FangDa Carbon New Material Co., Ltd.

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2021 Annual Report
Company code: 600516 Company abbreviation: Fangda Carbon
Fangda Carbon New Material Technology Co.,

Ltd. 2021 Annual Report
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2021 Annual Report
important hint
I. The Board of Directors, the Board of Supervisors and the directors, supervisors and senior management of the Company guarantee the authenticity and accuracy of the contents of the annual report
Accuracy and completeness, no false records, misleading statements or major omissions, and bear individual and joint legal responsibilities
appoint.
2. All directors of the company attended the board meeting.
3. The Chartered Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the Company.
4. Dang Xijiang, the person in charge of the company, Yu Yong, the person in charge of accounting work, and Zhao Zhao, the person in charge of the accounting organization (accounting supervisor)
Erqin Statement: Guarantee the authenticity, accuracy and completeness of the financial report in the annual report.
V. The profit distribution plan or the capital reserve conversion plan approved by the board of directors for the reporting period
The company held the third meeting of the eighth board of directors on April 22, 2022, reviewed and approved the "Company Profit Distribution in 2021"
Distribution Plan", the company plans not to carry out cash dividends, bonus shares, and capital reserves to increase share capital in 2021.
VI. RISK STATEMENT OF FORWARD-LOOKING STATEMENTS
ÿApplicable ÿNot applicable
Forward-looking statements such as development strategies and business plans involved in this report are affected by market changes and other factors, and do not constitute a
As the company's substantial commitment to investors, investors are advised to pay attention to investment risks.
7. Whether there is any non-operating capital occupation by the controlling shareholder and its related parties
no
8. Whether there is any violation of the prescribed decision-making procedures to provide external guarantees
no
9. Whether more than half of the directors cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the company
no
X. Significant Risk Warning
The company has described in detail the main risks surrounding the company's operation in this report, please refer to Section III Management
Level discussion and analysis 6. The company's discussion and analysis on the company's future development (4) The content of the possible risks.
Eleven, other
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2021 Annual Report
Contents
Section 1 Interpretation ................................................ ...................................................... ......................................3
Section 2 Company Profile and Main Financial Indicators ................................................ ...................................................... ......4
Section 3 Management Discussion and Analysis ..................................................................... ...................................................... ................9
Section 4 Corporate Governance ................................................ ...................................................... ...........................twenty four
Section 5 Environmental and Social Responsibility ................................................ ...................................................... .................40
SECTION VI IMPORTANT ................................................... ...................................................... .................................47
Section 7 Changes in Shares and Shareholders ............................................... ...................................................... ..........58
Section VIII Preference Shares Related Information ................................................ ...................................................... .................63
Section IX Bonds Related Information ................................................ ...................................................... .................63
Section 10 Financial Statements ................................................ ...................................................... .................................63
Financial statements bearing the signatures and seals of the legal representative, the person in charge of accounting work, and the person
in charge of the accounting organization. The original audit report with the seal of the accounting firm and the signature and seal of the
Reference file directory certified public accountant. The originals of all company documents and announcements publicly disclosed in newspapers designated by
the China Securities Regulatory Commission during the reporting period.
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Section 1 Interpretation
1. Interpretation
