMB 22169800
(exclusive of tax) the balance of the offering proceeds RMB 2?868?755?800 was remitted to our supervisory account of offering
proceeds by Tianfeng Securities Co. Ltd. on July 13 2020. After the deduction of the accountant’s fee attorney’s fee legal
information disclosure fee and other external costs directly relating to the offering of equity securities totaling RMB 6132100
(exclusive of tax) the amount of net offering proceeds was RMB 2?863?953?900 (exclusive of tax). Pan-China Certified Public
Accountants LLP verified the receipt of such offering proceeds and issued the Capital Verification Report (PCCPA Capital
Verification [2020] No. 5-9).
(2) Committed investment projects using offering proceeds
□ Applicable □ N/A
In RMB 0’000
Com Whet Aggr Progr Cum Whet
mitte her egate ess of ulativ Whet her
Date
d the Amo amou inves Inco e her there’
Total Total when
inves proje unt nt tment me benef the s any
Nam Listin com inves the
tment ct has inves alrea as of earne its proje signif
e of g Natur mitte tment proje
proje been ted in dy the d in realiz ct has icant
finan date e of d amou ct is
ct chan the inves end the ed as produ chan
cing of proje inves nt as ready
and ged curre ted as of the curre of ced ge in
proje secur ct tment adjus for its
use or nt of the repor nt end the the
ct ities amou ted inten
of partia perio end ting perio of the desir feasi
nt (1) ded
over- lly d of the perio d repor ed bility
use
raise chan repor d (3) ting result of the
d ged ting =(2)/( perio proje
40DSBJ Annual Report 2024
funds perio 1) d ct
d (2)
Committed investment project
4000
00 m2
fine
line
Priva FPC
te produ Prod
place ction uctio
Augu Janua
ment and n 8033 8033 7979 99.33 2431 8170
st 6 No ry 5 Yes No
of asse const 8.48 8.48 8.34 % 8.49 9.45
20202022
share mbly ructio
s capac n
2020 ity
expa
nsion
proje
ct
Ultra
-fine
Priva
circui
te Prod
t
place uctio
Augu board June
ment n 2244 2249 2249 100.1
st 6 proje Yes 30 N/A No
of const 9.78 1.54 1.54 9%
2020 ct of 2026
share ructio
MFL
s n
EX
2020
Yanc
heng
Mult
ek
5G
high-
speed
high-
Priva
frequ
te Prod
ency
place uctio
Augu and
ment n 6595 4350 3622 4331 99.55 4105 1328
st 6 high- Yes No Yes
of const 8.46 8.68 .99 2.7 % .46 6.76
2020 densi
share ructio
ty
s n
PCB
2020
techn
ology
upgra
ding
proje
ct
Priva Mult
te ek Prod
place PCB uctio
Augu April
ment produ n 7280 7280 7185 98.70 1145 3022
st 6 No 19 Yes No
of ction const 5.89 5.89 8.33 % 3.05 0.83
20202023
share line ructio
s techn n
2020 ology
41DSBJ Annual Report 2024
upgra
ding
proje
ct
FPC
for
new
energ
Priva y
te appli Prod
place catio uctio
Augu Augu
ment n and n 6156 6136 99.68 7422 1016
st 6 Yes st 24 Yes No
of asse const 5.47 8.3 % .76 1.99
20202023
share mbly ructio
s proje n
2020 ct of
MFL
EX
Yanc
heng
Wirel
ess
modu
le
produ
ction
and
const
ructio
Priva
n
te Prod
proje
place uctio
Augu ct of
ment n 7012 8557 8420 98.40
st 6 Yanc Yes N/A Yes
of const 2.75 .28 .68 %
2020 heng
share ructio
Dong
s n
shan
2020
Com
muni
catio
n
Tech
nolog
y
Co.Ltd.
289228922611287247291353
Subtotal -- -- -- -- --
25.5825.584.5349.899.7679.03
Use of over-raised funds
Prod
uctio
Augu
n 0.00
N/A st 6 N/A No 0 0 0 0 0 0 N/A No
const %
2020
ructio
n
289228922611287247291353
Total -- -- -- -- --
25.5825.584.5349.899.7679.03
Failure to Affected by the international environment in terms of chip supply technical support equipment procurement
42DSBJ Annual Report 2024
meet the and market prospect among others in China’s 5G industry the progress of the 5G project construction in China
scheduled was slowed down. In light of other factors such as changes in domestic and international economic environmentprogress and and market demand and intensified competition within the industry etc. the benefit of the “Multek 5G high-produce the speed high-frequency and high-density PCB technology upgrading project” grew slowly and fell short ofdesired result expectations. Therefore during the reporting period we changed the “Multek 5G high-speed high-frequency andand reason high-density PCB technology upgrading project” into the “ultra-fine circuit board project of MFLEXthereof (please Yancheng”.describe on a
project-by-
project basis
including the
reason for
selecting N/A
in the column“whether theproject has
produced the
desiredresult”)
1. Under the effect of changes in the macroeconomic environment and the international environment in recent
years the progress of the 5G project construction in China was slowed down and failed to meet the expectation.In light of other factors such as changes in domestic and international economic environment and marketdemand and intensified competition within the industry etc. the progress of investment in the original “Multek
5G high-speed high-frequency and high-density PCB technology upgrading project” was slow. Therefore in
order to improve the efficient use of offering proceeds we have decided to cease the production andReason for construction of such project and to change the same into the “ultra-fine circuit board project of MFLEXsignificant Yancheng”.change in the 2. Due to the bottleneck in the development of 5G communication weak downstream demands and otherfeasibility of unfavorable factors the progress of the “wireless module production and construction project of Yanchengthe project Dongshan Communication Technology Co. Ltd.” fell short of expectations. In light of the rapid development of
the new energy vehicle market and rising demands of the on-board FPC market as a component supplier for the
international leading new energy vehicle manufacturers we need to further improve our industrial deployment
capability to serve the downstream customers and overall competencies. Therefore in order to ensure theefficient use of offering proceeds we have decided to change the “wireless module production and constructionproject of Yancheng Dongshan Communication Technology Co. Ltd.” into the “FPC for new energy applicationand assembly project of MFLEX Yancheng”.Amount and
use of over-
raised offering
N/A
proceeds and
progress of
use thereof
Change in the
place of the
committed N/A
investment
project
Adjustment of
the method of
implementatio
n of the N/A
committed
investment
project
Funds pre- Applicable
invested in the At the 3rd meeting of the 5th Board of Directors the Proposal for Replacing the Self-raised Funds Pre-invested
43DSBJ Annual Report 2024
investment in the Committed Investment Projects with the Idle Offering Proceeds was considered and adopted approving
project and the replacement of the funds of RMB 399591400 pre-invested in the committed investment projects with the
replacement offering proceeds. The replacement was completed in 2020.thereof
Temporary Applicable
replenishment
At the 2nd meeting of the 6th Board of Directors held on June 12 2023 the Proposal for Temporary
of working
Replenishment of Working Capital with the Idle Offering Proceeds was considered and adopted approving the
capital with
temporary replenishment of working capital with the idle offering proceeds up to RMB 250 million. As of
the idle
December 31 2024 we have returned all of the above idle offering proceeds temporarily replenishing the
offering
working capital to the dedicated account of offering proceeds.proceeds
Applicable
The project implementation led to a surplus of the offering proceeds in the total amount of RMB 6810000.
1. The “400000 m2 fine line FPC production and assembly capacity expansion project” the “Multek PCBproduction line technology upgrading project” and the “FPC for new energy application and assembly project ofAmount of MFLEX Yancheng” have been completed with the investment as committed. RMB 6651800 or 0.23% of the
surplus offering proceeds designated for these projects were left unused. Such surplus was achieved because we
offering followed the principle of reasonableness economy and effectiveness used the offering proceeds prudently
proceeds and enhanced control supervision and management of all kinds of expenses reasonably allocated and optimized all
reason thereof kinds of resources and reasonably reduced the relevant costs and expenses. In addition we earned certain
interest income from the offering proceeds.
2. The offering proceeds committed for the project “ultra-fine circuit board project of MFLEX Yancheng” after
the change made in this period have been fully invested with a surplus of RMB 158200 due to the interest
income generated during the deposit period of the offering proceeds.Purpose and
whereabouts As of December 31 2024 the amount of unused offering proceeds was RMB 6810000 including the surplus
of unused offering proceeds of RMB 6651800 after the completion of projects used to permanently replenish the working
offering capital and the surplus of RMB 158200 from the “ultra-fine circuit board project of MFLEX Yancheng”.proceeds
Problems or
any other
issues in the
use and N/A
disclosure of
offering
proceeds
(3) Changes in the committed investment projects using offering proceeds
□ Applicable □ N/A
In RMB 0’000
Aggreg Progres Whethe
Amoun
ate s of r
t of Date Whethe
amount investm there’s
offering Amoun when r the
Name Origina already ent as Income any
proceed t the project
of Method l investe of the earned signific
New s to be investe project has
financi of commit d as of end of in the ant
project investe d in the is ready produce
ng offering ted the end the current change
d in the current for its d the
project project of the reportin period in the
new period intende desired
reportin g feasibili
project d use result
g period ty of
(1)
period (3) the
44DSBJ Annual Report 2024
(2) =(2)/(1) project
Multek
5G
high-
Ultra-
speed
fine
high-
circuit
Private frequen
Private board
placem cy and June
placem project 22449. 22491. 22491. 100.19
ent of high- 30 N/A No
ent of of 78 54 54 %
shares density 2026
shares MFLE
2020 PCB
X
technol
Yanche
ogy
ng
upgradi
ng
project
Wireles
s
module
FPC for product
new ion and
energy constru
applicat ction
Private ion and project
Private
placem assembl of August
placem 61565. 61368. 7422.7
ent of y Yanche 99.68% 24 Yes No
ent of 47 3 6
shares project ng 2023
shares
2020 of Dongsh
MFLE an
X Commu
Yanche nication
ng Techno
logy
Co.Ltd.
84015.22491.83859.7422.7
Total -- -- -- -- -- -- --
2554846
1. Regarding the original “Multek 5G high-speed high-frequency and high-density PCBtechnology upgrading project” which was mainly intended for the field of mobile
communication we arranged the investment schedule based on market demand with the amount
of input primarily used for equipment purchase and installation. The related assets can still be
used in the future in furtherance of our overall automation level and production efficiency.Meanwhile the project had come into service and generated investment benefits. However due
to the impact of the international environment on chip supply technical support equipment
procurement and market prospects of China’s 5G industry etc. the progress of 5G project
Reason for change decision-
construction in China was slowed down. In light of other factors such as changes in domestic
making procedures and
and international economic environment and market demand as well as intensified competition
information disclosure (please
within the industry the investment in the project showed slow progress. Therefore we have
describe on a project-by-
decided to change such project into the “ultra-fine circuit board project of MFLEX Yancheng”.project basis)
The corresponding change in the use of offering proceeds was approved at the 9th meeting of the
6th Board of Directors and the 7th meeting of the 6th Board of Supervisors held on April 16 2024
and the annual general meeting in 2023 held on May 10 2024 and disclosed on
www.cninfo.com.cn and our designated newspapers for information disclosure.
2. Due to the bottleneck in the development of 5G communication weak downstream demandsand other unfavorable factors the progress of the “wireless module production and constructionproject of Yancheng Dongshan Communication Technology Co. Ltd.” fell short of expectations.
45DSBJ Annual Report 2024
In light of the rapid development of the new energy vehicle market and rising demands of the on-
board FPC market in recent years as a component supplier for the international leading new
energy vehicle manufacturers we need to further improve our industrial deployment capability
to serve the downstream customers and overall competencies. Therefore in order to ensure theefficient use of offering proceeds we have decided to change the “wireless module productionand construction project of Yancheng Dongshan Communication Technology Co. Ltd.” into the
“FPC for new energy application and assembly project of MFLEX Yancheng”. Such change in
the use of offering proceeds was approved at the 19th meeting of the 5th Board of Directors and
the 13th meeting of the 5th Board of Supervisors held on February 17 2022 and the first
extraordinary general meeting in 2022 held on March 8 2022 and disclosed on
www.cninfo.com.cn and our designated newspapers for information disclosure.Failure to meet the scheduled
progress and produce the
desired result and reason None
thereof (please describe on a
project-by-project basis)
Reason for significant change
None
in the feasibility of the project
VIII. Sale of Material Assets and Equities
1. Sale of material assets
□ Applicable □ N/A
No material asset has been sold during the reporting period.
2. Sale of material equities
□ Applicable □ N/A
IX. Analysis of Major Subsidiaries and Associates
□ Applicable □ N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company
In RMB
Company Type of Primary Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Design
R&D sale
and after-
HongKong sale
Dongshan services in HKD 27166736 97147988 39581796 13012605 10742813
Subsidiary
Precision respect of 10000000 144.40 57.80 189.66 74.56 12.46
Union electronic
circuits;
investment
holding
Design
R&D sale USD
Multek 46041505 26653525 41743072 79571064. 53844299.Subsidiary and after- 21824836
Group 53.76 42.92 98.52 95 68
sale 0.27
services in
46DSBJ Annual Report 2024
respect of
electronic
circuits;
investment
holding
Subsidiaries acquired or disposed of during the reporting period
□ Applicable □ N/A
Method of acquisition or
Company name Effect on overall production operation and results
disposal
No material effect on our operating results in the
Multi-Fineline Electronics Hungary KFT. Established
current period
Suzhou Dongjiyuan Metal Technology Co. No material effect on our operating results in the
Deregistration
Ltd. current period
Suzhou Dongyan Electronic Technology No material effect on our operating results in the
Deregistration
Co. Ltd. current period
Suzhou Dongbo Precision Manufacturing No material effect on our operating results in the
Deregistration
Co. Ltd. current period
No material effect on our operating results in the
Dongwei Smart Suzhou Co. Ltd. Deregistration
current period
No material effect on our operating results in the
MFLX B.V. Deregistration
current period
No material effect on our operating results in the
Multek Zhuhai Limited Disposed
current period
X. Structured Entities Controlled by the Company
□ Applicable □ N/A
XI. Prospects for Future Development of the Company
(I) Our development strategy
We focus on high-quality development enhance systemic thinking make top-level designs strictly defend the bottom line
of operation; actively embrace AI focus on the two key fields of consumer electronics and new energy vehicles; enhance business
deployment increase R&D funding enable industrial development fully exploit internal resources and potentialities; implement
comprehensive budget management focus on key products serve key customers insist on prudent operation maintain a healthy
financial position; optimize the organization structure enhance the training of personnel; actively implement the integration of
informatization and industrialization and drive the transition from “manufacturing” to “intelligent manufacturing”.(II) 2026 business plan
(1) Strengthen research of the industry and concentrate resources and advantages to actively promote the research
development and investment of forward-looking products;
(2) Adhere to the business strategy of “increasing revenues income and ROE”;
(3) Actively embrace AI to accelerate expansion and improve operating efficiency;
(4) Maintain a healthy financial position and continuously optimize the capital structure;
(5) Enhance system governance and data governance and promote high-quality development of the Company;
(6) Continuously optimize the organization structure and personnel training; and
(7) Continue to enhance ESG value and sustainable development capabilities and explore topics of green low-carbon and
sustainable development.
47DSBJ Annual Report 2024
(III) Main risk factors
1. Risk of concentration of customers
We have good customer resources. Our major customers are well-known domestic and international companies in the
relevant industries that are of sound credit and have established stable cooperation relationships with us. However our top 5
customers constitute a large proportion of our total sales revenue which may further increase in the future. Any material adverse
change in the business situation of such major customers could have an adverse effect on our business.We will give full play to our advantages make active deployment in the new energy and other emerging industries and
strive to develop new customers in order to mitigate the adverse effect of the relative concentration of customers on us.
2. Risks brought by rapid technology upgrading of the industry
Our business covers electronic circuit photoelectric display precision manufacturing and other technology-intensive
industries and our products are widely applied in consumer electronics new energy vehicles communication equipment
industrial equipment AI medical appliances and other fields all of which are characterized by rapid technology upgrading. If our
R&D and manufacturing capabilities fail to keep pace with the rapid technology upgrading of downstream products our products
and technologies may become obsolete.We will follow up on the new technologies and new processes of the industry from the strategic perspective and strive to
keep our technologies and processes at the advanced level through continuous and effective R&D funding.
3. Risk of changes in the global trade environment
Our major customers include some well-known international companies and our export sales have grown steadily for years.Though China has established good economic and trade cooperation relationships with major countries in the world the
increasingly fierce regional frictions in recent years may cause uncertainties in the applicable trade policies which could affect our
international trade.We will follow up on the development of international trade frictions enhance communication with our customers and
continue to enhance our competencies and customer adhesion.
4. Risk of market exploitation
We are a strong R&D and manufacturing enterprise in the fields of electronic circuit photoelectric display and precision
manufacturing. Due to our stable product quality and efficient customer services we have remarkable competencies and are able
to provide the downstream enterprises with “one-stop” products and services and satisfy their demands for systemic
manufacturing solutions. However our downstream industries are characterized by rapid upgrading and rapid changes in the
preferences of consumers among others. If our major customers are at a disadvantage in the market or we are unable to satisfy the
demands of customers in a timely manner or fail to acquire new customers the sales and margin rate of our products may decrease.We will continue to increase R&D funding optimize our product mix and process structure enhance our competencies and
actively cope with market competition.
5. Environmental risk
In our production the electroplating etching and other processes produce waste water waste gases and solid wastes and
therefore are subject to strict requirements for environmental protection. We cannot exclude the possibility that environmental
incidents may happen during our production due to negligence in management force majeure or otherwise. If we meet with any
environmental incident cause pollution to the environment or violate the applicable environmental protection laws and regulations
our reputation and operations could be adversely affected. Along with the vigorous development of a green and low-carbon
circular economic development system and improvement of people’s living standard in China and increasingly enhanced
awareness of environmental protection of people the country attaches increasingly great importance to environmental protection.
48DSBJ Annual Report 2024
If the country puts forward stricter environmental protection requirements we may need to increase the funding for environmental
protection which would increase our environmental protection costs and in turn affect our results.We have set the building of an environment-friendly enterprise as a key goal of our sustainable development strategy
attached great importance to and increased the funding for environmental protection in our production and operation actively
responded to the requirements of the latest environmental protection laws and regulations enhanced environmental protection
training and employees’ awareness of environmental protection taken control measures at source established and improved the
environmental management system and implemented the requirements related to environmental safety in all of our key business
activities to reduce the environmental risks.
6. Foreign exchange risk
Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactions
in USD and other foreign currencies and our consolidated accounts are presented in RMB the changes in the exchange rate
between RMB and USD may cause foreign exchange risk to our future operations.We will keep a close watch on the changes in the relevant foreign exchange rates strive to control the exposure to foreign
exchange risk at a reasonable level and hedge or otherwise reduce exposure to such risk.XII. Investigation Research Communication Interview and Other Activities during the
Reporting Period
□ Applicable □ N/A
Main topics of Particulars of the
Method of Type of discussion and investigation and
Date Place Guests
communication guests information research activity
provided available at
GF Securities Interpretation of
April 18 Communication Institutional
Online and other 311 our annual report www.cninfo.com.cn
2024 by telephone investors
investors etc.Hua Chuang
Interpretation of
April 25 Communication Securities and
Online Others our first quarter www.cninfo.com.cn
2024 by telephone other 241
report etc.investors
China Securities
Deployment and
Meeting Investor Services
May 10 On-site planning of the
room of the Others Center and other www.cninfo.com.cn
2024 investigation new energy
Company individual
sector etc.investors
Changjiang
Meeting FPC LED new
July 11 On-site Institutional Securities and
room of the energy www.cninfo.com.cn
2024 investigation investors other 34
Company businesses etc.institutions
Minsheng
Meeting FPC LED new
July 17 On-site Institutional Electronics and
room of the energy www.cninfo.com.cn
2024 investigation investors other 84
Company businesses etc.institutions
Hua Chuang
Meeting Interpretation of
August 20 On-site Institutional Securities and
room of the our semi- annual www.cninfo.com.cn
2024 investigation investors other 669
Company report etc.institutional
49DSBJ Annual Report 2024
Main topics of Particulars of the
Method of Type of discussion and investigation and
Date Place Guests
communication guests information research activity
provided available at
investors
Communication
September PCB new energy
Online through the online Others Investors www.cninfo.com.cn
9 2024 business etc.
platform
Interpretation of
October Communication
Online Others Investors our third quarter www.cninfo.com.cn
29 2024 by telephone
report etc.“Two-wheelCommunicationNovember drive” strategy
Online through the online Others Investors www.cninfo.com.cn
6 2024 PCB new energy
platform
business etc.XIII. Formulation and Implementation of Market Value Management System and
Valuation Improvement Plan
Whether the Company has formulated a market value management system
□ Yes □ No
Whether the Company has disclosed a valuation improvement plan
□ Yes □ No
XIV. Implementation of the Action Plan to Improve the Quality and Returns
Whether the Company has disclosed its action plan announcement to improve the quality and returns
□ Yes □ NoWe conscientiously implemented the guiding idea proposed by the meeting of the Politburo of the Chinese Communist Party “toactivate the capital market and boost investor confidence” and by the routine meeting of the State Council “to vigorously improvethe quality and investment value of listed companies take more powerful and effective measures and focus on stabilizing themarket and confidence” and formulated an action plan to improve the quality and returns in consideration of our development
strategy operating conditions and financial conditions so as to safeguard the interests of all our shareholders enhance investor
confidence and promote the long-term healthy and sustainable development of the Company. For details refer to the
Announcement on the Action Plan to Improve the Quality and Returns (Announcement No.: 2024-011) we disclosed on
www.cninfo.com.cn on March 1 2024.We actively respond to the special action of “improving the quality and returns” by strengthening business management
improving core competitiveness profitability and comprehensive risk management capabilities promoting sustainable
development and giving back to investors. Meanwhile we adhere to the idea of investor orientation and enhance the sense of gain
for investors by outstanding performance regulated governance high-quality information disclosure and positive returns hence
making our contribution to stabilizing the market and boosting confidence.
50DSBJ Annual Report 2024
Section IV Corporate Governance
I. Overview of Corporate Governance
During the reporting period we have continuously improved our corporate governance structure operated in compliance with
the regulations and enhanced information disclosure in strict accordance with the Company Law of the People’s Republic of
China the Securities Law of the People’s Republic of China the Code of Corporate Governance for Listed Companies the Rules
Governing the Listing of Shares on the Shenzhen Stock Exchange and other applicable laws and regulations. We have established a
corporate governance structure that sets forth well-defined powers and responsibilities and mutual restraint mechanisms and
operates in a coordinated manner. Our general meeting Board of Directors and Board of Supervisors have duly performed their
duties and exercised their functions operated in compliance with the regulations and seriously protected the legitimate rights and
interests of the investors and the Company.Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicable
laws administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies
□ Yes □ No
There isn’t any significant difference between the actual circumstance of our corporate governance and the applicable laws
administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.II. The Company’s Independence of its Controlling Shareholders and Actual Controllers in
Assets Personnel Finance Organization and Business
We are independent of our controlling shareholders in business personnel assets organization and finance and have our
own independent and complete business and are independent in management.
1. Independence in business operation: We are independent of our shareholders and other affiliates in business operation
have complete production R&D management procurement and sales systems and are able to do business independently on the
market.
2. Independence in personnel: We have a sound corporate governance structure in place and our directors supervisors and
senior executives have been appointed in strict accordance with the Company Law of the People’s Republic of China and the AOA
and do not hold any concurrent post in contravention of the applicable laws and regulations. We are independent of our
shareholders in personnel and payroll management and all of our employees receive their salaries from us. We have developed
stringent employment performance appraisal promotion and other labor management policies and entered into a Labor Contract
with each employee. We are fully independent in labor personnel and payroll management.
3. Independence in assets: We have a clear property right relationship with our controlling shareholders own or have the right
to use the premises and land necessary for our production and operating activities and have complete auxiliary production systems
and supporting facilities. None of our controlling shareholders or the business entities controlled by them has occupied any of our
funds assets or other resources.
4. Independence in organization: We have established a sound corporate governance structure in accordance with the
requirements of the Company Law of the People’s Republic of China and the AOA and our general meeting Board of Directors
and Board of Supervisors exercise their respective functions in strict accordance with applicable laws and regulations. We have set
up internal bodies suitable for our development defined their respective functions and developed corresponding internal
management and control systems. All of our functional departments operate independently free from any interference by any
51DSBJ Annual Report 2024
shareholders other departments entities or individuals and do not engage in any mixed operation or share office space with other
departments.
5. Independence in finance: We have an independent finance department and full-time financial personnel established a
sound accounting system and financial management and decision-making policies and implemented strict financial supervision
and administration. We open independent bank accounts and control our funds and assets independently free from any
interference by our shareholders. We are an independent taxpayer pay taxes independently according to law and do not mix our
tax payment with any shareholder.III. Horizontal Competition
□ Applicable □ N/A
IV. Particulars of Annual General Meeting and Extraordinary General Meetings Held
during the Reporting Period
1. General meetings held during the reporting period
Percentage of
investors Date of Disclosure
Session Type of meeting Resolution of the meeting
attending the meeting date
meeting
Announcement of the Resolutions of
1st extraordinary
Extraordinary January 23 January 24 the 1st Extraordinary General
general meeting in 37.43%
general meeting 2024 2024 Meeting in 2024 (Announcement
2024
No.: 2024-007)
Announcement of the Resolutions of
2nd extraordinary
Extraordinary March 29 March 30 the 2nd Extraordinary General
general meeting in 42.51%
general meeting 2024 2024 Meeting in 2024 (Announcement
2024
No.: 2024-024)
Announcement of the Resolutions of
2023 annual Annual general May 10 May 11
40.32% the 2023 Annual General Meeting
general meeting meeting 2024 2024
(Announcement No.: 2024-046)
Announcement of the Resolutions of
3rd extraordinary
Extraordinary July 22 July 23 the 3rd Extraordinary General
general meeting in 42.63%
general meeting 2024 2024 Meeting in 2024 (Announcement
2024
No.: 2024-062)
Announcement of the Resolutions of
4th extraordinary
Extraordinary September September the 4th Extraordinary General
general meeting in 42.22%
general meeting 10 2024 11 2024 Meeting in 2024 (Announcement
2024
No.: 2024-079)
Announcement of the Resolutions of
5th extraordinary
Extraordinary December December the 5th Extraordinary General
general meeting in 36.63%
general meeting 23 2024 24 2024 Meeting in 2024 (Announcement
2024
No.: 2024-108)
2. Extraordinary general meetings requested by preferred shareholders whose voting rights had been
restituted
□ Applicable □ N/A
52DSBJ Annual Report 2024
V. Directors Supervisors and Senior Executives
1. Particulars
Beginning date Opening Closing
End date of the
Name Sex Age Title Status of the term of balance of balance of
term of office
office shares held shares held
YUAN
Male 46 Chairman Active 2023-06-06 2026-06-05 202226196 202226196
Yonggang
Director &
YUAN
Male 48 General Active 2023-06-06 2026-06-05 222388153 222388153
Yongfeng
Manager
ZHAO Vice
Male 62 Active 2023-06-06 2026-06-05
Xiutian Chairman
Director &
SHAN
Male 49 Executive Active 2023-06-06 2026-06-05 553700 553700
Jianbin
President
Director
Deputy
MAO General
Female 45 Active 2023-06-06 2026-06-05 391600 391600
Xiaoyan Manager &
Board
Secretary
Director
Deputy
WANG Xu Male 43 General Active 2023-06-06 2026-06-05 560000 560000
Manager &
CFO
WANG Independent
Male 62 Active 2023-06-06 2026-06-05
Zhangzhong director
SONG Independent
Male 61 Active 2023-06-06 2026-06-05
Liguo director
GAO Independent
Male 57 Active 2023-06-06 2026-06-05
Yongru director
Chairman of
MA Liqiang Male 44 the Board of Active 2023-06-06 2026-06-05 3000 3000
Supervisors
Employee
JI Yachun Male 47 representative Active 2023-06-06 2026-06-05
supervisor
Employee
HUANG
Male 39 representative Active 2023-06-06 2026-06-05
Yongxin
supervisor
Total -- -- -- -- -- -- 426122649 426122649
Whether any director or supervisor retired or any senior executive was removed during the reporting period
□ Yes □ No
Changes in directors supervisors and senior executives
□ Applicable □ N/A
2. Profile
Professional background main work experience and main duties of our current directors supervisors and senior executives:
(1) Members of the Board of Directors
53DSBJ Annual Report 2024
Mr. YUAN Yonggang: PRC citizen having permanent residency in Singapore bachelor’s degree one of the controlling
shareholders and actual controllers of the Company. He has served as the Director of the Marketing Department Deputy Manager
and Vice Chairman of the Company since October 1998 and is now Chairman of the Company Vice Chairman of the Jiangsu
General Chamber of Commerce Vice Chairman of the Suzhou Association of Industry and Commerce member of the 17th
People’s Congress of Suzhou and Chairman of Suzhou Chamber of International Cooperation for Private Economy.Mr. YUAN Yongfeng: PRC citizen bachelor’s degree one of the controlling shareholders and actual controllers of the Company.He has served as the Director of the Manufacturing Department and Supervisor of the Company since October 1998 and is now
director and General Manager of the Company member of the 5th CPPCC Wuzhong District Committee of Suzhou Vice
Chairman of the Suzhou Wuzhong District Association of Industry and Commerce and Chairman of Suzhou Dongshan Chamber
of Commerce.Mr. ZHAO Xiutian: US citizen postgraduate. He has served in Feichuang Hughes Network Systems MCE Celiant and Andrew
and is now Vice Chairman of the Company.Mr. SHAN Jianbin: PRC citizen bachelor’s degree. He has served in Mektec Manufacturing Corporation (Zhuhai) Ltd. and is
now director and Executive President of the Company and Vice Chairman of the Executive Council and Director of Industrial
Collaborative Innovation Professional Committee of the China Printed Circuit Association.Ms. MAO Xiaoyan: PRC citizen postgraduate and economist. She has served in Suzhou Huacheng Group Company Limited and
Jiangsu Wuzhong Pharmaceutical Development Co. Ltd. and is now director Deputy General Manager and Board Secretary of
the Company.Mr. WANG Xu: PRC citizen postgraduate certified public accountant (non-practitioner). He has served in Kunshan Fengrui
United Accounting Firm and Suzhou Good-ark Electronics Co. Ltd. and is now director Deputy General Manager and CFO of
the Company part-time tutor for postgraduates in accounting of the Dongwu Business School of Soochow University part-time
tutor for postgraduates in accounting and audit of the School of Business of Nanjing University of Information Science &
Technology and part-time tutor for postgraduates in accounting of the School of Business of Jiangsu Normal University.Mr. WANG Zhangzhong: PRC citizen postgraduate. He has served in the School of Materials Science and Engineering of
Nanjing Institute of Technology as a teacher office director secretary of the Party committee chief of the division of science and
technology dean professor and Director of China Heat Treatment Association since August 1983 and is now independent
director of the Company Director Member of the Special Metallurgy and Metal Forming Committee of Jiangsu Society for Metals
professor of the Institute of New Material Technology of Nanjing Institute of Technology independent director of Zhangjiagang
Haiguo New Energy Equipment Co. Ltd. Chairman of the Executive Council of the Industrial Furnace Branch of Jiangsu
Mechanical Engineering Society Vice Chairman of the New Metal Materials Branch of Jiangsu Metallurgical Industry
Association and independent director of Suzhou Huike Technology Co. Ltd.Mr. SONG Liguo: Hong Kong citizen PhD candidate. He has served in CITIC Securities Tianjin Business Department the
Tianjin Equity Exchange Anhui Antai Law Firm China Baoan Group Hong Kong Heng Feng Group International Investment
Limited CHAN & Co. ARTHUR K.H. (Hong Kong) Denton Wilde Sapte (Hong Kong) and Jones Day International Law Firm
(Hong Kong) and is now independent director of the Company special advisor of Georgiou Partnership Law Firm visiting
associate professor of the Law School of Anhui University and arbitrator of the China International Economic and Trade
Arbitration Commission the Arbitration Center Across the Straits and the Xiamen Arbitration Commission.Mr. GAO Yongru: PRC citizen PhD candidate senior accountant. He has served in Panda Electronic Group Jiangsu Jinling
Accounting Firm the Nanjing Municipal Bureau of Labor Huatai Securities Co. Ltd. Nanjing Transportation Holding Co. Ltd.Yincheng Properties Group Co. Ltd. Jinling Resort Nanjing Co. Ltd. Shenwu Energy Saving Co. Ltd. Hefei Genius Advanced
Material Co. Ltd. Guangzhou Haozhi Industrial Co. Ltd. Jiangsu Limin Paper Packaging Co. Ltd. Nanjing Borun Intelligent
54DSBJ Annual Report 2024
Technology Co. Ltd. Nanjing Borun Brain Intelligent Technology Co. Ltd. Jiangsu Xinruide System Integration Engineering
Co. Ltd. and Yongtuo Certified Public Accountants LLP Jiangsu Office and is now independent director of the Company
independent director of Jiangsu Sunlant Bioengineering Co. Ltd. independent director of Nanjing CompTech Composites Corp.independent director of Jiangsu Binhai Rural Commercial Bank Co. Ltd. managing director of Shengkun Business Service
(Nanjing) Co. Ltd. part-time tutor for postgraduates in accounting of the Nanjing University of Information Science &
Technology and part-time tutor for postgraduates in accounting of the Shenyang University.
(2) Members of the Board of Supervisors
Mr. MA Liqiang: PRC citizen bachelor’s degree. He has served in Suzhou Dayin Electronic Telecommunications Equipment Co.Ltd. Suzhou Jinhuasheng Paper Co. Ltd. and Dongshan Optronics (Suzhou) Co. Ltd. and is now Chairman of the Board of
Supervisors of the Company and COO President of China Region and President of Touch & Display Business Unit of Multek.Mr. JI Yachun: PRC citizen postgraduate. He has served in the Central Committee of the Communist Youth League of China and
is now employee representative supervisor and Public Relations President (Yancheng) of the Company Secretary of the Party
Committee and Chairman of the Management Committee of the Yancheng Dongshan Precision Industrial Park and member of the
14th People’s Congress of Jiangsu Province.
Mr. HUANG Yongxin: PRC citizen bachelor’s degree. He has served in Everlight Electronics (China) Co. Ltd. and is now
employee representative supervisor of the Company and President of the Precision Manufacturing Business Unit.
(3) Senior executives
The resume of Mr. YUAN Yongfeng (General Manager) Mr. SHAN Jianbin (Executive President) Ms. MAO Xiaoyan (DeputyGeneral Manager and Board Secretary) and Mr. WANG Xu (Deputy General Manager and CFO) are set forth in “Members ofBoard of Directors” above.Positions held in shareholders
□ Applicable □ N/A
Positions held in other entities
□ Applicable □ N/A
Name Entity Position
YUAN
Suzhou Dongyang Investment Co. Ltd. Supervisor
Yonggang
YUAN Shanghai Corkuna New Material
Chairman
Yonggang Technologies Co. Ltd.YUAN Jingbaiyue Investment Development
Managing Director
Yonggang (Suzhou) Co. Ltd.YUAN
Suzhou Dongding Tea Shop Co. Ltd. Supervisor
Yonggang
YUAN Shanghai Xinhuarui Semiconductor
Director
Yonggang Technology Co. Ltd.YUAN Jiangsu Xinhuarui Semiconductor
Director
Yonggang Technology Co. Ltd.YUAN Ningbo Qixiang Information Technology
Director
Yonggang Co. Ltd.YUAN
Brave Pioneer International Limited Managing Director
Yonggang
YUAN Hong Kong Dongshan Investment
Managing Director
Yonggang Holdings Limited
YUAN
Anhui Landun Photoelectron Co. Ltd. Director
Yonggang
YUAN Fujian Nanping Nanfu Battery Co. Ltd. Director
55DSBJ Annual Report 2024
Name Entity Position
Yonggang
YUAN
Jiangsu General Chamber of Commerce Vice Chairman
Yonggang
YUAN Suzhou Association of Industry and
Vice Chairman
Yonggang Commerce
YUAN
People’s Congress of Suzhou Member of the 17th People’s Congress of Suzhou
Yonggang
YUAN Suzhou Chamber of International
Chairman
Yonggang Cooperation for Private Economy
YUAN
Suzhou Dongyang Investment Co. Ltd. Managing Director
Yongfeng
YUAN CPPCC Wuzhong District Committee of
Member
Yongfeng Suzhou
YUAN Suzhou Wuzhong District Association of
Vice Chairman
Yongfeng Industry and Commerce
YUAN Suzhou Dongshan Chamber of
Chairman
Yongfeng Commerce
Suzhou Langsheng Communication
ZHAO Xiutian Director
Technology Co. Ltd.Vice Chairman of the Executive Council and Director of Industrial
SHAN Jianbin China Printed Circuit Association Collaborative Innovation Professional Committee of the China
Printed Circuit Association
Dotwil Radio Frequency (Anhui)
MAO Xiaoyan Director
Technology Co. Ltd.Dongwu Business School of Soochow
WANG Xu Part-time tutor for postgraduates in accounting
University
School of Business of Nanjing
WANG Xu University of Information Science & Part-time tutor for postgraduates in accounting and audit
Technology
School of Business of Jiangsu Normal
WANG Xu Part-time tutor for postgraduates in accounting
University
WANG Special Metallurgy and Metal Forming
Director member
Zhangzhong Committee of Jiangsu Society for Metals
School of Materials Science and
WANG
Engineering of Nanjing Institute of Professor
Zhangzhong
Technology
WANG Industrial Furnace Branch of Jiangsu
Chairman of the Executive Council
Zhangzhong Mechanical Engineering Society
WANG New Metal Materials Branch of Jiangsu
Vice Chairman
Zhangzhong Metallurgical Industry Association
WANG Zhangjiagang Haiguo New Energy
Independent director
Zhangzhong Equipment Co. Ltd.WANG
Suzhou Huike Technology Co. Ltd. Independent director
Zhangzhong
SONG Liguo Georgiou Partnership Law Firm Special advisor
SONG Liguo Law School of Anhui University Visiting associate professor
China International Economic and Trade
SONG Liguo Arbitrator
Arbitration Commission
SONG Liguo Arbitration Center Across the Straits Arbitrator
SONG Liguo Xiamen Arbitration Commission Arbitrator
Yongtuo Certified Public Accountants
GAO Yongru Deputy General Manager
LLP Jiangsu Office
GAO Yongru Nanjing CompTech Composites Corp. Independent director
GAO Yongru Jiangsu Sunlant Bioengineering Co. Ltd. Independent director
Jiangsu Binhai Rural Commercial Bank
GAO Yongru Independent director
Co. Ltd.
