Share Capital and Profit Distribution - The company has issued a total of 119 million shares as of December 31, 2023[3]. - The company reported a profit distribution of approximately 9,986,756.32 RMB, with a decrease of 32,606,756.32 RMB compared to the previous period[1]. Financial Reserves and Risk Management - The company extracted a general risk reserve of 22,620,000 RMB during the reporting period[1]. - The company has a total capital reserve of 2,102,311.38 RMB allocated for special reserves[1]. Company Operations and Focus - The company is focused on the research, production, and sales of special graphite new materials[3]. - The company has a significant focus on expanding its market presence in the special graphite sector[3]. Regulatory Approvals - The company received approval from the China Securities Regulatory Commission for its public offering on May 31, 2023[3]. Financial Reporting and Accounting Standards - The financial statements are prepared based on the assumption of going concern[5]. - The company adheres to the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of its financial status[6]. Financial Instruments and Credit Risk - Financial assets measured at fair value and changes recognized in other comprehensive income include debt instruments such as receivables and other debt investments, initially measured at fair value with transaction costs included in the initial recognition amount[27]. - Financial assets measured at fair value and changes recognized in profit or loss include trading financial assets, derivative financial assets, and other non-current financial assets, initially measured at fair value with transaction costs included in profit or loss[28]. - The company measures expected credit losses for receivables and contract assets based on the expected credit loss over the entire duration, regardless of whether there is a significant financing component[35]. - The company assesses the credit risk of financial instruments at each balance sheet date, determining whether the credit risk has significantly increased since initial recognition[37]. Inventory and Asset Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory impairment recognized when the cost exceeds the net realizable value[47]. - Contract assets are recognized when the company has transferred goods or provided services and has the right to receive consideration, which is dependent on factors other than the passage of time[48]. - Non-current assets held for sale are classified when the company has made a decision to sell and expects the sale to be completed within one year[51]. - The company recognizes impairment losses for non-current assets held for sale when the carrying amount exceeds the fair value less costs to sell[51]. - The company distinguishes between continuing operations and discontinued operations in its profit and loss statement, with impairment losses and gains from discontinued operations reported separately[52]. Investments and Joint Control - Joint control is defined as shared control over an arrangement, requiring unanimous consent from the participating parties for decisions regarding relevant activities[53]. - The initial investment cost for long-term equity investments in subsidiaries under common control is determined based on the book value of the acquired owner's equity on the merger date[55]. - For long-term equity investments obtained through the issuance of equity securities, the fair value of the issued securities is used as the initial investment cost[56]. - The company uses the cost method for accounting long-term equity investments, recognizing investment income based on declared cash dividends or profits from the invested entity[57]. - When recognizing shares of net profit or loss from joint ventures or associates, the fair value of identifiable net assets at the time of investment is used as the basis for adjustments[60]. - The company limits the recognition of net losses from joint ventures or associates to the book value of long-term equity investments[61]. Fixed Assets and Depreciation - Fixed assets are initially measured at cost, including expected disposal costs, and subsequent expenditures are capitalized when they are likely to generate future economic benefits[62]. - The company capitalizes borrowing costs for qualifying assets that require a significant period to prepare for use or sale[68]. - Intangible assets are initially measured at cost, including purchase price and related taxes, and their useful life is assessed upon acquisition[74]. - The company’s accumulated depreciation for fixed assets increased by 24,652,080.18, with a total accumulated depreciation of 117,035,792.73 at the end of the period[164]. - The company’s impairment testing indicated no impairment losses for fixed assets during the reporting period[167]. Revenue Recognition and Contract Costs - Revenue is recognized when control of goods is transferred to customers, either upon receipt of full payment or upon delivery and customer acceptance[91]. - Contract costs are recognized as an asset when they are expected to be recoverable, including costs incurred to fulfill contracts and incremental costs to obtain contracts[93]. - The company recognizes impairment losses for assets when their carrying amount exceeds the expected remaining consideration from transferring related goods or services[94]. Government Grants and Deferred Tax - Government grants received by the company are classified into asset-related and income-related grants, with the former used for acquiring or constructing long-term assets[95]. - Income-related government grants are recognized as deferred income and included in the current profit or loss when related costs or losses are incurred[97]. - The company assesses the carrying value of deferred tax assets at the balance sheet date, reducing it if future taxable income is unlikely to be sufficient to utilize the deferred tax benefits[100]. - Deferred tax assets are recognized for deductible temporary differences, limited to the amount of future taxable income expected to be available[103]. Lease Accounting - The company confirms the initial measurement of right-of-use assets for leases, excluding short-term and low-value asset leases, at cost[107]. - Lease liabilities