In this report, unless the context otherwise requires, the following terms have the following meanings:
Definition of common words
The company, the company, Fangda Carbon Refers to Fangda Carbon New Material Technology Co., Ltd.
Fangda Group Shanghai Huxu Fangda Special Refers to Liaoning Fangda Group Industrial Co., Ltd.
Steel Jiangxi Pinggang Jiangxi Trade Fangda Refers to Shanghai Huxu Investment Management Co., Ltd.
International Trade Sichuan Daxing Baofang Refers to Fangda Special Steel Technology Co., Ltd.
Carbon Material Fangda Xike Mo Jiujiang Bank Refers to Jiangxi Pinggang Industrial Co., Ltd.
Jilin Chemical Fiber Northeast Pharmaceutical Refers to Jiangxi Seagull Trading Co., Ltd.
Zhongxing Commercial Beijing Fangda Jingfangda Refers to Liaoning Fangda Group International Trade Co., Ltd.
Jiangsu Fangda Hefei Carbon Fangda High-tech Refers to Sichuan Daxing Baohua Chemical Co., Ltd.
Chengdu Carbon Fushun Carbon Meishan Zhibaofang Carbon Material Technology Co., Ltd.
Rongguang Shanghai Fangda Tianjin Huxu Haihe Refers to Fang Dasi Kemo (Jiangsu) Needle Coke Technology Co., Ltd.
Haihe Fund Haihe Fangda Fund Vocational Refers to Bank of Jiujiang Co., Ltd.
International "Articles of Association" Refers to Jilin Chemical Fiber Co., Ltd.
Refers to Northeast Pharmaceutical Group Co., Ltd.
Refers to ZTE-Shenyang Commercial Building (Group) Co., Ltd.
Refers to Beijing Fangda Carbon Technology Co., Ltd.
Refers to Beijing Fangda (Tianjin) International Trade Co., Ltd.
Refers to Jiangsu Fangda Carbon Chemical Co., Ltd.
Refers to Hefei Carbon Co., Ltd.
Refers to Fushun Fangda High-tech Materials Co., Ltd.
Refers to Chengdu Carbon Co., Ltd.
Refers to Fushun Carbon Co., Ltd.
Refers to Meishan Fangda Rongguang Co., Ltd.
Refers to Shanghai Fangda Investment Management Co., Ltd.
Refers to Tianjin Huxu Haihe Investment Management Co., Ltd.
Refers to Tianjin Haihe Industrial Fund Partnership (Limited Partnership)
Refers to Tianjin Haihe Fangda Industrial Investment Fund Partnership (Limited Partnership)
Refers to BOC International Certified Public Accountants (Special General Partnership)
Refers to the "Articles of Association of Fangda Carbon New Material Technology Co., Ltd."
Rules of Procedure for the Shareholders' Meeting of Fangda Carbon New Material Technology Co., Ltd.
"Rules of Procedure for the General Meeting of Shareholders of the Company" refer to
but"
"Fangda Carbon New Material Technology Co., Ltd. Supervisory Board Rules of Procedure
"Procedure Rules of the Supervisory Committee of the Company" refer to
but"
China Securities Refers to China Securities Regulatory Commission
Regulatory Commission Exchange, Shanghai Refers to the Shanghai Stock Exchange
Stock Exchange RMB, RMB 10,000, RMB 100 Refers to RMB Yuan, RMB 10,000, RMB 100 million
million during the reporting period Finger 2021
Section 2 Company Profile and Main Financial Indicators
1. Company Information
The Chinese name of the company Fangda Carbon New Material Technology Co., Ltd.
The Chinese abbreviation of the company Fangda Carbon
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The foreign language name of the FangDa Carbon New Material Co.,Ltd
company The legal representative of the company Dang Xijiang
2. Contact and contact information
board secretary Securities Affairs Representative
name Anmin Zhang Aiyan
contact address Carbon, Haishiwan Town, Honggu District, Lanzhou City, Gansu Province Carbon in Haishiwan Town, Honggu District, Lanzhou City, Gansu Province
11 Su Road 11 Su Road
0931-6239106 0931-6239195
0931-6239221 0931-6239221
Telephone fax e-mail fdts730084@fangdacarbon.com fdts730084@fangdacarbon.com
3. Introduction to the basic situation
Company registered address No. 11 Tansu Road, Haishiwan Town, Honggu District, Lanzhou City, Gansu Province
According to the standard address registration of "one standard and three real" two-dimensional code of the public security organ of Gansu Province
Requirements, with the approval of the public security organs and civil affairs departments, the company's registered address is changed
It is No. 11 Tansu Road, Haishiwan Town, Honggu District, Lanzhou City, Gansu Province. 2020
On September 8 and September 24, 2020, the company held the seventh session of directors
Historical changes in the company's registered address
The 36th Extraordinary Meeting and the 5th Extraordinary General Meeting of Shareholders in 2020
Reviewed and approved the "Proposal on Amending Part of the Articles of Association of the Company"
and completed the industrial and commercial change registration procedures on September 28, 2020,
Get a new business license.
Company Office Address No. 11 Tansu Road, Haishiwan Town, Honggu District, Lanzhou City, Gansu Province
Zip Code of Company Office Address Company 730084
Website Email http://www.fdtsgs.com
fdts730084@fangdacarbon.com
4. Information disclosure and storage location
China Securities Journal (http://www.cs.com.cn/) Shanghai Securities