56DSBJ Annual Report 2024
Name Entity Position
Shengkun Business Service (Nanjing)
GAO Yongru Managing Director
Co. Ltd.Nanjing University of Information
GAO Yongru Part-time tutor for postgraduates in accounting
Science & Technology
GAO Yongru Shenyang University Part-time tutor for postgraduates in accounting
Punishments imposed by the securities regulatory authorities in the past three years on the directors supervisors and senior
executives of the Company currently in office or leaving office during the reporting period
□ Applicable □ N/A
3. Remunerations of directors supervisors and senior executives
Decision-making process criteria for determination and actual amount in respect of remunerations of directors supervisors and
senior executives
The remunerations of our directors supervisors and senior executives are determined in accordance with the provisions of the
AOA as follows: the amount and terms of payment of remuneration of the members of the Board of Directors and the Board of
Supervisors are determined by the general meeting; the amount and terms of payment of remuneration of the senior executives are
determined by the Board of Directors; the remunerations of the directors supervisors and senior executives are determined based
on their respective job responsibilities and achievement of annual performance indicators for those holding key operational
positions concurrently or fulfillment of job responsibilities and annual tasks for those holding key managerial positions
concurrently. The remunerations paid by us to our directors supervisors and senior executives conform to our remuneration
policies and the fulfillment of their job responsibilities.Remunerations of directors supervisors and senior executives paid in the current period
In RMB 0’000
Whether or not
Total remuneration receiving
received from the remunerations
Name Sex Age Title Status
Company (inclusive from any
of tax) affiliate of the
Company
YUAN Yonggang Male 46 Chairman Active 305.66 No
YUAN Yongfeng Male 48 Director & General Manager Active 305.66 No
ZHAO Xiutian Male 62 Vice Chairman Active 410.00 No
SHAN Jianbin Male 49 Director & Executive President Active 370.11 No
Director Deputy General
MAO Xiaoyan Female 45 Active 127.10 No
Manager & Board Secretary
Director Deputy General
WANG Xu Male 43 Active 190.50 No
Manager & CFO
WANG
Male 62 Independent director Active 12.00 No
Zhangzhong
SONG Liguo Male 61 Independent director Active 12.00 No
GAO Yongru Male 57 Independent director Active 12.00 No
Chairman of the Board of
MA Liqiang Male 44 Active 223.32 No
Supervisors
Employee representative
JI Yachun Male 47 Active 119.26 No
supervisor
HUANG Employee representative
Male 39 Active 148.09 No
Yongxin supervisor
Total -- -- -- -- 2235.70 --
Other information
57DSBJ Annual Report 2024
□ Applicable □ N/A
VI. Performance of Duties by the Directors during the Reporting Period
1. Meetings of the Board of Directors held during the reporting period
Date of Disclosure
Session Resolution of the meeting
meeting date
7th meeting of the 6th March 12 March 13 Announcement of the Resolutions of the 7th Meeting of the 6th
Board of Directors 2024 2024 Board of Directors (Announcement No.: 2024-013)
8th meeting of the 6th Announcement of the Resolutions of the 8th Meeting of the 6th
April 12 2024 April 13 2024
Board of Directors Board of Directors (Announcement No.: 2024-025)
9th meeting of the 6th Announcement of the Resolutions of the 9th Meeting of the 6th
April 16 2024 April 18 2024
Board of Directors Board of Directors (Announcement No.: 2024-028)
10th meeting of the 6th
April 24 2024 April 25 2024 Considered the First Quarter Report 2024
Board of Directors
11th meeting of the 6th Announcement of the Resolutions of the 11th Meeting of the 6th
June 27 2024 June 28 2024
Board of Directors Board of Directors (Announcement No.: 2024-054)
12th meeting of the 6th August 18 August 20 Announcement of the Resolutions of the 12th Meeting of the 6th
Board of Directors 2024 2024 Board of Directors (Announcement No.: 2024-065)
13th meeting of the 6th October 28 October 29
Considered the Third Quarter Report 2024
Board of Directors 2024 2024
14th meeting of the 6th December 6 December 7 Announcement of the Resolutions of the 14th Meeting of the 6th
Board of Directors 2024 2024 Board of Directors (Announcement No.: 2024-094)
15th meeting of the 6th December 17 December 18 Announcement of the Resolutions of the 15th Meeting of the 6th
Board of Directors 2024 2024 Board of Directors (Announcement No.: 2024-100)
16th meeting of the 6th December 30 December 31 Announcement of the Resolutions of the 16th Meeting of the 6th
Board of Directors 2024 2024 Board of Directors (Announcement No.: 2024-109)
2. Attendance of the directors at meetings of the Board of Directors and general meetings
Attendance of the directors at meetings of the Board of Directors and general meetings
No. of board No. of board Whether or not
meetings No. of board meetings No. of board having been No. of
No. of board
attended meetings present by meetings absent from general
Director meetings
during the present in means of present by two meeting
absent from
reporting person communicati proxy consecutive attended
period on equipment board meetings
YUAN
10 1 9 0 0 No 6
Yonggang
YUAN
10 1 9 0 0 No 6
Yongfeng
ZHAO
10 1 9 0 0 No 6
Xiutian
SHAN
10 1 9 0 0 No 6
Jianbin
MAO
10 1 9 0 0 No 6
Xiaoyan
WANG Xu 10 1 9 0 0 No 6
WANG
10 1 9 0 0 No 6
Zhangzhong
SONG Liguo 10 1 9 0 0 No 6
GAO Yongru 10 1 9 0 0 No 6
Reason for absence from two consecutive board meetings
58DSBJ Annual Report 2024
N/A
3. Objections raised by the directors regarding matters of the Company
Whether any director has raised any objection regarding matters of the Company
□ Yes □ No
No director has raised any objection regarding matters of the Company during the reporting period.
4. Other information regarding the performance of duties by the directors
Whether the suggestions put forward by the directors have been adopted by the Company
□ Yes □ No
Explanation of the adoption or rejection by the Company of the suggestions put forward by the directors
No director of the Company has raised any objection regarding relevant matters of the Company during the
reporting period.VII. Activities of the Committees of the Board of Directors during the Reporting Period
No. of Important Performance
Commit Date of
Members meeting Subject opinions and of other
tee meeting
s held suggestions duties
The relevant
proposals were
Considered the Proposal Regarding the
March 12 approved and
Report on the Application of the Previous
2024 submitted to the
Offering Proceeds
Board of Directors
for consideration.The relevant
proposals were
April 12 Considered the Proposal Regarding the approved and
2024 Write-off of Assets in 2023 submitted to the
Board of Directors
for consideration.GAO Considered the Annual Report 2023 and
Yongru Summary of the Report the Annual
Audit WANG Financial Report 2023 the 2023 Profit
Commit Zhangzho 7 Distribution Proposal the Proposal for The Audit
tee ng and Re-engagement of the Auditor for 2024 Committee
YUAN the 2023 Self-assessment Report on has actively
Yonggang Internal Controls the 2023 Special communicate
The relevant
Report on the Deposit and Use of d with the
proposals were
Offering Proceeds the Proposal auditor of our
April 16 approved and
Regarding Application for Facilities from annual report
2024 submitted to the
Banks and Other Financial Institutions in to effectively
Board of Directors
2024 the Proposal Regarding External supervise the
for consideration.Guarantees the Proposal Regarding conduct of
Changing the Use of Partial Offering the annual
Proceeds the Proposal Regarding audit of the
Changes in Accounting Policies the Company.Report of the Audit Committee under the
Board of Directors on the Performance
Assessment of the Accounting Firm and
59DSBJ Annual Report 2024
No. of Important Performance
Commit Date of
Members meeting Subject opinions and of other
tee meeting
s held suggestions duties
Exercise of Supervision Duties in 2023
the Proposal for Amending the
Management Measures for External
Guarantees and the Proposal for
Amending the Internal Audit Regulations
The relevant
proposals were
April 24 approved and
Considered the First Quarter Report 2024
2024 submitted to the
Board of Directors
for consideration.Considered the Proposal Regarding the
Write-off of Assets in 2024 the Semi-
The relevant
annual Report 2024 and Summary of the
proposals were
Report the Special Report on the Deposit
August 18 approved and
and Use of Offering Proceeds in the First
2024 submitted to the
Half of 2024 the Proposal Regarding the
Board of Directors
Report on the Application of the Previous
for consideration.Offering Proceeds and the Proposal
Regarding External Guarantees
The relevant
proposals were
October 28 Considered the Third Quarter Report approved and
2024 2023 submitted to the
Board of Directors
for consideration.Considered the Proposal Regarding the
Estimation of the Amount of External
Guarantees in 2025 the Proposal The relevant
Regarding Commodity Futures Hedging proposals were
December Transactions the Feasibility Report on approved and
6 2024 Commodity Futures Hedging submitted to the
Transactions the Proposal Regarding Board of Directors
Foreign Exchange Hedging Transactions for consideration.and the Feasibility Report on Foreign
Exchange Hedging Transactions
Considered the Proposal Regarding the
Company’s Qualification for Private
Placement of A Shares the Proposal for
Private Placement of A Shares by the
YUAN
Company in 2024 the Proposal
Yonggang
Regarding the Plan on Private Placement
WANG
of A Shares by the Company in 2024 the The relevant
Zhangzho
Proposal Regarding the Demonstration proposals were
Strategy ng SONG
March 12 Analysis Report on the Plan for Private approved and
Commit Liguo 7
2024 Placement of A Shares by the Company in submitted to the
tee GAO
2024 the Proposal Regarding the Board of Directors
Yongru
Feasibility Analysis Report on the Use of for consideration.and
Proceeds from the Private Placement of A
SHAN
Shares by the Company in 2024 the
Jianbin
Proposal Regarding the Dilution of
Current Earnings by Private Placement of
A Shares by the Company in 2024 Taking
Remedial Measures and Covenants Made
60DSBJ Annual Report 2024
No. of Important Performance
Commit Date of
Members meeting Subject opinions and of other
tee meeting
s held suggestions duties
by the Relevant Persons the Proposal on
the Constitution of a Related-party
Transaction by Private Placement of A
Shares by the Company in 2024 the
Proposal Regarding Entering into a
Share Subscription Agreement with
Conditions on Effectiveness with Specific
Investors and Related-party Transaction
the Proposal for Requesting the General
Meeting to Authorize the Board of
Directors and Its Authorized Personnel to
Handle the Affairs Related to the Private
Placement of A Shares the Proposal for
Requesting the General Meeting to
Approve the Exemption of Sending Offers
by Subscribers and the Proposal
Regarding Termination of Private
Placement of Convertible Corporate
Bonds
Considered the Proposal Regarding
External Guarantees the Proposal The relevant
Regarding External Investments the proposals were
April 16 Proposal for Changing the Company’s approved and
2024 Registered Address and Amending the submitted to the
Articles of Association and the Proposal Board of Directors
for Amending the Management Measures for consideration.for External Guarantees
Considered the Proposal for De- The relevant
registering Partial Shares Repurchased proposals were
June 27 the Proposal for Changing the Registered approved and
2024 Capital and Amending the Articles of submitted to the
Association and the Proposal Regarding Board of Directors
External Investments for consideration.The relevant
Considered the Proposal Regarding proposals were
August 18 External Guarantees and the Proposal approved and
2024 Regarding Adjustment to the Plan of submitted to the
External Investments Board of Directors
for consideration.The relevant
proposals were
Considered the Proposal Regarding the
December approved and
Estimation of the Amount of External
6 2024 submitted to the
Guarantees in 2025
Board of Directors
for consideration.Considered the Proposal Regarding
Adjustment to the Plan for Private
The relevant
Placement of A Shares by the Company in
proposals were
2024 the Proposal Regarding the Plan
December approved and
for Private Placement of A Shares by the
17 2024 submitted to the
Company in 2024 (Revised) the Proposal
Board of Directors
Regarding the Demonstration Analysis
for consideration.Report on the Plan for Private Placement
of A Shares by the Company in 2024
61DSBJ Annual Report 2024
No. of Important Performance
Commit Date of
Members meeting Subject opinions and of other
tee meeting
s held suggestions duties
(Revised) the Proposal Regarding the
Feasibility Analysis Report on the Use of
Proceeds from the Private Placement of A
Shares by the Company in 2024
(Revised) the Proposal Regarding the
Dilution of Current Earnings by Private
Placement of A Shares by the Company in
2024 Taking Remedial Measures and
Covenants Made by the Relevant Persons
(Revised) and the Proposal Regarding
Entering into a Supplementary Agreement
to the Share Subscription Agreement with
Conditions on Effectiveness with Specific
Investors and Related-party Transaction
The relevant
proposals were
December Considered the Proposal Regarding the approved and
30 2024 Sales of Assets submitted to the
Board of Directors
for consideration.SONG
Liguo
Compe WANG
The relevant
nsation Zhangzho
proposals were
and ng GAO Considered the Proposal Regarding the
April 16 approved and
Apprais Yongru 1 Remunerations of the Directors and
2024 submitted to the
al YUAN Senior Executives of the Company in 2024
Board of Directors
Commit Yonggang
for consideration.tee and
YUAN
Yongfeng
VIII. Activities of the Board of Supervisors
Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the reporting
period
□ Yes □ No
The Board of Supervisors has not raised any objection to the supervisory matters during the reporting period.IX. Employees
1. Number structure of profession and education of employees
Number of current employees of the parent at the end of the
1570
reporting period
Number of current employees of the major subsidiaries at the
21917
end of the reporting period
Total number of current employees at the end of the reporting
23515
period
Total number of salaried employees during the reporting period 23515
62DSBJ Annual Report 2024
Total number of retired employees to or for whom the parent
0
and the major subsidiaries are obligated to make payments
Structure of profession
Categories of profession Number of employees
Production staff 16814
Sales staff 477
Technical staff 4619
Financial staff 149
Administrative staff 489
Management staff 967
Total 23515
Education
Degree of education Number of employees
PhD 4
Master 212
Undergraduate 3470
College 5120
College and below 14709
Total 23515
2. Compensation policies
We advocate the creation of values and give priority to high-performance teams and individuals in compensation and incentives.We have sound compensation and incentive policies in place which are designed to attract and retain outstanding technical and
management talents with competitive compensation and give long-acting incentives to our employees through the combination of
short- medium- and long-term incentives taking into account our overall operating results and the employees’ performance in
order to enhance our core competencies.
3. Training programs
We actively recruit seek and train talents and make efforts to build an efficient and comprehensive talent training system to
continuously improve our employees’ comprehensive capabilities; conduct capability improvement and training programs in
various forms focusing on cadre fostering management of engineers and other professional personnel and building of talent pools
to improve our employees’ professional quality skills and management capabilities; actively provide our employees with learning
and growth opportunities encourage them to strive for progress and build talent pools to promote the achievement of our
strategic objectives.
4. Outsourced workers
□ Applicable □ N/A
X. Profit Distribution and Transfer of Capital Reserve to the Share Capital
Establishment implementation or adjustment of profit distribution policy in particular cash dividend policy during the reporting
period
□ Applicable □ N/A
63DSBJ Annual Report 2024
We attach great importance to the return to our shareholders. In order to maintain a continuous and stable profit distribution policy
pursuant to the Regulatory Guidance for Listed Companies No. 3 – Distribution of Cash Dividends by the Listed Companies the
AOA and other relevant provisions we have developed the Three-year Plan for Return to Shareholders (2024-2026) which sets
forth the specific principles and plans for return to shareholders. During the reporting period we developed the 2024 Profit
Distribution Proposal taking into account our actual business situations and development plans and the needs to ensure normal
business operation and long-term development.Special explanation about the cash dividend policy
Whether or not comply with the provisions of the articles of
association or requirements of resolutions of the general Yes
meeting of the Company
Whether the standard and ratio of cash dividend distribution are
Yes
clear and definite
Whether the relevant decision-making processes and
Yes
mechanisms are sound
Whether the independent directors have performed their duties
Yes
and exercised their functions
If the Company has not distributed cash dividends explain the
reason and describe the measures to be taken in order to N/A
increase the returns to investors in the future:
Whether the minority shareholders have sufficient
opportunities to express their opinions and requests and their Yes
legitimate rights and interests are fully protected
Whether the conditions and procedures in respect of any
adjustment or amendment of the cash dividend policy comply N/A
with the applicable regulations and are transparent
Whether the Company has made a profit in the current period and the parent has profits available for distribution to the
shareholders but the Company does not propose to distribute cash dividends
□ Applicable □ N/A
Particulars of profit distribution and transfer of capital reserve to the share capital for the reporting period
□ Applicable □ N/A
Number of bonus shares per 10 shares 0
Amount of cash dividends per 10 shares (RMB) (inclusive of
0.70
tax)
Share capital based on which the distribution proposal was
1697077809
made
Amount of cash dividends (RMB) (inclusive of tax) 118795446.63
Amount of cash dividends distributed in other ways (such as
24997049.00
share repurchase) (RMB)
Total amount of cash dividends (RMB) 143792495.63
Distributable profit (RMB) 1085641847.89
Ratio of total cash dividends to the distributable profit 13.24
Particulars of cash dividends distributed for the reporting period
If we are at the growth stage and have certain material capital expenditure arrangements at least 20% of the distributable profit
will be distributed in cash.Particulars of the proposal of profit distribution or transfer of capital reserve to share capital
Our 2024 Profit Distribution Proposal is as follows: to distribute to all shareholders a cash dividend of RMB 0.70 (inclusive of
64DSBJ Annual Report 2024
tax) per 10 shares on the basis of the total share capital of 1697077809 shares (excluding treasury shares) or RMB
118795446.63 in total without distribution of any bonus shares or transfer of any capital reserve to the share capital. (Note: As
of the date of this Report we had a total share capital of 1705913710 shares of which 8835901 shares held in the dedicated
securities account for repurchase would not participate in the profit distribution.)
XI. Share Incentive Plans Employee Stock Ownership Plans or Other Employee Incentives
□ Applicable □ N/A
1. Share incentives
N/A
Share incentives granted to directors and senior executives
□ Applicable □ N/A
Performance appraisal and incentives in respect of senior executives
N/A
2. Employee stock ownership plans (ESOPs)
□ Applicable □ N/A
Effective ESOPs in the current period
No. of
Total shares % of total
Scope of employees employee Changes Source of funds
held share capital
s
Legal remunerations of
Key officers and technical personnel of the the employees self-
Company or its subsidiaries excluding raised funds or otherwise
directors supervisors and senior executives 308 1366120 None 0.08% permitted by the
of the Company (2022 ESOP for key applicable laws and
officers and technical personnel) administrative
regulations
Legal remunerations of
Certain employees who do full-time jobs for
the employees self-
receive salaries from and have valid
raised funds or otherwise
employment contracts with the Company or
366 4847178 None 0.28% permitted by the
its controlled subsidiaries excluding
applicable laws and
directors supervisors and senior executives
administrative
of the Company (2022 second ESOP)
regulations
Note: As of the end of the reporting period the Company’s shares held under the 2022 ESOP for key officers and technical
personnel and the 2022 second ESOP have been sold out through call auction trading. For details refer to the relevant
announcement dated November 29 2024 on www.cninfo.com.cn (Announcement No.: 2024-093).
3. Other employee incentive measures
□ Applicable □ N/A
65DSBJ Annual Report 2024
XII. Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and implementation of internal controls
Pursuant to the requirements of the Company Law of the People’s Republic of China the Basic Internal Control Standards for
Enterprises and the relevant guidelines we have established a sound internal control system according to our actual situations and
needs of management. During the reporting period we have continuously improved the internal control system carried out
internal control self-assessment and identified deficiencies in internal control risks and hazards to further improve the
effectiveness of our internal controls.According to the assessment of material weakness in internal control over financial reporting as of the reference date for the
assessment report on internal controls there’s no material weakness in our internal control over financial reporting. We have
maintained effective internal control over financial reporting in all material respects pursuant to the requirements of the internal
control standard systems for enterprises and other relevant provisions. According to the assessment of material weakness in
internal control over non-financial reporting as of the reference date for the assessment report on internal controls there’s no
material weakness in our internal control over non-financial reporting.
2. Material weaknesses in internal controls identified during the reporting period
□ Yes □ No
XIII. Management and Control of Subsidiaries during the Reporting Period
XIV. Assessment Report on Internal Controls or Auditor’s Report on Internal Controls
1. Assessment report on internal controls
Disclosure date of the full copy of the
April 25 2025
assessment report on internal controls
Full copy of the assessment report on
www.cninfo.com.cn
internal controls available at
Ratio of total assets of the entities
covered by the assessment to total assets
100.00%
recorded in the consolidated financial
statements of the Company
Ratio of total operating revenue of the
entities covered by the assessment to
total operating revenue recorded in the 100.00%
consolidated financial statements of the
Company
Criteria for determination of deficiencies
Type Financial reporting Non-financial reporting
Indicators of material weaknesses in Indicators of material weaknesses in
internal control over financial reporting internal control over non-financial
include: (i) any fraud on the part of reporting include: (i) any violation of the
Qualitative criteria
directors supervisors and senior applicable laws regulations or normative
executives of the Company; (ii) any documents of the country; (ii)
correction of a financial report already unscientific procedure in making any
66DSBJ Annual Report 2024
disclosed; (iii) any material misstatement major decision; (iii) absence of any
in the financial report for the current regulations which may result in systemic
period that was found by the public failure; (iv) failure to rectify any material
certified accountants but failed to be weakness or significant deficiency; and
identified through internal controls; and (v) any other circumstance that has a
(iv) ineffective supervision by the Audit material adverse effect on the Company.Committee and the Internal Audit Other deficiencies are classified as
Department of the Company over the significant or general deficiencies
financial reports disclosed externally or depending on the degree of effect.internal control over financial reporting.Indicators of significant deficiencies in
internal control over financial reporting
include: (i) failure to correctly select and
apply accounting policies pursuant to the
generally accepted accounting principles;
(ii) failure to establish anti-fraud
procedures and controls; (iii) failure to
establish or implement controls over the
accounting treatment of extraordinary or
special transactions and failure to
establish corresponding compensatory
controls; and (iv) one or more
deficiencies existing in control over the
preparation of financial report at the end
of the period and inability to reasonably
ensure the truthfulness and completeness
of the financial statements. General
deficiencies in internal control over
financial reporting include deficiencies
in control other than material weakness
and significant deficiency.Material weakness: amount of
misstatement ≥ 0.5% of the operating Material weakness: direct loss > 0.5% of
revenue; significant deficiency: 0.3% of the total assets; significant deficiency:
the operating revenue ≤ amount of 0.2% of the total assets < direct loss ≤
Quantitative criteria
misstatement ＜0.5% of the operating 0.5% of the total assets; general
revenue; general deficiency: amount of deficiency: direct loss ≤ 0.2% of the total
misstatement ＜0.3% of the operating assets.revenue.Number of material weaknesses in
0
financial reporting
Number of material weaknesses in non-
0
financial reporting
Number of significant deficiencies in
0
financial reporting
Number of significant deficiencies in
0
non-financial reporting
2. Auditor’s report on internal controls
□ Applicable □ N/A
Auditor’s opinion expressed in the auditor’s report on internal controls
We are of the opinion that DSBJ has maintained effective internal control over financial reporting in all material respects in
pursuant to the requirements of the Basic Standard for Enterprise Internal Control and other relevant provisions as of December
312024.
67DSBJ Annual Report 2024
Disclosure of the auditor’s report on internal controls Disclosed
Disclosure date of the full copy of the auditor’s report on
April 25 2025
internal controls
Full copy of the auditor’s report on internal controls available
www.cninfo.com.cn
at
Type of opinion expressed in the auditor’s report on internal
Standard unqualified opinion
controls
Whether there’s any material weakness in non-financial
No
reporting
Whether the accounting firm issued a modified auditor’s report on internal controls
□ Yes □ No
Whether the auditor’s report on internal controls issued by the accounting firm is consistent with the opinion expressed in the self-
assessment report of the Board of Directors
□ Yes □ No
XV. Rectification of Non-compliance Found in the Special Self-examination of Corporate
Governance of the Listed Company
N/A
68DSBJ Annual Report 2024
Section V Environmental and Social Responsibilities
I. Material Environmental Issues
Whether the Listed Company and its subsidiaries have been identified as major polluters by the environmental protection
authorities
□ Yes □ No
Policies and industrial standards related to environmental protection
During the reporting period we and our subsidiaries identified as major polluters have strictly complied with the
Environmental Protection Law of the People’s Republic of China the Law of the People’s Republic of China on Prevention and
Control of Atmospheric Pollution the Law of the People’s Republic of China on Prevention and Control of Water Pollution the
Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes the Law of the
People’s Republic of China on Prevention and Control of Noise Pollution the Law of the People’s Republic of China on
Prevention and Control of Soil Pollution the Law of the People’s Republic of China on Environmental Impact Assessment the
Work Safety Law of the People’s Republic of China the Fire Protection Law of the People’s Republic of China and other laws and
regulations related to environmental protection and implemented the Emission Standard for Odor Pollutants (GB14554-93) the
Integrated Emission Standard for Air Pollutants (DB32/4041-2021) the Emission Standard of Air Pollutants for Boilers
(GB13271-2014) the Emission Standard of Air Pollutants for Industrial Furnaces and Kilns (DB32/3728-2020) the Standard for
Pollution Control on Hazardous Waste Storage (GB18597-2001) the Emission Standard for Pollutants from Electroplating
(GB21900-2008) the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) the Standard for Fugitive
Emission of Volatile Organic Compounds (GB37822-2019) the Discharge Standard of Water Pollutants for Electronic Industry
(GB39731-2020) the Integrated Wastewater Discharge Standard (GB8978-1996) the Wastewater Quality Standards for
Discharge to Municipal Sewers (GB/T31962-2015) the Standard for Pollution Control on the Non-hazardous Industrial Solid
Waste Storage and Landfill (GB18599-2020) and other national and industrial standards related to environmental protection.Environmental Permits
Company name No. Validity period
Suzhou Dongshan Precision Manufacturing Co. Ltd. 91320500703719732P001U From January 15 2023 to January 14 2028
From November 28 2022 to November 27
Multek Technology (Zhuhai) Co. Ltd. 914404007718663989001X
2027
Multek Industries Limited 91440400714732019J001W From August 17 2023 to August 16 2028
From December 20 2021 to December 19
Multek China Limited 914404006182559377001W
2026
Yancheng Dongshan Precision Manufacturing Co.
91320903MA1P7PG85D001X From October 8 2023 to October 7 2028
Ltd.MFLEX Yancheng Co. Ltd. 91320903MA1P7PLE6D001T From October 8 2023 to October 7 2028
MFLEX Suzhou Co. Ltd. 91320500738277671B001V From August 14 2023 to August 13 2028
MFLEX Suzhou Co. Ltd. 91320500738277671B002U From January 31 2022 to January 30 2027
Suzhou JDI Electronics Inc. 913205056082373800001C From January 7 2025 to January 6 2030
91320583MA27NLX26N001
Suzhou Dongyue New Energy Technology Co. Ltd. From July 18 2024 to July 17 2029
W
Suzhou Yongchuang Communication Technology
9132050675271409XG002X From January 17 2025 to January 16 2030
Co. Ltd.Mutto Optronics Technology Co. Ltd. 91320594676364242F001V From October 26 2022 to October 25 2027
Industrial discharge standards and the pollutants discharged in our production and operating activities
69DSBJ Annual Report 2024
Descripti
Category
on of Applicab
of main Approve
main Method Location le Total Excessiv
pollutant No. of Pollutant d total
Company pollutant of of pollutant volume e
s and discharg concentr volume
name s and discharg discharg discharg discharg discharg
specific e outlets ation discharg
specific e e outlets e ed e
pollutant eable
pollutant standard
s
s
Multek Wastewa
Industries ter from Continu Within
Multek the ous factory
COD 1 22.58 160mg/L 38.157t 242.36t None
Electronics general discharg boundar
and Multek discharg e y
Technology e outlet
Multek Wastewa
Industries ter from Continu Within
Ammoni
Multek the ous factory
a 1 7.065 30mg/L 11.946t 45.44t None
Electronics general discharg boundar
nitrogen
and Multek discharg e y
Technology e outlet
Multek Wastewa
Industries ter from Continu Within
Multek the Total ous factory
1 25.216 40mg/L 42.29t 60.59t None
Electronics general nitrogen discharg boundar
and Multek discharg e y
Technology e outlet
Multek Wastewa
Industries ter from Intermitt Within
Multek Class I Total ent factory
1 0.1356 0.5mg/L 0.00236t 0.055t None
Electronics waste nickel discharg boundar
and Multek discharg e y
Technology e outlet
Wastewa
ter from Continu Within
Multek the ous factory
COD 1 26.58 160mg/L 12.089t 216.372t None
China general discharg boundar
discharg e y
e outlet
Wastewa
ter from Continu Within
Ammoni
Multek the ous factory
a 1 7.44 30mg/L 3.206t 40.5697t None
China general discharg boundar
nitrogen
discharg e y
e outlet
Wastewa
ter from Continu Within
Multek the Total ous factory
1 15.43 40mg/L 6.582t 54.093t None
China general nitrogen discharg boundar
discharg e y
e outlet
Wastewa
ter from Intermitt Within
Multek Class I Total ent factory
1 0 0.5mg/L 0 1.3523t None
China waste nickel discharg boundar
discharg e y
e outlet
Multek Wastewa Total Intermitt 1 Within 0 0.1mg/L 0 0.27046 None
70DSBJ Annual Report 2024
China ter from silver ent factory 5t
Class I discharg boundar
waste e y
discharg
e outlet
General
wastewa
ter
Indirect discharg
Yancheng Wastewa
COD discharg 1 e outlet 59.7780 500mg/L 5.5042 232.467t None
Dongshan ter
e at the
southeas
t of the
factory
General
wastewa
ter
Ammoni Indirect discharg
Yancheng Wastewa
a discharg 1 e outlet 2.9684 35mg/L 0.2593 14.058t None
Dongshan ter
nitrogen e at the
southeas
t of the
factory
General
wastewa
ter
Total Indirect discharg
Yancheng Wastewa
phospho discharg 1 e outlet 0.1636 3.5mg/L 0.0153 1.743t None
Dongshan ter
rus e at the
southeas
t of the
factory
General
wastewa
ter
Indirect discharg
Yancheng Wastewa Total
discharg 1 e outlet 14.5378 40mg/L 1.3591 19.054t None
Dongshan ter nitrogen
e at the
southeas
t of the
factory
Wastewa
ter
facility
Indirect discharg
Yancheng Wastewa Total
discharg 1 e outlet 0.1423 0.3mg/L 0.0003 0.022t None
Dongshan ter silver
e at the
southeas
t of the
factory
Wastewa
ter
facility
Indirect
Yancheng Wastewa Total discharg
discharg 1 0.0951 0.5mg/L 0.0006 0.033t None
Dongshan ter nickel e outlet
e
at the
southeas
t of the
71DSBJ Annual Report 2024
factory
Organize Roof of
Yancheng Waste d building 60mg/m
VOCs 5 59.7780 10.5600 12.04t None
Dongshan gas discharg s 4# and 3
e 5#
General
discharg
Indirect e outlet
MFLEX Wastewa Total 20.9mg/
discharg 1 at the 40mg/L 23.74 84.183t None
Yancheng ter nitrogen L
e east of
the
factory
General
discharg
Ammoni Indirect e outlet
MFLEX Wastewa
a discharg 1 at the 0.4 35mg/L 1.71 75.729t None
Yancheng ter
nitrogen e east of
the
factory
General
discharg
Indirect e outlet
MFLEX Wastewa
COD discharg 1 at the 29 500mg/L 40.71 844.263t None
Yancheng ter
e east of
the
factory
General
discharg
Total Indirect e outlet
MFLEX Wastewa
phospho discharg 1 at the 0.16 3.5mg/L 0.40 7.744t None
Yancheng ter
rus e east of
the
factory
Facility
discharg
Indirect e outlet
MFLEX Wastewa
Nickel discharg 1 at the 0.04 0.5mg/L 0.054 0.085t None
Yancheng ter
e east of
the
factory
Wastewa
ter from Continu Within
MFLEX the ous factory 18.67mg
COD 1 500mg/L 34.967t 471.035t None
Suzhou general discharg boundar /L
discharg e y
e outlet
Wastewa
ter from Continu Within
Ammoni
MFLEX the ous factory 0.232mg
a 1 25mg/L 0.428t 26.020t None
Suzhou general discharg boundar /L
nitrogen
discharg e y
e outlet
Wastewa
Continu Within
ter from
MFLEX Total ous factory 0.108mg
the 1 2.0mg/L 0.190t 0.9405t None
Suzhou copper discharg boundar /L
general
e y
discharg
72DSBJ Annual Report 2024
e outlet
Wastewa
ter from Continu Within
MFLEX Class I Total ous factory 0.017mg
1 0.5mg/L 0.029t 0.057t None
Suzhou waste nickel discharg boundar /L
discharg e y
e outlet
Wastewa
ter from Continu Within
MFLEX the ous factory
COD 1 13mg/L 500mg/L 1.422t 92.893t None
Suzhou general discharg boundar
discharg e y
e outlet
Wastewa
ter from Continu Within
Ammoni
MFLEX the ous factory 0.311mg
a 1 30mg/L 0.034t 7.963t None
Suzhou general discharg boundar /L
nitrogen
discharg e y
e outlet
Organize Within
Exhaust
d factory 3.09mg/ 60mg/m
DSBJ gas VOCs 2 0.0069t 0.0095t None
discharg boundar m3 3
outlet
e y
Organize Within
Exhaust
d factory 2.325mg 20mg/m
DSBJ gas Particles 4 0.519t 1.03t None
discharg boundar /m3 3
outlet
e y
Domesti Within
Chemica Indirect
c waste factory 36.75mg
DSBJ l oxygen discharg 2 500mg/L 2.833t 8.606t None
water boundar /L
demand e
outlet y
Domesti Within
Ammoni Indirect
c waste factory 12.611m
DSBJ a discharg 2 35mg/L 0.283t 0.736t None
water boundar g/L
nitrogen e
outlet y
Domesti Within
Total Indirect
c waste factory 1.84mg/
DSBJ phospho discharg 2 8mg/L 0.055t 0.10798t None
water boundar L
rus e
outlet y
Wastewa
ter from Intermitt Within
Suspend
Mutto the ent factory 13.33mg 400
ed 1 0.8951t 11.032t None
Optronics general discharg boundar /L mg/L
matter
discharg e y
e outlet
Wastewa
ter from Intermitt Within
Mutto the ent factory 69.67mg 500
COD 1 4.6767t 109.95t None
Optronics general discharg boundar /L mg/L
discharg e y
e outlet
Wastewa
ter from Intermitt Within
Total
Mutto the ent factory 11.47mg
organic 1 30 mg/L 0.7697t / None
Optronics general discharg boundar /L
carbon
discharg e y
e outlet
73DSBJ Annual Report 2024
Wastewa
ter from Intermitt Within
Ammoni
Mutto the ent factory 5.93mg/
a 1 45 mg/L 0.3983t 11.032t None
Optronics general discharg boundar L
nitrogen
discharg e y
e outlet
Wastewa
ter from Intermitt Within
Total
Mutto the ent factory 1.07mg/
phospho 1 8 mg/L 0.0718t 0.0768t None
Optronics general discharg boundar L
rus
discharg e y
e outlet
Wastewa
ter from Intermitt Within
Mutto the Total ent factory
1 0 2 mg/L 0 0.11t None
Optronics general copper discharg boundar
discharg e y
e outlet
South on
Organize the roof
Mutto Waste Nitrogen d of the 200mg/
2 0 0 / None
Optronics gas oxide discharg plant Nm3
e building
2#
South on
Organize the roof
Hydroge
Mutto Waste d of the 30mg/N
n 2 0 0 0.384t None
Optronics gas discharg plant m3
chloride
e building
2#
South on
Organize the roof
Mutto Waste d of the 1.89mg/ 60mg/N
VOCs 1 0.0972t 1.72t None
Optronics gas discharg plant m3 m3
e building
2#
South on
Organize the roof
Mutto Waste d of the
Ethanol 1 0 / 0 1.958t None
Optronics gas discharg plant
e building
2#
Organize
Northeas
Suzhou Waste d 1.43mg/
VOCs 2 t of the 60mg/m3 0.3t 14.653t None
Dongyue gas discharg m3
factory
e
Organize
Northeas
Suzhou Waste d 3.5mg/m
Particles 4 t of the 20mg/m3 0.75t 4.756t None
Dongyue gas discharg 3
factory
e
Organize
Northeas
Suzhou Waste d 0.42mg/
Fluoride 1 t of the 6mg/m3 0.01t 0.255t None
Dongyue gas discharg m3
factory
e
Indirect Within
Suzhou Wastewa
COD discharg 1 factory 12mg/L 350mg/L 0.2t 55.797t None
Dongyue ter
e boundar
74DSBJ Annual Report 2024
y
General
waste
water
Intermitt
Total discharg
Yancheng Wastewa ent 0.37mg/ 0.05515
phospho 1 e outlet 3.5mg/L 1.506t None
Dongchuang ter discharg L 1t
rus at the
e
west of
the
factory
General
waste
water
Intermitt
Chemica discharg
Yancheng Wastewa ent 135.28m 20.7365
l oxygen 1 e outlet 500mg/L 377.397t None
Dongchuang ter discharg g/L 4t
demand at the
e
west of
the
factory
General
waste
water
Intermitt
Ammoni discharg
Yancheng Wastewa ent 2.29mg/ 0.35449
a 1 e outlet 35mg/L 16.853t None
Dongchuang ter discharg L 5t
nitrogen at the
e
west of
the
factory
General
waste
water
Intermitt
discharg
Yancheng Wastewa Total ent
1 e outlet 4.3mg/L 40mg/L 0.64334t 34.044t None
Dongchuang ter nitrogen discharg
at the
e
west of
the
factory
Worksho
p
discharg
e outlet
Intermitt to the
Yancheng Wastewa Total ent waste 0.0002m
1 0.5mg/L 0.023t 0.027t None
Dongchuang ter nickel discharg water g/L
e station
to the
west of
the
factory
17#DA0
04
discharg
e outlet
Yancheng Waste Organize 0.086 60mg/N 0.12783
VOCs 3 on the / None
Dongchuang gas d mg/m3 m3 596t
roof of
building
1#
16#DA0
75DSBJ Annual Report 2024
05
discharg
e outlet
on the
roof of
building
1#
25#DA0
10
discharg
e outlet
to the
north of
building
13#
3#DA00
discharg
e outlet
to the
west of
building
7#
8#DA00
7
discharg
Yancheng Waste Organize e outlet 9.87mg/ 20mg/N 1.75442
Dust 3 / None
Dongchuang gas d to the m3 m3 4t
west of
building
7#
5#DA00
8
discharg
e outlet
to the
west of
building
7#
41#DA0
11
discharg
e outlet
to the
north of
building
14#
36#DA0
Yancheng Waste Organize 0.61mg/ 60mg/N 0.73530
NmHc 3 12 / None
Dongchuang gas d m3 m3 8t
discharg
e outlet
on the
roof of
building
2#
42#DA0
15
discharg
76DSBJ Annual Report 2024
e outlet
on the
roof of
building
4#
17#DA0
04
discharg
e outlet
on the
roof of
building
Yancheng Waste Smoke Organize 1# 1.77mg/ 20mg/N 0.36999
2 / None
Dongchuang gas and dust d 25#DA0 m3 m3 2t
10
discharg
e outlet
to the
north of
building
13#
17#DA0
04
discharg
e outlet
on the
roof of
building
1#
2#DA00
6
discharg
Yancheng Waste Sulfur Organize e outlet 1.5mg/m 80mg/N 0.46522
3 / None
Dongchuang gas dioxide d to the 3 m3 98t
west of
building
1#
25#DA0
10
discharg
e outlet
to the
north of
building
13#
23#DA0
02
discharg
e outlet
to the
100mg/
south of
Yancheng Waste Nitrogen Organize 0.65mg/ Nm3
4 building 0.2585t / None
Dongchuang gas oxide d m3 180mg/
13#
Nm3
17#DA0
04
discharg
e outlet
on the
77DSBJ Annual Report 2024
roof of
building
1#
35#DA0
09
discharg
e outlet
to the
south of
building
10#
25#DA0
10
discharg
e outlet
to the
north of
building
13#
24#DA0
03
discharg
e outlet
to the
north of
building
Yancheng Waste Organize 13# 1.78mg/ 20mg/N 0.59662
Particles 2 / None
Dongchuang gas d 2#DA00 m3 m3 4t
6
discharg
e outlet
to the
west of
building
1#
DW001 Discharg
general Intermitt e outlet
Suspend
JDI waste ent at the 20.67mg
ed 1 400mg/L 2.33t 45.12t None
Electronics water discharg south of /L
matter
discharg e the
e outlet factory
DW001 Discharg
general Intermitt e outlet
Chemica
JDI waste ent at the
l oxygen 1 53mg/L 500mg/L 5.98t 56.40t None
Electronics water discharg south of
demand
discharg e the
e outlet factory
DW001 Discharg
general Intermitt e outlet
Anionic
JDI waste ent at the 0.57mg/
surfactan 1 20mg/L 0.06t 2.26t None
Electronics water discharg south of L
t
discharg e the
e outlet factory
DW002 Discharg
Intermitt
general Suspend e outlet
JDI ent 80.67mg
waste ed 1 at the / 0.94t / None
Electronics discharg /L
water matter southwe
e
discharg st of the
78DSBJ Annual Report 2024
e outlet factory
DW002 Discharg
general Intermitt e outlet
Chemica
JDI waste ent at the 185.67m
l oxygen 1 / 2.16t / None
Electronics water discharg southwe g/L
demand
discharg e st of the
e outlet factory
DW002 Discharg
general Intermitt e outlet
Ammoni
JDI waste ent at the 26.7mg/
a 1 / 0.31t / None
Electronics water discharg southwe L
nitrogen
discharg e st of the
e outlet factory
DW002 Discharg
general Intermitt e outlet
Total
JDI waste ent at the 4.08mg/
phospho 1 / 0.05t / None
Electronics water discharg southwe L
rus
discharg e st of the
e outlet factory
DW002 Discharg
general Intermitt e outlet
JDI waste Total ent at the
1 42mg/L / 0.49t / None
Electronics water nitrogen discharg southwe
discharg e st of the
e outlet factory
DW003 Discharg
general Intermitt e outlet
Suspend
JDI waste ent at the
ed 1 99mg/L 400mg/L 7.26t 29.33t None
Electronics water discharg northwes
matter
discharg e t of the
e outlet factory
DW003 Discharg
general Intermitt e outlet
Chemica
JDI waste ent at the 184.67m
l oxygen 1 500mg/L 13.54t 36.66t None
Electronics water discharg northwes g/L
demand
discharg e t of the
e outlet factory
DW003 Discharg
general Intermitt e outlet
Ammoni
JDI waste ent at the 19.17mg
a 1 45mg/L 1.41t 3.3t None
Electronics water discharg northwes /L
nitrogen
discharg e t of the
e outlet factory
DW003 Discharg
general Intermitt e outlet
Total
JDI waste ent at the 2.98mg/
phospho 1 8mg/L 0.22t 0.59t None
Electronics water discharg northwes L
rus
discharg e t of the
e outlet factory
DW003 Discharg
general Intermitt e outlet
JDI waste Total ent at the 23.67mg
1 70mg/L 1.74t 5.13t None
Electronics water nitrogen discharg northwes /L
discharg e t of the
e outlet factory
JDI DW003 Animal Intermitt Discharg 5.85mg/
1 100mg/L 0.43t 7.33t None
Electronics general and ent e outlet L
79DSBJ Annual Report 2024
waste vegetabl discharg at the
water e oils e northwes
discharg t of the
e outlet factory
Organic
Organize
Sulphuri gas
JDI Waste d
c acid 1 discharg 0 5mg/m3 0 0.868t None
Electronics gas discharg
mist e in
e
Phase I
Organic
Organize
gas
JDI Waste d
Acetone 1 discharg 0 / 0 / None
Electronics gas discharg
e in
e
Phase I
Organic
gas
Organize
discharg
JDI Waste d 0.703mg
NmHc 2 e in 60mg/m3 0.088t 7.48t None
Electronics gas discharg /m3
Phase I
e
and
Phase II
Organic
gas
Organize
discharg
JDI Waste d
Ethanol 2 e in 0 / 0 / None
Electronics gas discharg
Phase I
e
and
Phase II
Treatment of pollutants
With respect to the wastewater waste gas solid wastes and other wastes generated during our production we have a complete set
of pollution treatment facilities in place which are operated and maintained by ourselves or the service providers engaged by us.We designate special personnel to monitor the operation of equipment and discharge of pollutants and maintain and repair the
equipment and facilities on a regular basis to ensure the discharge and disposal of all kinds of pollutants in accordance with the
applicable standards and regulations and minimize the environmental impact of our production. During the reporting period our
discharge of pollutants complied with the applicable standards and regulations.Environmental self-monitoring plans
We have developed environmental self-monitoring plans in accordance with the applicable laws and regulations and installed
automatic monitoring equipment or engaged qualified third-party inspection institutions to monitor the wastewater waste gas
noise and other pollutants on a regular basis. During the reporting period the results of our environmental monitoring complied
with the applicable standards and regulations.Environmental emergency response plans
We have developed environmental emergency response plans in accordance with the National Environmental Emergency
Response Plan filed the same with the local environmental protection authority and carried out exercises on a regular basis to
improve our capability to respond to environmental emergencies and reduce harm to the environment and impact on the society.Expenditures on environmental governance and protection and payment of environmental protection tax
We have made continuous investments in environmental governance and protection regularly maintained the waste gas
wastewater and solid waste treatment and other environmental protection facilities to ensure their effective operation and
discharge of all kinds of pollutants in conformity with the applicable standards and promote our sustainable development.Measures taken for reducing carbon emission during the reporting period and their effect
□ Applicable □ N/A
For details refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.Environment-related administrative penalties the Company has been subject to during the reporting period
80DSBJ Annual Report 2024
N/A
Other environmental information that should be disclosed
N/A
Other environmental information
Refer to our Social Responsibility Report 2024 disclosed on www.cninfo.com.cn.II. Social Responsibility
For details refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.III. Consolidating and Expanding the Result of Poverty Alleviation and Rural Revitalization
For details refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.