are measured at the present value of future lease payments, using the interest rate implicit in the lease or the company's incremental borrowing rate[108]. - The company recognizes gains or losses from the transfer of assets in sale-leaseback transactions based on whether the transfer qualifies as a sale[115]. Debt Restructuring and Liabilities - In debt restructuring, the company measures non-financial assets received in exchange for debt at cost, including the fair value of waived claims[117]. - The company terminates the recognition of debt when the current obligation is relieved, with any difference between the carrying amount of the debt and the transferred asset recognized in profit or loss[119]. - The company reported a bank acceptance bill balance of 63,308,894.03[127]. - The company's cash and cash equivalents totaled 19,942,405.93 at the end of the previous year[133]. Taxation and Employee Benefits - The corporate income tax rate for the company is 15%, while the tax rate for its subsidiary, Xinxin Carbon Material Co., is 5%, and for another subsidiary, Zhuochen Technology Co., it is 25%[124]. - The company has a value-added tax rate of 13% applicable to its sales of goods and taxable services[130]. - The company recognizes short-term employee benefits as liabilities during the accounting period in which the services are provided[136]. - The company has established a defined benefit plan for employee post-employment benefits, which is accounted for based on the expected accumulated benefit unit method[138]. - Total employee benefits increased by 39,851,282.84, resulting in a year-end balance of 6,661,442.08[198]. - Social insurance fees increased by 1,315,322.85, with medical insurance fees contributing 1,161,033.74 to this total[198]. - Basic pension insurance contributions totaled 2,187,937.92, reflecting a significant increase in liabilities[198]. - Unemployment insurance fees increased by 95,442.40, indicating a rise in employee-related costs[198]. Cash Flow and Financial Position - The company confirmed that the implementation of the new accounting policy did not have a significant impact on its financial position and operating results[128]. - The company will adjust the book value of estimated liabilities based on the best estimate of the required expenditures[142]. - The company’s total assets at the end of the period amounted to 295,965,129.27, with an increase in fixed assets of 15,567,107.60 during the period[164]. - The company’s long-term prepaid expenses are defined as expenses incurred but to be amortized over a period exceeding one year[150]. - The company’s contract liabilities are recognized based on the relationship between the performance obligations and customer payments[152]. - The company reported a total of 4,532,895.75 in accounts receivable with a provision for bad debts of 349,589.83, representing a provision ratio of 7.71%[153]. - The company reported a total of 32,658,642.32 in other receivables, with a provision for bad debts of 1,644,390.96, resulting in a provision ratio of 5.04%[153]. - The company’s fixed assets at the end of the period had a book value of 157,154,196.28, compared to 169,020,038.23 at the end of the previous year[165]. - The company’s new additions to fixed assets included 2,923,673.85 for construction projects and 10,670,952.67 for machinery and equipment[164]. - The total balance of construction projects at the end of the period is 142,556,993.56, with an increase of 126,966,926.77 during the current period[171]. - The project for producing 30,000 tons of high-end special graphite has a cumulative investment of 128,385,507.87, which is 11.88% of the budget[171]. - The new material trial project for superconducting thermal special graphite has an increase of 1,223,841.07 during the current period[171]. - The online monitoring system project has a total balance of 610,619.46, currently in the installation and debugging phase[171]. - The total book value of intangible assets at the end of the period is 59,078,409.17, with an increase of 40,659,700.03 during the current period[175]. - The accumulated depreciation tax difference for fixed assets is 8,516,783.79, with a deferred tax liability of 1,277,517.57[182]. - The total balance of the company's assets is 76,341,224.46, with a book value of the same amount[186]. - The company has capitalized interest of 887,464.24 for the current period, contributing to the total accumulated interest capitalization[175]. - The company has completed the installation of the confidentiality system, with a total balance of 122,000.00[172]. - The company has self-raised funds for various projects, including the high-end special graphite production line and the online monitoring system[171]. - The company's cash and cash equivalents at the end of the period amounted to ¥11,977,000, compared to ¥94,270,899.90 at the end of the previous year, indicating a significant decrease[187]. - Accounts receivable totaled ¥51,599,858.80, down from ¥58,643,372.33 year-over-year, reflecting a decrease of approximately 12.5%[187]. - The total fixed assets increased to ¥35,986,836.59 from ¥15,848,570.93, representing a growth of approximately 127.5%[187]. - Short-term borrowings rose significantly to ¥185,281,305.41 from ¥70,067,513.74, marking an increase of approximately 164.5%[188]. - The company signed multiple loan agreements, including a secured loan of ¥14,000,000 with a term from March 31, 2023, to March 31, 2024[189]. - The total liabilities related to accounts payable were reported at ¥6,200,000.00, with no previous year balance indicated[194]. - Contract liabilities decreased to ¥1,738,071.99 from ¥3,373,113.18, showing a reduction of approximately 48.5%[196]. - The company reported a significant change in employee compensation, with short-term salaries decreasing to ¥6,661,442.08 from ¥5,903,314.27, reflecting a substantial reduction in liabilities[197]. - The company has entered into various credit agreements, including a domestic letter of credit amounting to ¥7,000,000, with a validity period until May 23, 2024[193]. - The company has ongoing research and development efforts, although specific new products or technologies were not detailed in the provided documents[192].
东方碳素(832175) - 2023 Q4 - 年度财报