The name and website of the media where the company discloses its annual report
News (http://www.cnstock.com)
The website of the stock exchange where the company discloses its annual report http://www.sse.com.cn
The company's annual report preparation location Fangda Carbon New Material Technology Co., Ltd. Board Secretariat
V. Company stock profile
Company stock profile
stock type stock listed stock exchange stock abbreviation Shanghai Stock Exchange Fangda Stock abbreviation before the stock code change
A crotch Carbon 600516 ST Fangda
6. Other relevant information
name BOC International Certified Public Accountants (Special General Partnership)
The accounting firm hired by the company (territorial D, Hesheng Jingguang, No. 13 Tangyan Road, Yanta District, Xi'an City, Shaanxi Province
office address
Inside) Block 25
Names of signed accountants Liu Dan, Yang Jian, Li Yaxiong
Name Credit Suisse Founder Securities Co., Ltd.

Those who performed continuous supervision duties during the reporting period
South of Financial Street Center, No. 9, Financial Street, Xicheng District, Beijing
Sponsor office address
Floor 15
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Signed Sponsor Representative

Guo Yuhui, Dong Ximing
Person
Name Period of Ongoing Supervision January 1, 2021 - December 31, 2021
7. Major accounting data and financial indicators in the past three years
(1) Major accounting data
Unit: Currency: RMB
This period is higher than the previous year
key accounting data 2021 2020 increase or decrease in the same period 2019
(%)
Operating income 4,651,772,746.11 3,539,172,251.49 31.44 6,750,905,186.42
attributable to listed companies

1,084,595,183.21 547,458,328.20 98.11 2,016,201,316.76
Shareholders' net profit
attributable to the listed company
Shareholder's deduction
774,087,826.45 384,315,360.09 101.42 1,802,658,223.76
Net profit from recurring profit and loss
Run
arising from business activities

-37,844,166.75 579,183,207.12 -106.53 4,399,908,313.39
net cash flow
Compared with the end of the current period
Late 2021 Late 2020 year-end increase Late 2019
reduce(%)
Attributable to listed companies

14,764,688,049.15 15,583,961,058.60 -5.26 15,033,923,961.90
Shareholders' Net Assets
Total Assets 18,502,948,253.96 19,235,471,109.23 -3.81 18,476,165,747.70
(2) Main financial indicators
Key Financial Indicators 2021 Increase or decrease in the current period of 2020 compared with the same period of the previous year (%) 2019
Basic earnings per share (RMB/share) Diluted 0.29 0.14 107.14 0.53
earnings per share (RMB/share) Basic 0.29 0.14 107.14 0.53
earnings per share after deducting non-recurring gains and losses

0.20 0.10 100.00 0.48
Income from shares (RMB/share)
Weighted average return on equity (%) Weighted 7.15 3.58 an increase of 3.57 percentage points 14.67
average return after deducting non-recurring gains and losses

5.10 2.51 an increase of 2.59 percentage points 13.12
Average return on equity (%)
Explanation of the company's main accounting data and financial indicators for the first three years at the end of the reporting period
8. Differences in accounting data under domestic and foreign accounting standards
(1) The net profit in the financial report disclosed in accordance with the International Accounting Standards and the Chinese Accounting Standards and attributable to shareholders of the listed company
difference in net worth of
(2) The net profit in the financial report disclosed in accordance with both the foreign accounting standards and the Chinese accounting standards and the net profit attributable to the shareholders of the listed company
Differences in Net Assets
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(3) Explanation of the differences between domestic and foreign accounting standards:
9. Main financial data by quarter in 2021
Unit: Currency: RMB
The first quarter Second quarter Third quarter Fourth quarter (July-September)
(January-March) (April-June) (October-December) 1,204,277,543.
1,433,758,164.
Operating income 930,412,386.20 1,083,324,652.18
27 46
Attributable to listed company shares