81DSBJ Annual Report 2024
Section VI Significant Matters
I. Fulfillment of Covenants
1. Covenants made by the actual controllers shareholders affiliates and acquirer of the Company the
Company itself and other related parties that have been fulfilled during the reporting period or have not
yet been completely fulfilled as of the end of the reporting period
□ Applicable □ N/A
Validity
Background of Type of Time of Status of
Covenantor Content of covenant period of the
covenant covenant covenant fulfillment
covenant
Each of the shareholders
YUAN Yongfeng and YUAN
Yonggang as director and
senior executive of the
Company covenants that so
long as I remain a director
and senior executive of the
As of the end
Company I will not transfer
of the
Covenants more than 25% of the total
YUAN reporting
related to shares held by me in the
Yongfeng and April 9 Permanently period the
restrictions on Company each year; and if I
YUAN 2010 binding covenantors
the sale of cease to be a director and
Yonggang have complied
shares senior executive of the
with such
Company I will not transfer
covenants.any shares held by me in the
Company within half a year
and will not transfer more
than 50% of the total shares
Covenant
held by me in the Company
relating to
through the stock exchange
initial public
within 12 months thereafter.offering or
Covenants related to
subsequent
Covenants horizontal competition: Each As of the end
fundraisings
related to of the shareholders YUAN of the
YUAN
horizontal Yonggang YUAN Yongfeng reporting
Yongfeng
competition and YUAN Fugen covenants April 9 Permanently period the
YUAN
related-party that I do not directly or 2010 binding covenantors
Yonggang and
transactions indirectly engage in any have complied
YUAN Fugen
and occupation business in competition with with such
of funds the business actually covenants.conducted by the Company.Covenants related to
Covenants horizontal competition: Each As of the end
related to of the shareholders YUAN of the
YUAN
horizontal Yonggang YUAN Yongfeng reporting
Yongfeng
competition and YUAN Fugen covenants June 11 Permanently period the
YUAN
related-party that after the completion of 2018 binding covenantors
Yonggang and
transactions this material asset have complied
YUAN Fugen
and occupation restructuring I will not with such
of funds directly or through any covenants.affiliate participate or engage
82DSBJ Annual Report 2024
in any business that
substantially competes or
might compete with the
business of the Company; and
if any product manufactured
or business conducted by any
entity wholly owned
controlled or invested by me
in the future competes or
might compete with the
Company at the request of
the Company I will transfer
all of the investment or shares
held by me in such entity
give priority to the Company
or its wholly-owned
subsidiary in the acquisition
of such investment or shares
subject to the applicable laws
and regulations and use my
best efforts to procure that the
transfer price will be
determined on an arm’s
length basis; and if I or any of
my affiliates breaches any
covenant set forth above I
will indemnify the Company
and other shareholders for the
damages arising therefrom
according to law.Covenants related to the
regulation and reduction of
related-party transactions:
Each of the shareholders
YUAN Yonggang YUAN
Yongfeng and YUAN Fugen
covenants that (i) I and my
affiliates will avoid or reduce
related-party transactions with
the Company to the maximum
Covenants extent practicable; (ii) with As of the end
related to respect to the related-party of the
YUAN
horizontal transactions that are reporting
Yongfeng
competition unavoidable or necessary I June 11 Permanently period the
YUAN
related-party will abide by the principle of 2018 binding covenantors
Yonggang and
transactions justice fairness and openness have complied
YUAN Fugen
and occupation enter into the relevant with such
of funds agreements according to law covenants.perform the legal procedures
pursuant to the applicable
laws regulations normative
documents the Articles of
Association and other
relevant provisions of the
Company ensure that such
related-party transactions are
fair comply with the
regulations and will not
83DSBJ Annual Report 2024
damage the legitimate rights
and interests of the Company
and other shareholders and
make the relevant information
disclosures promptly in
accordance with the
requirements of the applicable
laws regulations and
normative documents; and
(iii) I will exercise the
shareholder rights in strict
accordance with the Company
Law and other applicable laws
and regulations and the
relevant provisions of the
Articles of Association of the
Company and abstain from
the voting on the related-party
transactions involving me and
other entities controlled by
me at the general meeting of
the Company in accordance
with the relevant provisions.I. Within six months from the
base date for pricing (March
13 2024) for the private
placement of shares I and the
affiliates under my control
have not sold the shares of
DSBJ; II. From the base date
for pricing to the expiration of
eighteen months after the
private placement of DSBJ is
completed I and the affiliates
under my control will neither
sell DSBJ’s shares in any As of the end
form nor have any plan of of the
Covenant not
YUAN selling DSBJ’s shares; and reporting
to sell the
Yongfeng and III. My covenant is an December Permanently period the
Company’s
YUAN irrevocable covenant which 18 2024 binding covenantors
shares during a
Yonggang shall be binding on me and have complied
specific period
the affiliates under my control with such
from the execution date of covenants.this covenant and the
transferee under the share
transfer described above shall
inherit this covenant; if I and
the affiliates under my control
sell shares in violation of this
covenant all the proceeds
from selling such shares shall
be owned by DSBJ and I shall
be fully responsible for all the
legal liabilities arising
therefrom.YUAN Covenant regarding the As of the end
Other Other October Permanently
Yongfeng remedial measures against of the
covenants covenants 10 2019 binding
YUAN dilution of current earnings reporting
84DSBJ Annual Report 2024
Yonggang caused by the private period the
ZHAO placement: Each of the covenantors
Xiutian directors and senior have complied
SHAN Jianbin executives of the Company with such
WANG Xu covenants that: (i) I will not covenants.MAO Xiaoyan transfer benefits to any other
and MA entity or individual without
Liqiang compensation or on unfair
terms or otherwise damage
the interests of the
Company; (ii) I will exercise
self-discipline in consumption
in performing my duties; (iii)
I will not use the assets of the
Company to engage in any
investment or consumption
activities not in connection
with my duties; (iv) I will link
the compensation system
adopted by the Board of
Directors or the
Compensation Committee
with the implementation of
the Company’s remedial
measures against dilution of
current earnings; (v) if the
Company implements any
share incentive plan in the
future I will link the vesting
conditions under such share
incentive plan with the
implementation of the
Company’s remedial
measures against dilution of
current earnings; and (vi) I
will seriously implement the
Company’s remedial
measures against dilution of
current earnings and abide by
the relevant covenants made
by me; and if I breach any
covenant set forth above I
will indemnify the Company
or the investors for the losses
arising therefrom according to
law and accept the
punishments that the
competent regulatory
authorities may impose on
me.Covenant regarding the As of the end
remedial measures against of the
YUAN Fugen
dilution of current earnings reporting
YUAN
Other caused by the private October Permanently period the
Yongfeng and
covenants placement: Each of the 17 2019 binding covenantors
YUAN
controlling shareholders and have complied
Yonggang
actual controllers of the with such
Company covenants that I covenants.
85DSBJ Annual Report 2024
will not interfere with the
management and operation of
the Company beyond my
powers or infringe on the
interests of the Company; and
as the person responsible for
the serious implementation of
the remedial measures against
dilution of current earnings if
I breach or refuse to fulfill
any covenant set forth above
I will assume the relevant
liabilities according to law.To ensure the effective
implementation of the
remedial measures against
dilution of earnings to be
taken by the Company each
of the controlling
shareholders and actual
controllers of the Companycovenants that: “(i) I will notinterfere with the
management and operation of
the Company beyond my
powers or infringe on the
interests of the Company; (ii)
from the date of this Letter of
Undertaking till the
completion of this offering in
case of any new regulatory
provisions promulgated by
As of the end
the CSRC or the SZSE
of the
YUAN Fugen regarding the remedial
reporting
YUAN measures against dilution of
Other March 12 Permanently period the
Yongfeng and earnings and related
covenants 2024 binding covenantors
YUAN covenants as a result of
have complied
Yonggang which the covenants set forth
with such
above no longer comply with
covenants.such new provisions I will
make additional covenants in
accordance with such new
provisions; and (iii) I will
seriously implement the
remedial measures against
dilution of earnings adopted
by the Company and fulfill
my covenants in connection
therewith and if I breach or
refuse to fulfill any covenant
set forth above accept the
penalties or other regulatory
actions that may be imposed
or taken by the CSRC the
SZSE or other competent
securities authorities against
me and indemnify the
Company or the investors for
86DSBJ Annual Report 2024
the losses arising therefromaccording to law.”
To ensure the effective
implementation of the
remedial measures against
dilution of earnings to be
taken by the Company each
of the directors and senior
executives of the Companycovenants that: “(i) I will nottransfer benefits to any other
entity or individual without
compensation or on unfair
terms or otherwise damage
the interests of the Company;
(ii) I will exercise self-
discipline in consumption in
performing my duties; (iii) I
will not use the assets of the
Company to engage in any
investment or consumption
activities not in connection
with my duties; (iv) I will link
the compensation system
adopted by the Board of
YUAN Directors or the
Yongfeng Compensation Committee As of the end
YUAN with the implementation of of the
Yonggang the Company’s remedial reporting
ZHAO Other measures against dilution of March 12 Permanently period the
Xiutian covenants current earnings; (v) if the 2024 binding covenantors
SHAN Jianbin Company implements any have complied
WANG Xu share incentive plan in the with such
and MAO future I will link the vesting covenants.Xiaoyan conditions under such share
incentive plan with the
implementation of the
Company’s remedial
measures against dilution of
current earnings; (vi) from the
date of this Letter of
Undertaking till the
completion of this offering in
case of any new regulatory
provisions promulgated by
the CSRC or the SZSE
regarding the remedial
measures against dilution of
earnings and related
covenants as a result of
which the covenants set forth
above no longer comply with
such new provisions I will
make additional covenants in
accordance with such new
provisions; and (vii) I will
seriously implement the
remedial measures against
87DSBJ Annual Report 2024
dilution of earnings adopted
by the Company and fulfill
my covenants in connection
therewith and if I breach any
covenant set forth above
indemnify the Company or
the investors for the losses
arising therefrom according tolaw.”
Whether the
covenants have
Yes
been fulfilled
on time
If any covenant
fails to be
fulfilled on
time please
explain the N/A
reason and the
relevant actions
to be taken in
detail
2. If the Company has made any profit forecast on its assets or project and the reporting period falls
within the period of such profit forecast explanation about whether the goal has been achieved and the
related reasons
□ Applicable □ N/A
II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of the
Listed Company for Non-operating Purpose
□ Applicable □ N/A
Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reporting
period.III. External Guarantees in Violation of the Regulations
□ Applicable □ N/A
We have not provided any external guarantee in violation of the applicable regulations during the reporting period.IV. Explanation by the Board of Directors about the Most Recent Modified Auditor’s
Report
□ Applicable □ N/A
88DSBJ Annual Report 2024
V. Explanation by the Board of Directors the Board of Supervisors and the Independent
Directors (if any) about the Modified Auditor’s Report Issued by the Accounting Firm for
the Reporting Period
□ Applicable □ N/A
VI. Changes in the Accounting Policies and Accounting Estimates Compared with the
Financial Report for the Previous Year or Correction of Material Accounting Errors
□ Applicable □ N/A
During the reporting period there wasn’t any change in the accounting policies or accounting estimates or correction of material
accounting errors.VII. Explanation of Changes in the Scope of Consolidation Compared with the Financial
Report for the Previous Year
□ Applicable □ N/A
Method of acquisition or
Company name Effect on overall production operation and results
disposal
No material effect on our operating results in the
Multi-Fineline Electronics Hungary KFT. Established
current period
Suzhou Dongjiyuan Metal Technology Co. No material effect on our operating results in the
Deregistration
Ltd. current period
Suzhou Dongyan Electronic Technology No material effect on our operating results in the
Deregistration
Co. Ltd. current period
Suzhou Dongbo Precision Manufacturing No material effect on our operating results in the
Deregistration
Co. Ltd. current period
No material effect on our operating results in the
Dongwei Smart Suzhou Co. Ltd. Deregistration
current period
No material effect on our operating results in the
MFLX B.V. Deregistration
current period
No material effect on our operating results in the
Multek Zhuhai Limited Disposed
current period
VIII. Engagement and Termination of Engagement of Accounting Firm
Accounting firm currently engaged
Name of domestic accounting firm Pan-China Certified Public Accountants LLP
Remuneration of domestic accounting firm (in RMB 0’000) 240
Consecutive years in which the domestic accounting firm has provided
14
auditing service
Certified public accountants of the domestic accounting firm ZHANG Yang and FU Zhenlong
Consecutive years in which the certified public accountants of the
33
domestic accounting firm have provided auditing service
Name of foreign accounting firm (if any) N/A
Remuneration of foreign accounting firm (if any) (in RMB 0’000) 0
Consecutive years in which the foreign accounting firm (if any) has
N/A
provided auditing service
89DSBJ Annual Report 2024
Certified public accountants of the foreign accounting firm (if any) N/A
Consecutive years in which the certified public accountants of the
N/A
foreign accounting firm (if any) have provided auditing service
Whether a new accounting firm was engaged during the reporting period
□ Yes □ No
Engagement of accounting firm for auditing internal controls financial advisor or sponsor
□ Applicable □ N/A
During the reporting period we engaged Pan-China Certified Public Accountants LLP as the auditor of internal controls
responsible for the audit of our internal controls in 2024.IX. Risk of Delisting after Disclosure of the Annual Report
□ Applicable □ N/A
X. Matters Relating to Bankruptcy and Reorganization
□ Applicable □ N/A
We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.XI. Material Litigations and Arbitrations
□ Applicable □ N/A
We have not been involved in any material litigation or arbitration proceedings during the reporting period.XII. Punishments and Rectifications
□ Applicable □ N/A
We have not been involved in any punishment and rectification during the reporting period.XIII. Credit Standing of the Company and its Controlling Shareholders and Actual
Controllers
□ Applicable □ N/A
XIV. Material Related-party Transactions
1. Related-party transactions relating to day-to-day operation
□ Applicable □ N/A
There has been no related-party transaction relating to day-to-day operation during the reporting period.
2. Related-party transactions involving the acquisition or sale of assets or equities
□ Applicable □ N/A
There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.
90DSBJ Annual Report 2024
3. Related-party transactions involving joint external investment
□ Applicable □ N/A
There has been no related-party transaction involving joint external investment during the reporting period.
4. Debts owed by and to related parties
□ Applicable □ N/A
There has been no debt owed by or to related parties during the reporting period.
5. Dealings with affiliated financial companies
□ Applicable □ N/A
There has been no deposit loan facility or other financial business between us and any of our affiliated financial companies.
6. Dealings with financial companies controlled by the Company and its affiliates
□ Applicable □ N/A
There has been no deposit loan facility or other financial business between any of our controlled financial companies and
affiliates.
7. Other material related-party transactions
□ Applicable □ N/A
There has been no other material related-party transaction during the reporting period.XV. Particulars and Performance of Material Contracts
1. Trusteeship contracting and leases
(1) Trusteeship
□ Applicable □ N/A
No such case during the reporting period.
(2) Contracting
□ Applicable □ N/A
No such case during the reporting period.
(3) Leases
□ Applicable □ N/A
No such case during the reporting period.
2. Material guarantees
□ Applicable □ N/A
91DSBJ Annual Report 2024
In RMB 0’000
External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)
Wheth
Disclosure
er or
date of Maximu Effectiv Counter Wheth
Actual Collatera not
announcem m e date Type of guarante Term of er or
amount l (if provid
Obligor ent of the amount of guarant e (if guarant not
guarante applicabl ed for
maximum guarante guarant ee applicabl ee expire
ed e) a
amount ed ee e) d
related
guaranteed
party
Suzhou Joint
Toprun and
Electric 3000 2000 several
Equipment guarant
Co. Ltd. ee
Suzhou
LEGATE
Intelligent 3000 0
Equipment
Corp. Ltd.Shanghai Fu
Shan
Precision 3000 0
Manufacturin
g Co. Ltd.Total amount of
Total amount of external external guarantee
guarantee approved during 9000 actually provided 5000
the reporting period (A1) during the reporting
period (A2)
Total amount of
Total amount of external external guarantee
guarantee approved as at the actually provided as
90002000
end of the reporting period at the end of the
(A3) reporting period
(A4)
Guarantees provided by the Company for its subsidiaries
Wheth
Disclosure
er or
date of Maximu Effectiv Counter Wheth
Actual Collatera not
announcem m e date Type of guarante Term of er or
amount l (if provid
Obligor ent of the amount of guarant e (if guarant not
guarante applicabl ed for
maximum guarante guarant ee applicabl ee expire
ed e) a
amount ed ee e) d
related
guaranteed
party
Dragon
Electronix
Holdings Inc. 158644.
305000
and its 92
controlled
subsidiaries
Hong Kong
Dongshan
2800009900
Holding
Limited and
92DSBJ Annual Report 2024
its
subsidiaries
Yancheng
Dongshan
80112.1
Precision 120000
4
Manufacturin
g Co. Ltd.Multek Group
(Hong Kong)
46116.7
Limited and 150000
7
its controlled
subsidiaries
Mutto
Optronics
1000003725.22
Technology
Co. Ltd.Suzhou
Yongchuang
Communicati
800009884.28
on
Technology
Co. Ltd.Chaowei
Microelectron
ics 60000 25000
(Yancheng)
Co. Ltd.Yancheng
Dongshan
Communicati
130002698.16
on
Technology
Co. Ltd.Suzhou RF
Top
Electronic 5000 930.74
Communicati
on Co. Ltd.HongKong
Dongshan
Precision
Union 5000
Optoelectroni
c Co.Limited
Suzhou
Chengjia
Precision 8000 1000
Manufacturin
g Co. Ltd.Suzhou
Dongyue
New Energy 20000
Technology
Co. Ltd.Yancheng 83046.9
100000
Dongchuang 3
93DSBJ Annual Report 2024
Precision
Manufacturin
g Co. Ltd.Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
1246000920428.33
subsidiaries during the subsidiaries during
reporting period (B1) the reporting period
(B2)
Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
1246000421059.16
subsidiaries as at the end of subsidiaries as at the
the reporting period (B3) end of the reporting
period (B4)
Guarantees provided by subsidiaries for each other
Wheth
Disclosure
er or
date of Maximu Effectiv Counter Wheth
Actual Collatera not
announcem m e date Type of guarante Term of er or
amount l (if provid
Obligor ent of the amount of guarant e (if guarant not
guarante applicabl ed for
maximum guarante guarant ee applicabl ee expire
ed e) a
amount ed ee e) d
related
guaranteed
party
Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
00
subsidiaries during the subsidiaries during
reporting period (C1) the reporting period
(C2)
Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
00
subsidiaries as at the end of subsidiaries as at the
the reporting period (C3) end of the reporting
period (C4)
Total amount of guarantee provided by the Company
Total amount of
Total amount of guarantee
guarantee actually
approved during the
1255000 provided during the 925428.33
reporting period
reporting period
(A1+B1+C1)
(A2+B2+C2)
Total amount of
Total amount of guarantee
guarantee actually
approved as at the end of the
1255000 provided as at the 423059.16
reporting period
end of the reporting
(A3+B3+C3)
period (A4+B4+C4)
Ratio of the total amount of guarantee actually
provided (A4+B4+C4) to the net assets of the 22.47%
Company
Incl.:
Outstanding guarantees provided for shareholders
2000
actual controllers and their affiliates (D)
94DSBJ Annual Report 2024
Outstanding guarantees directly or indirectly
provided for obligors whose debt-to-assets ratio 254514.24
exceeds 70% (E)
Portion of the total amount of guarantee in excess of
0
50% of the net assets (F)
Total (D+E+F) 254514.24
Explanation about the joint and several liabilities
that have been or might be incurred in respect of
N/A
outstanding guarantees during the reporting period
(if any)
Explanation about external guarantees provided in
N/A
contravention of the established procedures (if any)
Explanation about guarantees provided in a compound mode
N/A
3. Entrusted management of cash assets
(1) Entrusted wealth management
□ Applicable □ N/A
Particulars of entrusted wealth management during the reporting period
In RMB 0’000
Impairment loss
recognized for
Outstanding
Type Source of funds Total amount Overdue amount overdue wealth
amount
management
products
Bank wealth
management Self-owned funds 132530.84 65187.25 0 0
product
Total 132530.84 65187.25 0 0
High-risk entrusted wealth management products that are significant individually illiquid or not principal protected
□ Applicable □ N/A
Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired
□ Applicable □ N/A
(2) Entrusted loans
□ Applicable □ N/A
No such case during the reporting period.
4. Other material contracts
□ Applicable □ N/A
We have not entered into any other material contract during the reporting period.
95DSBJ Annual Report 2024
XVI. Other Significant Matters
□ Applicable □ N/A
There’s no other significant matter needing to be explained for the reporting period.XVII. Significant Matters of Subsidiaries
□ Applicable □ N/A
96DSBJ Annual Report 2024
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
In shares
Before the change ＋/- After the change
Capital
Bon ization
New us of
Number % Others Subtotal Number %
shares shar capital
es reserve
s
I. Non-tradable shares 319591987 18.69% 319591987 18.73%
1. Shares held by the State
2. Shares held by State-
owned corporations
3. Shares held by other
31959198718.69%31959198718.73%
domestic investors
Incl.: Shares held by
domestic non-State-owned
corporations
Shares held by domestic
31959198718.69%31959198718.73%
natural persons
4. Shares held by foreign
investors
Incl.: Shares held by
foreign corporations
Shares held by foreign
natural persons
II. Tradable shares 1390275340 81.31% -3953617 -3953617 1386321723 81.27%
1. RMB-denominated
139027534081.31%-3953617-3953617138632172381.27%
ordinary shares
2. Foreign currency-
denominated shares listed
domestically
3. Foreign currency-
denominated shares listed
overseas
4. Others
III. Total shares 1709867327 100.00% -3953617 -3953617 1705913710 100.00%
Cause of change
□ Applicable □ N/A
97DSBJ Annual Report 2024
Pursuant to the relevant provisions of Guidelines of Shenzhen Stock Exchange on Self-regulatory Supervision of Listed Companies
No. 9 – Repurchase of Shares we held the 11th meeting of the 6th Board of Directors the 9th meeting of the 6th Board of
Supervisors and the 3rd extraordinary general meeting in 2024 at which the Proposal for De-registering Partial Shares
Repurchased was considered approving the Company to repurchase 3953617 shares under the dedicated securities account for
repurchase for deregistration so that the total shares of the Company will be reduced from 1709867327 shares to 1705913710
shares. After being verified and confirmed by China Securities Depository and Clearing Corporation Limited Shenzhen Branch
the 3953617 shares repurchased by the Company have been deregistered on August 30 2024. Please refer to the relevant
announcement disclosed on www.cninfo.com.cn and our designated newspapers for information disclosure.Approval of changes in shares
□ Applicable □ N/A
Registration of changes in shares
□ Applicable □ N/A
Effect of changes in shares on financial indicators including the basic earnings per share diluted earnings per share net assets per
share attributable to ordinary shareholders of the Company etc. in the last year and the last period
□ Applicable □ N/A
During the reporting period we repurchased 1588800 shares. Based on the net assets as of the end of 2024 the net assets per
share increased by RMB 0.01/share while the effect on the diluted earnings per share and basic earnings per share is insignificant.Other information that should be disclosed at the discretion of the Company or at the request of the securities regulatory authorities
□ Applicable □ N/A
2. Changes in non-tradable shares
□ Applicable □ N/A
II. Offering and Listing of Securities
1. Offering of securities (other than preferred shares) during the reporting period
□ Applicable □ N/A
2. Changes in the total number of shares shareholding structure and structure of assets and liabilities of
the Company
□ Applicable □ N/A
3. Outstanding employee shares
□ Applicable □ N/A
III. Shareholders and Actual Controllers
1. Number of shareholders and shareholding structure of the Company
In shares
98DSBJ Annual Report 2024
Total
Total
number of
number of
preferred
ordinary
shareholder
Total shareholder Total number of preferred
s whose
number of s at the end shareholders whose voting
voting
ordinary of the rights had been restituted
rights had
shareholder month at the end of the month
115575 78035 been 0 0
s at the end immediatel immediately preceding the
restituted at
of the y preceding disclosure date of this
the end of
reporting the Annual Report (if any)
the
period disclosure (Note 8)
reporting
date of this
period (if
Annual
any) (Note
Report
8)
Shareholding by shareholders holding more than 5% of the shares or top 10 shareholders (excluding the shares lent via
refinancing)
No. of Changes in Pledge attachment or
shares held shareholdin freeze
Shareholdi No. of non- No. of
Name of Status of at the end g during
ng tradable tradable
shareholder shareholder of the the Status of
percentage shares held shares held Number
reporting reporting shares
period period
Domestic
YUAN 22238815 16679111 10299000
natural 13.04% 0 55597038 Pledge
Yongfeng 3 5 0
person
Domestic
YUAN 20222619 15166964
natural 11.85% 0 50556549 Pledge 89310000
Yonggang 6 7
person
Domestic
YUAN
natural 3.45% 58796052 0 0 58796052 N/A 0
Fugen
person
Hong Kong
Securities
Foreign -
Clearing 2.39% 40850142 0 40850142 N/A 0
corporation 25162460
Company
Limited
Agricultura
l Bank of
China
Limited –
Others 1.12% 19073000 11566100 0 19073000 N/A 0
CSI 500
Exchange
Traded
Fund
New China
Life
Insurance
Company
Limited –
Participatin
Others 0.85% 14500148 14500148 0 14500148 N/A 0
g –
Individual
Participatin
g – 018L-
FH002
Shenzhen
GF Fund
Manageme
nt Co. Ltd.– Social
Others 0.70% 11990312 2191300 0 11990312 N/A 0
Security
Fund
Portfolio
402
Zhangjiaga State-
0.64% 10998700 0 0 10998700 N/A 0
ng owned
99DSBJ Annual Report 2024
Industrial corporation
Capital
Investment
Co. Ltd.National
Social
Security
Others 0.64% 10991000 10991000 0 10991000 N/A 0
Fund
Portfolio
503
Domestic
YU
natural 0.63% 10760300 10760300 0 10760300 N/A 0
Qiaoying
person
Strategic investors or
general corporations
becoming top 10
N/A
shareholders as a result of
rights issue (if any) (Note
3)
Among the shareholders listed above YUAN Yonggang and YUAN Yongfeng are sons of YUAN
Affiliates or concert Fugen and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen YUAN
parties among the Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether there are
shareholders listed above affiliates or concert parties within the meaning of the Administrative Measures for the Takeover of
Listed Companies among other shareholders listed above.Delegation or waiver of
voting rights or ownership
of voting rights by or to N/A
the shareholders listed
above
Special explanation about
any dedicated account for
repurchase opened by any N/A
top 10 shareholder (if any)
(Note 10)
Shareholding by top 10 holders of tradable shares (excluding the shares lent via refinancing or under executive lock-up)
Type and number of
Name of shareholder No. of tradable shares held at the end of the reporting period shares
Type Number
RMB-
denominate
YUAN Fugen 58796052 58796052
d ordinary
share
RMB-
denominate
YUAN Yongfeng 55597038 55597038
d ordinary
share
RMB-
denominate
YUAN Yonggang 50556549 50556549
d ordinary
share
RMB-
Hong Kong Securities
denominate
Clearing Company 40850142 40850142
d ordinary
Limited
share
RMB-
Agricultural Bank of
denominate
China Limited – CSI 500 19073000 19073000
d ordinary
Exchange Traded Fund
share
New China Life Insurance
RMB-
Company Limited –
denominate
Participating – Individual 14500148 14500148
d ordinary
Participating – 018L-
share
FH002 Shenzhen
GF Fund Management RMB-
Co. Ltd. – Social Security 11990312 denominate 11990312
Fund Portfolio 402 d ordinary
100DSBJ Annual Report 2024
share
RMB-
Zhangjiagang Industrial
denominate
Capital Investment Co. 10998700 10998700
d ordinary
Ltd.share
RMB-
National Social Security denominate
1099100010991000
Fund Portfolio 503 d ordinary
share
RMB-
denominate
YU Qiaoying 10760300 10760300
d ordinary
share
Affiliates or concert
Among the shareholders listed above YUAN Yonggang and YUAN Yongfeng are sons of YUAN
parties among the top 10
Fugen and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen YUAN
holders of tradable shares
Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether there are
and among the top 10
affiliates or concert parties within the meaning of the Administrative Measures for the Takeover of
holders of tradable shares
Listed Companies among other shareholders listed above.and top 10 shareholders
Securities margin trading
conducted by top 10 YU Qiaoying a shareholder of the Company holds 10760300 shares of the Company through a
ordinary shareholders (if customer’s margin account with Northeast Securities Co. Ltd.any) (Note 4)
Share lending by shareholders holding more than 5% of the shares top 10 shareholders and top 10 holders of tradable shares via
refinancing
□ Applicable □ N/A
Changes in top 10 shareholders and top 10 holders of tradable shares compared with the previous period due to share lending
under refinancing/repayment
□ Applicable □ N/A
Whether the top 10 ordinary shareholders or top 10 holders of tradable ordinary shares conducted any transaction under the
repurchase agreement during the reporting period
□ Yes □ No
No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under the repurchase
agreement during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholders: Natural persons
Type of controlling shareholders: Natural persons
Whether or not having obtained residency in any
Name of controlling shareholder Nationality
other country or region
YUAN Yongfeng China No
YUAN Yonggang China Yes
YUAN Fugen China No
YUAN Yonggang is our Chairman and YUAN Yongfeng is our
Main occupation and title
director and General Manager.Shares held in other domestic or foreign listed companies YUAN Yonggang and his wife WANG Wenjuan are the actual
controlled or invested by the controlling shareholders during controllers of Landun Photoelectron (300862) and Anfu Technology
the reporting period (603031).Change in the controlling shareholders during the reporting period
□ Applicable □ N/A
There has been no change in our controlling shareholders during the reporting period.
101DSBJ Annual Report 2024
3. Actual controllers of the Company and their concert parties
Nature of actual controllers: Domestic natural persons
Type of actual controllers: Natural persons
Whether or not having
Relationship with the actual
Name of the actual controller Nationality obtained residency in any
controller
other country or region
YUAN Yongfeng Himself China No
YUAN Yonggang Himself China Yes
YUAN Fugen Himself China No
See “III. Shareholders and Actual Controllers – 2. Controlling shareholders of the Company”
Main occupation and title
above.Domestic or foreign listed
companies that have been
See “III. Shareholders and Actual Controllers – 2. Controlling shareholders of the Company”
controlled by the actual
above.controllers in the past 10
years
Change in the actual controllers during the reporting period
□ Applicable □ N/A
There has been no change in our actual controllers during the reporting period.Diagram of ownership and control relationship between the Company and its actual controllers:
Concert parties
YUAN Yongfeng YUAN Yonggang YUAN Fugen
(13.04% shares) (11.85% shares) (3.45% shares)
Suzhou Dongshan Precision Manufacturing Co. Ltd.The actual controllers control the Company through trust or other assets management methods
□ Applicable □ N/A
4. Whether the controlling shareholder or largest shareholder of the Company and its concert parties
have pledged more than 80% of shares held by them in the Company in aggregate
□ Applicable □ N/A
102DSBJ Annual Report 2024
5. Other corporate shareholders owning over 10% of shares in the Company
□ Applicable □ N/A
6. Restrictions on the sale of shares by the controlling shareholder actual controller parties involved in
restructuring and other covenantors
□ Applicable □ N/A
IV. Share Repurchases Effected during the Reporting Period
Progress of share repurchases
□ Applicable □ N/A
Amount of
Number of
Disclosur shares Number of Ratio of shares
shares
e date of % of total proposed Use of shares repurchased to the
proposed to Proposed period of
the share to be shares already target shares under the
be repurchase
repurcha capital repurchase repurchased repurchase equity incentive plan
repurchased
se plan d (in RMB d (if any)
(share)
0’000)
12 months Employee
following the date stock
Decembe
729900- 0.04%- 2000- when the share ownership
r 20 1588800
1094900 0.06% 3000 repurchase plan was plan or
2023
approved by the equity
Board of Directors incentive
Note: As of January 15 2024 we have repurchased a total of 1.5888 million shares of the Company through call auction under the
dedicated securities account for repurchase accounting for 0.093% of the Company’s total share capital where the highest trading
price was RMB 15.89/share the lowest trading price was RMB 15.59/share and the total transaction amount was RMB 24.9970
million (excluding handling fees). The repurchase of shares is in compliance with the provisions of laws and regulations and the
Company’s plan of share repurchase. Our plan of share repurchase has been fully implemented. Please refer to the relevant
announcement disclosed on www.cninfo.com.cn and our designated newspapers for information disclosure.Progress of sale or repurchase of shares by call auction
□ Applicable □ N/A
103DSBJ Annual Report 2024
Section VIII Preferred Shares
□ Applicable □ N/A
We did not have any preferred share during the reporting period.Section IX Bonds
□ Applicable □ N/A
104DSBJ Annual Report 2024
Section X Financial Report
I. Auditor’s Report
Audit opinion Standard unqualified opinion
Signing date of the auditor’s report April 23 2025
Auditor Pan-China Certified Public Accountants LLP
Document number of the auditor’s report PCCPA Audit [2025] No. 5-61
Name of certified public accountants ZHANG Yang and FU Zhenlong
Text
Auditor’s Report
PCCPA Audit [2025] No. 5-61
To shareholders of Suzhou Dongshan Precision Manufacturing Co. Ltd.I. Opinion
We have audited the financial statements of Suzhou Dongshan Precision Manufacturing Co. Ltd. (the “Company”) which
comprise the consolidated and standalone balance sheets as of December 31 2024 consolidated and standalone income statements
consolidated and standalone cash flow statements and consolidated and standalone statements of changes in owners’ equity for the
year ended December 31 2024 and notes to the financial statements.In our opinion the accompanying financial statements are prepared and present fairly in all material respects the
consolidated and standalone financial positions of the Company as of December 31 2024 and its consolidated and standalone
results of operations and cash flows for the year ended December 31 2024 in accordance with the Accounting Standards for
Business Enterprises (the “CASBEs”).II. Basis for opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in “Responsibilities of the certified public accountants for the audit ofthe financial statements” below. We are independent of the Company in accordance with the Code of Ethics for Certified Public
Accountants of China and have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
105DSBJ Annual Report 2024
III. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the
financial statements for the current period. These matters were addressed in the context of our audit of the financial statements as a
whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Revenue recognition
1. Description
Refer to “Section X – V(37) and VII(61)” of this Report for detailed information disclosure.The operating revenue of the Company was primarily generated from the sale of electronic circuits LED display devices
touch panels and LCMs precision components and other products which amounted to RMB 36770374300 in 2024.Since operating revenue is a key performance indicator of the Company and there is an inherent risk that the management
of the Company (the “Management”) may attempt to achieve the specific objectives or expectations through improper revenue
recognition we identified revenue recognition as a critical audit matter.
2. Audit response
Our audit procedures related to revenue recognition included the following among others:
(1) Obtained an understanding of the key internal controls related to revenue recognition assessed the design of such
controls determined whether such controls have been implemented and tested the effectiveness of the relevant internal controls;
(2) Examined the sales contracts obtained an understanding of the main contract terms and conditions and assessed the
appropriateness of the method of revenue recognition;
(3) With respect to the revenue from domestic sales examined on a sample basis the sales contracts sales invoices delivery
orders delivery notes and other supporting documents; with respect to the revenue from export obtained the relevant information
from the China Electronic Port checked the same against the book records kept by the Company and examined on a sample basis
the sales contracts sales invoices delivery orders export declaration forms bills of lading and other supporting documents;
(4) Analyzed the operating revenues and gross margin by month product and customer identified major or abnormal
fluctuations and found out the causes;
(5) With respect to accounts receivable confirmation selected sampled items to confirm the sales amounts via confirmation
letters;
(6) Conducted cut-off tests on the operating revenues recognized around the balance sheet date to check whether the
operating revenues were recognized in the proper period; and
(7) Examined whether the information related to operating revenues has been properly presented in the financial statements.
106DSBJ Annual Report 2024
(II) Net realizable value of inventories
1. Description
Refer to “Section X – V(17) and VII(10)” of this Report for detailed information disclosure.As of December 31 2024 the Company’s book balance of inventories was RMB 7163376800 the inventory provision
was RMB 1010721200 and the carrying value of inventories was RMB 6152655600.Inventories are measured at the lower of the cost and net realizable value. The Management determines the net realizable
value according to the estimated selling price less the estimated cost of completion estimated selling expenses and related taxes.Due to the significant amount of inventories and the significant judgment of the Management involved in determining the net
realizable values of inventories we identified the net realizable values of inventories as a critical audit matter.
2. Audit response
Our audit procedures related to the net realizable values of inventories included the following among others:
(1) Obtained an understanding of the key internal controls related to the net realizable values of inventories assessed the
design of such controls determined whether they have been executed and tested the effectiveness of such internal controls;
(2) With respect to the net realizable value of inventories estimated by the Management in prior years reviewed the relevant
results or subsequent re-estimates made by the Management;
(3) Selected items to assess the reasonableness of the estimated selling prices of inventories so as to verify whether the
estimated selling prices were consistent with the prices on sales contracts sales prices on the market and historical data etc.;
(4) Evaluated the reasonableness of the estimation made by the Management regarding the costs selling expenses and
relevant taxes before the inventories were completed;
(5) Tested whether the calculation of the net realizable value of inventories made by the Management was accurate;
(6) With reference to stock counting of inventories under supervision identified inventories that were long-aged outdated
decreased in production subject to fluctuation in production costs or selling prices or experienced changes in technologies or
market demands and assessed the reasonableness of the estimation of the net realizable value of inventories made by the
Management; and
(7) Examined whether the information related to the net realizable value of inventories has been properly presented in the
financial statements.(III) Impairment of fixed assets
1. Description
Refer to “Section X – V(24) and VII(21)” of this Report for detailed information disclosure.