133,858,572.65 368,254,733.54 371,301,658.19 211,180,218.83
Dong's net profit is
attributable to listed company shares
East's deduction non-recurring 137,223,959.15 320,344,094.03 235,035,371.33 81,484,401.94
net profit after profit and loss
cash generated from business activities

49,100,236.83 540,722,401.14 -73,650,644.51 -554,016,160.21
net cash flow
Explanation of the difference between quarterly data and disclosed periodic report data
X. Non-recurring profit and loss items and amounts
Unit: Currency: RMB
attached
Note
Non-recurring profit and loss items 2021 Amount like 2020 Amount 2019 Amount
suitable
use
Gains and losses on disposal of non-current assets 216,019,424.42 4,335,128.03 -8,937,372.00
Unauthorized approval, or without formal approval documents,
or occasional tax refunds, deductions
Government subsidies included in the current profit and loss, but with
The normal operation of the company is closely related to the
In line with national policies and regulations, in accordance with certain standards 37,460,558.89 57,787,648.13 94,104,835.97
Fixed or quantitative continuous enjoyment of government subsidies
except
Income from non-financial enterprises included in current profit and loss
Withdrawal funds occupation fee
Enterprises acquire subsidiaries, associates and joint ventures
The investment cost of operating a business is less than that of acquiring the investment
425,684,011.01
shall enjoy the identifiable net capital of the investee
income from fair value
Gains and losses on exchange of non-monetary assets
Gains and losses from entrusting others to invest or manage assets 92,762,470.34 103,531,017.23 134,090,379.08
Due to force majeure factors, such as natural disasters
Various asset impairment provisions accrued due to damages
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Debt restructuring gains and 1,516,867.61 8,345,613.42 -9,926,083.01
losses Enterprise restructuring expenses, such as the cost of relocating employees
Outgoing, integration costs, etc.
arising from transactions where the transaction price is obviously unfair
Profit and loss over fair value
Subsidiaries arising from business combination under the same control
Net profit and loss for the current period from the beginning of the period to the date of consolidation
Contingent that has nothing to do with the company's normal business operations
profit and loss
Except for those related to the normal operation of the company
In addition to the effective hedging business, holding transactional
Financial Assets, Derivative Financial Assets, Transactions
financial liabilities and derivative financial liabilities
Gains and losses from changes in fair value, and disposals 72,384,136.72 78,255,824.96 22,592,699.55
Held-for-trading financial assets, derivative financing
assets, trading financial liabilities, derivative finance
Investments acquired from liabilities and other debt investments
income
Receivables that are individually tested for impairment,

225,187.25 4,678,133.96 55,146,526.68
Profits and losses from external entrusted loans obtained
from the transfer of provision for impairment of contract assets
Subsequent measurement using the fair value model
change in fair value of investment real estate
profit and loss
According to tax, accounting and other laws and regulations
A one-time adjustment to current profit and loss is required
Impact on current profit and loss
Custody fee income from entrusted operations
Other operating income other than the above

-20,338,285.18 -50,373,059.46 -24,236,286.45
Other income
and expenses that meet the definition of non-recurring profit and loss
6,877,062.94 -425,684,011.01
Less profit
items: Amount affected by 91,182,097.55 39,014,879.76 55,690,098.03
income tax on minority shareholders' equity 5,217,968.68 4,402,458.40 -6,398,491.21
(after tax) Total 310,507,356.76 163,142,968.11 213,543,093.00
The non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss
Description of items defined as recurring profit and loss items
11. Items measured at fair value
Unit: Currency: RMB
for current profit

project name Opening Balance Ending balance Current period changes
Affect amount
Held-for-trading financial assets 4,051,987,498.10 Accounts 639,019,115.47 -3,412,968,382.63 93,742,268.47