107DSBJ Annual Report 2024
Subject to the impact of the market and economic environments Yancheng Dongshan Precision Manufacturing Co. Ltd.(“Yancheng Dongshan”) a subsidiary of DSBJ suffered losses continuously and had partial fixed assets idle. The Management
considered that there were signs indicating the impairment of relevant fixed assets so that the carrying value of such fixed assets
could not be fully recovered with the future cash flow generated by such assets or disposal of such assets. As of December 31
2024 the carrying value of Yancheng Dongshan’s fixed assets was RMB 1911351000.
Given the significant judgment of the Management in making the provision for impairment of fixed assets especially the
inherent uncertainty in predicting the future cash flow and estimating the recoverable amount of the fixed assets and the possible
effect of the Management’s preference we identified the impairment of fixed assets as a key audit matter.
2. Audit response
Our audit procedures related to impairment of fixed assets included the following among others:
(1) Obtained an understanding of the key internal controls related to impairment of fixed assets assessed the design of such
controls determined whether they have been executed and tested the effectiveness of such internal controls;
(2) Examined relevant fixed assets on site and implemented stock counting under supervision to identify problems of
outdated process and technologies assets idle for a long period of time the utilization of production capacities etc.;
(3) Assessed the competencies professional quality and objectivity of the external appraisers engaged by the Management;
(4) Assessed the appropriateness and consistency of the approaches adopted by the Management in impairment tests;
(5) Assessed the appropriateness of the material assumptions used by the Management in impairment tests and whether the
relevant assumptions were consistent with the overall economic environment industrial conditions operating situations historical
experience business plans approved budgets and other assumptions used by the Management in relation to the financial
statements;
(6) Tested the appropriateness relevance and reliability of the data used by the Management in impairment tests and
reviewed the consistency of inputs in impairment tests;
(7) Tested the accuracy of the calculation of the estimated present value of future cash flows by the Management; and
(8) Examined whether the information related to impairment of fixed assets has been properly presented in the financial
statements.IV. Other information
The Management is responsible for the other information. The other information comprises the information included in the
Annual Report but does not include the financial statements and our Auditor’s Report.
108DSBJ Annual Report 2024
Our opinion in the financial statements does not cover the other information and we will not express any form of assurance
conclusions thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.If we conclude that there is a material misstatement therein we are required to communicate such matter. We have nothing
to report in this regard.V. Responsibilities of the Management and those charged with governance for the financial statements
The Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
CASBE and the design implementation and maintenance of internal controls that are necessary to enable the preparation of
financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to continue as a
going concern disclosing (as applicable) matters relating to going concern and using the going concern basis of accounting unless
the Management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance of the Company are responsible for overseeing the financial reporting process of the
Company.VI. Responsibilities of the Certified Public Accountants for the audit of the 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 auditor’s 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 audit standards we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design
and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a
109DSBJ Annual Report 2024
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control;
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances;
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management;
(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubts on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by the
audit standards to draw attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures
are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to continue as a going concern;
(V) 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; and
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion in the financial statements. We are responsible for the direction supervision and
performance of the audit of the Group and solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the
audit and significant audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the critical audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely
rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
110DSBJ Annual Report 2024
II. Financial statements
The amounts in the statements contained in the notes to the financial statements are presented in RMB
1. Consolidated balance sheet
Prepared by: Suzhou Dongshan Precision Manufacturing Co. Ltd.December 31 2024
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 7172331252.29 7190036231.06
Settlement deposit
Loans to banks and other financial
institutions
Financial assets held for trading 78144342.95 146141371.77
Derivative financial assets
Notes receivable 9037098.60 3407623.49
Accounts receivable 7663458025.49 7713164772.05
Accounts receivable financing 252612009.41 290477095.22
Advances to suppliers 93875465.69 79782739.11
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 45836662.39 77134897.39
Incl.: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventories 6152655607.85 6293879276.54
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1209842283.99 651719745.68
Total current assets 22677792748.66 22445743752.31
Non-current assets:
Loans and advances to clients
Debt investments
Other debt investments
Long-term receivable 30000000.00 30000000.00
Long-term equity investment 155008795.68 155406879.89
Investments in other equity
333657110.00278157110.00
instruments
111DSBJ Annual Report 2024
Other non-current financial assets
Investment properties 781129.10 1038840.26
Fixed assets 13595191232.40 12415251689.80
Construction in progress 2575154318.35 1842525188.54
Productive biological assets
Oil and gas assets
Right-of-use assets 1313776299.13 1252668050.83
Intangible assets 962594133.34 863692421.74
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill 2119612220.47 2209199500.98
Long-term deferred expenses 903599713.89 866872191.21
Deferred tax assets 834450612.08 1078140428.38
Other non-current assets 512554751.37 933022974.34
Total non-current assets 23336380315.81 21925975275.97
Total assets 46014173064.47 44371719028.28
Current liabilities:
Short-term borrowings 4810954130.69 5156100217.01
Borrowings from Central Bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading 82922390.17 104174076.23
Derivative financial liabilities
Notes payable 935581272.50 909171215.93
Accounts payable 9659268990.43 8039107176.52
Advances from clients
Contract liabilities 122562435.14 28982676.07
Financial assets sold under repurchase
agreements
Deposits from clients and other banks
Funds received as stock broker
Funds received as underwriter of
securities
Employee benefits payable 597573087.02 553178980.68
Taxes payable 395772127.76 475576206.83
Other payables 94163223.90 80188628.54
Incl.: Interest payable
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one 2458987301.36 2496716906.35
112DSBJ Annual Report 2024
year
Other current liabilities 5190838.21 6556017.38
Total current liabilities 19162975797.18 17849752101.54
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 5289187891.33 4706280338.76
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 1351518837.18 1842799193.80
Long-term payables 49434786.31 296995789.48
Long-term employee benefits payable
Provisions 58258872.92 60785210.44
Deferred income 585933889.89 733456685.17
Deferred tax liabilities 630759756.43 691293111.83
Other non-current liabilities
Total non-current liabilities 7965094034.06 8331610329.48
Total liabilities 27128069831.24 26181362431.02
Owners’ equity:
Share capital 1705913710.00 1709867327.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 7992284435.83 8063768409.73
Less: Treasury shares 74991696.79 125906811.33
Other comprehensive income -317104374.08 -714664578.64
Special reserve
Surplus reserve 232241216.54 184866869.73
General risk reserve
Retained profits 9288043977.88 9025095529.05
Total owners’ equity attributable to the
18826387269.3818143026745.54
parent company
Minority interests 59715963.85 47329851.72
Total owners’ equity 18886103233.23 18190356597.26
Total liabilities and owners’ equity 46014173064.47 44371719028.28
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
2. Standalone balance sheet
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 1090000348.49 1121824500.79
Financial assets held for trading
Derivative financial assets
Notes receivable 182944.04
Accounts receivable 3143492614.37 2084703275.22
113DSBJ Annual Report 2024
Accounts receivable financing 18920385.63 16445639.29
Advances to suppliers 39423778.51 264702649.93
Other receivables 5969486558.66 5252635539.56
Incl.: Interest receivable
Dividends receivable 1495758008.53 2203111413.70
Inventories 986847112.47 1299182931.81
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 71972689.92 50271463.84
Total current assets 11320143488.05 10089948944.48
Non-current assets:
Debt investments
Other debt investments
Long-term receivable 30000000.00 30000000.00
Long-term equity investment 9627857599.31 9466303266.56
Investments in other equity instruments 221322110.00 171322110.00
Other non-current financial assets
Investment properties
Fixed assets 775223315.27 1292621445.22
Construction in progress 148492748.83 237324474.45
Productive biological assets
Oil and gas assets
Right-of-use assets 2609200.64 4566101.24
Intangible assets 61524955.69 61083591.40
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill
Long-term deferred expenses 89330126.49 87384070.37
Deferred tax assets 36909520.17 189735608.41
Other non-current assets 70661066.13 163595104.57
Total non-current assets 11063930642.53 11703935772.22
Total assets 22384074130.58 21793884716.70
Current liabilities:
Short-term borrowings 2294208162.79 2911521728.06
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 585570169.87 449069523.81
Accounts payable 1389942826.35 1326777885.36
Advances from clients
114DSBJ Annual Report 2024
Contract liabilities 18959880.87 11196344.94
Employee benefits payable 30758082.10 53045775.35
Taxes payable 3170402.36 3260417.40
Other payables 5101960753.88 3680367551.64
Incl.: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 799561489.98 834828298.62
Other current liabilities 1508828.34 3373087.29
Total current liabilities 10225640596.54 9273440612.47
Non-current liabilities:
Long-term borrowings 2251616980.54 2405437622.23
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 861053.29 2741061.12
Long-term payables 226168789.48
Long-term employee benefits payable
Provisions 1125097.32 1852066.56
Deferred income 16473333.57 19403333.49
Deferred tax liabilities 534830.01 920551.61
Other non-current liabilities
Total non-current liabilities 2270611294.73 2656523424.49
Total liabilities 12496251891.27 11929964036.96
Owners’ equity:
Share capital 1705913710.00 1709867327.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 7890754703.00 7962239056.77
Less: Treasury shares 74991696.79 125906811.33
Other comprehensive income -350000000.00
Special reserve
Surplus reserve 232241216.54 184866869.73
Retained profits 133904306.56 482854237.57
Total owners’ equity 9887822239.31 9863920679.74
Total liabilities and owners’ equity 22384074130.58 21793884716.70
3. Consolidated income statement
In RMB
Item 2024 2023
I. Total operating revenue 36770374347.58 33651205468.80
Incl.: Operating revenue 36770374347.58 33651205468.80
Interest income
Premiums earned
115DSBJ Annual Report 2024
Fee and commission income
II. Total operating costs 34556547462.54 31334350168.82
Incl.: Operating cost 31615008629.39 28541641042.74
Interest expenses
Fee and commission expenses
Surrenders
Net payments for insurance claims
Net insurance claim reserves
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 167042863.87 122969094.29
Selling expenses 454017787.21 362094101.76
Administrative expenses 1112402085.44 957323918.86
R&D expenses 1266812544.23 1161190274.48
Financial expenses -58736447.60 189131736.69
Incl.: Interest expenses 438226327.56 463688943.50
Interest income 243071834.40 225593949.55
Add: Other income 523255832.55 249881956.51
Investment income (loss expressed with “-”) -22034772.62 4158524.35
Incl.: Investment income from associates and joint ventures -398084.25 -10820910.91
Gain on derecognition of financial assets at amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging income (loss expressed with “-”)
Gain on changes in fair value (loss expressed with “-”) -17898094.22 -9740779.67
Credit impairment loss (loss expressed with “-”) -44109673.59 -39436689.63
Impairment loss on assets (loss expressed with “-”) -938687855.79 -438676762.78
Gain on disposal of assets (loss expressed with “-”) -234749852.86 -18240640.06
III. Operating profit (loss expressed with “-”) 1479602468.51 2064800908.70
Add: Non-operating revenue 9260396.63 141478735.80
Less: Non-operating expenses 21151029.02 15191689.58
IV. Profit before tax (loss expressed with “-”) 1467711836.12 2191087954.92
Less: Income tax expenses 382650922.07 226037787.50
V. Net profit (loss expressed with “-”) 1085060914.05 1965050167.42
(I) Classified by continuity of operation
1. Net profit from continuing operation (loss expressed with “-”) 1085060914.05 1965050167.42
2. Net profit from discontinued operation (loss expressed with “-”)
(II) Classified by attribution
1. Net profit attributable to owners of the parent company 1085641847.89 1964525269.65
2. Profit attributable to minority interests -580933.84 524897.77
VI. Other comprehensive income net 47560204.56 -21688573.43
Other comprehensive income attributable to owners of the parent company net after
47560204.56-21688573.43
tax
(I) Other comprehensive income that cannot be reclassified to profit or loss
1. Changes arising from remeasurement of defined benefit plans
2. Other comprehensive income that cannot be reclassified to profit or loss
under equity method
116DSBJ Annual Report 2024
3. Change in fair value of investments in other equity instruments
4. Change in fair value of the corporation’s credit risk
5. Others
(II) Other comprehensive income that will be reclassified to profit or loss 47560204.56 -21688573.43
1. Other comprehensive income that can be reclassified to profit or loss under
equity method
2. Change in fair value of other debt investments
3. Financial assets reclassified to other comprehensive income
4. Provision for credit impairment of other debt investments
5. Reserves for cash flow hedge 13125520.72 39915469.78
6. Differences in translation of foreign currency financial statements 34434683.84 -61604043.21
7. Others
Other comprehensive income attributable to minority interests net after tax
VII. Total comprehensive income 1132621118.61 1943361593.99
Total comprehensive income attributable to owners of the parent company 1133202052.45 1942836696.22
Total comprehensive income attributable to minority interests -580933.84 524897.77
VIII. Earnings per share
(I) Basic earnings per share 0.64 1.15
(II) Diluted earnings per share 0.64 1.15
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
4. Standalone income statement
In RMB
Item 2024 2023
I. Operating revenue 4750880680.91 3737530873.50
Less: Operating cost 4071450528.91 3381377455.45
Taxes and surcharges 20509211.02 7671794.48
Selling expenses 41590505.69 65003786.00
Administrative expenses 267655862.76 264117661.70
R&D expenses 223564889.84 252953031.98
Financial expenses 161027919.44 244140628.33
Incl.: Interest expenses 322381094.38 355406845.27
Interest income 52566198.94 97881674.07
Add: Other income 33990328.28 5526956.76
Investment income (loss expressed with “-”) 593170019.98 1097355440.91
Incl.: Investment income from associates and joint ventures 5584848.30 -7147658.81
Gain on derecognition of financial assets at amortized cost (loss
expressed with “-”)
Net exposure hedging income (loss expressed with “-”)
Gain on changes in fair value (loss expressed with “-”) -13243914.03
Credit impairment loss (loss expressed with “-”) 17367223.10 -53563010.03
Impairment loss on assets (loss expressed with “-”) -27906250.25 -73708230.19
Gain on disposal of assets (loss expressed with “-”) -1030988.54 932378.60
II. Operating profit (loss expressed with “-”) 567428181.79 498810051.61
Add: Non-operating revenue 66579410.21 94150.75
Less: Non-operating expenses 7823757.31 3700557.85
III. Profit before tax (loss expressed with “-”) 626183834.69 495203644.51
117DSBJ Annual Report 2024
Less: Income tax expenses 152440366.64 13298.17
IV. Net profit (loss expressed with “-”) 473743468.05 495190346.34
(I) Net profit from continuing operation (loss expressed with “-”) 473743468.05 495190346.34
(II) Net profit from discontinued operation (loss expressed with “-”)
V. Other comprehensive income net -4538660.00
(I) Other comprehensive income that cannot be reclassified to profit or loss
1. Changes arising from remeasurement of defined benefit plans
2. Other comprehensive income that cannot be reclassified to profit or loss under
equity method
3. Change in fair value of investments in other equity instruments
4. Change in fair value of the corporation’s credit risk
5. Others
(II) Other comprehensive income that will be reclassified to profit or loss -4538660.00
1. Other comprehensive income that can be reclassified to profit or loss under
equity method
2. Change in fair value of other debt investments
3. Financial assets reclassified to other comprehensive income
4. Provision for credit impairment of other debt investments
5. Reserves for cash flow hedge -4538660.00
6. Differences in translation of foreign currency financial statements
7. Others
VI. Total comprehensive income 473743468.05 490651686.34
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
In RMB
Item 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 36888162952.22 32739066437.34
Net increase in deposits from clients and other banks
Net increase in borrowings from Central Bank
Net increase in borrowings from other financial institutions
Proceeds from premiums under prior insurance contracts
Net proceeds from reinsurance business
Net increase in insured’s deposits and investments
Proceeds from interest fees and commissions
Net increase in borrowings from banks and other financial institutions
Net increase in receipts under repurchase transactions
Net cash received as stock broker
Tax refunds received 1110541496.13 1137521361.97
Other proceeds relating to operating activities 1080208971.62 1064645853.79
Cash provided by operating activities 39078913419.97 34941233653.10
Payments for purchase of goods and receipt of services 27320456007.82 23717207870.38
Net increase in loans and advances from clients
Net increase in deposits in Central Bank and other banks
Payment of claims under prior insurance contracts
Net increase in loans to banks and other financial institutions
Payment of interest fees and commissions
118DSBJ Annual Report 2024
Payment of policyholder dividends
Payments to and for employees 4844071324.22 4361937171.07
Taxes paid 704488780.75 605774751.89
Other payments relating to operating activities 1223878618.70 1083894389.56
Cash used in operating activities 34092894731.49 29768814182.90
Net cash flows from operating activities 4986018688.48 5172419470.20
II. Cash flows from investing activities:
Proceeds from disposal of investments 331862195.88 456515984.16
Proceeds from return on investments 665777.96 130859749.94
Net proceeds from the disposal of fixed assets intangible assets and other long-term
173295074.5037557278.12
assets
Net proceeds from the disposal of subsidiaries and other business entities 39159620.71
Other proceeds relating to investing activities 920378244.31 439820656.38
Cash provided by investing activities 1465360913.36 1064753668.60
Payments for the acquisition of fixed assets intangible assets and other long-term
3792143747.463466863364.13
assets
Payments for investments 328162771.38 664445169.56
Net increase in mortgage loans
Net payments for the acquisition of subsidiaries and other business entities 863778442.89
Other cash payments relating to investing activities 1438740539.88 908569017.53
Cash used in investing activities 5559047058.72 5903655994.11
Net cash flows from investing activities -4093686145.36 -4838902325.51
III. Cash flows from financing activities:
Proceeds from investors
Incl.: Proceeds of subsidiaries from minority shareholders’ investments
Cash receipts from borrowings 9292322928.58 13365424866.08
Other proceeds relating to financing activities 1013657755.68 1329035764.61
Cash provided by financing activities 10305980684.26 14694460630.69
Repayment of borrowings 9305852934.81 12628310459.03
Payment of distribution of dividends and profits or for interest 789614962.62 566998901.47
Incl.: Dividends and profits distributed by subsidiaries to minor shareholders 131033.08
Other payments relating to financing activities 1529880189.66 1741698784.20
Cash used in financing activities 11625348087.09 14937008144.70
Net cash flows from financing activities -1319367402.83 -242547514.01
IV. Effect of exchange rate changes on cash and cash equivalents 126148223.77 96490564.93
V. Net increase in cash and cash equivalents -300886635.94 187460195.61
Add: Opening balance of cash and cash equivalents 5644487018.31 5457026822.70
VI. Closing balance of cash and cash equivalents 5343600382.37 5644487018.31
6. Standalone cash flow statement
In RMB
Item 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 3087518926.49 3599977055.52
Tax refunds received 79327801.50 170635154.61
Other proceeds relating to operating activities 5758926751.58 2473918043.84
Cash provided by operating activities 8925773479.57 6244530253.97
Payments for purchase of goods and receipt of services 2829046533.99 3993122870.14
Payments to and for employees 374024194.96 408725850.72
Taxes paid 74184275.05 25001677.19
Other payments relating to operating activities 5022100747.33 1209977998.48
Cash used in operating activities 8299355751.33 5636828396.53
Net cash flows from operating activities 626417728.24 607701857.44
II. Cash flows from investing activities:
119DSBJ Annual Report 2024
Proceeds from disposal of investments 52599999.99 15357541.22
Proceeds from return on investments 1487814382.67 115022537.63
Net proceeds from the disposal of fixed assets intangible assets and other long-term
2321703.0015584415.51
assets
Net proceeds from the disposal of subsidiaries and other business entities
Other proceeds relating to investing activities 348788350.25 72539552.45
Cash provided by investing activities 1891524435.91 218504046.81
Payments for the acquisition of fixed assets intangible assets and other long-term
178368792.91218313936.35
assets
Payments for investments 264999999.99 1671525214.35
Net payments for the acquisition of subsidiaries and other business entities
Other cash payments relating to investing activities 2145958659.54 557893589.63
Cash used in investing activities 2589327452.44 2447732740.33
-
Net cash flows from investing activities -697803016.53
2229228693.52
III. Cash flows from financing activities:
Proceeds from investors
Cash receipts from borrowings 3927134206.67 5892310572.50
Other proceeds relating to financing activities 3092048892.48
Cash provided by financing activities 7019183099.15 5892310572.50
Repayment of borrowings 4732373761.70 4307827399.66
Payment of distribution of dividends and profits or for interest 406253984.10 386091836.92
Other payments relating to financing activities 1840793177.42 153521804.76
Cash used in financing activities 6979420923.22 4847441041.34
Net cash flows from financing activities 39762175.93 1044869531.16
IV. Effect of exchange rate changes on cash and cash equivalents 91649076.85 21358018.36
V. Net increase in cash and cash equivalents 60025964.49 -555299286.56
Add: Opening balance of cash and cash equivalents 478844238.56 1034143525.12
VI. Closing balance of cash and cash equivalents 538870203.05 478844238.56
7. Consolidated statement of changes in owners’ equity
Amount of the current period
In RMB
2024
Owners’ equity attributable to the parent
Other equity Othe
instruments r Total
Less: Gene Min
Item Shar Capi com Spec Surp Retai own
Trea ral ority
e Prefe Perp tal preh ial lus ned Othe Subt
ers’
sury risk inter
capit reser ensiv reser reser profi rs otal ests equitrred etual Othe share reser
al share bond rs ve e ve ve ts
y
s ve
s s inco
me
I.Bala
nce
-181181
at 170 806 125 184 902 473
714430903
the 986 376 906 866 509 298
664267565
end 732 840 811. 869. 552 51.7
578.45.597.2
of 7.00 9.73 33 73 9.05 2
6446
the
previ
ous
120DSBJ Annual Report 2024
year
A
dd:
Chan
ges
in
acco
untin
g
polic
ies
Corr
ectio
n of
previ
ous
perio
d
error
s
Othe
rs
II.Bala
nce
at
-181181
the 170 806 125 184 902 473
714430903
begi 986 376 906 866 509 298
664267565
nnin 732 840 811. 869. 552 51.7
578.45.597.2
g of 7.00 9.73 33 73 9.05 2
6446
the
curre
nt
year
III.Incre
ase/(
decr
ease)
in
the
--
curre - 397 473 262 683 123 695
714509
nt 395 560 743 948 360 861 746
839151
perio 361 204. 46.8 448. 523. 12.1 635.
73.914.5
d 7.00 56 1 83 84 3 97
04
(decr
ease
expr
esse
d
with
“-”)
(I) 475 108 113 - 113
Total 602 564 320 580 262
com 04.5 184 205 933. 111
preh 6 7.89 2.45 84 8.61
121DSBJ Annual Report 2024
ensiv
e
inco
me
(II)
Inve
stme
----
nt/(d - -
714509245303
ivest 395 587
839151224928
ment 361 037
73.914.576.356.2
) by 7.00 9.87
0463
share
hold
ers
1.
Cont
ribut
ions
---
from 250 -
262512571
hold 008 587
386394094
ers 46.3 000
19.565.865.8
of 0 0.00
000
ordin
ary
share
s
2.
Cont
ribut
ions
from
hold
ers
of
other
equit
y
instr
ume
nts
3.
Shar
e-
base
d
pay
ment 478 478 - 477
s 369. 369. 379. 990.recor 94 94 87 07
ded
in
own
ers’
equit
y
4.---262262
122DSBJ Annual Report 2024
Othe 395 457 759 386 386
rs 361 237 159 19.5 19.5
7.0024.360.800
44
(III)
---
Distr 473 188
472425406
ibuti 743 374
693319481
on of 46.8 25.8
399.052.626.
profi 1 4
062541
ts
1.-
473
Surp 473
743
lus 743
46.8
reser 46.8
1
ve 1
2.
Gene
ral
risk
reser
ve
3.
Distr
ibuti
---
ons
425425425
to
319319319
own
052.052.052.
ers
252525
(shar
ehol
ders)
188188
4.
374374
Othe
25.825.8
rs
44
(IV)
Inter
nal
-
trans 350
350
fer 000
000
of 000.
000.
own 00
00
ers’
equit
y
1.
Tran
sfer
of
capit
al
reser
ve to
(shar
e)
capit
123DSBJ Annual Report 2024
al
2.
Tran
sfer
of
surpl
us
reser
ve to
(shar
e)
capit
al
3.
Mak
e-up
of
losse
s by
surpl
us
reser
ve
4.
Tran
sfer
of
chan
ges
in
defin
ed
bene
fit
plans
to
retai
ned
earni
ngs
5.
Tran
sfer
of
other
com
-
preh 350
350
ensiv 000
000
e 000.
000.
inco 00
00
me
to
retai
ned
earni
ngs
124DSBJ Annual Report 2024
6.
Othe
rs
(V)
Spec
ial
reser
ve
1.
Appr
opria
ted
in
the
curre
nt
perio
d
2.
Used
in
the
curre
nt
perio
d
(VI)
Othe
rs
IV.Bala
nce
at
-188188
the 170 799 749 232 928 597
317263861
end 591 228 916 241 804 159
104872032
of 371 443 96.7 216. 397 63.8
374.69.333.2
the 0.00 5.83 9 54 7.88 5
0883
curre
nt
perio
d
Amount of the previous period
In RMB
2023
Owners’ equity attributable to the parent
Other equity Othe
instruments r Total
Less: Gene Min
Item Shar Capi com Spec Surp Retai own
Trea ral ority
e Prefe Perp tal preh ial lus ned Othe Subt
ers’
sury risk inter
capit reser ensiv reser reser profi rs otal equitrred etual Othe share reser ests
al y share bond rs ve e ve ve ts s ve
s s inco
me
125DSBJ Annual Report 2024
I.Bala
nce
at - 163 164
170805125135729469
the 692 786 255
986489906347740276
end 976 308 584
732408811.835.44425.3
of 005. 71.3 96.7
7.000.7733105.029
the 21 5 4
previ
ous
year
A
dd:
Chan
ges
in
acco
untin
g
polic
ies
Corr
ectio
n of
previ
ous
perio
d
error
s
Othe
rs
II.Bala
nce
at
-163164
the 170 805 125 135 729 469
692786255
begi 986 489 906 347 740 276
976308584
nnin 732 408 811. 835. 444 25.3
005.71.396.7
g of 7.00 0.77 33 10 5.02 9
2154
the
curre
nt
year
III.Incre
ase/(
decr
-
ease) 495 172 176 176
887216402
in 190 769 439 479
432885226.
the 34.6 108 587 810
8.9673.433
curre 3 4.03 4.19 0.52
3
nt
perio
d
(decr
126DSBJ Annual Report 2024
ease
expr
esse
d
with
“-”)
(I)
Total
-
com 196 194 194
216524
preh 452 283 336
885897.
ensiv 526 669 159
73.477
e 9.65 6.22 3.99
3
inco
me
(II)
Inve
stme
nt/(d
887887888
ivest 836
432432269
ment 1.64
8.968.960.60
) by
share
hold
ers
1.
Cont
ribut
ions
from
hold
ers
of
ordin
ary
share
s
2.
Cont
ribut
ions
from
hold
ers
of
other
equit
y
instr
ume
nts
3.
Shar
887887888
e- 836
432432269
base 1.64
8.968.960.60
d
pay
127DSBJ Annual Report 2024
ment
s
recor
ded
in
own
ers’
equit
y
4.
Othe
rs
(III)
---
Distr 495 -
236187187
ibuti 190 131
834315446
on of 34.6 033.
185.150.184.
profi 3 08
629907
ts
1.-
495
Surp 495
190
lus 190
34.6
reser 34.6
3
ve 3
2.
Gene
ral
risk
reser
ve
3.
Distr
ibuti
---
ons -
187187187
to 131
315315446
own 033.
150.150.184.
ers 08
999907
(shar
ehol
ders)
4.
Othe
rs
(IV)
Inter
nal
trans
fer
of
own
ers’
equit
y
1.
Tran
sfer
128DSBJ Annual Report 2024
of
capit
al
reser
ve to
(shar
e)
capit
al
2.
Tran
sfer
of
surpl
us
reser
ve to
(shar
e)
capit
al
3.
Mak
e-up
of
losse
s by
surpl
us
reser
ve
4.
Tran
sfer
of
chan
ges
in
defin
ed
bene
fit
plans
to
retai
ned
earni
ngs
5.
Tran
sfer
of
other
com
preh
ensiv
129DSBJ Annual Report 2024
e
inco
me
to
retai
ned
earni
ngs
6.
Othe
rs
(V)
Spec
ial
reser
ve
1.
Appr
opria
ted
in
the
curre
nt
perio
d
2.
Used
in
the
curre
nt
perio
d
(VI)
Othe
rs
IV.Bala
nce
at
-181181
the 170 806 125 184 902 473
714430903
end 986 376 906 866 509 298
664267565
of 732 840 811. 869. 552 51.7
578.45.597.2
the 7.00 9.73 33 73 9.05 2
6446
curre
nt
perio
d
8. Standalone statement of changes in owners’ equity
Amount of the current period
In RMB
130DSBJ Annual Report 2024
2024
Other equity instruments Other
Less: compr Total
Item Specia Surplu RetainShare Preferr Perpet Capital Treasu ehensi ownersl s ed Others
capital ed ual Others reserve ry ve ’ reserve reserve profits
shares bonds shares incom equity
e
I.Balanc
-
e at the 1709 7962 12590 18486 48285 9863
35000
end of 86732 23905 6811. 6869. 4237. 92067
0000.
the 7.00 6.77 33 73 57 9.74
00
previo
us year
A
dd:
Chang
es in
accoun
ting
policie
s
Correc
tion of
previo
us
period
errors
Others
II.Balanc
e at the -
170979621259018486482859863
beginn 35000
86732239056811.6869.4237.92067
ing of 0000.
7.006.773373579.74
the 00
current
year
III.Increas
e/(decr
ease)
in the
---
current - 35000 47374 23901
714845091534894
period 3953 0000. 346.8 559.5
353.7114.59931.
(decre 617.00 00 1 7
7401
ase
expres
sedwith “-”)
(I)
Total 47374 47374
compr 3468. 3468.ehensi 05 05
ve
131DSBJ Annual Report 2024
incom
e
(II)
Invest
ment/( - - -
-
divest 71484 50915 24522
3953
ment) 353.7 114.5 856.2
617.00
by 7 4 3
shareh
olders
1.
Contri
bution
s from 26238 25000
1237
holder 619.5 846.3
773.20
s of 0 0
ordinar
y
shares
2.
Contri
bution
s from
holder
s of
other
equity
instru
ments
3.
Share-
based
payme
nts 47799 47799
record 0.07 0.07
ed in
owners
’
equity
---
-
4.982007591526238
3953
Others 963.3 960.8 619.5
617.00
440
(III)
--
Distrib 47374
4726942531
ution 346.8
3399.9052.
of 1
0625
profits
1.-
47374
Surplu 47374
346.8
s 346.8
1
reserve 1
2.--
Distrib 42531 42531
utions 9052. 9052.
132DSBJ Annual Report 2024
to 25 25
owners
(share
holder
s)
3.
Others
(IV)
Interna
l -
35000
transfe 35000
0000.
r of 0000.
00
owners 00
’
equity
1.
Transf
er of
capital
reserve
to
(share)
capital
2.
Transf
er of
surplus
reserve
to
(share)
capital
3.
Make-
up of
losses
by
surplus
reserve
4.
Transf
er of
change
s in
define
d
benefit
plans
to
retaine
d
earnin
gs
5.35000-
Transf 0000. 35000
er of 00 0000.
133DSBJ Annual Report 2024
other 00
compr
ehensi
ve
incom
e to
retaine
d
earnin
gs
6.
Others
(V)
Specia
l
reserve
1.
Appro
priated
in the
current
period
2.
Used
in the
current
period
(VI)
Others
IV.Balanc
e at the 1705 7890 74991 23224 13390 9887
end of 91371 75470 696.7 1216. 4306. 82223
the 0.00 3.00 9 54 56 9.31
current
period
Amount of the previous period
In RMB
2023
Other equity instruments Other
Less: compr Total
Item Specia Surplu RetainShare Preferr Perpet Capital Treasu ehensi ownersl s ed Others
capital ed ual Others reserve ry ve ’ reserve reserve profits
shares bonds shares incom equity
e
I.Balanc
-
e at the 1709 7953 12590 13534 22449 9551
34546
end of 86732 35636 6811. 7835. 8076. 70145
1340.
the 7.00 6.17 33 10 85 3.79
00
previo
us year
A
134DSBJ Annual Report 2024
dd:
Chang
es in
accoun
ting
policie
s
Correc
tion of
previo
us
period
errors
Others
II.Balanc
e at the -
170979531259013534224499551
beginn 34546
86732356366811.7835.8076.70145
ing of 1340.
7.006.173310853.79
the 00
current
year
III.Increas
e/(decr
ease)
in the
current - 49519 25835 31221
8882
period 4538 034.6 6160. 9225.
690.60
(decre 660.00 3 72 95
ase
expres
sedwith “-”)
(I)
Total
compr - 49519 49065
ehensi 4538 0346. 1686.ve 660.00 34 34
incom
e
(II)
Invest
ment/(
divest 8882 8882
ment) 690.60 690.60
by
shareh
olders
1.
Contri
bution
s from
holder
135DSBJ Annual Report 2024
s of
ordinar
y
shares
2.
Contri
bution
s from
holder
s of
other
equity
instru
ments
3.
Share-
based
payme
nts 8882 8882
record 690.60 690.60
ed in
owners
’
equity
4.
Others
(III)
--
Distrib 49519
2368318731
ution 034.6
4185.5150.
of 3
6299
profits
1.-
49519
Surplu 49519
034.6
s 034.6
3
reserve 3
2.
Distrib
utions - -
to 18731 18731
owners 5150. 5150.(share 99 99
holder
s)
3.
Others
(IV)
Interna
l
transfe
r of
owners
’
equity
1.
136DSBJ Annual Report 2024
Transf
er of
capital
reserve
to
(share)
capital
2.
Transf
er of
surplus
reserve
to
(share)
capital
3.
Make-
up of
losses
by
surplus
reserve
4.
Transf
er of
change
s in
define
d
benefit
plans
to
retaine
d
earnin
gs
5.
Transf
er of
other
compr
ehensi
ve
incom
e to
retaine
d
earnin
gs
6.
Others
(V)
Specia
l
reserve
137DSBJ Annual Report 2024
1.
Appro
priated
in the
current
period
2.
Used
in the
current
period
(VI)
Others
IV.Balanc
-
e at the 1709 7962 12590 18486 48285 9863
35000
end of 86732 23905 6811. 6869. 4237. 92067
0000.
the 7.00 6.77 33 73 57 9.74
00
current
period
III. General Information of the Company
Suzhou Dongshan Precision Manufacturing Co. Ltd. (the “Company”) is a company limited by shares converted from
Suzhou Dongshan Sheet Metal Co. Ltd. and registered with the Suzhou Municipal Administration for Industry and Commerce of
Jiangsu on December 24 2007 and is headquartered in Suzhou Jiangsu holds a business license with unified social credit code of
91320500703719732P and has a registered capital of RMB 1705913710 divided into 1705913710 shares with a par value of
RMB 1 each share of which 319591987 shares are non-tradable A-shares and 1386321723 shares are tradable A-shares. The
Company’s shares have been listed and traded on the Shenzhen Stock Exchange since April 9 2010.The Company belongs to the computer communication and other electronic equipment manufacturing industry and is
primarily engaged in the provision of core devices for intelligent interconnection including electronic circuits LED display
devices touch panels LCMs precision components etc.These financial statements are approved for release at the 19th meeting of the 6th Board of Directors on April 23 2025.IV. Basis for Preparation of the Financial Statements
1. Basis for preparation
These financial statements have been prepared on the assumption that the Company is a going concern.
138DSBJ Annual Report 2024
2. Going concern
No event or fact may cast significant doubts on the Company’s ability to remain a going concern within 12 months after the
end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Note about specific accounting policies and accounting estimates:
Important note: The Company has established specific accounting policies and made specific accounting estimates with
respect to the impairment of financial instruments inventories depreciation of fixed assets construction in progress intangible
assets recognition of revenues and other transactions or events according to its actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises (“CASBEs”)
The financial statements prepared by the Company conform to the requirements of the CASBEs and truly and completely
reflect the Company’s financial condition operating results cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities on the basis of 12
months.
4. Functional currency
The Company adopts RMB as its functional currency. Subsidiaries of the Company adopt the currencies of their main
economic environment in which they operate as the functional currencies where subsidiaries in Chinese Mainland use RMB and
subsidiaries outside of Chinese Mainland use USD THB MXN etc. depending on the main economic environment in which they
operate. These financial statements are presented in RMB.
5. Determination and basis for selection of materiality criteria
□ Applicable □ N/A
Item Materiality criteria
Significant accounts receivable Individual accounts receivable accounting for over 0.3% of the total assets of the
139DSBJ Annual Report 2024
assessed for impairment loss Company are recognized as significant accounts receivable.individually
Significant written off accounts Individual written off accounts receivable accounting for over 0.3% of the total assets of
receivable the Company are recognized as significant written off accounts receivable.Individual dividends receivable aged over one year and accounting for over 0.5% of the
Significant dividends receivable aged
total assets of the Company are recognized as significant dividends receivable aged over
over one year
one year.Individual investments in constructions in progress accounting for over 0.5% of the total
Significant constructions in progress
assets of the Company are recognized as significant constructions in progress.Significant accounts payable aged over Accounts payable aged over one year and accounting for over 0.5% of the total assets of
one year the Company are recognized as significant accounts payable aged over one year.Significant cash flows from investing Cash flows from investing activities accounting for over 10% of the total assets of the
activities Company are recognized as significant cash flows from investing activities.Significant subsidiaries and non- Subsidiaries with the total profit accounting for over 15% of the Group’s total profit are
wholly-owned subsidiaries recognized as significant subsidiaries and non-wholly-owned subsidiaries.Associates with investment incomes attributable to the Company accounting for over 15%
Significant associates
of the Group’s total profit are recognized as significant associates.
6. Accounting treatment of business combinations involving entities under common control and not
under common control
1. Accounting treatment of business combinations involving entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at the carrying value of the assets
and liabilities of the acquiree in the consolidated financial statements of the ultimate controller at the combination date. The
difference between the carrying value of the owners’ equity of the acquiree as stated in the consolidated financial statements of the
ultimate controller and the carrying value of the total consideration paid or total par value of the shares issued in connection with
the combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the
difference the remaining balance is charged against the retained earnings.
2. Accounting treatment of business combinations involving entities not under common control
Where the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s net identifiable assets the
difference is recognized as goodwill at the acquisition date. Where the cost of combination is lower than the Company’s share of
the fair value of the acquiree’s net identifiable assets the Company reviews the measurement of the fair value of each of the
identifiable assets liabilities and contingent liabilities acquired from the acquiree and the cost of combination and if the cost of
combination as reviewed is still lower than the Company’s share of the fair value of the acquiree’s net identifiable assets the
difference is recognized in profit or loss.
7. Determination of control and method of preparation of consolidated financial statements
1. Determination of control
140DSBJ Annual Report 2024
Control means that the Company has power over the investee exposure or rights to variable returns from its involvement
with the investee and the ability to use its power to affect the amount of those returns.
2. Method of preparation of consolidated financial statements
The parent includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated financial
statements are prepared by the parent in accordance with CASBE 33 “Consolidated Financial Statements” on the basis of the
respective financial statements of the parent and its subsidiaries by reference to other relevant data.
8. Classification of joint arrangements and accounting treatment of joint operations
9. Recognition of cash and cash equivalents
For the purpose of the cash flow statement cash comprises cash on hand and demand deposits and cash equivalents
comprise short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
10. Translation of foreign currency transactions and foreign currency financial statements
1. Translation of foreign currency transactions
Upon initial recognition foreign currency transactions are translated into RMB using the approximate exchange rates of spot
exchange rates at the transaction dates. At the balance sheet date monetary items denominated in foreign currencies are translated
into RMB using the spot exchange rates then prevailing. Exchange differences arising from such translations are recognized in
profit or loss except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition
or construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign currencies that are measured
at historical cost are translated using the approximate exchange rates of spot exchange rates at the transaction dates without
adjusting the amounts in RMB. Non-monetary items denominated in foreign currencies that are measured at fair value are
translated using the spot exchange rates prevailing at the dates when the fair value was determined with the exchange differences
arising from such translations recognized in profit or loss or other comprehensive income.
2. Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates prevailing at the balance sheet date.The owners’ equity items other than “retained profits” are translated at the spot exchange rates prevailing at the transaction dates.The income and expense items in the income statement are translated at the approximate exchange rates of spot exchange rates at
the transaction dates. The differences arising from such translation of foreign currency financial statements are recognized in other
comprehensive income.
141DSBJ Annual Report 2024
11. Financial instruments
1. Classification of financial assets and financial liabilities
Upon initial recognition financial assets are classified as: (i) financial assets at amortized cost; (ii) financial assets at fair
value through other comprehensive income; and (iii) financial assets at fair value through profit or loss.Upon initial recognition financial liabilities are classified as: (i) financial liabilities at fair value through profit or loss; (ii)
financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred; (iii) financial guarantee contracts not falling under items (i) or (ii) and loan
commitments not falling under item (i) and below market interest rate; and (iv) financial liabilities at amortized cost.
2. Recognition measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract a financial asset or liability is recognized. Financial
assets or liabilities are initially measured at fair value. Transaction costs relating to financial assets and liabilities at fair value
through profit or loss are directly recognized in profit or loss. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However the accounts receivable that do not contain any significant
financing component or are recognized by the Company without taking into consideration the significant financing components
under the contracts with a term of less than one year upon initial recognition are initially measured at transaction price as defined
in CASBE 14 “Revenue”.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or
losses on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss upon
derecognition reclassification amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently measured at fair value.Interest impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in
profit or loss while other gains or losses are recognized in other comprehensive income. Upon derecognition the aggregate gains
or losses previously recognized in other comprehensive income are transferred to profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
142DSBJ Annual Report 2024
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss while other gains or
losses are recognized in other comprehensive income. Upon derecognition the aggregate gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon
including interest and dividend income are recognized in profit or loss except the financial assets belonging to any hedging
relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives
classified as financial liabilities) and financial liabilities designated as at fair value through profit or loss. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit
or loss arising out of changes in the Company’s credit risk are recognized in other comprehensive income unless such treatment
will result in or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities including
interest expenses and changes in fair value not arising out of changes in the Company’s credit risk are recognized in profit or loss
except the financial liabilities belonging to any hedging relationship. Upon derecognition the aggregate gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with CASBE 23 “Transfer of Financial Assets”.
3) Financial guarantee contracts not falling under items 1) or 2) and loan commitments not falling under item 1) and below
the market interest rate
Such financial liabilities are subsequently measured at the higher of (i) allowance for impairment losses determined
according to the policy for impairment of financial instruments; and (ii) balance of the initially recognized amount after deduction
of the accumulated amortization determined in accordance with CASBE 14 “Revenue”.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains
or losses on financial liabilities at amortized cost that do not belong to any hedging relationship are recognized in profit or loss
upon derecognition or amortization using the effective interest method.
143DSBJ Annual Report 2024
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
* the contractual right to receive cash flows from the financial assets has expired; or
* the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set
forth in CASBE 23 “Transfer of Financial Assets”.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereunder have been
discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred if substantially all the risks and rewards incidental to the ownership of
the financial asset have been transferred the financial asset is derecognized and the rights and obligations incurred or retained in
such transfer are separately recognized as assets or liabilities (as the case may be); if the Company has retained substantially all the
risks and rewards incidental to the ownership of the financial asset the Company continues to recognize the financial asset
transferred. If the Company neither transferred nor retained a substantial portion of all risks and rewards incidental to the
ownership of the financial asset then: (i) if the Company does not retain control over the financial asset the financial asset is
derecognized and the rights and obligations incurred or retained in such transfer are separately recognized as assets or liabilities
(as the case may be); or (ii) if the Company retains control over the financial asset the financial asset continues to be recognized to
the extent of the Company’s continuing involvement in the financial asset transferred and a corresponding liability is recognized.If an entire transfer of a financial asset meets the criteria for derecognition the difference between (i) the carrying value of
the financial asset transferred at the date of derecognition; and (ii) the sum of the consideration received from the transfer and the
portion of the cumulative amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss. If part of a financial asset is transferred and the part
transferred entirely meets the criteria for derecognition the total carrying value of the financial asset immediately prior to the
transfer is allocated between the part derecognized and the part not derecognized in proportion to their relative fair value at the
date of transfer and the difference between (i) the carrying value of the part derecognized; and (ii) the sum of the consideration
received from the transfer of the part derecognized and the portion of the cumulative amount of changes in fair value directly
recorded as other comprehensive income originally that corresponds to the part derecognized (where the financial asset transferred
is an investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
4. Determination of fair value of financial assets and financial liabilities
144DSBJ Annual Report 2024
The Company adopts the valuation techniques applicable to the current situations and with sufficient data available and
support of other information to determine the fair value of financial assets and financial liabilities. The Company classifies the
inputs used by the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available at the date
of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This category
includes quoted prices for similar assets or liabilities in active markets quoted prices for identical or similar assets or liabilities in
inactive markets observable inputs other than quoted prices (such as interest rate and yield curves observable during regular
intervals of quotation) and inputs validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot be directly
observed or validated by observable market data future cash flows from retirement obligations incurred in business combinations
and financial forecasts made using own data.
5. Impairment of financial instruments
The Company determines the impairment and assesses allowance for impairment of financial assets at amortized cost
investments in debt instruments at fair value through other comprehensive income contract assets lease payments receivable loan
commitments other than financial liabilities designated at fair value through profit or loss and financial guarantee contracts other
than financial liabilities designated at fair value through profit or loss and financial liabilities arising as a result of the transfer of
financial assets not meeting the criteria for derecognition or continuing involvement in the financial assets transferred on the basis
of expected credit losses.Expected credit loss is the weighted average of credit losses on financial instruments taking into account the possibility of
default. Credit loss is the present value of the difference between all contractual cash flows receivable under the contract and
estimated future cash flows discounted at the original effective interest rate i.e. the present value of all cash shortages where the
Company’s purchased or originated financial assets that have become credit impaired are discounted at their credit-adjusted
effective interest rate.With respect to purchased or originated financial assets that have become credit impaired at the balance sheet date the
Company recognizes an impairment loss equal to the cumulative amount of changes in lifetime expected credit losses since initial
recognition.With respect to lease payments receivable accounts receivable arising from transactions within the meaning of CASBE 14
“Revenue” the Company uses the simplified measurement method and recognizes an impairment loss equal to the lifetime
expected credit losses.
145DSBJ Annual Report 2024
With respect to financial assets not using the measurement methods stated above at each balance sheet date the Company
assesses whether the credit risk has increased significantly since initial recognition and recognizes an impairment loss equal to the
lifetime expected credit losses if the credit risk has increased significantly since initial recognition or to the expected credit losses
within the next 12 months if the credit risk has not increased significantly since initial recognition.The Company uses reasonable and supportable information including forward-looking information and compares the
possibility of default at the balance sheet date with the possibility of default upon initial recognition to determine whether the
credit risk of the financial instruments has increased significantly since initial recognition.At the balance sheet date if the Company determines that a financial instrument has low credit risk the Company assumes
that its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses of financial instruments individually or
collectively. When assessing the financial instruments collectively the Company includes the financial instruments in different
groups according to their common risk characteristics.At each balance sheet date the Company re-assesses the expected credit losses with the amount of increase in or reversal of
impairment loss recognized in profit or loss as impairment losses or gains. With respect to a financial asset at amortized cost its
carrying value recorded in the balance sheet is written off against the impairment loss. With respect to an investment in debt
instruments at fair value through other comprehensive income the Company recognizes the impairment loss in other
comprehensive income without reducing its carrying value.
6. Offsetting of financial assets and financial liabilities
Except as stated above financial assets and financial liabilities are presented in the balance sheet separately without
offsetting each other. Financial assets and financial liabilities are offset and presented on a net basis in the balance sheet only if: (i)
the Company has a currently enforceable legal right to offset the recognized amounts; and (ii) the Company has an intention to
settle on a net basis or realize the assets and settle the liabilities simultaneously.With respect to the transfer of financial assets not meeting the criteria for derecognition the Company does not offset the
financial assets transferred against the relevant liabilities.(XI). Determination and recognition of expected credit losses on accounts receivable and contract assets
1. Accounts receivable and contract assets for which the allowance for expected credit losses is recognized collectively
according to credit risk characteristics
Basis for
Group type Method for measuring expected credit losses
grouping
By reference to historical credit loss experience and taking into account the current
Banker’s acceptance Type of
situations and prediction of future economic conditions calculate the expected credit
bills receivable bills
losses according to the default risk exposure and rate of lifetime expected credit loss.
146DSBJ Annual Report 2024
Basis for
Group type Method for measuring expected credit losses
grouping
Commercial
acceptance bills
receivable
By reference to historical credit loss experience and taking into account the current
Accounts receivable – situations and prediction of future economic conditions prepare a comparison table of
Age
aging group the age of accounts receivable and rate of expected credit loss and calculate the
expected credit losses.By reference to historical credit loss experience and taking into account the current
Other receivables – situations and prediction of future economic conditions prepare a comparison table of
Age
aging group the age of other receivables and rate of expected credit loss and calculate the expected
credit losses.Long-term receivables By reference to historical credit loss experience and taking into account the current
Nature of
– group of security situations and prediction of future economic conditions calculate the expected credit
accounts
deposits losses according to the default risk exposure and rate of lifetime expected credit loss.
2. Comparison table of the age and rate of expected credit loss
Rate of expected credit loss on Rate of expected credit loss on other
Age
accounts receivable (%) accounts receivable (%)
Within 6 months (inclusive the same below) 0.5 5
7-12 months 5 5
1-2 years 20 10
2-3 years 60 50
Over 3 years 100 100
The age of an account receivable other receivable or commercial acceptance bill receivable is calculated from the
month when it actually occurred.
3. Determination of accounts receivable and contract assets for which the allowance for expected credit
losses is recognized individually
With respect to the accounts receivable and contract assets whose credit risk is significantly different from
that of the relevant group an allowance for expected credit losses is recognized individually.
12. Notes receivable
13. Accounts receivable
14. Accounts receivable financing
15. Other receivables
16. Contract assets
17. Inventories
1. Classification of inventories
Inventories include finished products or goods held for sale in the ordinary course of business work in progress and
materials and goods consumed in the process of production or rendering of services.
147DSBJ Annual Report 2024
2. Valuation of inventories dispatched
The value of inventories dispatched is determined using the weighted average method at the end of the month in which they
were dispatched.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
Low-value consumables are amortized using the immediate write-off method.
(2) Packing materials
Low-value consumables are amortized using the immediate write-off method.
5. Inventory provision
At the balance sheet date inventories are measured at the lower of cost and net realizable value. An amount equal to the cost
of an inventory in excess of its net realizable value is recognized as an inventory provision. The net realizable value of inventories
held directly for sale is the estimated selling price of such inventories less the estimated selling expenses and related taxes in the
ordinary course of business. The net realizable value of inventories to be further processed is the estimated selling price of finished
goods less the estimated cost of completion estimated selling expenses and related taxes in the ordinary course of business. At the
balance sheet date if part of an inventory has a contract price while the remaining part thereof does not have a contract price the
net realizable value is determined separately which is compared with their cost to determine the amount of the inventory
provision recognized or reversed (as applicable).
18. Assets held for sale
19. Debt investments
20. Other debt investments
21. Long-term receivable
22. Long-term equity investments
1. Determination of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy-making of an entity but is not control or joint control over those policies.
148DSBJ Annual Report 2024
2. Determination of investment cost
(1) For an equity investment acquired through a business combination involving entities under common control if the
acquirer pays consideration for the business combination by cash transfer of non-monetary assets assumption of liabilities or
issuance of equity securities the initial investment cost of the long-term equity investment is the Company’s share of the carrying
value of the owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the combination
date. The difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying value of the
consideration paid for the combination or the total par value of the shares issued (as applicable) is treated as an adjustment to the
capital reserve. In case the capital reserve is not sufficient to absorb the difference the remaining balance is charged against the
retained earnings.If a business combination is effected through multiple transactions by steps that constitute a package deal the Company
accounts for such transactions as one deal to gain control. If such transactions do not constitute a package deal the initial
investment cost is the Company’s share of the carrying value of the owners’ equity of the acquiree in the consolidated financial
statements of the ultimate controller at the combination date; and the difference between: (i) the initial investment cost of the long-
term equity investment at the combination date; and (ii) the sum of the carrying value of long-term equity investment before the
combination and the carrying value of the consideration paid for acquisition of the additional shares at the combination date is
treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference the remaining
balance is charged against the retained earnings.
(2) For an equity investment acquired through a business combination involving entities not under common control the
initial investment cost is the fair value of the aggregate consideration paid at the date of acquisition.With respect to a long-term equity investment acquired through a business combination involving entities under common
control that is effected through multiple transactions by steps the accounting thereof in the standalone financial statements is
different from that in the consolidated financial statements as stated below:
1) In the standalone financial statements the sum of the carrying value of the equity investment originally held in the
acquiree and the additional investment cost incurred is recorded as the initial investment cost of the equity investment changed
into the cost method.
2) In the consolidated financial statements if the transactions constitute a package deal the Company accounts for such
transactions as one deal to gain control. If such transactions do not constitute a package deal the equity held in the acquiree prior
to the acquisition date is remeasured at its fair value at the acquisition date with the difference between its fair value and carrying
value recognized as an investment income for the current period; if the equity held in the acquiree prior to the acquisition date
involves other comprehensive income under the equity method such other comprehensive income is transferred to the income for
149DSBJ Annual Report 2024
the period in which the acquisition date falls except for other comprehensive income arising from remeasurement of changes in
net liabilities or net assets of defined benefit plans.
(3) For an equity investment not acquired through business combination the initial investment cost is the purchase price
actually paid if it is acquired by cash or the fair value of the equity securities issued if it is acquired through issuance of equity
securities or in accordance with CASBE 12 “Debt Restructuring” if it is acquired through debt restructuring or CASBE 7
“Exchange of Non-monetary Assets” if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees over which the Company exercises control are accounted for using the cost
method. Long-term equity investments in associates and joint ventures are accounted for using the equity method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the subsidiary
(1) Criteria for determining a package deal
Where the Company loses control over a subsidiary due to the disposal of equity investment in the subsidiary through
multiple transactions by steps the Company determines whether such transactions constitute a package deal taking into account
the transaction contract terms consideration received the transferee of the equity sold method of disposal time of disposal and
other information in respect of each step. If the terms conditions and financial effect of such transactions fall under one or more of
the circumstances set forth below such transactions are accounted for as a package deal generally:
1) such transactions are concluded simultaneously or in consideration of their mutual effect;
2) such transactions will achieve a complete business result only as a whole;
3) the occurrence of a transaction depends on the occurrence of at least another transaction; and/or
4) a transaction may be uneconomical when considered individually but is economical when considered together with other
transactions.
(2) Accounting treatment of transactions not constituting a package deal
1) Standalone financial statements
The difference between the carrying value of the equity disposed of and the disposal proceeds actually received is recognized
in profit or loss. If the remaining equity empowers the Company to exercise significant influence or joint control over the investee
the remaining equity is accounted for using the equity method; if the remaining equity does not empower the Company to exercise
control joint control or significant influence over the investee the remaining equity is accounted for in accordance with CASBE
22 “Recognition and Measurement of Financial Instruments”.
2) Consolidated financial statements
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Before the loss of control the difference between the disposal proceeds and the Company’s share of the net assets of the
subsidiary corresponding to the long-term equity investment disposed of as calculated continuously from the acquisition date or
combination date is treated as an adjustment to the capital reserve (capital premium). In case the capital premium is not sufficient
to absorb the difference the remaining balance is charged against the retained earnings.Upon loss of control the remaining equity is remeasured at its fair value at the date of loss of control. The sum of the
consideration received from the disposal of the equity and the fair value of the remaining equity net of the Company’s share of the
net assets of the subsidiary as calculated continuously from the acquisition date according to the original shareholding ratio is
included in the investment income for the period during which the control was lost and charged against goodwill. Other
comprehensive income related to the equity investment in the subsidiary is transferred to the investment income for the period
during which the control was lost.
(3) Accounting treatment of transactions constituting a package deal
1) Standalone financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however in the
standalone financial statements the difference between the proceeds from each disposal before loss of control and the carrying
value of the long-term equity investment corresponding to the equity disposed of is recognized in other comprehensive income
which is wholly transferred to profit or loss in the period during which the control was lost.
2) Consolidated financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however in the
consolidated financial statements the difference between the proceeds from each disposal before loss of control and the
Company’s share of the net assets of the subsidiary corresponding to the equity disposed of is recognized in other comprehensive
income which is wholly transferred to profit or loss in the period during which the control was lost.
23. Investment property
Measurement model for investment property
Measured at cost
Method of depreciation or amortization
1. Investment properties include land use rights leased out or held for appreciation and buildings and structures leased out.
2. An investment property is measured initially at cost and subsequently using the cost model and depreciated or amortized
using the same method as fixed assets and intangible assets.
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24. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for the production of goods rendering of service lease or operation and management
with a service life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very
likely to flow to the Company and its cost can be reliably measured.
(2) Depreciation
Estimated service Rate of residual Annual rate of
Type Method of depreciation
life (years) value (%) depreciation (%)
Buildings and structures Straight line method 20-30 5 3.17-4.75
Machinery and equipment Straight line method 5-10 5 9.50-19.00
Transportation equipment Straight line method 5 5 19.00
Office equipment and others Straight line method 5 5 19.00
25. Construction in progress
1. A construction in progress is recognized if the economic benefits relating to it are very likely to flow to the Company and
its cost can be reliably measured. Construction in progress is measured at the actual cost incurred before it is completed and ready
for the intended use.
2. When a construction in progress is ready for intended use it is transferred to fixed assets at its actual construction cost. A
construction in progress that is ready for intended use but the final settlement of which has not yet been completed is transferred to
fixed assets at estimated value first and after the completion of the final settlement the estimated value is adjusted according to
the actual cost without adjusting the accumulated depreciation.Category Criteria and time for transfer of construction in progress to fixed assets
Machinery and equipment Meet the design requirements or agreed standards after installation and commissioning
Buildings and structures Meet the building completion acceptance criteria
26. Borrowing costs
1. Recognition of capitalization of borrowing costs
Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are
capitalized as part of the cost of the asset when they meet the condition for capitalization. Other borrowing costs are expensed
when they are incurred and recognized in profit or loss.
2. Period of capitalization of borrowing costs
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(1) A borrowing cost is capitalized when all of the following conditions are satisfied: (i) the expenditures on the asset have
already been incurred; (ii) the borrowing cost has already been incurred; and (iii) the acquisition construction or production
activities necessary to prepare the asset for its intended use or sale have already commenced.
(2) Capitalization of borrowing costs is suspended during the period of abnormal interruption of acquisition construction or
production of a qualifying asset which lasts for more than three consecutive months. The borrowing costs incurred during the
period of suspension are recognized as expenses for the current period. The capitalization of borrowing costs is suspended until the
resumption of acquisition construction or production activities.
(3) Capitalization of borrowing costs ceases when a qualifying asset acquired constructed or produced gets ready for its
intended use or sale.
3. Rate and amount of capitalization of borrowing costs
For borrowings obtained specially for the acquisition construction or production of a qualifying asset the amount of
capitalization of the borrowing costs is the cost of the borrowings actually incurred in the current period (including amortized
discount or premium determined using the effective interest method) less the interest income from the part of borrowings that has
not yet been utilized and is deposited in banks or investment income from temporary investment of the borrowings. For general
borrowings occupied for the acquisition construction or production of a qualifying asset the amount of borrowing costs eligible
for capitalization is determined by multiplying the weighted average of the excess of cumulative expenditures on the asset over the
special-purpose borrowings by the capitalization rate of the general borrowings occupied.
27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Service life and basis for determination of service life estimates method of amortization or review
procedure
1. Intangible assets including land use right software patents trademarks customer resources etc. are initially measured at
cost.
2. An intangible asset with a finite service life is amortized in a systematic and reasonable manner according to the pattern in
which the economic benefits related to the intangible asset are expected to be realized or if that pattern cannot be determined
reliably using the straight line method as follows:
Item Service life and basis for determination of service life Method of amortization
Land use right 50 Straight line method
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Development expenses 5 Straight line method
Software 3 Straight line method
Trademarks and patents 10 Straight line method
Customer resources 10 Straight line method
Intangible asset with indefinite service life is not amortized but its service life is reviewed annually.
(2) Scope and accounting treatment of research and development (R&D) expenses
(1) Labor costs
Labor costs comprise the wages salaries basic pension insurance basic medical insurance unemployment insurance
worker’s compensation insurance maternity insurance and housing provident fund contributions paid to or for the R&D personnel
and service fees of the outsourced R&D personnel.With respect to the R&D personnel serving a number of R&D projects concurrently their labor costs are allocated to the
relevant R&D projects on a pro-rata basis according to the record of working hours spent by them in such R&D projects as
provided by the administrative department.With respect to the Company’s own R&D personnel and outsourced R&D personnel who are directly engaged in R&D
activities and also engaged in non-R&D activities their labor costs actually incurred are allocated between R&D expenses and
production and business expenses on a pro-rata basis in proportion to the percentage of working hours spent by them on different
posts as recorded or otherwise reasonably.
(2) Direct costs
Direct costs refer to the costs actually incurred by the Company in connection with R&D activities including (i) costs of
materials fuels and powers directly consumed; (ii) costs of development and fabrication of molds and process equipment used in
pilot trials and trial production purchasing costs of samples prototypes and general testing methods not classified as fixed assets
and inspection costs of trial produces; and (iii) operation maintenance calibration inspection testing repair and other costs of
instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments equipment and buildings used in R&D activities.With respect to the instruments equipment and buildings used in both R&D activities and non-R&D activities the
depreciation expenses actually incurred are allocated between R&D expenses and production and business expenses according to
the actual working hours and area used as recorded or otherwise reasonably.
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Long-term deferred expenses refer to the long-term deferred expenses incurred in the alteration modification renovation
and repair of R&D facilities which are recorded according to the amounts actually spent and amortized on a straight line basis
over the defined period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization expenses of software intellectual properties and non-
patented technologies (know-how licenses designs computing methods etc.) used in R&D activities.
(5) Design costs
Design costs refer to the costs incurred in the design of processes technical specifications rules of operation and operating
features in connection with the concept development and manufacturing of new products and new processes including the costs
of creative design activities conducted for the purpose of developing innovative creative and breakthrough products.
(6) Equipment commissioning costs and testing costs
Equipment commissioning costs refer to the costs incurred during the equipment preparation phase of R&D activities
including the costs of developing special-purpose production machines changing production and quality control procedures
developing new approaches and standards etc.The costs incurred for general equipment preparation and industrial engineering in connection with large-scale mass and
commercial production are excluded from the scope of aggregation.Testing costs include clinical trial costs for the development of new drugs field trial costs for exploration and development
technologies field experiment costs etc.
(7) Outsourced R&D expenses
Outsourced R&D expenses refer to the expenses of R&D activities that the Company engages external entities or individuals
at home or abroad to conduct provided that the results of such R&D activities will be owned by the Company and such R&D
activities are closely related to the primary business of the Company.
(8) Other expenses
Other expenses refer to the expenses that are not set forth above and directly related to R&D activities including the
expenses of technical documents and data material translation advisors and consultants high and new technology R&D insurance
retrieval verification evaluation appraisal and acceptance inspection of R&D achievements application registration and agency
service in respect of intellectual properties meetings travel communication etc.
4. Expenditures on an internal R&D project at the research phase are recognized in profit or loss in the period in which they
are incurred. Expenditures on an internal R&D project at the development phase are recognized as an intangible asset if: (i) it is
technically feasible to complete the intangible asset so that it will be available for use of sale; (ii) it is intended to complete the
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intangible asset so that it will be available for use of sale; (iii) the pattern in which the intangible asset will generate economic
results can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be
used internally the usefulness of the intangible asset; (iv) there are sufficient technical financial and other resources available to
complete the development activities and to use or sell the intangible asset; and (v) the expenditures attributable to the development
of the intangible asset can be reliably measured.
30. Impairment of long-term assets
With respect to long-term equity investments investment properties at cost fixed assets construction in progress right-of-
use assets intangible assets with a finite service life and other long-term assets if there’s an indication of impairment at the
balance sheet date the Company assesses their recoverable amount. Goodwill arising from business combinations are tested for
impairment every year regardless of whether there’s an indication of impairment. Goodwill is tested for impairment together with
the relevant groups of assets or combinations of groups of assets.If the recoverable amount of a long-term asset is less than its carrying value the difference is measured as impairment loss
on the asset and recognized in profit or loss.
31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but should be amortized over a period of more
than one year. Long-term deferred expenses are stated as the amount actually incurred and equally amortized over the benefit
period or established period. If an item of long-term deferred expenses will not benefit the subsequent periods the remaining
unamortized balance of the item is wholly transferred to profit or loss.
32. Contract liabilities
33. Employee benefits
(1) Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting period during which
employee services are rendered and included in profit or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified as defined contribution plans and defined benefit plans.
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(1) In the accounting period during which employee services are rendered the amount contributable as calculated according
to the defined contribution plan is recognized as liabilities and included in profit or loss or the costs of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method use unbiased and consistent actuarial assumptions to estimate demographic
variables and financial variables measure the obligation arising from the defined benefit plan and determine the period to which
the relevant obligation belongs. Meanwhile discount the obligation arising from the defined benefit plan in order to determine the
present value of the benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets the deficit or surplus resulting after reducing the present value of the defined benefit
obligation by the fair value of the defined benefit plan is recognized as a net liability or asset of the defined benefit plan. If the
defined benefit plan has a surplus the net assets of the defined benefit plan are measured at the lower of surplus in the defined
benefit plan and asset ceiling;
3) At the end of the current period the cost of employee benefits arising from the defined benefit plan is recorded as service
cost net interest on the net liabilities or net assets of the defined benefit plan and changes arising from remeasurement of the net
liabilities or net assets of the defined benefit plan where the service cost and the net interest on the net liabilities or net assets of
the defined benefit plan are included in profit or loss or the cost of related assets and the changes arising from remeasurement of
the net liabilities or net assets of the defined benefit plan are included in other comprehensive income which will not be reversed
to profit or loss in subsequent periods but may be transferred within the scope of equity.
(3) Accounting treatment of termination benefits
When the Company can no longer withdraw the offer of termination benefits as a result of termination of employment or
redundancy or recognizes the restructuring costs or expenses relating to payment of termination benefits whichever the earlier
the employee benefit liabilities arising from recognition of termination benefits are recognized in profit or loss.
(4) Accounting treatment of other long-term employee benefits
34. Provisions
1. Provisions are recognized when the Company has a present obligation as a result of any external guarantee litigations
product quality warranty onerous contract or other contingencies and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and the amount of the obligation can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related present
obligations. The carrying value of provisions is reviewed at the balance sheet date.
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35. Share-based payments
1. Types of share-based payments
Share-based payments include equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment of implementation amendment and termination of share-based payment plans
(1) Equity-settled share-based payment
With respect to an equity-settled share-based payment that is granted in exchange for the services of employees if the right
can be immediately exercised after the grant at the date of the grant the fair value of the equity instruments is included in the
relevant costs or expenses and the capital reserve is adjusted accordingly; if the right may not be exercised until the vesting period
comes to an end or until the specified performance conditions are met at each balance sheet date within the vesting period the
services received in the current period are based on the best estimate of the exercisable equity included in the relevant costs or
expenses at the fair value of the equity instruments at the date of grant and the capital reserve is adjusted accordingly.An equity-settled share-based payment that is granted in exchange for the services of any other party is measured at fair
value at the date of receipt of such services if the fair value of such services can be reliably measured or at the fair value of the
equity instruments at the date of receipt of such services if the fair value of such services cannot be reliably measured but the fair
value of the equity instruments can be reliably measured. The services are included in the relevant costs or expenses and the
owners’ equity is increased accordingly.
(2) Cash-settled share-based payment
With respect to a cash-settled share-based payment that is granted in exchange for the services of employees if the right can
be immediately exercised after the grant at the date of grant the fair value of the liability undertaken by the Company is included
in the relevant costs or expenses and the liabilities are increased accordingly; if the right may not be exercised until the vesting
period comes to an end or until the specified performance conditions are met at each balance sheet date within the vesting period
the services received in the current period are based on the best estimate about the exercisable right included in the relevant costs
or expenses and the corresponding liabilities at the fair value of the liability undertaken by the Company.
(3) Amendment and termination of share-based payment plans
If such amendment results in an increase in the fair value of the equity instruments granted the Company recognizes a
corresponding increase in the services received according to the increase in the fair value of the equity instruments. If such
amendment results in an increase in the number of the equity instruments granted the Company recognizes a corresponding
increase in the services received according to the fair value of the additional equity instruments granted. If the Company amends
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the vesting conditions in a manner favorable to the employees the Company will take into account the vesting conditions as
amended in the accounting thereof.If such amendment results in a decrease in the fair value of the equity instruments granted the Company continues to
recognize the services received based on the fair value of the equity instruments at the date of grant without taking into account
the decrease in the fair value of the equity instruments. If such amendment results in a decrease in the number of the equity
instruments granted the portion of the equity instruments reduced is deemed canceled. If the Company amends the vesting
conditions in a manner unfavorable to the employees the Company will not take into account the vesting conditions as amended in
the accounting thereof.If during the vesting period the Company cancels or settles any equity instruments granted (except for those canceled due to
failure to satisfy the vesting conditions) such cancellation or settlement is treated as an acceleration of vesting and the amount
that would have been recognized in the remaining vesting period is recognized immediately.
36. Preferred shares perpetual bonds and other financial instruments
37. Revenue
Accounting policies for recognition and measurement of revenue disclosed by business type
1. Revenue recognition principle
At contract commencement date the Company assesses a contract to identify each single performance obligation included in
the contract and whether such performance obligation shall be satisfied over time or at a point in time.A performance obligation shall be satisfied over time if it meets one of the following conditions otherwise it shall be
satisfied at a point in time: (i) the customer simultaneously receives and consumes the benefits provided by the Company’s
performance; (ii) the customer can control the work in process created during the Company’s performance; or (iii) the Company’s
performance does not create the goods with an alternative use to the Company and the Company has an enforceable right to
payment for performance completed to date.With respect to a performance obligation satisfied over time the Company recognizes revenue over time by measuring the
progress toward complete satisfaction of that performance obligation. If the Company is unable to reasonably measure the progress
of a performance obligation but expects to recover the costs incurred in satisfying the performance obligation the Company
recognizes revenue only to the extent of the costs incurred until such time that it can reasonably measure the progress of the
performance obligation. With respect to a performance obligation satisfied at a point in time the Company recognizes revenue
when the customer obtains control of the relevant goods or services. In determining whether the customer has obtained control of
any goods the Company considers the following indicators: (i) the Company has a present right to payment for the goods i.e. the
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customer presently is obliged to pay for the goods; (ii) the Company has transferred the legal title to the goods to the customer i.e.the customer has the legal title to the goods; (iii) the Company has transferred physical possession of the goods to the customer i.e.the customer physically possesses the goods; (iv) the Company has passed the significant risks and rewards of ownership of the
goods to the customer i.e. the customer has the significant risks and rewards of ownership of the goods; (v) the customer has
accepted the goods; and (vi) other indicators showing that the customer has obtained control of the goods.
2. Revenue measurement principle
(1) The Company measures revenue according to the transaction price allocated to each performance obligation. Transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the relevant goods or
services to a customer excluding the amounts collected on behalf of third parties or expected to be returned to the customer.
(2) If a contract has any variable consideration the Company determines the best estimate of the variable consideration
according to the expected value or the most likely amount but the Company shall include in the transaction price some or all of an
amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative
revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component the Company determines the transaction price according to the
amount that the customer would have paid for the goods or services if it had paid cash when it obtained control of the goods or
services. The difference between such transaction price and the contract consideration is amortized over the term of the contract
using the effective interest method.
(4) If a contract includes two or more performance obligations at contract commencement date the Company allocates the
transaction price to each performance obligation on a relative standalone selling price basis.
3. Methods of revenue recognition
The Company is primarily engaged in the sale of electronic circuit LED display devices touch panels and LCMs precision
components and other products the revenues from which constitute performance obligations to be satisfied at a point in time.Revenue from sale of products on the domestic market is recognized when the Company has delivered the products to the agreed
place of delivery which has been accepted by the customer has received or has a present right to payment for the products and it
is probable that the economic benefits associated with the transaction will flow to the Company. Revenue from sale of products on
the overseas market is recognized when the products delivered by the Company pursuant to the contract have been cleared through
customs and the Company has received the relevant export declaration form and bill of lading has received or has a present right
to payment for the products and it is probable that the economic benefits associated with the transaction will flow to the Company.Different methods of revenue recognition and measurement for the same business type that adopts different business models.
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38. Contract costs
Contract acquisition costs i.e. the incremental cost of acquiring a contract are recognized as an asset if they are expected to
be recovered
Contract performance costs i.e. the costs of fulfilling a contract are recognized as an asset if they are not addressed by the
standards on inventories fixed assets and intangible assets and meet all of the following conditions:
1. the costs relate directly to a contract or to an anticipated contract including direct labor direct material manufacturing
costs (or similar costs) costs that are explicitly chargeable to the relevant customer under the contract and other costs incurred
solely in connection with the contract;
2. the costs enhance the resources of the Company that will be used in satisfying the performance obligations in the future;
3. the costs are expected to be recovered.
The assets related to contract costs are amortized on the same basis as the recognition of revenues from goods or services
related to such assets and recognized in profit or loss.The portion of the carrying value of an asset related to contract costs in excess of the remaining consideration receivable
from the transfer of goods or services related to such asset less the estimated costs that are expected to be incurred is recognized as
an impairment loss. If as a result of changes in the factors of impairment in the previous periods the remaining consideration
receivable from the transfer of goods or service related to such asset less the estimated costs that are expected to be incurred
exceeds the carrying value of such asset the impairment loss is reversed through profit or loss provided that the carrying value of
the reversed asset shall not exceed its carrying value at the reversal date assuming such impairment loss were not recognized.
39. Government grants
1. Government grants are recognized if (i) the Company meets the conditions attached to the government grants; and (ii) the
Company will receive the government grants. Government grants in the form of monetary assets are measured at the amount
received or receivable. Government grants in the form of non-monetary assets are measured at fair value or if their fair value is
unavailable at a nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing constructing or otherwise
acquiring long-term assets as provided by the applicable government documents or in the absence of such express provision in the
applicable government documents whose primary condition is that the Company should purchase construct or otherwise acquire
long-term assets. Government grants related to assets are offset against the carrying value of the relevant assets or recognized as
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deferred income. Government grants related to assets recognized as deferred income are included in profit or loss over the service
life of the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount are directly
recognized in profit or loss. In case of a sale transfer retirement or damage of the relevant assets before the end of the intended
service life the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets are
disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants related to
both assets and income where it is difficult to make a distinction between the portion related to assets and the portion related to
income are wholly classified as government grants related to income. Government grants related to income as compensation for
expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the period for recognizing the
relevant costs expenses or losses included in profit or loss or offset against the relevant costs. Government grants related to
income as compensation for expenses or losses already incurred are directly included in profit or loss or offset against the relevant
costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offset against the
relevant costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations
of the Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy loan interest subsidy
If the financial authority directly appropriates any interest subsidy to the Company the interest subsidy is recognized as a
reduction in the borrowing cost.
40. Deferred tax assets and deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying value or in case of an item not recognized as
an asset or liability whose tax base can be determined according to the applicable tax law the difference between its tax base and
carrying value is recognized as a deferred tax asset or deferred tax liability according to the tax rate applicable to the period in
which the asset or liability is expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be available in future
periods against which deductible temporary differences are deductible. At the balance sheet date deferred tax assets not
recognized in previous periods are recognized if there’s conclusive evidence that it is probable that sufficient taxable income will
be available in future periods against which the deductible temporary differences are deductible.
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3. At the balance sheet date the carrying value of deferred tax assets is reviewed and written down to the extent that it is no
longer probable that sufficient taxable income will be available in future periods to allow the benefit of the deferred tax assets to
be utilized. If it is probable that sufficient taxable income will be available the amount of write-down is reversed.
4. The income taxes and deferred income taxes are included in profit or loss as income tax expenses or gains except the
income taxes arising from any: (i) business combination; or (ii) transaction or event directly recognized in owners’ equity.
5. Deferred income tax assets and deferred income tax liabilities are offset and presented on a net basis if: (i) the Company
has a legal right to settle current tax assets and current tax liabilities on a net basis; and (ii) the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities
which intend either to settle current tax assets and current tax liabilities on a net basis or to realize the assets and liabilities
simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed.
41. Leases
(1) Accounting treatment of leases under which the Company is lessee
1. The Company as the lessee
At the lease commencement date a lease that has a lease term of 12 months or less and does not contain a purchase option is
a short-term lease. A lease of an asset with a low value when new is a lease of a low-value asset. Where the Company subleases or
expects to sublease a leased asset the original lease is not classified as a lease of a low-value asset.Except short-term leases and leases of low-value assets at the lease commencement date the Company recognizes right-of-
use assets and lease liabilities for the lease.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost which cost includes: (i) the amount of the lease liability initially measured;
(ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs
incurred by the lessee; and (iv) estimated costs to be incurred by the lessee in dismantling and removing the lease asset restoring
the site on which it is located or restoring the lease asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use assets using the straight-line method. If it is reasonable to be certain that the
ownership of a lease asset can be acquired by the end of the lease term the Company depreciates the right-of-use asset over its
remaining service life. Otherwise the Company depreciates the right-of-use asset over the shorter of the lease term and its
remaining service life.
(2) Lease liabilities
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At the lease commencement date the Company measures a lease liability at the present value of the lease payments that have
not been paid at that date. The present value of lease payments is determined using the interest rate implicit in the lease as the
discount rate. If that rate cannot be readily determined the lessee’s incremental borrowing rate is used. The difference between the
lease payments and their present value is unrecognized financing costs. Interest expenses are measured for each period within the
lease term using the discount rate for determining the present value of lease payments and recognized in profit or loss. Variable
lease payments not included in the measurement of lease liabilities are recognized in profit or loss in the period during which they
are incurred.At the lease commencement date if there are changes in the in-substance fixed lease payments amounts expected to be
payable under residual value guarantee the index or rate used to determine the lease payments the result of an assessment of
purchase option renewal option or termination option or the actual exercise of such options the Company re-measures the lease
liability based on the present value of lease payments as adjusted and adjusts the carrying value of the right-of-use assets
accordingly. If the carrying value of the right-of-use asset is reduced to zero but the lease liability needs to be further reduced the
balance is recognized in profit or loss.
(2) Accounting treatment of leases under which the Company is lessor
2. The Company as the lessor
At the lease commencement date the Company classifies a lease that transfers substantially all the risks and rewards
incidental to ownership of a lease asset to the lessee as a finance lease and all other leases as operating leases.
(1) Operating lease
Lease receipts are recognized as lease income using the straight-line method over the lease term. Initial direct costs incurred
are capitalized amortized on the same basis as the recognition of lease income and recognized in profit or loss by installments.Variable lease payments related to the operating lease which are not included in the lease receipts are recognized in profit or loss
in the period during which they are incurred.
(2) Finance lease
At the lease commencement date the Company recognizes the finance lease payments receivable based on the net
investment in the lease (equal to the sum of unguaranteed residual value and the present value of lease receipts that are not
received at the lease commencement date and discounted using the Company’s incremental interest rate) and derecognizes the
assets held under the finance lease. The Company calculates and recognizes interest income using the interest rate implicit in the
lease over the lease term.
164DSBJ Annual Report 2024
Variable lease payments that are not included in the measurement of the net investment in a lease are recognized in profit or
loss when they are incurred.
42. Other Significant accounting policies and accounting estimates
1. Basis for the adoption of hedge accounting and its accounting treatment
(1) Cash flow hedge.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: 1) the hedging
relationship consists only of eligible hedging instruments and eligible hedged instruments; 2) at the commencement of the hedge
there is formal designation of hedging instruments and hedged item and documentation of the hedging relationship and the
Company’s risk management objective and strategy for undertaking the hedge; and 3) the hedging relationship meets the hedging
effectiveness requirements.The Company recognizes that the hedging relationship meets effectiveness requirements if all of the following conditions are
met: 1) there is an economic relationship between the hedged item and the hedging instruments; 2) the effect of credit risk does not
dominate the value changes that result from the economic relationship between the hedged item and the hedging instruments; and
3) the hedge ratio of the hedging relationship is the same as the ratio of the quantity of the hedged item that the Company actually
hedges to the number of hedging instruments that the Company actually uses to hedge such hedged item but does not reflect an
imbalance between the weightings of the hedged item and the hedging instrument.The Company assesses whether a hedging relationship meets the hedge effectiveness requirements at commencement and on
an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the
risk management objective for that designated hedging relationship remains the same the hedging relationship will be rebalanced.
(3) Hedge accounting treatment
1) Cash flow hedges
* The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income as cash flow hedge reserve while the ineffective portion is recognized in profit or loss. The cash flow
hedge reserve is recognized at the lower of the following (in absolute amount): A. the cumulative gain or loss on the hedging
instrument from the commencement of the hedge; B. the cumulative change in the present value of the estimated future cash flows
of the hedged item from the commencement of the hedge.* If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability
or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair
165DSBJ Annual Report 2024
value hedge accounting is applied the Company transfers out the amount of cash flow hedge reserve previously recognized in
other comprehensive income and includes it in the initial cost of the asset or the liability.* For other cash flow hedges the amount of cash flow hedge reserve previously recognized in other comprehensive income
is transferred to profit or loss in the same period the hedged forecast sale affects profit or loss.
2) Hedges of a net investment in a foreign operation
The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income and reclassified from other comprehensive income into profit or loss on the disposal of the foreign
operation while the ineffective portion is recognized in profit or loss.
2. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital rewarding its employees or
otherwise if the purchased shares are to be held as treasury shares the treasury shares are recorded at the amount actually paid and
the relevant filing procedures are performed; if the repurchased shares are to be retired the difference between the total book value
of the shares retired and the amount actually paid therefore is recognized as a reduction in capital reserve and if the capital reserve
is not sufficient to absorb the difference the remaining balance is charged against the retained earnings. If the repurchased shares
are granted to the employees as equity-settled share-based payments the purchase price paid by the employees upon exercise of
their rights is recognized as a reduction in the cost of the relevant treasury shares vested in the employees and capital reserve
(other capital reserve) accumulated within the vesting period with a corresponding adjustment to capital reserve (share premium).
43. Significant changes in accounting policies and accounting estimates
(1) Significant changes in accounting policies
□ Applicable □ N/A
(2) Changes in significant accounting estimates
□ Applicable □ N/A
(3) Adjustment of the opening balance of related financial statement items due to the initial adoption of
new accounting standards since 2024
□ Applicable □ N/A
166DSBJ Annual Report 2024
44. Miscellaneous
VI. Taxation
1. Main categories of taxes and tax rates
Category of tax Tax base Tax rate
The output tax is calculated based on revenue from
sales of goods or rendering of services in accordance 13% 6% or 7%-25% (for the Company’s
Value-added tax
with the tax law and net of the input tax deductible in overseas subsidiaries)
the current period is the value-added tax payable.Urban maintenance and
Amount of turnover tax actually paid 5% or 7% (China)
construction tax
9%15%16.50%25%021%0.75%-
Enterprise income tax Amount of taxable income
8.84%17%10%20%20.6%24%30%
If levied on the basis of price 1.2% * 70% of the
Property tax original value of the property; if levied on the basis of 1.2% or 12% (China)
rental 12% of the lease income
Education surcharge Amount of turnover tax actually paid 3% (China)
Local education surcharge Amount of turnover tax actually paid 2% (China)
Different rates of enterprise income tax applicable to the taxpayers:
Taxpayer Income tax rate
The Company Mutto Optronics Technology Co. Ltd. MFLEX Yancheng Co. Ltd.Yancheng Dongshan Precision Manufacturing Co. Ltd. Suzhou RF Top Electronic
Communication Co. Ltd. Suzhou Chengjia Precision Manufacturing Co. Ltd. Suzhou
Dongdai Electronic Technology Co. Ltd. Yancheng Dongshan Communication Technology 15.00%
Co. Ltd. Suzhou Yongchuang Communication Technology Co. Ltd. Suzhou Jebson
Intelligent Technology Co. Ltd. Suzhou Dongyue New Energy Technology Co. Ltd. and
Yancheng Dongchuang Precision Manufacturing Co. Ltd.HongKong Dongshan Precision Union Opoelectronic Co. Ltd. and other companies
16.50%
incorporated in Hong Kong
Mutto Optronics Group Limited Mflex Delaware Inc. The Dii Group (BVI) Co. Limited 0
Federal corporate income tax rate
Multi-Fineline Electronix Inc. (hereinafter referred to as Mflex) and other companies
21%; state corporate income tax rate
incorporated in the United States
0.75%-8.84%
Multi-Fineline Electronix Singapore Ptd. Ltd. and other companies incorporated in Singapore 17% (Singapore)
15% (enjoying an 80% tax
Multek Technologies Limited
exemption)
Multek Technology Sweden AB 20.6% (Sweden)
Multek Technology Malaysia SDN.BHD 24% (Malaysia)
DSBJ Mexico S.DER.L.DEC.V. and other companies in Mexico 30.00%
Multi-Fineline Electronics (Thailand) Co. Ltd. 20.00%
Multi-Fineline Electronics Hungary KFT. 9.00%
Other taxpayers not listed above 25.00%
2. Tax preferences
(1) Pursuant to the Notice on Publishing the Filing of the Third Batch of High and New Technology Enterprises Recognized
by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading Group for Recognition
Management of High and New Technology Enterprises the Company and its subsidiaries Mutto Optronics Yancheng Dongshan
167DSBJ Annual Report 2024
Precision Manufacturing Co. Ltd. Yancheng Dongshan Communication Technology Co. Ltd. and MFLEX Yancheng passed the
high and new technology enterprise qualification review with a term of three years from 2022 to 2025 and therefore are subject to
an enterprise income tax rate of 15% for the current period.
(2) Pursuant to the Notice on Publishing the Filing of the Fourth Batch of High and New Technology Enterprises Recognized
by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading Group for Recognition
Management of High and New Technology Enterprises the Company’s wholly-owned subsidiary Suzhou Chengjia passed the
high and new technology enterprise qualification review with a term of three years from 2022 to 2025 and therefore are subject to
an enterprise income tax rate of 15% for the current period.
(3) Pursuant to the Notice on Publishing the Filing the Second Batch of High and New Technology Enterprises Recognized
by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading Group for Recognition
Management of High and New Technology Enterprises the Company’s subsidiary Suzhou RF Top Electronic Communication Co.Ltd. passed the high and new technology enterprise qualification review with a term of three years from 2022 to 2025 and
therefore is subject to an enterprise income tax rate of 15% for the current period.
(4) Pursuant to the Administrative Measures on Certification and Management of High and New Technology Enterprises
(Guo Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo
(2016) No. 195) Suzhou Dongdai Electronic Technology Co. Ltd. Suzhou Yongchuang Communication Technology Co. Ltd.
and Suzhou Jebson Intelligent Technology Co. Ltd. passed the qualification review of high and new technology enterprises with a
term of three years from 2023 to 2026 and therefore are subject to an enterprise income tax rate of 15% for the current period.
(5) Pursuant to the Administrative Measures on Certification and Management of High and New Technology Enterprises
(Guo Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo
(2016) No. 195) Suzhou Dongyue New Energy Technology Co. Ltd. and Yancheng Dongchuang Precision Manufacturing Co.
Ltd. passed the qualification review of high and new technology enterprises with a term of three years from 2024 to 2027 and
therefore are subject to an enterprise income tax rate of 15% for the current period.
(6) Multek Technologies Limited is subject to a corporate income tax rate of 15% under the Mauritius Corporate Income
Tax Act and as a global Class I company incorporated in Mauritius but operating abroad enjoys an 80% tax exemption so its
effective corporate income tax rate is 3%.VII. Notes to items of the consolidated financial statements
1. Cash and bank balances
In RMB
168DSBJ Annual Report 2024
Item Closing balance Opening balance
Cash on hand 266540.67 559941.39
Bank deposits 5771485841.70 5874124506.28
Other cash and bank balances 1400578869.92 1315351783.39
Total 7172331252.29 7190036231.06
Incl.: Total amounts deposited abroad 2457343027.80 1917732423.09
Other information: See “Section X Financial Report – VII (31)” of this Report for cash and cash equivalents subject to restrictions
on use and cash and bank balances not classified as cash and cash equivalents.
2. Financial assets held for trading
In RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 78144342.95 146141371.77
Incl.:
Investments in equity instruments 63212376.92 71779147.66
Derivatives 14931966.03 26920185.50
Wealth management products 47442038.61
Incl.:
Total 78144342.95 146141371.77
3. Derivative financial assets
4. Notes receivable
(1) Notes receivable by category
In RMB
Item Closing balance Opening balance
Commercial acceptance bills 9037098.60 3407623.49
Total 9037098.60 3407623.49
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Carrying Book balance doubtful accounts doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Incl.:
Allowan
ce
recogniz 908251 45412.5 903709 342474 17123.7 340762
100.00%0.50%100.00%0.50%
ed 1.16 6 8.60 7.23 4 3.49
collectiv
ely
Incl.:
169DSBJ Annual Report 2024
Commer
cial 908251 45412.5 903709 342474 17123.7 340762
100.00%0.50%100.00%0.50%
acceptan 1.16 6 8.60 7.23 4 3.49
ce bills
90825145412.590370934247417123.7340762
Total 100.00% 0.50% 100.00% 0.50%
1.1668.607.2343.49
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Group of commercial
9082511.1645412.560.50%
acceptance bills
Total 9082511.16 45412.56
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
□ Applicable □ N/A
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type Recovered or Written Closing balance balance Recognized Others
reversed off
Allowance recognized
17123.7428288.8245412.56
collectively
Total 17123.74 28288.82 45412.56
Significant amount of allowance for doubtful accounts recovered or reversed in the current period:
□ Applicable □ N/A
5. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 7669860368.06 7522771106.29
Within 6 months 7558742455.97 7444151188.36
7-12 months 111117912.09 78619917.93
1-2 years 30428150.63 285296373.77
2-3 years 42084100.70 16989211.39
Over 3 years 218266298.53 369089730.68
3-4 years 33424157.23 275176513.49
4-5 years 103896595.98 53209221.21
Over 5 years 80945545.32 40703995.98
Total 7960638917.92 8194146422.13
170DSBJ Annual Report 2024
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance
doubtful accounts Carrying
Book balance
doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Allowan
ce
recogniz 582208 575142 706598. 221542 220877 664748.
0.73%98.79%2.70%99.70%
ed 94.36 95.37 99 640.42 891.72 70
individu
ally
Incl.:
Allowan
ce
recogniz 790241 239666 766275 797260 260103 771250
99.27%3.03%97.30%3.26%
ed 8023.56 597.06 1426.50 3781.71 758.36 0023.35
collectiv
ely
Incl.:
796063297180766345819414480981771316
Total 100.00% 3.73% 100.00% 5.87%
8917.92892.438025.496422.13650.084772.05
Allowance for doubtful accounts recognized collectively: Age
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Within 6 months 7557663440.50 37788317.20 0.50%
7-12 months 110164602.65 5508230.13 5.00%
1-2 years 27111540.86 5422308.17 20.00%
2-3 years 41326744.97 24796046.98 60.00%
Over 3 years 166151694.58 166151694.58 100.00%
Total 7902418023.56 239666597.06
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
□ Applicable □ N/A
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Type Opening balance Recovered Closing balance
Recognized Written off Others
or reversed
Allowance recognized
220877891.727456410.87170692319.36-127687.8657514295.37
individually
Allowance recognized
260103758.3633776568.3059186775.104973045.50239666597.06
collectively
Total 480981650.08 41232979.17 229879094.46 4845357.64 297180892.43
171DSBJ Annual Report 2024
(4) Accounts receivable actually written off in the current period
In RMB
Item Amount written off
Accounts receivable actually written off 229879094.46
Significant amount of accounts receivable written off:
In RMB
Nature of Reason for Write-off procedure Whether or not arising from
Company name Amount written off
account write-off performed related-party transactions
Major customers Resolution of the
Trade receivable 169582771.72 Deregistered No
written off Board of Directors
Total 169582771.72
Explanation about the write-off of accounts receivable:
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing
% of total closing Closing balance of allowance
balance Total closing balance of
Company Closing balance of balance of accounts for doubtful accounts
of accounts receivable and
name accounts receivable receivable and contract receivable and impairment of
contract contract assets
assets contract assets
assets
Top 1 2671884367.80 2671884367.80 33.56% 13685881.00
Top 2 588127726.29 588127726.29 7.39% 3136987.97
Top 3 557988038.55 557988038.55 7.01% 2789940.20
Top 4 303984961.27 303984961.27 3.82% 1953388.76
Top 5 247195283.79 247195283.79 3.11% 2820593.61
Total 4369180377.70 4369180377.70 54.89% 24386791.54
6. Contract assets
7. Accounts receivable financing
(1) Accounts receivable financing by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 252612009.41 290477095.22
Total 252612009.41 290477095.22
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Book balance
doubtful accounts Carrying doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Incl
172DSBJ Annual Report 2024.:
Allowan
ce
recogniz 252612 252612 290477 290477
100.00%100.00%
ed 009.41 009.41 095.22 095.22
collectiv
ely
Incl.:
Banker’s
252612252612290477290477
acceptan 100.00% 100.00%
009.41009.41095.22095.22
ce bills
252612252612290477290477
Total 100.00% 100.00%
009.41009.41095.22095.22
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
(4) Accounts receivable financing pledged at the end of the current period
In RMB
Item Amount pledged at the end of the period
Banker’s acceptance bills 47745743.70
Total 47745743.70
(5) Accounts receivable financing already endorsed or discounted but not yet become due at the balance
sheet date
In RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Banker’s acceptance bills 1021384057.48
Total 1021384057.48
(6) Receivable financing actually written off in the current period
(7) Increase/decrease in receivable financing and change in fair value in the current period
(8) Other information
As the acceptors of banker’s acceptance bills are commercial banks that have high credit ratings banker’s acceptance bills are less
likely to be dishonored when they become due. Therefore the Company derecognizes the banker’s acceptance bills already
endorsed or discounted. However if such bills fail to be paid when they become due the Company will assume joint and several
liability to the holders thereof pursuant to the Law of the People’s Republic of China on Negotiable Instruments.
8. Other receivables
In RMB
173DSBJ Annual Report 2024
Item Closing balance Opening balance
Other receivables 45836662.39 77134897.39
Total 45836662.39 77134897.39
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Other receivables by nature
In RMB
Nature of accounts Closing book balance Opening book balance
Loan and reserve fund 6147448.39 3008693.20
Security deposit 34357968.88 24179943.43
Temporary payment receivable and others 21095827.83 63320215.31
Total 61601245.10 90508851.94
2) Other receivables by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 27206070.82 71736165.38
1-2 years 18570040.87 8616817.34
2-3 years 6555716.67 2464429.36
Over 3 years 9269416.74 7691439.86
3-4 years 2020570.56 3078691.14
4-5 years 2933721.60 1718689.00
Over 5 years 4315124.58 2894059.72
Total 61601245.10 90508851.94
3) Other receivables by the method of recognition of allowance for doubtful accounts
□ Applicable □ N/A
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Book balance
doubtful accounts Carrying doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Allowan
ce
recogniz 234070 234070 234070 234070
3.80%100.00%2.59%100.00%
ed 4.91 4.91 4.91 4.91
individu
ally
Incl
174DSBJ Annual Report 2024.:
Allowan
ce
recogniz 592605 134238 458366 881681 110332 771348
96.20%22.65%97.41%12.51%
ed 40.19 77.80 62.39 47.03 49.64 97.39
collectiv
ely
Incl.:
616012157645458366905088133739771348
Total 100.00% 25.59% 100.00% 14.78%
45.1082.7162.3951.9454.5597.39
Allowance for doubtful accounts recognized collectively: Age
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Incl.: Within 1 year 27206070.82 1360303.54 5.00%
1-2 years 18570040.87 1857004.09 10.00%
2-3 years 6555716.67 3277858.34 50.00%
Over 3 years 6928711.83 6928711.83 100.00%
Total 59260540.19 13423877.80
Basis for grouping:
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful Lifetime expected Lifetime expected
accounts 12-month expected
Total
credit loss (not credit credit loss (credit
credit loss
impaired) impaired)
Balance as at January 1
3586808.28861681.738925464.5413373954.55
2024
In the current period the
balance as at January 1
2024
- Transferred to stage II -925143.88 925143.88
- Transferred to stage III -564353.53 564353.53
Recognized -1165321.41 634532.01 3379195.00 2848405.60
Written off 321737.99 321737.99
Other changes -136039.45 -136039.45
Balance as at December
1360303.541857004.0912547275.0815764582.71
312024
Significant changes in the book balance of allowance for doubtful accounts in the current period:
□ Applicable □ N/A
175DSBJ Annual Report 2024
4) Allowance for doubtful accounts recognized recovered or reversed in the current period
5) Other receivables actually written off in the current period
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
% of total closing Closing balance of
Closing
Company name Nature of account Age balance of other allowance for
balance
receivables doubtful accounts
Temporary payment
Top 1 9860000.00 1-2 years 16.01% 986000.00
receivable and others
Temporary payment
Top 2 7890685.11 Within 1 year 12.81% 397521.24
receivable and others
Top 3 Security deposit 4252000.00 Within 1 year 6.90% 212600.00
Top 4 Security deposit 2340704.91 Over 3 years 3.80% 2340704.91
Temporary payment
Top 5 2000000.00 1-2 years 3.25% 200000.00
receivable and others
Total 26343390.02 42.77% 4136826.15
7) Reported as other receivables due to centralized fund management
Other information:
Basis for the classification of various stages: within 1 year indicates no obvious additional credit risk after initial recognition (stage
I) for which the impairment is made at 5%; 1-2 years indicate obvious additional credit risk after initial recognition but no
occurrence of credit impairment (stage II) for which the impairment is made at 10%; and over 2 years and provision made
individually indicate the occurrence of credit impairment (stage III)
9. Advances to suppliers
(1) Advances to suppliers by age
In RMB
Closing balance Opening balance
Age
Amount % Amount %
Within 1 year 88459876.91 94.23% 72605597.90 91.00%
1-2 years 1897007.20 2.02% 5581589.38 7.00%
2-3 years 1923162.05 2.05% 21100.35 0.03%
Over 3 years 1595419.53 1.70% 1574451.48 1.97%
Total 93875465.69 79782739.11
Reason of failure to timely settle the significant advances to suppliers aged more than one year: There is no significant advances to
suppliers aged more than one year as of the end of the current period.
(2) Top 5 suppliers in terms of closing balance of advances to suppliers
Company name Book balance (RMB) % of the total balance of advances
Top 1 8673380.02 9.24
Top 2 6724170.60 7.16
Top 3 4176098.86 4.45
Top 4 4156262.32 4.43
176DSBJ Annual Report 2024
Top 5 3968100.01 4.23
Subtotal 27698011.81 29.51
10. Inventories
Does the Company need to comply with the disclosure requirements for the real estate industry
No
(1) Categories of inventories
In RMB
Closing balance Opening balance
Inventory Inventory
provision or provision or
Item allowance for allowance for
Book balance Carrying value Book balance Carrying value
impairment of impairment of
contract contract
fulfilling costs fulfilling costs
1654514762.1476562802.1137854380.
Raw materials 177951960.02 144036638.90 993817741.50
222040
Work in 1003084859.
82988158.81920096700.91891174574.36125226289.12765948285.24
progress 72
4503260856.3753518276.4974174253.
Goods on hand 749742579.85 449989021.71 4524185231.87
052058
Circulating
2516343.4238514.882477828.549966532.8138514.889928017.93
materials
7163376821.1010721213.6152655607.7013169741.
Total 719290464.61 6293879276.54
41568515
(2) Data resources recognized as inventories
In RMB
Inventory of Inventory of data
Inventory of self-built
Item outsourced data resources acquired by Total
data resources
resources other means
(3) Inventory provision or allowance for impairment of contract fulfilling costs
In RMB
Decrease in the current
Increase in the current period
period
Item Opening balance Closing balance
Reversed or
Recognized Others Others
written off
Raw
144036638.9086488814.64165866.5952739360.11177951960.02
materials
Work in
125226289.12-22043303.4243886.9820238713.8782988158.81
progress
Goods on
449989021.71390214279.492271347.1992732068.54749742579.85
hand
177DSBJ Annual Report 2024
Circulating
38514.8838514.88
materials
Total 719290464.61 454659790.71 2481100.76 165710142.52 1010721213.56
Basis for determining the net realizable Reason for reversing the inventory Reason for writing off the inventory
Item
value provision provision
The net realizable value is the
The net realizable value is the estimated The inventories for which an inventory
estimated selling price of finished
Raw selling price of finished goods less the provision was recognized at the
goods less the estimated cost of
materials estimated cost of completion estimated beginning of the current period have
completion estimated selling expenses
selling expenses and related taxes. been used.and related taxes.The net realizable value is the
The net realizable value is the estimated The inventories for which an inventory
estimated selling price of finished
Work in selling price of finished goods less the provision was recognized at the
goods less the estimated cost of
progress estimated cost of completion estimated beginning of the current period have
completion estimated selling expenses
selling expenses and related taxes. been used.and related taxes.The net realizable value is the estimated The inventories for which an inventory The net realizable value is the
Goods on selling price of finished goods less the provision was recognized at the estimated selling price of finished
hand estimated selling expenses and related beginning of the current period have goods less the estimated selling
taxes. been used. expenses and related taxes.The net realizable value is the
The net realizable value is the estimated The inventories for which an inventory
Other estimated selling price of finished
selling price of finished goods less the provision was recognized at the
circulating goods less the estimated cost of
estimated cost of completion estimated beginning of the current period have
materials completion estimated selling expenses
selling expenses and related taxes. been used.and related taxes.
11. Assets held for sale
12. Non-current assets due within one year
13. Other current assets
In RMB
Item Closing balance Opening balance
Cost of returned goods receivable 28122898.55 29832976.30
Deductible input tax 743118926.80 340312673.44
Prepaid enterprise income tax 56072964.14 35892887.21
Deferred expenses and others 382527494.50 245681208.73
Total 1209842283.99 651719745.68
14. Debt investments
15. Other debt investments
16. Investment in other equity instruments
In RMB
178DSBJ Annual Report 2024
Aggregate Aggregate
Income Loss Reason for
income loss Dividen
recognized recognized designation
recognized recognized d
in other in other as at fair
in other in other income
Closing Opening comprehens comprehens value
Item comprehens comprehens recogniz
balance balance ive income ive income through
ive income ive income ed in the
in the in the other
at the end of at the end of current
current current comprehens
the current the current period
period period ive income
period period
Jiangsu
Bohua
Equity 200000000 150000000
Investment .00 .00
Partnership
(L.P.)
Hai Dixin
Semiconduc
21322110.21322110.
tor
0000
(Nantong)
Co. Ltd.Kunshan
Hostar
28800000.28800000.
Intelligence
0000
Technology
Co. Ltd.Dyness
Digital
50000000.50000000.
Energy
0000
Technology
Co. Ltd.Shinwu
Optronics 22035000. 22035000.(Suzhou) 00 00
Co. Ltd.Jinan
10000000.6000000.0
Moviebook
000
Co. Ltd.Shenzhen
Ruoyu 1500000.0
Technology 0
Co. Ltd.
333657110278157110
Total.00.00
(1) Hai Dixin Semiconductor (Nantong) Co. Ltd. was established on April 6 2012 with a registered capital of
RMB36152329.00 in which the Company holds 10.2345% shares. In consideration that the Company has a close business
relationship with Hai Dixin Semiconductor (Nantong) Co. Ltd. the shares held by the Company in it will help the Company
improve its business competencies and the investment is not held for trading the Company designated this investment as a
financial asset at fair value through other comprehensive income on January 1 2019.
(2) Jiangsu Bohua Equity Investment Partnership (L.P.) was established on September 27 2021 with a registered capital of
RMB3.3 billion and is primarily engaged in equity investment venture capital investment etc. In consideration that this
investment will bring a good return to the Company and provide the Company with opportunities to invest in premium fields and
179DSBJ Annual Report 2024
assets and is not held for trading the Company designated this investment as a financial asset at fair value through other
comprehensive income.
(3) Kunshan Hostar Intelligence Technology Co. Ltd. was established on April 2 2011 with a registered capital of
RMB42660000 in which the Company holds 3.038% shares. In consideration that the shares held by the Company in it will help
the Company improve its business competencies including procuring raw materials/equipment and developing and strengthening
market and sales teams and the investment is not held for trading the Company designated this investment as a financial asset at
fair value through other comprehensive income in February 2023.
(4) Dyness Digital Energy Technology Co. Ltd. was established on August 17 2017 with a registered capital of
RMB112023809 in which the Company holds 1.4716% shares. In consideration that the shares held by the Company in it will
help the Company improve its business competencies and the investment is not held for trading the Company designated this
investment as a financial asset at fair value through other comprehensive income in March 2023.
(5) Shinwu Optronics (Suzhou) Co. Ltd. was established on October 19 2006 with a registered capital of RMB57754000 in
which the Company holds 1.7169% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies and the investment is not held for trading the Company designated this investment as a
financial asset at fair value through other comprehensive income in May 2023.
(6) Jinan Moviebook Co. Ltd. was established on September 6 2019 with a registered capital of RMB10100000 in which the
Company holds 0.32862% shares. In consideration that the shares held by the Company in it will help the Company improve its
business competencies and the investment is not held for trading the Company designated this investment as a financial asset at
fair value through other comprehensive income in October 2023.
(7) Shenzhen Ruoyu Technology Co. Ltd. was established on April 13 2023 with a registered capital of RMB5229301 in
which the Company holds 0.7994% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies and the investment is not held for trading the Company designated this investment as a
financial asset at fair value through other comprehensive income in January 2024.
17. Long-term receivables
(1) Particulars of long-term receivables
In RMB
Closing balance Opening balance Range
Allowance Allowance for of Item Carrying
Book balance for doubtful Carrying value Book balance doubtful discount
value
accounts accounts rate
Amount of
30000000.0030000000.0030000000.0030000000.00
finance lease
Account
receivable from
Powerwave
10703905.7610703905.767.5%
Technologies
(Thailand) Co.Ltd.Total 30000000.00 30000000.00 40703905.76 10703905.76 30000000.00
180DSBJ Annual Report 2024
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Book balance
doubtful accounts Carrying doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Allowance
107039107039100.00
recognized 100.00%
05.7605.76%
individually
Incl.:
Incl.:
107039107039100.00
Total 100.00%
05.7605.76%
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
In RMB
Changes in the current period
Closing
Type Opening balance Recovered or Transferred or
Recognized Others balance
reversed written off
Allowance recognized
10703905.7610703905.76
individually
Total 10703905.76 10703905.76
(4) Long-term receivables actually written off in the current period
In RMB
Item Amount written off
Long-term receivables actually written off 10703905.76
Significant amount of long-term receivables written off:
In RMB
Nature of Reason for Write-off procedure Whether or not arising from
Company name Amount written off
accounts write-off performed related-party transactions
Long-term Non- Resolution of the
POWERWAVE 10703905.76 No
receivable recoverable Board of Directors
Total 10703905.76
18. Long-term equity investments
In RMB
Openin Changes in the current period Closing
Opening Closing
g
balance Additi Reduc Invest Adjustm Oth Declar Allow
balance
balance
Investee balance
(carrying onal ed ment ent to er ed ance Oth
of
(carrying
of
value) invest invest income other chan cash for ers
allowan
value)
allowan ment ment or loss compreh ges divide impair ce for
181DSBJ Annual Report 2024
ce for under ensive in nds or ment impairm
impairm equity income equi profit loss ent loss
ent loss method ty distrib
ution
I. Joint ventures
II. Associates
Suzhou
Toprun
Electric 193350 51487 14263 194776 51487
Equipme 28.62 204.05 5.84 64.46 204.05
nt Co.Ltd.Shenzhe
n
Nanfang
Blog
1750717507
Technolo
056.47056.47
gy
Develop
ment
Co. Ltd.Shanghai
Fu Shan
Precision
Manufac
turing
Co. Ltd.Suzhou
LEGAT
E
-
Intellige 235071 226470
86010
nt 76.15 67.59
8.56
Equipme
nt Corp.Ltd.Suzhou
Dongcan
Optoelec -
379725331647
tronics 48078
8.352.49
Technolo 5.86
gy Co.Ltd.Jiangsu
Nangao
Intellige
nt
-
Equipme 425936 344283
81653
nt 9.62 5.16
4.46
Innovati
on
Center
Co. Ltd.Jiaozuo
Songyan -
267537243920
g 23616
81.0791.70
Optoelec 89.37
tric
182DSBJ Annual Report 2024
Technolo
gy Co.Ltd.Suzhou
Yongxin
Jingshan
g 259157 99613 358771
Venture 94.06 30.71 24.77
Capital
Partnersh
ip (L.P.)
ISOTEK
MICRO
8539485394
WAVE
24.6124.61
LIMITE
D
BVF
-
(BVI) 323588 277342
46245
Holding 73.17 83.16
90.01
L.P.Shanghai
Xinhuaru
i
-
Semicon 194795 181212
13583
ductor 98.85 56.35
42.50
Technolo
gy Co.Ltd.-
1554067753315500877533
Subtotal 39808
879.89685.13795.68685.13
4.21
-
1554067753315500877533
Total 39808
879.89685.13795.68685.13
4.21
19. Other non-current financial assets
20. Investment properties
(1) Investment properties at cost
□ Applicable □ N/A
In RMB
Buildings and Land use Construction in
Item Total
structures right progress
I. Original value
1. Opening balance 5309132.17 5309132.17
2. Increase
(1) Acquired
(2) Transferred from inventories/ fixed
assets/ construction in progress
(3) Increased due to business
combinations
183DSBJ Annual Report 2024
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance 5309132.17 5309132.17
II. Accumulated depreciation and amortization
1. Opening balance 4270291.91 4270291.91
2. Increase 257711.16 257711.16
(1) Recognized or amortized 257711.16 257711.16
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance 4528003.07 4528003.07
III. Allowance for impairment loss
1. Opening balance
2. Increase
(1) Recognized
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance
IV. Carrying value
1. Closing balance 781129.10 781129.10
2. Opening balance 1038840.26 1038840.26
21. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 13595191232.40 12415251689.80
Disposal of fixed assets
Total 13595191232.40 12415251689.80
(1) Particulars of fixed assets
In RMB
Buildings and Machinery and Transportation Office equipment
Item Total
structures equipment equipment and others
I. Original value
1. Opening balance 5132153184.39 19797161127.14 89626022.07 1015562668.44 26034503002.04
184DSBJ Annual Report 2024
2. Increase 982551679.03 3150555117.52 19135546.69 75508330.36 4227750673.60
(1) Acquired 278060446.68 6021926.53 442302.73 284524675.94
(2) Transferred
from construction in 985110042.67 2868192173.75 13139272.00 74917996.23 3941359484.65
progress
(3) Increased
due to business
combinations
Translation differences
arising from translation
-2558363.644302497.09-25651.84148031.401866513.01
of foreign currency
financial statements
3. Decrease 143493613.98 1323964668.35 9610848.92 92777232.13 1569846363.38
(1) Disposed or
143493613.981323964668.359610848.9292777232.131569846363.38
retired
4. Closing balance 5971211249.44 21623751576.31 99150719.84 998293766.67 28692407312.26
II. Accumulated
depreciation
1. Opening balance 2220275673.46 10602887524.16 62223497.82 716522202.74 13601908898.18
2. Increase 228254183.45 1834390269.90 7237777.12 55257768.31 2125139998.78
(1) Recognized 228400199.04 1833540812.83 7268879.85 55132744.49 2124342636.21
Translation differences
arising from translation
-146015.59849457.07-31102.73125023.82797362.57
of foreign currency
financial statements
3. Decrease 42146214.79 969905237.06 8131582.09 18081008.42 1038264042.36
(1) Disposed or
42146214.79969905237.068131582.0918081008.421038264042.36
retired
4. Closing balance 2406383642.12 11467372557.00 61329692.85 753698962.63 14688784854.60
III. Allowance for
impairment loss
1. Opening balance 4570236.72 12078207.03 693970.31 17342414.06
2. Increase 394266841.50 173943.07 394440784.57
(1) Recognized 394266841.50 173943.07 394440784.57
3. Decrease 3350795.57 1177.80 3351973.37
(1) Disposed or
3350795.571177.803351973.37
retired
4. Closing balance 4570236.72 402994252.96 866735.58 408431225.26
IV. Carrying value
1. Closing balance 3560257370.60 9753384766.35 37821026.99 243728068.46 13595191232.40
2. Opening balance 2907307274.21 9182195395.95 27402524.25 298346495.39 12415251689.80
185DSBJ Annual Report 2024
(2) Temporary idle fixed assets
In RMB
Accumulated Allowance for
Item Original value Carrying value Remark
depreciation impairment loss
Machinery and equipment 329895845.24 139627740.37 49592898.23 140675206.64
Subtotal 329895845.24 139627740.37 49592898.23 140675206.64
(3) Fixed assets leased out under operating leases
(4) Fixed assets whose property title certificates have not yet been obtained
In RMB
Reason for not obtaining the property
Item Carrying value
title certificate
Factory buildings of Multek 31717216.44 Pending review
(5) Impairment assessment of fixed assets
□ Applicable □ N/A
Recoverable amount determined based on fair value net of disposal cost:
□ Applicable □ N/A
In RMB
Method for Basis for
Recoverable Impairment determining fair determining
Item Carrying value Key parameters
amount loss value and disposal key
expenses parameters
The fair value is
determined at cost
while the disposal
Machinery costs mainly include Reset cost and
and 1911350990.05 1517257511.80 394093478.25 direct expenses comprehensive
equipment incurred during the residue ratio
disposal such as
auction expenses
stamp duties etc.Total 1911350990.05 1517257511.80 394093478.25
22. Construction in progress
In RMB
Item Closing balance Opening balance
Construction in progress 2575154318.35 1842525188.54
Total 2575154318.35 1842525188.54
(1) Particulars of construction in progress
In RMB
Item Closing balance Opening balance
186DSBJ Annual Report 2024
Allowance Allowance
for for
Book balance Carrying value Book balance Carrying value
impairment impairment
loss loss
Multek 5G high-
speed high-
frequency and high-
20138126.5420138126.54
density PCB
technology
upgrading project
FPC for new energy
application and
15994322.8215994322.82
assembly project of
MFLEX Yancheng
Infrastructure
construction of the
factory for Multi- 1228168131.58 1228168131.58
layer Circuit Board
Co. Ltd.IC substrate project
of Chaowei
Microelectronics 10009858.49 10009858.49 75645464.25 75645464.25
(Yancheng) Co.Ltd.Large-sized die-
casting project of
178439112.27178439112.27658090750.03658090750.03
Yancheng
Dongchuang
Kunshan new
energy
395279797.72395279797.72425232448.52425232448.52
manufacturing base-
related project
Mexico new energy
manufacturing base- 7184449.96 7184449.96 999896.91 999896.91
related project
MFLEX Yancheng
125744191.31125744191.3135619454.3335619454.33
Phase II project
MFLEX Suzhou
Guoxiang Phase II
and other 160977750.57 160977750.57 82215960.20 82215960.20
production
expansion projects
LCM business unit 46535180.88 46535180.88
Installation
equipment in 469351026.45 469351026.45 482053584.06 482053584.06
progress and others
Total 2575154318.35 2575154318.35 1842525188.54 1842525188.54
(2) Changes in significant constructions in progress in the current period
In RMB
Increas Amou % of Aggre Incl.: Rate of
Budget Openi Closin
e in nt Other project gate Capital interes Source
(100 ng g Progre
Item the transfe decrea costs amoun ized t of
million balanc balanc ss
current rred to ses to the t of interes capital funds
RMB) e e
period fixed budget capital t this ization
187DSBJ Annual Report 2024
assets ized year this
interes year
t
Infrastruct
ure
constructio
n of the 46873 1174 1220
6759565.1465.143413034130
factory for 18.75 232.0 50290 70018 0.20% Others
6.67%%1.421.42
Multi-layer 4 6.05 1.42
Circuit
Board Co.Ltd.Kunshan
new energy 42523 84055 83910 31398 39527
77.4277.4272297229
manufactur 18.00 2448. 1857. 5799. 708.6 9797. 2.75% Others
%%036.37036.37
ing base 52 21 35 6 72
project
Large-
sized die-
casting 65809 34882 76453 63939 17843 16437 16437
94.2694.26
project of 15.00 0750. 4965. 7517. 086.0 9112. 368.0 368.0 2.90% Others
%%
Yancheng 03 84 59 1 27 2 2
Dongchuan
g
1130236316049533717942400724007
Total 51.75 19643 87972 31927 794.6 41909 705.8 705.8
0.599.103.6171.4111
23. Productive biological assets
24. Oil and gas assets
25. Right-of-use assets
(1) Particulars of right-of-use assets
In RMB
Buildings and Machinery and Transportation
Item Land Total
structures equipment equipment
I. Original value
1. Opening
1413525626.0530676878.28345470.0093200186.631537748160.96
balance
2. Increase 134773113.94 134773113.94
(1) Leased 133079979.12 133079979.12
(2) Translation
differences arising
from translation of
1693134.821693134.82
foreign currency
financial
statements
3. Decrease 34922072.55 345470.00 35267542.55
(1) Disposed 34922072.55 345470.00 35267542.55
4. Closing 1513376667.44 30676878.28 93200186.63 1637253732.35
188DSBJ Annual Report 2024
balance
II. Accumulated
depreciation
1. Opening
276837664.69971434.50269898.567001112.38285080110.13
balance
2. Increase 70163828.44 1942869.00 75571.44 1482596.76 73664865.64
(1) Recognized 69995738.20 1942869.00 75571.44 1482596.76 73496775.40
(2) Translation
differences arising
from translation of
168090.24168090.24
foreign currency
financial
statements
3. Decrease 34922072.55 345470.00 35267542.55
(1) Disposed 34922072.55 345470.00 35267542.55
4. Closing
312079420.582914303.508483709.14323477433.22
balance
III. Allowance for
impairment loss
1. Opening
balance
2. Increase
(1) Recognized
3. Decrease
(1) Disposed
4. Closing
balance
IV. Carrying value
1. Closing
1201297246.8627762574.7884716477.491313776299.13
balance
2. Opening
1136687961.3629705443.7875571.4486199074.251252668050.83
balance
(2) Impairment assessment of right-of-use assets
□ Applicable □ N/A
26. Intangible assets
(1) Particulars of intangible assets
In RMB
Land use Unpatented Trademarks Developme Customer
Item Patent Software Total
right technology and patents nt expenses resources
I. Original
value
189DSBJ Annual Report 2024
1.
629094583623866154718885.6733029.207803629.1360736738.
Opening
5.8908.2676452359
balance
2.161502345345222215116749.8
162171.45
Increase 9.80 8.61 6
5417329.34923869
(1) Acquired 162171.45 54818198.10
37.32
(2) Internal
R&D
(3) Increased
due to
business
combinations
(4)
Transferred
14842300148423000.0
between
0.000
categories of
assets
(5)
Transferred
3863100
from 3863100.99.99
construction
in progress
(6)
Translation
differences
arising from
7662020.4350430.3
translation of 8012450.77
70
foreign
currency
financial
statements
3.14637780.3874675
18512455.72
Decrease 27 .45
14637780.3874675
(1) Disposed 18512455.72
27.45
4.
775959154119641154881057.6733029.207803629.1557341032.
Closing
5.4261.4221452373
balance
II.Accumulated
amortization
1.
10008678271520299655603.56733029.19048666.0497044316.8
Opening
0.5237.2894515
balance
2.15199348.545739815190353.420780362.9105744052.1
Increase 10 7.61 7 2 0
(1)15199348.541829520780362.9
9745246.7899907909.26
Recognized 10 1.46 2
(2)
Translation 391036.1
5445106.695836142.84
differences 5
arising from
190DSBJ Annual Report 2024
translation of
foreign
currency
financial
statements
3.4896446.83145022
8041469.56
Decrease 3 .73
4896446.83145022
(1) Disposed 8041469.56
3.73
4.
110389683229492114845957.6733029.39829028.9594746899.3
Closing
1.7902.16064539
balance
III.Allowance
for
impairment
loss
1.
Opening
balance
2.
Increase
(1)
Recognized
3.
Decrease
(1) Disposed
4.
Closing
balance
IV. Carrying
value
1.
66556947890149540035100.1167974600.962594133.3
Closing
3.639.265304
balance
2.
52900780908663755063282.1188754963.863692421.7
Opening
5.370.987224
balance
(2) Data resources recognized as intangible assets
□ Applicable □ N/A
(3) Land use rights whose property title certificates have not yet been obtained
(4) Impairment test of intangible assets
□ Applicable □ N/A
191DSBJ Annual Report 2024
27. Goodwill
(1) Original value of goodwill
In RMB
Increase Decrease
Investee or event giving rise to goodwill Opening balance Arising from Closing balance
business Disposed
combination
MFLEX 1770752915.84 1770752915.84
Multek 179329062.90 179329062.90
Mutto Optronics Technology Co. Ltd. 153957647.78 153957647.78
RF Top Electronic Electronic
135001580.53135001580.53
Communication Co. Ltd.Aranda 50502380.96 50502380.96
Total 2289543588.01 2289543588.01
(2) Allowance for impairment of goodwill
In RMB
Increase Decrease
Investee or event giving rise to goodwill Opening balance Closing balance
Recognized Disposed
Mutto Optronics Technology Co. Ltd. 67475733.00 48393604.30 115869337.30
RF Top Electronic Electronic
8868134.1736829800.0045697934.17
Communication Co. Ltd.Aranda 4000219.86 4363876.21 8364096.07
Total 80344087.03 89587280.51 169931367.54
Note: The increase in the allowance for impairment of goodwill was primarily due to a goodwill impairment recognized as a result
of the reversal of deferred tax liabilities arising from an increase in the appraised value of Aranda acquired by the Company and
the effect of goodwill impairment assessment.
(3) Information of asset group or combination of asset groups to which the goodwill belongs
Composition of asset group or
Business segment and basis for Whether or not the same
Item combination of asset group and basis
classification as prior years
for grouping
All of its assets and liabilities when
MFLEX PCB manufacturing circuit boards Yes
acquired by the Company
All of its assets and liabilities when
Multek PCB manufacturing circuit boards Yes
acquired by the Company
Mutto Optronics Touch panel and LCM
All of its assets and liabilities Yes
Technology Co. Ltd. manufacturing touch panels
RF Top Electronic
Electronic Precision components
All of its assets and liabilities Yes
Communication Co. manufacturing ceramic filters
Ltd.
(4) Method of determination of recoverable amounts
Recoverable amount determined based on fair value net of disposal cost:
□ Applicable □ N/A
192DSBJ Annual Report 2024
Recoverable amount determined based on the present value of estimated future cash flows:
□ Applicable □ N/A
In RMB
Key Key Basis for
Carrying Recoverable Impairment Forecast parameters for parameters determining the key
Item
value amount loss period the forecast for the stable parameters for the
period period stable period
Pre-tax discount rate
Revenue Revenue
of 13.83%
growth rate: growth rate:
117834819 161800000 determined based on
MFLEX 5 years 0.19%; margin 0%; margin
08.83 00.00 the weighted
growth rate: growth rate:
average capital cost
16.62%16.23%
(wacc) as adjusted
Pre-tax discount rate
Revenue Revenue
of 11.55%
growth rate: growth rate:
245354190 270000000 determined based on
Multek 5 years 2.00%; margin 0%; margin
4.98 0.00 the weighted
growth rate: growth rate:
average capital cost
17.78%17.22%
(wacc) as adjusted
Pre-tax discount rate
Revenue Revenue
Mutto of 9.49%
growth rate: growth rate:
Optronics 395393604. 347000000. 48393604.3 determined based on
5 years 1.81%; margin 0%; margin
Technology 30 00 0 the weighted
growth rate: growth rate:
Co. Ltd. average capital cost
7.62%7.75%
(wacc) as adjusted
Pre-tax discount rate
RF Top Revenue Revenue
of 12.50%
Electronic growth rate: growth rate:
357829800. 321000000. 36829800.0 determined based on
Electronic 5 years 16.04%; 0%; margin
00 00 0 the weighted
Communicati margin growth growth rate:
average capital cost
on Co. Ltd. rate: 15.40% 18.71%
(wacc) as adjusted
14990247219548000085223404.3
Total
18.1100.000
Note:
1) According to the Valuation Report (Canwin Valuation Report [2025] No. 2-24) issued by Canwin Appraisal Co. Ltd. the
recoverable amount of the asset group or combination of asset groups including the goodwill for MFLEX was
RMB16180000000.00 which was higher than its carrying value of RMB11783481908.83 so the goodwill was not impaired.
2) According to the Valuation Report (Canwin Valuation Report [2025] No. 2-26) issued by Canwin Appraisal Co. Ltd. the
recoverable amount of the asset group or combination of asset groups including the goodwill for Multek was
RMB2700000000.00 which was higher than its carrying value of RMB2453541904.98 so the goodwill was not impaired.
3) According to the Valuation Report (Canwin Valuation Report [2025] No. 2-21) issued by Canwin Appraisal Co. Ltd. the
recoverable amount of the asset group or combination of asset groups including the goodwill for Mutto Optronics was
RMB347000000.00 while its carrying value was RMB395393604.30 so a goodwill impairment of RMB48393604.30 was
recognized.
4) According to the Valuation Report (Zhongsheng Valuation Report [2025] No. 0083) issued by Zhongsheng Appraisal &
Consulting Co. Ltd. the recoverable amount of the asset group or combination of asset groups including the goodwill for RF Top
Electronic was RMB321000000.00 while its carrying value was RMB357829800.00 so a goodwill impairment of
RMB36829800.00 was recognized.
(5) The completion of performance commitments and corresponding goodwill impairment
Goodwill was recognized based on performance commitments made during the reporting period or the preceding period of
performance commitments.□ Applicable □ N/A
193DSBJ Annual Report 2024
28. Long-term deferred expenses
In RMB
Increase in the
Item Opening balance Amortization Other decreases Closing balance
current period
Decoration costs of fixed
866872191.21328053440.30261921167.7429404749.88903599713.89
assets and others
Total 866872191.21 328053440.30 261921167.74 29404749.88 903599713.89
29. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Allowance for impairment
1324692293.90205243454.52800118130.88128429874.02
of assets
Deductible losses 2300687978.39 362521218.64 2579402663.68 389544407.25
Difference in depreciation
56738475.0713329567.8255181543.3013469931.13
of fixed assets
Lease liabilities 1425266733.21 229432313.12 1872497186.10 342955848.83
Unrealized gains/losses
from inter-company 276240960.60 57088993.26 255979699.52 59652829.61
transactions
Change in the fair value of
9096191.751953655.9418683140.273995566.48
financial instruments
Deferred income 522365262.99 85669295.35 660215044.53 107254395.87
Accrued expenses 698231909.28 112291672.83 171599012.32 32837575.19
Total 6613319805.19 1067530171.48 6413676420.60 1078140428.38
(2) Deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
One-off deduction of
2569191598.13523588207.161588082312.80318338339.27
depreciation of fixed assets
Accrued interest income
89930966.3119085788.4586995017.2618917600.59
and others
Right-of-use assets 1403935934.81 241292708.42 1252668050.83 266830422.09
Income tax payable due to
351178186.2479872611.80384245651.8287206749.88
increase in appraised value
Total 4414236685.49 863839315.83 3311991032.71 691293111.83
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
194DSBJ Annual Report 2024
Opening balance of
Closing offset amount of Closing balance of Opening offset amount
deferred tax assets
Item deferred tax assets and deferred tax assets or of deferred tax assets
or liabilities after
liabilities liabilities after offset and liabilities
offset
Deferred tax assets 233079559.40 834450612.08 1078140428.38
Deferred tax liabilities 233079559.40 630759756.43 691293111.83
(4) Unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 660868902.87 1045519017.80
Deductible losses 701671666.45 470774420.57
Total 1362540569.32 1516293438.37
(5) Deductible losses on unrecognized deferred tax assets that will expire in the following years
In RMB
Year Closing balance Opening balance Remark
202440403329.83
2025100804003.97100804003.97
202639377012.0139377012.01
2027265972000.92265972000.92
202824218073.8424218073.84
2029271300575.71
Total 701671666.45 470774420.57
30. Other non-current assets
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance impairment Carrying value Book balance impairment Carrying value
loss loss
Deferred income –
unrealized gain or
19414150.1619414150.1626662462.4126662462.41
loss on sale and
leaseback
Prepayment for
projects and 493140601.21 493140601.21 906360511.93 906360511.93
equipment
Total 512554751.37 512554751.37 933022974.34 933022974.34
31. Assets subject to restrictions on ownership or right of use
In RMB
Item Closing balance Opening balance
195DSBJ Annual Report 2024
Book Carrying Type of Reason of Book Carrying Type of Reason of
balance value restriction restriction balance value restriction restriction
Cash and Security Security
18287308182873081315351713153517
bank Pledge deposit for Pledge deposit for
69.9269.9283.3983.39
balances notes etc. notes etc.Discounted
Notes 13000000 13000000
Pledge and not
receivable 0.00 0.00
mature
Security for Security for
Fixed 69033625 19088037 loans sales 78405122 41864170 loans sales
Mortgage Mortgage
assets 0.99 8.32 and 8.85 1.59 and
leaseback leaseback
Accounts 90000000. 90000000. 96168092. 96168092.Pledge Factoring Pledge Factoring
receivable 00 00 66 66
Accounts
47745743. 47745743. Pledge of 17268596 17268596 Pledge of
receivable Pledge Pledge
70 70 notes 5.02 5.02 notes
financing
Right-of- 15824994 12589996 Finance 15354130 12526680 Finance
Mortgage Mortgage
use assets 05.56 36.74 lease 01.39 50.83 lease
42393122341635664033670033855155
Total
70.1728.6871.3193.49
32. Short-term borrowings
(1) Short-term borrowings by category
In RMB
Item Closing balance Opening balance
Credit loans 3857114689.19 4376608244.06
Discounting and factoring of notes
953839441.50779491972.95
letters of credit and accounts receivable
Total 4810954130.69 5156100217.01
33. Financial liabilities held for trading
In RMB
Item Closing balance Opening balance
Financial liabilities held for trading 82922390.17 104174076.23
Incl.:
Derivative financial liabilities 82922390.17 104174076.23
Incl.:
Total 82922390.17 104174076.23
34. Derivative financial liabilities
35. Notes payable
In RMB
Category Closing balance Opening balance
196DSBJ Annual Report 2024
Commercial acceptance bills 10677710.87 52292024.62
Banker’s acceptance bills 924903561.63 856879191.31
Total 935581272.50 909171215.93
36. Accounts payable
(1) Breakdown of accounts payable
In RMB
Item Closing balance Opening balance
Payment for materials 6934434355.01 6672185481.42
Payment for projects and equipment 2235670994.79 1055789013.23
Others 489163640.63 311132681.87
Total 9659268990.43 8039107176.52
(2) Significant accounts payable aged over 1 year or overdue
37. Other payables
In RMB
Item Closing balance Opening balance
Other payables 94163223.90 80188628.54
Total 94163223.90 80188628.54
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Temporary receipts payable 54101772.81 60966287.79
Others 40061451.09 19222340.75
Total 94163223.90 80188628.54
38. Advances from clients
39. Contract liabilities
In RMB
Item Closing balance Opening balance
Trade receivable 122562435.14 28982676.07
Total 122562435.14 28982676.07
40. Employee benefits payable
(1) Employee benefits payable
In RMB
197DSBJ Annual Report 2024
Increase of the current Decrease of the current
Item Opening balance Closing balance
period period
I. Short-term benefits 540263955.36 4505173939.26 4466438072.97 578999821.65
II. Post-employment
benefits - defined 12915025.32 302056573.75 299680048.62 15291550.45
contribution plans
III. Termination
83037395.0079755680.083281714.92
benefits
Total 553178980.68 4890267908.01 4845873801.67 597573087.02
(2) Short-term employee benefits
In RMB
Opening Increase of the Decrease of the Closing
Item
balance current period current period balance
1. Wages bonuses allowances and subsidies 530225015.61 4000111870.37 3963551374.67 566785511.31
2. Staff welfare 205496943.41 205496943.41
3. Social insurance contributions 5627610.15 149537655.93 147644431.53 7520834.55
Workers’ compensation insurance 434364.36 13097859.19 13121454.19 410769.36
Medical and maternity insurance 5193245.79 136439796.74 134522977.34 7110065.19
4. Housing provident fund 2654388.88 140130802.94 139947773.76 2837418.06
5. Trade union fund and employee education fund 1756940.72 9896666.61 9797549.60 1856057.73
Total 540263955.36 4505173939.26 4466438072.97 578999821.65
(3) Defined contribution plans
In RMB
Increase of the current Decrease of the
Item Opening balance Closing balance
period current period
1. Basic pension insurance 12317238.58 291818622.99 289474429.72 14661431.85
2. Unemployment insurance 597786.74 10237950.76 10205618.90 630118.60
Total 12915025.32 302056573.75 299680048.62 15291550.45
41. Taxes payable
In RMB
Item Closing balance Opening balance
Value-added tax 20674711.21 15906070.71
Enterprise income tax 342390303.11 425307243.33
Individual income tax 9277024.93 7474547.48
Urban maintenance and construction tax 4101006.65 6227121.91
Property tax 7364518.95 8141101.87
Stamp duty 5657390.62 6471998.78
Education surcharge 1878074.57 2672083.16
Land use tax 367722.10 735915.46
Local education surcharge 1252049.72 1781388.79
Other taxes 2809325.90 858735.34
198DSBJ Annual Report 2024
Total 395772127.76 475576206.83
42. Liabilities held for trading
43. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term borrowings due within one year 2327145419.12 2467018914.05
Lease liabilities due within one year 131841882.24 29697992.30
Total 2458987301.36 2496716906.35
44. Other current liabilities
In RMB
Item Closing balance Opening balance
Output tax to be recognized 5190838.21 6556017.38
Total 5190838.21 6556017.38
45. Long-term borrowings
(1) Long-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 714721945.32 764600000.00
Credit loans 4470332834.45 3741405477.65
Mortgage and guaranteed loans 104133111.56 200274861.11
Total 5289187891.33 4706280338.76
46. Bonds payable
47. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease obligations payable 1456822089.69 2098735814.79
Less: Unrecognized financing costs -105303252.51 -255936620.99
Total 1351518837.18 1842799193.80
48. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payables 49434786.31 296995789.48
Total 49434786.31 296995789.48
199DSBJ Annual Report 2024
(1) Long-term payables by nature
In RMB
Item Closing balance Opening balance
Share purchase price 49434786.31 296995789.48
49. Long-term employee benefits payable
50. Provisions
In RMB
Item Closing balance Opening balance Method of acquisition
Product warranty 30534014.56 30235945.92
Provision for sales return 27724858.36 30549264.52
Total 58258872.92 60785210.44
51. Deferred income
In RMB
Method of
Item Opening balance Increase Decrease Closing balance
acquisition
Government grants 733456685.17 7370100.00 154892895.28 585933889.89 Government grants
Total 733456685.17 7370100.00 154892895.28 585933889.89 --
52. Other non-current liabilities
53. Share capital
In RMB
Change (+/-)
Opening balance New Bonus Capitalization of Closing balance
Others Subtotal
shares shares capital reserves
Total shares 1709867327.00 -3953617.00 -3953617.00 1705913710.00
Other information: In August 2024 the Company deregistered the remaining 3953617 shares that were repurchased for the
implementation of the ESOP and correspondingly reduced the Company’s treasury shares by RMB75915960.84 and reduced the
capital reserve by RMB71962343.84.
54. Other equity instruments
55. Capital reserve
In RMB
Increase of the Decrease of the
Item Opening balance Closing balance
current period current period
Capital premium (share premium) 7896510906.74 26238619.50 71962343.84 7850787182.40
Other capital reserve 167257502.99 478369.94 26238619.50 141497253.43
Total 8063768409.73 26716989.44 98200963.34 7992284435.83
200DSBJ Annual Report 2024
Other information including the explanation about increase/decrease in the current period and the reasons of such change:
1) In September 2024 the Company vested all the Company’s shares held under the implemented ESOP to employees which lead
to the decrease in other capital reserve by RMB26238619.50 and the increase in the share premium by RMB26238619.50;
2) The provision of the share-based payment expenses incurred for the ESOP lead to the increase in other capital reserve by
RMB478369.94;
3) For other changes refer to “Section X – V (53) Share capital” of this Report for details.
56. Treasury shares
In RMB
Increase of the current Decrease of the current
Item Opening balance Closing balance
period period
Treasury shares 125906811.33 25000846.30 75915960.84 74991696.79
Total 125906811.33 25000846.30 75915960.84 74991696.79
Other information including the explanation about increase/decrease in the current period and the reasons of such change:
1) The Company held the 6th meeting of the 6th Board of Directors on December 28 2023 at which the Proposal Regarding
Repurchase of the Company’s Shares (hereinafter referred to as the “Repurchase”) was considered and adopted; as of January 15
2024 the Company has implemented the Repurchase by means of call auction under the dedicated securities account for
repurchase repurchased a total of 1.5888 million shares of the Company with the trading amount of RMB25.00 million.
2) Refer to “Section X – V (53) Share capital” of this Report for details.
57. Other comprehensive income
In RMB
Amount of the current period
Less: Other Less: Other
comprehen comprehen Amount Amount
Opening
Item sive sive Less: attributable attributable
Closing
balance Amount income income Income tax to the to minor balance
before tax
reclassified reclassified expenses parent after interest
to profit or to retained tax after tax
loss earnings
I. Other
comprehen
sive
--
income that 35000000
3500000035000000
cannot be 0.00
0.000.00
reclassified
to profit or
loss
Chang
e in fair
value of - -
35000000
investment 35000000 35000000
0.00
s in other 0.00 0.00
equity
instruments
201DSBJ Annual Report 2024
II. Other
comprehen
sive
---
income that 28881429. 3799623.6 47560204.
3646645722478398.31710437
will be 78 4 56
8.64424.08
reclassified
to profit or
loss
Reser
----
ves for 3799623.6 13125520.
17554493.5553254.022478398.4428972.9
cash flow 4 72
646422
hedge
Differ
ences in
translation - -
34434683.34434683.
of foreign 34711008 31267540
8484
currency 5.00 1.16
financial
statements
Total other
----
comprehen 28881429. 3799623.6 39756020
7146645722478398.3500000031710437
sive 78 4 4.56
8.64420.004.08
income
58. Special reserve
59. Surplus reserve
In RMB
Increase of the current Decrease of the current
Item Opening balance Closing balance
period period
Statutory surplus
184866869.7347374346.81232241216.54
reserve
Total 184866869.73 47374346.81 232241216.54
60. Retained profits
In RMB
Item Current period Previous period
Balance of retained profits at the end of the previous period
9025095529.057297404445.02
before adjustment
Opening balance of retained profits after adjustment 9025095529.05 7297404445.02
Add: Net profit attributable to owners of the parent 1085641847.89 1964525269.65
Less: Appropriation to statutory surplus reserve 47374346.81 49519034.63
Dividends payable to the ordinary shareholders 425319052.25 187315150.99
Transfer of other comprehensive income to retained earnings 350000000.00
Closing balance of retained profits 9288043977.88 9025095529.05
202DSBJ Annual Report 2024
61. Operating revenue and operating costs
In RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 36479191979.20 31384152613.81 33475973831.47 28425160342.65
Other businesses 291182368.38 230856015.58 175231637.33 116480700.09
Total 36770374347.58 31615008629.39 33651205468.80 28541641042.74
Whether the lower of the net profit before and after the deduction of non-recurring gain or loss is negative
□ Yes □ No
62. Taxes and surcharges
In RMB
Item Amount of the current period Amount of the previous period
Urban maintenance and construction tax 61853438.98 42047978.00
Education surcharge 27745541.46 18986817.25
Property tax 34216080.50 24366953.46
Land use tax 2000681.61 1981401.11
Vehicle and vessel tax 14547.32 53430.27
Stamp duty 22192921.83 21991019.79
Environmental protection tax 523400.32 807946.43
Local education surcharge 18496251.85 12733547.98
Total 167042863.87 122969094.29
63. Administrative expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 588115074.18 467679720.20
Depreciation and amortization 170661772.04 156374496.81
Consulting service fees 82023901.91 82075606.89
Office expenses 54385756.29 51393464.05
Business entertainment expenses 72233699.76 72376322.16
Travel expenses 19968826.98 21691454.80
Rents 4960539.80 3992796.13
Repair costs 32327485.58 30527647.62
Taxes 1950672.98 999118.09
Others 85774355.92 70213292.11
Total 1112402085.44 957323918.86
64. Selling expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 237488594.13 203487546.56
Sales service fees 109217184.46 63214240.46
Export charges 18461845.70 17420576.66
203DSBJ Annual Report 2024
Travel expenses 14252966.99 11187985.21
Business entertainment expenses 29394436.20 24420099.35
Others 45202759.73 42363653.52
Total 454017787.21 362094101.76
65. R&D expenses
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 548167661.46 476990832.66
Labor costs 510711948.15 499166662.04
Depreciation and amortization 98435864.38 86545177.50
Others 109497070.24 98487602.28
Total 1266812544.23 1161190274.48
66. Financial expenses
In RMB
Item Amount of the current period Amount of the previous period
Interest expenses 368551945.48 370433774.62
Interest on leases and financing service fees 69674382.08 93255168.88
Less: Interest income -243071834.40 -225593949.55
Add: Exchange loss -286978985.40 -93398783.31
Bank charges and others 33088044.64 44435526.05
Total -58736447.60 189131736.69
67. Other income
In RMB
Sources of other income Amount of the current period Amount of the previous period
Government grants related to assets 154892895.28 145882723.14
Government grants related to income 328831954.86 102195944.89
Additional deduction of VAT 32688476.14
Refund upon payment of VAT 5861818.16
Refund of individual income tax
980688.111803288.48
withholding service fees
Total 523255832.55 249881956.51
68. Net exposure hedging income
69. Gain on changes in fair value
In RMB
Source of gain on changes in fair value Amount of the current period Amount of the previous period
Financial assets held for trading -17898094.22 -9740779.67
Total -17898094.22 -9740779.67
70. Investment income
In RMB
204DSBJ Annual Report 2024
Item Amount of the current period Amount of the previous period
Income from long-term equity
-398084.25-10820910.91
investments under the equity method
Investment income from the disposal of
-25868191.04
long-term equity investments
Investment income from financial assets
held for trading during the holding 665778.00 6960501.71
period
Investment income from the disposal of
9630935.5617064250.96
financial assets held for trading
Discount loss on accounts receivable
-6065210.89-9045317.41
financing
Total -22034772.62 4158524.35
71. Credit impairment loss
In RMB
Item Amount of the current period Amount of the previous period
Loss from doubtful accounts -44109673.59 -39436689.63
Total -44109673.59 -39436689.63
72. Impairment loss on assets
In RMB
Item Amount of the current period Amount of the previous period
I. Impairment of inventories and contract
-454659790.71-397214961.29
fulfilling costs
II. Impairment of long-term equity
-9319087.50
investments
IV. Impairment of fixed assets -394440784.57
X. Impairment of goodwill -89587280.51 -33242820.58
XII. Others 1100106.59
Total -938687855.79 -438676762.78
73. Gain on disposal of assets
In RMB
Source of gain on disposal of assets Amount of the current period Amount of the previous period
Gain on disposal of fixed assets -234749852.86 -18240640.06
Total -234749852.86 -18240640.06
74. Non-operating revenue
In RMB
Amount of the previous Amount recognized in non-
Item Amount of the current period
period recurring gain or loss
Penalties 4306009.83 3153492.52 4306009.83
Amounts that cannot be paid 4141160.34 2085714.60 4141160.34
205DSBJ Annual Report 2024
Investment income 134812863.84
Others 813226.46 1426664.84 813226.46
Total 9260396.63 141478735.80 9260396.63
75. Non-operating expenses
In RMB
Amount of the previous Amount recognized in non-
Item Amount of the current period
period recurring gain or loss
Donations 7186576.91 3522368.13 7186576.91
Loss on destruction and
retirement of non-current 8343315.44 8127234.15 8343315.44
assets
Penalties overdue fines and
5451363.41605672.005451363.41
liquidated damages
Others 169773.26 2936415.30 169773.26
Total 21151029.02 15191689.58 21151029.02
76. Income tax expenses
(1) Statement of income tax expenses
In RMB
Item Amount of the current period Amount of the previous period
Income tax expense 201638862.70 566656749.91
Deferred income tax expenses 181012059.37 -340618962.41
Total 382650922.07 226037787.50
(2) Reconciliation of income tax expenses to accounting profit
In RMB
Item Amount of the current period
Total profit 1467711836.12
Income tax expenses calculated based on statutory/applicable tax rate 220156775.42
Effect of different tax rates applicable to subsidiaries -24573491.60
Effect of adjustment of income taxes for prior years 2326647.84
Effect of non-taxable incomes -11968090.81
Effect of non-deductible costs expenses and losses 22275718.28
Effect of using the deductible losses for which the deferred income
-1188613.37
tax assets were not recognized in previous periods
Effect of deductible temporary differences or deductible losses not
232245679.62
recognized for deferred tax assets for the current period
Effect of super deduction of R&D expenses -56623703.31
Income tax expenses 382650922.07
77. Other comprehensive income
Refer to “Section X Financial Report - VII (54)” of this report for details.
206DSBJ Annual Report 2024
78. Items of the cash flow statement
(1) Cash flows related to operating activities
Other cash receipts related to operating activities:
In RMB
Item Amount of the current period Amount of the previous period
Security deposit for acceptance bills 447811795.42 619568010.65
Government grants 336202054.86 200684445.55
Interest income 243071834.40 210139325.51
Temporary receipts payable and others 53123286.94 34254072.08
Total 1080208971.62 1064645853.79
Other cash payments related to operating activities
In RMB
Item Amount of the current period Amount of the previous period
Payment of period expenses in cash 806013008.87 589898141.45
Security deposit for acceptance bills 368078334.92 447811795.42
Bank charges 33088044.64 44435526.05
Temporary payment receivable and others 16699230.27 1748926.64
Total 1223878618.70 1083894389.56
(2) Cash flows related to investing activities
Other cash receipts related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Recovery of term deposits 690180814.95 439820656.38
Reversal of security deposit for investments 230197429.36
Total 920378244.31 439820656.38
Other cash payments related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Term deposits 1325308422.77 682400228.05
Payment of remaining acquisition amount 109158061.37
Future security deposit 4274055.74
Security deposit for the acquisition 226168789.48
Total 1438740539.88 908569017.53
(3) Cash flows related to financing activities
Other cash receipts related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 177359173.02 599543791.66
207DSBJ Annual Report 2024
Proceeds from discounts on acceptance bills
836298582.66729491972.95
and letters of credit
Total 1013657755.68 1329035764.61
Other cash payments related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 131070056.49 261577385.74
Payment of rents 644317313.92 183001957.26
Expenditures for repurchase of shares 25000846.30
Payments under bill financing 729491972.95 1297119441.20
Total 1529880189.66 1741698784.20
Changes in liabilities arising from financing activities
□ Applicable □ N/A
In RMB
Increase of the current period Decrease of the current period
Opening
Item Non-cash Non-cash Closing balance balance Cash change Cash change
change change
Short-term 5156100217. 6558850828. 7148286638. 4810954130.
244289723.08
borrowings 01 85 25 69
Long-term
borrowings
(including
7173299252.3569770682.3251354179.7616333310.
long-term 124617555.13
81398845
borrowings due
within one
year)
Lease liabilities
(including lease 1872497186. 1483360719.
255180847.24644317313.92
liabilities due 10 42
with one year)
Dividends
425319052.25425319052.25
payable
14201896655101286215111049407177.1146927718413910648160
Total.92.2470.30.56
(4) Explanation about cash flows presented on a net basis
(5) Significant activities that do not involve receipts and payments of cash in the current period but
affect the financial position of the enterprise or may affect cash flows of the enterprise in the future and
financial effects thereof
Amount of endorsed transfer for commercial bill not involving receipts and payments of cash
The same period of the
Item Current period
previous year
Amount of the commercial bill transferred by endorsement 1923542351.47 2313979493.40
Incl.: Payment for goods 1658479539.00 2313979493.40
208DSBJ Annual Report 2024
The same period of the
Item Current period
previous year
Payment for acquisition of long-term assets such as
265062812.47
fixed assets
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
Amount of the Amount of the
Supplementary information
current period previous period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 1085060914.05 1965050167.42
Add: Allowance for impairment of assets 982797529.38 478113452.41
Depreciation of fixed assets oil and gas assets and productive biological assets 2124600347.37 1828511050.11
Depreciation of right-of-use assets 73496775.40 76014470.01
Amortization of intangible assets 99907909.26 84791757.14
Amortization of long-term deferred expenses 261921167.74 254140804.53
Loss on disposal of fixed assets intangible assets and other long-term assets
234749852.8618240640.06
(gain expressed with “-”)
Loss on retirement of fixed assets (gain expressed with “-”) 8343315.44 8127234.15
Loss on changes in fair value (gain expressed with “-”) 17898094.22 9740779.67
Financial expenses (income expressed with “-”) 151247342.16 356010007.62
Investment loss (income expressed with “-”) 15969561.73 -13203841.76
Decrease in deferred tax assets (increase expressed with “-”) 240525211.30 -197907382.28
Increase in deferred tax liabilities (decrease expressed with “-”) -59513151.93 -7551164.41
Decrease in inventories (increase expressed with “-”) -463400406.42 -528190428.16
Decrease in trade receivables (increase expressed with “-”) -445997039.57 268250724.76
Increase in trade payables (decrease expressed with “-”) 657933275.42 698298848.99
Others 477990.07 -126017650.06
Net cash flows from operating activities 4986018688.48 5172419470.20
2. Significant investing and financing activities not involving cash receipts and
payments
Debt-to-capital swap
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 5343600382.37 5644487018.31
Less: Opening balance of cash 5644487018.31 5457026822.70
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -300886635.94 187460195.61
209DSBJ Annual Report 2024
(2) Net cash paid for the acquisition of subsidiaries in the current period
(3) Net cash received from the disposal of subsidiaries in the current period
(4) Components of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 5343600382.37 5644487018.31
Incl.: Cash on hand 266540.67 559941.39
Bank deposits immediately available for withdrawal 5343333841.70 5643927076.92
III. Closing balance of cash and cash equivalents 5343600382.37 5644487018.31
(5) Amounts subject to restriction on use but still presented as cash and cash equivalents
In RMB
Amount of the Amount of the
Item Reason for presentation as cash and cash equivalents
current period previous period
Offering proceeds 30654962.53 Immediately available for withdrawal despite of restriction on use
Total 30654962.53
(6) Cash and bank balances not classified as cash and cash equivalents
In RMB
Amount of the current Amount of the previous Reason for not classified as cash
Item
period period and cash equivalents
Term deposits and interest 1325308422.77 690180814.95
Security deposit for bills 368078334.92 497103353.58
Security deposit for the acquisition 230197429.36
Security deposit for letters of credit 39986159.48 73225915.43
Security deposit for letters of
91083897.0154841699.43
guarantee
Future security deposit etc. 4274055.74
Total 1828730869.92 1545549212.75
80. Notes to items of the statement of changes in owners’ equity
81. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
In RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances 4406269487.86
Incl.: USD 601514288.13 7.1884 4323925308.79
EUR 1084289.43 7.5257 8160036.96
HKD 724256.11 0.9260 670661.16
210DSBJ Annual Report 2024
KRW 72159114.00 0.0049 353579.66
SGD 1133726.09 5.3214 6033010.02
NTD 384565.00 0.2200 84604.30
JPY 6966677.08 0.0462 321860.48
MXN 9023218.90 0.3498 3156321.97
THB 298984499.13 0.2126 63564104.52
Accounts receivable 5548008055.75
Incl.: USD 771385179.54 7.1884 5545025224.61
EUR 396352.65 7.5257 2982831.14
HKD
Long-term borrowings 15814480.00
Incl.: USD 2200000.00 7.1884 15814480.00
EUR
HKD
Other receivables 23793773.48
Incl.: USD 2367278.21 7.1884 17016942.68
NTD 13000.00 0.2200 2860.00
MXN 4287863.66 0.3498 1499894.71
THB 24807507.46 0.2126 5274076.09
Short-term borrowings 280379090.39
Incl.: USD 10907725.00 7.1884 78409090.39
THB 950000000.00 0.2126 201970000.00
Accounts payable 3260100645.69
Incl.: USD 406115597.82 7.1884 2919321363.37
EUR 497257.87 7.5257 3742213.55
JPY 575445740.00 0.0462 26585593.19
SEK 2650.00 0.6565 1739.73
THB 1456000078.79 0.2126 309545616.75
MXN 2584674.38 0.3498 904119.10
Other payables 24116073.33
Incl.: USD 3017025.97 7.1884 21687589.48
JPY 657892.00 0.0462 30394.61
MXN 158841.34 0.3498 55562.70
THB 11018469.15 0.2126 2342526.54
Accounts receivable 275258421.72
Incl.: USD 37998717.27 7.1884 273149979.22
SGD 396219.51 5.3214 2108442.50
(2) Information about overseas operating entities including main places of business and functional
currencies of major overseas operating entities basis for the choice of functional currencies and reasons
for changes in functional currencies:
□ Applicable □ N/A
Explanation about significant overseas operating entities
Subsidiary Principal place of business Functional currency Basic of selection
DSBJ PTE. Ltd. Singapore USD Main trading currency
211DSBJ Annual Report 2024
82. Leases
(1) The Company as the lessee
□ Applicable □ N/A
Variable lease payments not included in lease liabilities
□ Applicable □ N/A
Lease expenses under short-term leases and leases of low-value assets using the simplified approach
□ Applicable □ N/A
Sale and leaseback transactions
1) For the information about right-of-use assets refer to the description in “Section X – VII(25)” of this Report for details.
2) For the Company’s accounting policies on short-term leases and leases of low-value assets refer to the description in
“Section X – V(41)” of this Report for details. The amounts of short-term lease expenses and lease expenses of low-value assets
recognized in the profit or loss of the current period are as follows:
The same period of the
Item Current period
previous year
Short-term lease expenses 8044946.05 18684088.03
Total 8044946.05 18684088.03
3) Profit/loss and cash flow related to leases in the current period
The same period of the
Item Current period
previous year
Interest expense on lease liabilities 69674382.08 93255168.88
Total cash outflow for leases 652362259.97 201686045.29
4) For the analysis of maturity of lease liabilities and the corresponding liquidity risk management refer to the description in
“Section X Financial Report – XII” of this Report for details.
(2) The Company as the lessor
The Company as lessor under operating leases
□ Applicable □ N/A
In RMB
Incl.: Income related to variable lease
Item Rental income
payments not included in lease receipts
Rental income 646879.81
Total 646879.81
The Company as lessor under finance leases
□ Applicable □ N/A
Annual undiscounted lease receipts in the following five years
□ Applicable □ N/A
In RMB
Annual undiscounted lease receipts
Item
Closing balance Opening balance
Year 1 82450.00 122850.00
212DSBJ Annual Report 2024
83. Data resources
84. Others
VIII. Research and Development Expenses
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 548167661.46 476990832.66
Labor costs 510711948.15 499166662.04
Depreciation 98435864.38 86545177.50
Others 109497070.24 98487602.28
Total 1266812544.23 1161190274.48
Incl.: Expensed research and
1266812544.231161190274.48
development expenses
IX. Changes in the Scope of Consolidation
1. Business combination involving entities not under common control
2. Business combination involving entities under common control
3. Reverse acquisition
4. Disposal of subsidiaries
Whether the control over any subsidiary was lost as a result of disposal of investment in such subsidiary through a single
transaction
□ Yes □ No
In RMB
Differe Carryi Metho Amou
Fair
nce ng d for nt of
value
betwee value determ other
of the
n the of the Gains ining compr
remain
dispos remain or and ehensi
ing
al ing losses key ve
shares
price Remai shares arising assum incom
Dispos Basis at the
Dispos and the ning at the from ption es that
Dispos al for date of
al share shareh date of the of the are
al ratio metho Time determ losing
price in the olding losing remeas fair related
Subsid at the d at of ining control
at the subsidi ratio at control ureme value to the
iary time of the losing the as
time of ary’s the as nt of of the origina
losing time of control time of reporte
losing net date of reporte the remain l
control losing losing d in
control assets losing d in remain ing equity
control control the
corres control the ing shares invest
consoli
pondin consoli shares at the ment
dated
g to dated at fair date of in the
financi
the financi value losing subsidi
al
invest al control ary
statem
ment statem as and
ents
dispos ents reporte transfe
213DSBJ Annual Report 2024
ed as d in rred to
reporte the invest
d in consoli ment
the dated gains
consoli financi or
dated al losses
financi statem or
al ents retain
statem profits
ents
The
buyer
has
Nove -
45561 actuall
Multek 100.00 mber 12820
378.5 Sold y taken
Zhuhai % 29 087.2
3 over
20244
the
compa
ny
Whether the control over any subsidiary was lost during the current period as a result of the disposal of investment in such
subsidiary through multiple transactions by steps
□ Yes □ No
5. Changes in the scope of consolidation due to other reasons
Change in the scope of consolidation due to other reasons (such as new establishment of subsidiaries liquidation of subsidiaries
etc.) and relevant information:
1. Subsidiaries newly included in the scope of consolidation
Method of Percentage
Date of acquisition Contribution
Company name acquisition of of capital
of shares amount
shares contribution
Multi-Fineline Electronics Hungary KFT. invest and establish 2024/10/1 3 million forint 100.00%
2. Subsidiaries removed from the scope of consolidation
Net profit from the
Method of Date of disposal of Net assets at the
Company name beginning of the period to
disposal of shares shares date of disposal
the date of disposal
Suzhou Dongjiyuan Metal Technology Co.Deregistration 2024/10/31 20717958.77 -5095836.89
Ltd.Suzhou Dongyan Electronic Technology
Deregistration 2024/9/30 4444.91 -2454766.61
Co. Ltd.Suzhou Dongbo Precision Manufacturing
Deregistration 2024/10/31 -8396.69 -2129557.91
Co. Ltd.Dongwei Smart Suzhou Co. Ltd. Deregistration 2024/11/30 1498438.09 362699.56
MFLX B.V. Deregistration 2024/11/30 5450708.20 36652.32
214DSBJ Annual Report 2024
6. Others
X. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the enterprise group
In RMB
Principal Shareholding
Place of Nature of percentage Method of Subsidiary place of
incorporation business acquisition
business Direct Indirect
Business
combinations
involving
Suzhou Yongchuang Metal Science and
Suzhou Suzhou Manufacturing 100.00% entities
Technology Co. Ltd.under
common
control
Suzhou Dongkui Lighting Co. Ltd. Suzhou Suzhou Manufacturing 100.00% Established
Suzhou Chengjia Precision Manufacturing
Suzhou Suzhou Manufacturing 100.00% Established
Co. Ltd.Dongguan Dongshan Precision
Dongguan Dongguan Manufacturing 95.00% 5.00% Established
Manufacturing Co. Ltd.Yancheng Dongshan Precision
Yancheng Yancheng Manufacturing 95.00% 5.00% Established
Manufacturing Co. Ltd.Suzhou Jebson Intelligent Technology Co.Suzhou Suzhou Manufacturing 51.00% Established
Ltd.Suzhou Dongdai Electronic Technology Co.Suzhou Suzhou Manufacturing 51.00% Established
Ltd.Yancheng Dongshan Business Management Property
Yancheng Yancheng 95.00% 5.00% Established
Co. Ltd. management
Yancheng Dongshan Communication
Yancheng Yancheng Manufacturing 100.00% Established
Technology Co. Ltd.Shanghai Chengjia Consulting Management Business &
Shanghai Shanghai 100.00% Established
Co. Ltd. investment
Yancheng Mutto Optronics Technology Co.Yancheng Yancheng Manufacturing 100.00% Established
Ltd.MFLEX Yancheng Co. Ltd. Yancheng Yancheng Manufacturing 100.00% Established
Business
combinations
involving
MFLEX Suzhou Co. Ltd. Suzhou Suzhou Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
MFLEX Chengdu Co. Ltd. Chengdu Chengdu Manufacturing 100.00% entities not
under
common
control
Business
RF Top Electronic Communication Co. Ltd. Suzhou Suzhou Manufacturing 93.51%
combinations
215DSBJ Annual Report 2024
involving
entities not
under
common
control
Business
combinations
involving
Mutto Optronics Technology Co. Ltd. Suzhou Suzhou Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
Multek Technology (Zhuhai) Co. Ltd. Zhuhai Zhuhai Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
Multek Electronics Limited Zhuhai Zhuhai Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
Multek Industries Limited Zhuhai Zhuhai Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
Multek China Limited Zhuhai Zhuhai Manufacturing 100.00% entities not
under
common
control
Zhuhai Multek Business Management Co. Business &
Zhuhai Zhuhai 100.00% Established
Ltd. investment
MFLEX Shanghai Co. Ltd. Shanghai Shanghai Wholesale 100.00% Established
Shenzhen Qindao Dongchuang Investment Business &
Shenzhen Shenzhen 76.92% Established
Partnership (L.P.) investment
Suzhou Dongke Real Estate Co. Ltd. Suzhou Suzhou Real estate 100.00% Established
Yancheng Dongchuang Precision
Yancheng Yancheng Manufacturing 100.00% Established
Manufacturing Co. Ltd.Suzhou Dongchen Intelligent Equipment
Suzhou Suzhou Manufacturing 100.00% Established
Manufacturing Co. Ltd.Shanghai Dongxin New Energy Technology
Shanghai Shanghai Manufacturing 95.00% 5.00% Established
Co. Ltd.Shanghai Donglan New Energy Technology
Shanghai Shanghai Manufacturing 100.00% Established
Co. Ltd.Suzhou Dongyue New Energy Technology
Kunshan Kunshan Manufacturing 90.00% 10.00% Established
Co. Ltd.Suzhou Dongshan Industrial Investment Co. Suzhou Suzhou Business & 100.00% Established
216DSBJ Annual Report 2024
Ltd. investment
Business &
Suzhou Dongdi Holding Limited Suzhou Suzhou 100.00% Established
investment
Business
combinations
involving
Suzhou JDI Electronics Inc. Suzhou Suzhou Manufacturing 100.00% entities not
under
common
control
Chaowei Microelectronics (Yancheng) Co.Yancheng Yancheng Manufacturing 100.00% Established
Ltd.Hong
HongKong Dongshan Precision Union Hong Kong Business &
Kong 100.00% Established
Opoelectronic Co. Ltd. China investment
China
Business
combinations
involving
Business &
Mutto Optronics Group Limited BVI BVI 100.00% entities not
investment
under
common
control
Business &
DSBJ holdings Inc. USA USA 100.00% Established
investment
Business &
DSBJ International Inc. USA USA 100.00% Established
investment
Business &
DSBJ Solutions INC USA USA 100.00% Established
investment
Business &
Dragon Electronix Holdings INC. USA USA 100.00% Established
investment
Business
combinations
involving
Business &
Multi-Fineline ElectronixInc. USA USA 100.00% entities not
investment
under
common
control
Business
combinations
involving
Business &
MFLEX DelawareInc. Delaware Delaware 100.00% entities not
investment
under
common
control
Business
combinations
involving
Business &
Multi-Fineline Electronix Singapore Pte.Ltd. Singapore Singapore 100.00% entities not
investment
under
common
control
Hong
Hong Kong Business &
HongKong Dongshan Holding Limited Kong 100.00% Established
China investment
China
Business &
DSBJ PTE. LTD. Singapore Singapore 100.00% Established
investment
Multek Group (HongKong) Limited Hong Hong Kong Business & 100.00% Established
217DSBJ Annual Report 2024
Kong China investment
China
Business &
Multek TechnologyInc. USA USA 100.00% Established
investment
Business
combinations
involving
Business &
Multek Technologies Limited Mauritius Mauritius 100.00% entities not
investment
under
common
control
Business
combinations
involving
Business &
The Dii Group (BVI) Co. Limited BVI BVI 100.00% entities not
investment
under
common
control
Business
combinations
Hong involving
Hong Kong Business &
The Dii Group Asia Limited Kong 100.00% entities not
China investment
China under
common
control
Business
combinations
Hong involving
Hong Kong Business &
Multek Hong Kong Limited Kong 100.00% entities not
China investment
China under
common
control
Business
combinations
Hong involving
Hong Kong Business &
Astron Group Limited Kong 100.00% entities not
China investment
China under
common
control
Business
combinations
Hong involving
Hong Kong Business &
Vastbright PCB (HOLDING) Limited Kong 100.00% entities not
China investment
China under
common
control
Business
combinations
involving
Business &
Multek Technology Germany GmbH Germany Germany 100.00% entities not
investment
under
common
control
Business &
Multek Technology Sweden AB Sweden Sweden 100.00% Established
investment
Business &
Multek Technology Malaysia SDN.BHD Malaysia Malaysia 100.00% Established
investment
218DSBJ Annual Report 2024
Business &
Korea branch office of DSBJ Pte. Ltd. Korea Korea 100.00% Established
investment
Business
combinations
involving
Autotech Producti on de Mexico S. de R. L.Mexico Mexico Manufacturing 100.00% entities not
de C.V.under
common
control
Business
combinations
involving
Aranda Tooling Inc. USA USA Manufacturing 100.00% entities not
under
common
control
Business
combinations
involving
AutoTech Producti on Services Inc. USA USA Manufacturing 100.00% entities not
under
common
control
DSBJ MEXICOS.DER.L.DEC.V. Mexico Mexico Manufacturing 100.00% Established
Multi-Fineline Electronics (Thailand) Co.Thailand Thailand Manufacturing 100.00% Established
Ltd.Hong
Hong Kong Business &
Hong Kong Dongdi Holding Limited Kong 100.00% Established
China investment
China
Business &
Multi-Fineline Electronics Hungary KFT. Hungary Hungary 100.00% Established
investment
(2) Disclosure of aggregated individually immaterial joint ventures and associates
In RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint ventures:
Aggregate of the following calculated
according to the shareholding ratio
Associates:
Total carrying value of investments 155008795.68 155406879.89
Aggregate of the following calculated
according to the shareholding ratio
--Net profit -398084.25 -10820910.91
--Total comprehensive income -398084.25 -7147658.81
XI. Government Grants
1. Government grants recognized at the amount receivable at the end of the reporting period
□ Applicable □ N/A
219DSBJ Annual Report 2024
Reason for failure to receive expected government grants at the expected time
□ Applicable □ N/A
2. Liabilities related to government grants
□ Applicable □ N/A
In RMB
Amount of
non- Other
New grants operating Amount transferred changes
Opening Closing Related to
Item received in the revenue to other income in in the
balance balance assets/income
current period recognized the current period current
in the current period
period
Deferred Related to
733456685.177370100.00154892895.28585933889.89
income assets
3. Government grants recognized in profit or loss
□ Applicable □ N/A
In RMB
Item Amount of the current period Amount of the previous period
Government grants recognized in other income 483724850.14 248078668.03
Effect of financial interest subsidy on total
1174471.47
profit
Total 483724850.14 249253139.50
XII. Risks Associated with Financial Instruments
1. Risks arising from financial instruments
The Company’s objectives of risk management are to maintain a balance between risk and income minimize the negative
effect of risks on the operating results of the Company and maximize the interests of the shareholders and other equity investors.On the basis of such objectives of risk management the Company’s basic risk management policy is designed to identify and
analyze all kinds of risks facing the Company set appropriate risk thresholds in risk management and monitor risks and adherence
to limits in a timely and reliable manner.The Company faces a variety of risks associated with financial instruments in its daily activities mainly including credit risk
liquidity risk and market risk. Below is a summary of the policies for managing such risks considered and approved by the
management.(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to
discharge an obligation.
1. Credit risk management practice
(1) Assessment of credit risk
220DSBJ Annual Report 2024
At each balance sheet date the Company assesses whether the credit risk of a financial instrument has increased significantly
since initial recognition. In assessing whether the credit risk has increased significantly since initial recognition the Company
takes into account reasonable and supportable information which is available without undue cost or effort including qualitative
and quantitative analysis based on historical data external credit risk rating and forward-looking information. The Company
determines the changes in default risk of financial instruments during their estimated lifetime through a comparison of the default
risk at the balance sheet date and the initial recognition date on an individual or collective basis.The Company determines that the credit risk of a financial instrument has increased significantly when one or more of the
following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of default in the
remaining lifetime has risen by more than a certain percentage compared with the initial recognition; and/or
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s business situation or financial position
and present or expected changes in technology market economy or legal environment that will have a material adverse effect on
the debtor’s ability to repay.
(2) Definition of default and credit-impaired assets
A financial instrument is in default or credit impaired when one or more of the following conditions are met:
1) significant financial difficulty of the debtor;
2) any breach by the debtor of contract terms binding on it;
3) it becomes probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditors of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty having granted
to the debtor a concession that the creditors would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit losses include the probability of default loss given default and
exposure to default risk. The Company has developed a model of the probability of default loss given default and exposure to
default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating guarantee measures and collateral type
repayment method etc.) and forward-looking information.
3. Refer to “Section X Financial Report – VII (3) (4) (8) and (17)” of this Report for the conciliation table of opening
balances and closing balances of allowance for impairment loss on financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks
the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other monetary capital in financial institutions with relatively high credit
ratings so its credit risk is relatively low.
(2) Accounts receivable
The Company performs credit assessments on customers using credit settlement on an ongoing basis. The Company selects
approved and creditworthy customers based on the result of credit assessment and monitors the balance of accounts receivable
from them on an ongoing basis to avoid significant risk of doubtful accounts.
221DSBJ Annual Report 2024
As the Company only deals with approved and creditworthy third parties no collateral is required. The concentration of
credit risks are managed customer by customer. As of December 31 2024 the Company faced certain credit concentration risks.In particular 54.89% (December 31 2023: 60.14%) of the Company’s accounts receivable come from top 5 customers. The
Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.The Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may not have enough cash to satisfy its obligation to deliver cash or other
financial assets due to the inability to liquidate financial assets at fair value in a timely manner or failure of counterparties to
discharge their contract liabilities acceleration of debts failure to generate expected cash flows or otherwise.In order to control such risk the Company utilizes a variety of financing tools such as settlement by means of notes bank
loans etc. combines long-term and short-term financing to optimize financing structure and maintains a balance between
financing sustainability and flexibility. The Company has obtained lines of credit from many commercial banks to satisfy its
working capital requirements and capital expenditures.Financial liabilities classified by remaining maturity
Closing balance
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Bank loans 12427287441.14 12945053630.60 7357404130.16 4070557149.80 1517092350.64
Financial
liabilities held 82922390.17 82922390.17 82922390.17
for trading
Notes payable 935581272.50 935581272.50 935581272.50
Accounts
9659268990.43
9659268990.439659268990.43
payable
Other payables 94163223.90 94163223.90 94163223.90
Lease
liabilities
(including
non-current 1483360719.42 1605316008.57 155598833.56 1394948589.61 54768585.40
liabilities due
within one
year)
Long-term
payables
(including
non-current 49434786.31 49434786.31 49434786.31
liabilities due
within one
year)
Subtotal 24732018823.87 25371740302.48 18284938840.72 5514940525.72 1571860936.04
(Continued)
As of the end of the previous year
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Bank loans 12329399469.82 12883478634.71 7981675775.53 3054956512.84 1846846346.34
Financial
liabilities held 104174076.23 104174076.23 104174076.23
for trading
222DSBJ Annual Report 2024
As of the end of the previous year
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Notes payable 909171215.93 909171215.93 909171215.93
Accounts
8039107176.528039107176.528039107176.52
payable
Other payables 80188628.54 80188628.54 80188628.54
Lease
liabilities
(including
non-current 1872497186.10 2130134243.16 77293792.42 1609372610.71 443467840.03
liabilities due
within one
year)
Long-term
payables
(including
non-current 296995789.48 296995789.48 296995789.48
liabilities due
within one
year)
Subtotal 23631533542.62 24443249764.57 17191610665.17 4961324913.03 2290314186.37
(III) Market Risk
Market risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
prices. Market risk mainly includes interest risk and foreign exchange risk.
1. Interest risk
Interest risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
interest rates. Interest-bearing financial instruments with fixed interest rates expose the Company to fair value interest rate risk
while interest-bearing financial instruments with floating interest rates expose the Company to cash flow interest rate risk. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market
environment and reviews and monitors the appropriateness of its portfolio of financial instruments on a regular basis. The cash
flow interest rate risk that the Company faces is primarily associated with the floating-rate bank loans owed by the Company
As of December 31 2024 the Company had bank loans of RMB 2392686104.16 (December 31 2023: RMB
1406781793.94) on which the interests were calculated on a floating interest rate. Supposing the interest rate changes by 50 basic
points while other variables remain unchanged the Company’s total profit and shareholders’ interest will not be materially
affected.
2. Foreign exchange risk
Foreign exchange risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes
in exchange rates. The Company’s foreign exchange risk relates mainly to foreign currency denominated monetary assets and
liabilities. When a short-term imbalance occurs on foreign currency denominated assets and liabilities the Company may trade
foreign currencies at market exchange rates when necessary in order to maintain the net risk exposure at an acceptable level.Refer to “Section X Financial Report – VII (81)” of this Report for details of foreign currency denominated monetary assets
and liabilities as of the end of the reporting period.
223DSBJ Annual Report 2024
2. Hedging
(1) The Company has hedging businesses for risk management
□ Applicable □ N/A
Economic
Effective
Qualitative and relationship
Corresponding risk realization of the Effect of the corresponding
quantitative between the
Item management policy and expected risk hedging activity on the risk
information of hedged item and
target management exposure
hedged risks the hedging
target
instrument
To avoid potential risks
The hedged risk The Company The implementation of the
against the Company’s
is the risk of has set up hedging businesses gives
expected production and The future
price fluctuation relevant internal full play to the hedging and
operation due to the contracts change in
of copper and control measures value preservation features
fluctuation in the prices of the reverse
Cash aluminum. for hedging to of the futures and
copper aluminum and gold direction due to the
flow Refer to the continuously derivative market so as to
and reduce the fluctuation same risks of price
hedging description in trace hedging avoid the risks of price
in the operating cash flow fluctuation of- future “Section X businesses so as fluctuation due to the pricecaused by the fluctuation in cooper and
contracts Financial report to ensure the fluctuation in commodities
the prices of copper aluminum– VII (57)” of realization of the and foreign exchange
aluminum and gold the expected to be
this Report for expected risk hence reducing the effect
Company had hedging purchased and sold
quantitative management on the normal operation of
businesses of copper and
information. target the Company
aluminum commodities.The expected sales
The expected to be settled in The Company The implementation of the
sales to be USD are in the has set up hedging businesses gives
settled in USD same foreign relevant internal full play to the hedging and
Cash are subject to currency control measures value preservation features
Manage the Company’s
flow foreign corresponding to for hedging to of the futures and
risks exposure of expected
hedging exchange risk the future foreign continuously derivative market so as to
sales of foreign exchange
- foreign exposure. Refer exchange trace hedging avoid the risks of price
to be settled in USD byexchange to “Section X contracts where businesses so as fluctuation due to the priceusing future foreign
future Financial Report the basic variable to ensure the fluctuation in commodities
exchange contractscontracts – VII (57)” of of the hedging realization of the and foreign exchange
this Report for instrument and the expected risk hence reducing the effect
quantitative hedged item is the management on the normal operation of
information. exchange rate of target the Company
USD
3. Financial assets
(1) Categories of transfer types
□ Applicable □ N/A
In RMB
Amount of
Nature of transferred
Types of transfer transferred financial Derecognition Basis for determining derecognition
financial assets
assets
Almost all the risks and returns have
Accounts receivable Derecognized/not
Note discounting 275516453.89 been transferred/almost all the risks and
financing derecognized
returns are reserved
224DSBJ Annual Report 2024
Almost all the risks and returns have
Accounts receivable Derecognized/not
Note endorsement 745867603.59 been transferred/almost all the risks and
financing derecognized
returns are reserved
Almost all the risks and returns have
Factoring of Derecognized/not
Accounts receivable 90000000.00 been transferred/almost all the risks and
accounts receivable derecognized
returns are reserved
Total 1111384057.48
(2) Financial assets derecognized due to transfer
□ Applicable □ N/A
In RMB
Method of transferring Amount of the financial assets Gains or losses related to the
Item
financial assets derecognized derecognition
Accounts receivable financing Endorsement/discounting 1021384057.48 -808082.28
Total 1021384057.48 -808082.28
(3) Financial assets transferred with assets with continuous involvement
□ Applicable □ N/A
In RMB
Amount of assets arising from Amount of liabilities arising
Item Method of assets transfer
continuous involvement from continuous involvement
Accounts receivable Factoring 90000000.00 90000000.00
Total 90000000.00 90000000.00
XIII. Fair Value Disclosures
1. Closing balance of the fair value of assets and liabilities measured at fair value
In RMB
Closing balance of fair value
Level 1 Level 2
Item fair value fair value Level 3 fair value
Total
measurem measurem measurement
ent ent
I. Recurring fair value measurement -- -- -- --
1. Financial assets at fair value through profit or
78144342.9578144342.95
loss
(2) Investment in equity instruments 63212376.92 63212376.92
Derivatives 14931966.03 14931966.03
2. Accounts receivable financing 252612009.41 252612009.41
3. Investment in other equity instruments 333657110.00 333657110.00
Total assets measured at fair value on a recurring
664413462.36664413462.36
basis
4. Financial liabilities held for trading 82922390.17 82922390.17
Total liabilities measured at fair value on a
82922390.1782922390.17
recurring basis
225DSBJ Annual Report 2024
2. Basis for determining the market prices of items subject to recurring and non-recurring fair value
measurements within Level 1
1. The fair value of forward exchange settlement and sale transactions already authorized but not yet settled is determined
based on the forward exchange rates as confirmed with the transaction bank at the end of the reporting period.
2. The Company estimates the fair value by using the market method the method of discounting future cash flows etc. for
other equity instrument investments not listed. In the absence of a material change in the operating environment operating
conditions and financial conditions of in the investee the Company uses the investment costs as the reasonable estimate of the fair
value.
3. The fair value of a note receivable is determined based on its face amount.
4. The fair value of an investment in equity instruments is determined based on the initial investment amount.
XIV. Related Parties and Related-party Transactions
1. Parent company of the Company
The ultimate controllers of the Company are YUAN Yongfeng YUAN Yonggang and YUAN Fugen who hold 13.04% 11.85%
and 3.45% shares and voting power in the Company respectively and 28.34% of the total shares and voting power in the
Company in aggregate.Other information: None
2. Subsidiaries of the Company
The particulars of the subsidiaries of the Company are set forth in “Interests in Other Entities”.
3. Joint ventures and associates of the Company
For significant joint ventures and associates of the Company refer to the description in “Section X Financial Report - X” of this
Report.Other joint ventures or associates that have carried out related-party transactions with the Company in the current period or the
previous periods with balances recorded in the current period:
Name of joint venture or associate Relationship with the Company
Suzhou Toprun Electric Equipment Co. Ltd. Associate
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Associate
4. Other related parties
Name of other related party Relationship with the Company
Hai Dixin Semiconductor (Nantong) Co. Ltd. Associate
Anhui Landun Photoelectron Co. Ltd. A company controlled by the actual controllers of the Company
Shanghai Corkuna New Material Technologies Co. Ltd. A company controlled by the actual controllers of the Company
Suzhou Corkuna New Material Technologies Co. Ltd. A company controlled by the actual controllers of the Company
Multek Zhuhai Limited Used to be a subsidiary of the Company
226DSBJ Annual Report 2024
5. Related-party transactions
(1) Related-party commodity and service transactions
Purchase of goods and receipt of services from related parties
In RMB
Amount of Whether or not Amount of the
Transaction quota
Related party Subject matter the current exceed the previous
approved
period transaction quota period
Suzhou Dongcan Optoelectronics Purchase of
710133.351153371.50
Technology Co. Ltd. goods
Shanghai Corkuna New Material Purchase of
9595091.9611426652.85
Technologies Co. Ltd. goods
Suzhou Corkuna New Material Purchase of
7766790.60
Technologies Co. Ltd. goods
Sale of goods and rendering of services to related parties
In RMB
Amount of the Amount of the
Related party Subject matter
current period previous period
Suzhou Toprun Electric Equipment Co. Ltd. Software and services 683324.25
Suzhou Toprun Electric Equipment Co. Ltd. Sale of equipment 154390.07
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Sale of goods 59554.04
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Rendering of services 150462.54
Anhui Landun Photoelectron Co. Ltd. Rendering of services 269820.00
Suzhou Corkuna New Material Technologies Co. Ltd. Sale of equipment 964438.95
(2) Related-party entrusted management/contracts
(3) Related-party leases
(4) Related-party guarantees
The Company as guarantor
In RMB
Whether the obligation
Amount Effective date of Expiry date of
Obligor guaranteed has been
guaranteed guarantee guarantee
discharged
Multek Zhuhai Limited 17000000.00 October 21 2023 October 20 2026 Yes
Multek Zhuhai Limited 8000000.00 December 12 2023 December 11 2026 Yes
Multek Zhuhai Limited 8500000.00 February 2 2024 February 1 2027 Yes
Suzhou Toprun Electric Equipment
8000000.00 January 15 2024 January 24 2025 No
Co. Ltd.Suzhou Toprun Electric Equipment
2000000.00 September 4 2024 September 4 2025 No
Co. Ltd.Suzhou Toprun Electric Equipment
992028.04 September 14 2024 May 23 2025 No
Co. Ltd.Suzhou Toprun Electric Equipment
5217971.96 September 14 2024 September 11 2025 No
Co. Ltd.
227DSBJ Annual Report 2024
Suzhou Toprun Electric Equipment
3790000.00 September 14 2024 October 20 2025 No
Co. Ltd.The Company as obligor:
In RMB
Whether the obligation
Amount Effective date of Expiry date of
Guarantor guaranteed has been
guaranteed guarantee guarantee
discharged
YUAN Yongfeng/YUAN
200000000.00 August 28 2022 January 6 2032 No
Yonggang
(5) Related-party loans
(6) Related-party asset transfer and debt restructuring
(7) Remunerations of key officers
In RMB
Item Amount of the current period Amount of the previous period
Remunerations of key officers 22357000.00 21963000.00
(8) Other related-party transactions
6. Amounts receivable from/payable to related parties
(1) Amounts receivable from related parties
In RMB
Closing balance Opening balance
Item Related party Allowance for Allowance for
Book balance doubtful Book balance doubtful
accounts accounts
Accounts Suzhou Dongcan Optoelectronics
318894.6493307.33257026.8022356.61
receivable Technology Co. Ltd.Accounts Suzhou Toprun Electric Equipment
11177.7055.89129457.701150.29
receivable Co. Ltd.Accounts Hai Dixin Semiconductor (Nantong)
1607132.921607132.921607132.921607132.92
receivable Co. Ltd.Accounts Suzhou Corkuna New Material
339816.021699.08
receivable Technologies Co. Ltd.Other Hai Dixin Semiconductor (Nantong)
1790748.551790748.551790748.551790748.55
receivables Co. Ltd.
(2) Amounts payable to related parties
In RMB
Item Related party Closing book balance Opening book balance
Accounts payable Suzhou Dongcan Optoelectronics Technology Co. Ltd. 298971.64 310347.77
Accounts payable Shanghai Corkuna New Material Technologies Co. Ltd. 1792220.15 7338661.31
Accounts payable Suzhou Corkuna New Material Technologies Co. Ltd. 4970486.19
228DSBJ Annual Report 2024
7. Covenants of related parties
8. Others
XV. Share-based Payments
1. Summary of share-based payments
□ Applicable □ N/A
In RMB
Granted in the Expired in the current
Type of Exercised in the current period Vested in the current period current period period
grantees
Number Amount Number Amount Number Amount Number Amount
Management
526329.0010316048.40559889.0010973815.0033560.00657766.00
staff
R&D
57157.001120277.2058370.001144052.001213.0023775.00
personnel
Sales staff 64799.00 1270060.40 64799.00 1270060.00
Total 648285.00 12706386.00 683058.00 13387927.00 34773.00 681541.00
Outstanding share options or other equity instruments at the end of the current period:
□ Applicable □ N/A
2. Equity-settled share-based payments
□ Applicable □ N/A
In RMB
Method for determining the fair value of equity instruments Closing price of the Company’s stock at the date the relevant
at the grant date employee stock ownership plan was approved by the general meeting
The number approved by the Board of Directors and the general
Basis for determining the number of exercisable equity
meeting of the Company taking into account the performance
instruments
indicators
Reason of significant differences between the current
None
estimates and previous estimates
Aggregate amount of equity-settled share-based payments
26087614.40
recorded in capital reserve
Total amount of equity-settled share-based payments
477990.07
recognized in expenses in the current period
3. Cash-settled share-based payments
□ Applicable □ N/A
4. Share-based payments in the current period
□ Applicable □ N/A
In RMB
229DSBJ Annual Report 2024
Type of grantees Equity-settled share-based payments Cash-settled share-based payments
Management staff 381730.32
R&D personnel -5821.30
Sales staff 102081.05
Total 477990.07
XVI. Commitments and Contingencies
1. Significant commitments
Significant covenants as of the balance sheet date
As of the balance sheet date the Company did not have any significant commitment needing to be disclosed.
2. Contingencies
(1) Significant contingencies as of the balance sheet date
As of the balance sheet date the Company did not have any contingency needing to be disclosed.
(2) Whether the Company does not have any significant contingency needing to be disclosed
The Company does not have any significant contingency needing to be disclosed.
3. Others
XVII. Subsequent Events
1. Significant non-adjusting events
2. Profit distribution
Dividends to be distributed per 10 shares (RMB) 0.7
Number of bonus shares to be distributed per 10 shares (shares) 0
Number of shares to be distributed per 10 shares through
0
capitalization of capital reserve (shares)
Dividends to be distributed per 10 shares approved and
0
declared (RMB)
Number of bonus shares to be distributed per 10 shares
0
approved and declared (shares)
Number of shares to be distributed per 10 shares through
0
capitalization of capital reserve approved and declared (shares)
Pursuant to the Regulatory Guidance for Listed Companies No.
3 – Distribution of Cash Dividends by the Listed Companies
Profit distribution proposal the AOA and other relevant provisions taking into account the
actual business situation and development plans of the
Company as well as the requirements of normal operation and
230DSBJ Annual Report 2024
sustainable development of the Company Our 2024 Profit
Distribution Proposal is as follows: to distribute to all
shareholders a cash dividend of RMB0.70 (inclusive of tax) per
10 shares on the basis of the total share capital of
1697077809 shares (excluding treasury shares) or
RMB118795446.63 in total without distribution of any bonus
shares or transfer of any capital reserve to the share capital.(Note: As of the date of this Report we had a total share capital
of 1705913710 shares of which 8835901 shares held in the
dedicated securities account for repurchase would not
participate in the profit distribution.)
3. Sales return
N/A
4. Other subsequent events
Pursuant to the resolution adopted at the 2nd extraordinary general meeting of the Company in 2024 the Company decided to issue
shares through private placement in a total amount of up to RMB1.5 billion (inclusive) to YUAN Yonggang and YUAN Yongfeng
the actual controllers of the Company the offering proceeds received from which after deduction of the offering costs would be
wholly used to replenish the Company’s working capital. The base date for pricing for the shares issued shall be the announcement
date of the resolution considered and adopted at the 7th meeting of the 6th Board of Directors of the Company under which the
issuance plan was adopted where the issuance price is RMB11.49/share which shall be no less than 80% of the average trading
price of the Company’s shares during the 20 trading days prior to the base date for pricing. Since the Company has completed the
distribution of annual rights and interests for 2023 the issuance price of this private placement is adjusted from RMB11.49/share
to RMB11.24/share. Pursuant to the authorization granted under the resolution adopted at the 2nd extraordinary general meeting of
the Company in 2024 and as approved by the resolution at the 15th meeting of the 6th Board of Directors and the 12th meeting for
the 6th Board of Supervisors the total proceeds from the issuance are adjusted from no more than RMB1.5 billion (including the
principal amount) to no more than RMB1.404 billion (including the principal amount). By now the Company’s request for private
placement has been reviewed and approved by the Listing Review Center of Shenzhen Stock Exchange on March 10 2025 and
may be implemented after a decision of registration is obtained from the CSRC. We will promptly perform our obligations of
information disclosure depending on progress of this event.XVIII. Other Significant Information
XIX. Notes to Key Items of the Standalone Financial Statements
1. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 2998577516.40 1278554642.91
Within 6 months 1717998540.30 1195439845.81
7-12 months 1280578976.10 83114797.10
1-2 years 67754351.05 689194247.06
231DSBJ Annual Report 2024
2-3 years 94214723.81 4893435.36
Over 3 years 75446354.06 227083256.45
3-4 years 3854595.17 195473911.72
4-5 years 48135349.97 9831416.31
Over 5 years 23456408.92 21777928.42
Total 3235992945.32 2199725581.78
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Book balance
doubtful accounts Carrying doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Allowan
ce
recogniz 146254 146254 121274 121274
0.45%100.00%0.55%100.00%
ed 67.55 67.55 13.92 13.92
individu
ally
Incl.:
Allowan
ce
recogniz 322136 778748 314349 218759 102894 208470
99.55%2.42%99.45%4.70%
ed 7477.77 63.40 2614.37 8167.86 892.64 3275.22
collectiv
ely
Incl.:
323599925003314349219972115022208470
Total 100.00% 2.86% 100.00% 5.23%
2945.3230.952614.375581.78306.563275.22
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Group of related parties
within the scope of 2183413928.18
consolidation
Aging group 1037953549.59 77874863.40 7.50%
Total 3221367477.77 77874863.40
Basis for grouping:
Closing balance
Age
Book balance Allowance for doubtful accounts Ratio of provision (%)
Within 6 months 949193205.12 4745966.03 0.5
7-12 months 2753950.40 137697.52 5
1-2 years 5592667.05 1118533.41 20
2-3 years 21352651.45 12811590.87 60
232DSBJ Annual Report 2024
Closing balance
Age
Book balance Allowance for doubtful accounts Ratio of provision (%)
Over 3 years 59061075.57 59061075.57 100
Subtotal 1037953549.59 77874863.40 7.5
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
□ Applicable □ N/A
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Type Opening balance Recovered or Closing balance
Recognized Written off Others
reversed
Allowance recognized
12127413.922893896.55395842.9214625467.55
individually
Allowance recognized
102894892.64-21762883.943257145.3077874863.40
collectively
Total 115022306.56 -18868987.39 3652988.22 92500330.95
(4) Accounts receivable actually written off in the current period
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing balance of
Total closing % of total closing
Closing allowance for
balance of balance of
Closing balance of balance of doubtful accounts
Company name accounts accounts
accounts receivable contract receivable and
receivable and receivable and
assets impairment of
contract assets contract assets
contract assets
Mutto Optronics Technology
826504376.16826504376.1625.66%
Co. Ltd.MFLEX Yancheng Co. Ltd. 424618176.62 424618176.62 13.18%
HongKong Dongshan
Precision Union 266612674.07 266612674.07 8.28%
Opoelectronic Co. Ltd.DSBJ PTE. Ltd. 254405669.06 254405669.06 7.90%
Suzhou JDI Electronics Inc. 169390766.44 169390766.44 5.26%
1941531662.3
Total 1941531662.35 60.28%
5
2. Other receivables
In RMB
Item Closing balance Opening balance
Dividends receivable 1495758008.53 2203111413.70
Other receivables 4473728550.13 3049524125.86
Total 5969486558.66 5252635539.56
233DSBJ Annual Report 2024
(1) Interest receivable
(2) Dividends receivable
1) Dividends receivable by category
In RMB
Item (or investee) Closing balance Opening balance
Hong Kong Dongshan Holding Limited 1044758008.53 1817111413.70
Yancheng Dongshan Precision Manufacturing Co. Ltd. 266000000.00 266000000.00
Suzhou JDI Electronics Inc. 140000000.00 120000000.00
Suzhou Dongyue New Energy Technology Co. Ltd. 45000000.00
Total 1495758008.53 2203111413.70
2) Significant dividends receivable aged over one year
In RMB
Whether or not impaired
Reason for failure
Item (or investee) Closing balance Age and the basis for
to collect
determination
To support the
Over 3
Hong Kong Dongshan Holding Limited 574758008.53 development of
years
the subsidiary
To support the
Yancheng Dongshan Precision Over 3
266000000.00 development of
Manufacturing Co. Ltd. years
the subsidiary
Total 840758008.53
(3) Other receivables
1) Other receivables by nature
In RMB
Nature of accounts Closing book balance Opening book balance
Current accounts 4469455999.04 3043264560.13
Security deposit 1325000.00 2042208.17
Loan and reserve fund 4407055.00 2562780.89
Temporary payment receivable 2639160.94 4250557.91
Total 4477827214.98 3052120107.10
2) Other receivables by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 4293041449.14 2918638154.04
1-2 years 179913329.38 123650779.00
2-3 years 1936000.00 1451851.51
Over 3 years 2936436.46 8379322.55
3-4 years 1367016.15 8199590.38
234DSBJ Annual Report 2024
4-5 years 1414020.31 39000.00
Over 5 years 155400.00 140732.17
Total 4477827214.98 3052120107.10
3) Other receivables by the method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Type Book balance Book balance
doubtful accounts Carrying doubtful accounts Carrying
value value
Amount % Amount % Amount % Amount %
Incl.:
Allowan
ce
recogniz 447782 409866 447372 305212 259598 304952
100.00%0.09%100.00%0.09%
ed 7214.98 4.85 8550.13 0107.10 1.24 4125.86
collectiv
ely
Incl.:
447782409866447372305212259598304952
Total 100.00% 0.09% 100.00% 0.09%
7214.984.858550.130107.101.244125.86
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Group of related parties
within the scope of 4469455999.04
consolidation
Aging group 8371215.94 4098664.85 48.96%
Incl.: Within 1 year 3112991.06 155649.55 5.00%
1-2 years 385788.42 38578.84 10.00%
2-3 years 1936000.00 968000.00 50.00%
Over 3 years 2936436.46 2936436.46 100.00%
Total 4477827214.98 4098664.85
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful Lifetime expected Lifetime expected Total
accounts 12-month expected credit loss (not credit credit loss (credit
credit loss
impaired) impaired)
Balance as at January 1
182023.10230577.902183380.242595981.24
2024
In the current period the
balance as at January 1
2024
- Transferred to stage II -19289.42 19289.42
235DSBJ Annual Report 2024
- Transferred to stage III -193600.00 193600.00
Recognized -7084.13 -17688.48 1527456.22 1502683.61
Balance as at December
155649.5538578.843904436.464098664.85
312024
4) Allowance for doubtful accounts recognized recovered or reversed in the current period
5) Other receivables actually written off in the current period
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
Closing balance
% of total closing
Nature of of allowance for
Company name Closing balance Age balance of other
account doubtful
receivables
accounts
Yancheng Dongshan Precision Current Within 1
1180346461.5626.36%
Manufacturing Co. Ltd. accounts year
Mutto Optronics Technology Current Within 1
661457617.6714.77%
Co. Ltd. accounts year
Hong Kong Dongshan Holding Current Within 1
652528928.6814.57%
Limited accounts year
Dongguan Dongshan Precision Current Within 1
484142051.8910.81%
Manufacturing Co. Ltd. accounts year
Suzhou Yongchuang
Current Within 1
Communication Technology 398379669.36 8.90%
accounts year
Co. Ltd.Total 3376854729.16 75.41%
3. Long-term equity investments
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance Carrying value Book balance Carrying value
impairment loss impairment loss
Investments in 9671242453. 9537552453. 9515272968. 9381582968.
133690000.00133690000.00
subsidiaries 40 40 95 95
Investments in
associates and 107812202.38 17507056.47 90305145.91 102227354.08 17507056.47 84720297.61
joint ventures
9779054655.9627857599.9617500323.9466303266.
Total 151197056.47 151197056.47
78310356
(1) Investments in subsidiaries
In RMB
Changes in the current period
Opening balance of Closing balance of
Opening balance Allowance for Closing balance
Investee allowance for Additional Reduced allowance for
(carrying value) impairment Others (carrying value)
impairment loss investment investment impairment loss
loss
Dongguan Dongshan
Precision 342000000.00 342000000.00
Manufacturing Co.
236DSBJ Annual Report 2024
Ltd.MFLEX Shanghai Co.
2023777.302023777.30
Ltd.Shenzhen Qindao
Dongchuang
100000000.00100000000.00
Investment Partnership
(L.P.)
RF Top Electronic 372863939.84 -5856.70 372858083.14
Suzhou Chengjia
Precision
80104811.224557.0280109368.24
Manufacturing Co.Ltd.Suzhou Dongbo
Precision
5100000.0016160000.0021260000.00
Manufacturing Co.Ltd.Suzhou Dongdai
Electronic Technology 1530000.00 1530000.00
Co. Ltd.Suzhou Dongjiyuan
Metal Technology Co. 52600000.00 52600000.00
Ltd.Suzhou Dongke Real
152389096.00152389096.00
Estate Co. Ltd.Suzhou Dongkui
12100000.0012100000.00
Lighting Co. Ltd.Suzhou Dongyan
Electronic Technology 1530000.00 9780000.00 11310000.00
Co. Ltd.Suzhou Jebson
Intelligent Technology 255000.00 255000.00
Co. Ltd.Suzhou Yongchuang
Metal Science and 451576726.89 5983.74 451582710.63
Technology Co. Ltd.Hong Kong Dongshan 3744565150.00 133690000.00 3744565150.00 133690000.00
Hong Kong Dongshan
452677880.00452677880.00
Holding Limited
Yancheng Dongshan
Precision
1093572960.5046650.421093619610.92
Manufacturing Co.Ltd.Yancheng Dongshan
Business Management 3064464.40 2802.80 3067267.20
Co. Ltd.Yancheng Dongshan
Communication 280383770.29 17633.48 280401403.77
Technology Co. Ltd.Suzhou JDI
1382684003.831382684003.83
Electronics Inc.Suzhou Dongshan
Industrial Investment 20010000.00 20010000.00
Co. Ltd.Shanghai Dongxin
New Energy 80000000.00 80000000.00
Technology Co. Ltd.Yancheng 270000000.00 180000000.00 450000000.00
237DSBJ Annual Report 2024
Dongchuang Precision
Manufacturing Co.Ltd.Suzhou Dongyue New
Energy Technology 465000000.00 35000000.00 500000000.00
Co. Ltd.Multek China Limited 68352.66 2971.86 71324.52
Mutto Optronics 867088.50 -42310.02 824778.48
MFLEX Suzhou Co.
6894726.64298532.967193259.60
Ltd.Yancheng Mutto
Optronics Technology 45568.40 1981.24 47549.64
Co. Ltd.MFLEX Yancheng -
4298839.884175696.89
Co. Ltd. 123142.99
Multek Industries
2355919.4469140.282425059.72
Limited
Multek Zhuhai
287084.72299566.6812481.96
Limited
Dongwei Smart
12639.461576.8014216.26
Suzhou Co. Ltd.Zhuhai Multek
Business Management 721168.98 206048.28 927217.26
Co. Ltd.Total 9381582968.95 133690000.00 240940000.00 85469566.68 499051.13 9537552453.40 133690000.00
(2) Investments in associates and joint ventures
In RMB
Changes in the current period
Openi Closin
Openi ng Invest Adjust Declar Closin g
ng balanc ment ment ed Allow g balanc
balanc e of incom to Additi Reduc Other cash ance balanc e of
Investee e allowa e or other onal ed change divide for e allowa
(carryi nce for loss compr Others invest invest s in nds or impair (carryi nce for
ng impair under ehensiment ment equity profit ment ng impair
value) ment equity ve distrib loss value) ment
loss metho incom ution loss
d e
I. Joint ventures
II. Associates
Suzhou
Toprun 11641 11784
14263
Electric 777.5 413.3
5.84
Equipment 5 9
Co. Ltd.Shenzhen
Nanfang
Blog
1750717507
Technolog
056.4056.4
y
77
Developm
ent Co.Ltd.Shanghai
238DSBJ Annual Report 2024
Fu Shan
Precision
Manufactu
ring Co.Ltd.Suzhou
LEGATE 12352 - 11492
Intelligent 316.9 86010 208.4
Equipment 6 8.56 0
Corp. Ltd.Suzhou
Dongcan
-
Optoelectr 3797 3316
48078
onics 258.35 472.49
5.86
Technolog
y Co. Ltd.Jiangsu
Nangao
Intelligent -
42593442
Equipment 81653
369.62835.16
Innovation 4.46
Center
Co. Ltd.Jiaozuo
Songyang
26753-24392
Optoelectri
781.02361091.7
c
7689.370
Technolog
y Co. Ltd.Suzhou
Yongxin
Jingshang 25915 35877
9961
Venture 794.0 124.7
330.71
Capital 6 7
Partnershi
p (L.P.)
84720175079030517507
5584
Subtotal 297.6 056.4 145.9 056.4
848.30
1717
84720175079030517507
5584
Total 297.6 056.4 145.9 056.4
848.30
1717
4. Operating revenue and operating costs
In RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 4190338512.76 4025950010.51 3432663877.17 3217738606.44
Other businesses 560542168.15 45500518.40 304866996.33 163638849.01
Total 4750880680.91 4071450528.91 3737530873.50 3381377455.45
239DSBJ Annual Report 2024
5. Investment income
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity
655000000.001120631673.83
investments under cost method
Income from long-term equity
5584848.30-9470309.07
investments under the equity method
Investment income from the disposal of
-64763689.49-12592979.40
long-term equity investments
Discount loss on accounts receivable
-1212944.45
financing
Bank wealth management product -2651138.83
Total 593170019.98 1097355440.91
XX. Supplementary Information
1. Statement of non-recurring gain or loss for the current period
□ Applicable □ N/A
In RMB
Item Amount Remark
Gain or loss from disposal of non-current assets -268961359.34
Government grants recognized in profit or loss (excluding the government grants that
are closely related to the business of the Company conform to the applicable policies
483141623.05
of the country are provided in accordance with the established standards and
continuously affect the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held
by non-financial entities and gain or loss on disposal of financial assets and financial -7601380.66
liabilities except for effective hedges held in the ordinary course of business
Other non-operating revenues and expenses -3547316.95
Less: Effect on income tax 13516787.94
Effect on minority interests (exclusive of tax) 2500208.75
Total 187014569.41 --
Other items of gain or loss within the meaning of non-recurring gain or loss:
□ Applicable □ N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure for Companies Publicly Offering Securities - Non-recurring gain or Loss as recurring profit or loss:
□ Applicable □ N/A
2. Return on equity and earnings per share
Weighted Earnings per share
Profit for the reporting period average return Basic earnings per share Diluted earnings per share
on net assets (RMB/share) (RMB/share)
240DSBJ Annual Report 2024
Net profit attributable to ordinary shareholders of the
5.89%0.640.64
Company
Net profit attributable to ordinary shareholders of the
Company after deduction of non-recurring gain or 4.87% 0.53 0.53
loss
3. Differences in accounting data under the CASBEs and overseas accounting standards
(1) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs
and the IFRS
□ Applicable □ N/A
(2) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs
and overseas accounting standards
□ Applicable □ N/A
241
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