-
receivable financing 1,222,223,069.65 Otherassets
non-current financial
221,941,349.89 1,199,715,024.93 -22,508,044.72
Total 5,496,151,917.64 313,345,688.48 91,404,338.59 71,404,338.59
2,152,079,828.88 -3,344,072,088.76 165,146,607.06
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XII. Other ÿApplicable ÿNot
applicable
Section 3 Management Discussion and Analysis
1. Discussion and analysis of operating conditions
During the reporting period, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the company fully implemented the various policies of the party and the country.
Decision-making and deployment, actively adapt to market changes and national industrial policy adjustments, properly respond to the impact of fluctuating and uncertain factors in the epidemic, and respond to
Faced with market opportunities and challenges, we will steadily promote cost control, improve resource allocation efficiency, innovate sector management models, and carbon products.
The total sales volume hit a record high again, achieving a good start in the "14th Five-Year Plan".
(1) Intensive cultivation to improve sales performance.
Adhere to market-oriented, sales traction, rationally distribute customer structure, improve the efficiency of resource allocation, and improve supporting and sales
The evaluation and incentive policy with organizational goals as the core, intensive cultivation, and improvement of sales performance. Give full play to the scale advantages and resource cooperation of the carbon sector
With the same advantages and the "big corps" operational advantages, we seek sales opportunities in the market challenges, seek price stabilization opportunities in the market downturn, and find opportunities in the market.
In the market upswing period, it seeks to increase prices and efficiency, maintain a stable and rising market share, maintain strategic positioning, and maximize corporate interests. 2021
The annual sales of carbon products is 197,900 tons, the operating income is 4,651,772,700 yuan, and the net profit attributable to the shareholders of the listed company
1,084,595,200 yuan.
(2) Scientific and technological innovation to promote sound development.
The company holds high the banner of science and technology, constantly intensifies the pace of technological innovation, and uses the sword of science and technology to break through the bottleneck of enterprise development.
Relying on the Graphene New Materials Research Institute and the Carbon Materials Research Institute, the company focuses on the research and development and application of carbon-carbon composite materials, graphene, nuclear graphite
The high-end industrial chain such as research and development has been continuously extended. With the help of the Chengdu carbon scientific research platform, build the southwest headquarters of the carbon sector and increase the number of R&D talents.
At the same time, through strengthening cooperation with scientific research institutes and colleges and universities, we will continue to seek high technology content, good market prospects, and short-term
The scientific research projects transformed during the period will effectively improve the level of research and development. The company's graphene masks were successfully listed and obtained the EU CE certification, and won the
Excellent brand supplier of Chinese steel. Through "super high" electrodes, "new full precision" carbon blocks and "high precision" new materials, the company has formed
into a new technological development pattern.
(3) Scientific management, do a good job in project construction.
Strictly follow the project initiation report and implementation plan, and implement the quality, cost, construction period and other management work of the project to ensure that the project
The quality is up to standard, the cost control is reasonable, and the construction period control is in place. The new high-pressure impregnation and secondary roasting tunnel kiln project has been put into operation smoothly
Improve the quality of the company's products, make up for the production capacity bottleneck in the roasting process, and add new momentum to the high-quality development of the company.
(4) Establish red line awareness and pay attention to safety and environmental protection.
Safety and environmental protection is the premise of development, and also the lifeline of sustainable business development. Firmly establish the awareness of the red line of safety and environmental protection,
The investigation and governance of major hidden dangers shall be strengthened, the accountability shall be strengthened, the hidden dangers of major accidents shall be effectively eliminated, and a long-term mechanism shall be established to create the essence of the post.
Safety and improving the self-management level of employees are the starting points, carry out zero-risk safety management and safety standardization management, and strive to solve safety problems
"Ten barriers" to management, and effectively improve the level of safety management. Adhere to management innovation, pursue pragmatism and efficiency, and continue to focus on environmental protection
According to the requirements of environmental protection emission concentration in 2021, some environmental protection equipment will be updated and renovated, and the classification of environmental protection equipment will be optimized and improved.
Control standards, effectively reduce pollution emissions, and ensure a stable safety and environmental protection situation.
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(5) Accelerate intelligent manufacturing and realize digital transformation.
Accelerate the construction of intelligent factories, break the "information island", and make data "live" and "move", from online to data
It is implemented in accordance with the strategy of "point-line integration and gradual advancement", builds an integrated platform for safety positioning management, and completes equipment points.
The program development of inspection and lubrication system, the upgrading and transformation of old equipment in the roasting process, the "digital workshop" of the pressing plant passed the review, and the "5G+ industrial
In-depth exploration of the "Internet of Industry" strategy to realize equipment digital management, production process automation, and product Internet of Things management.
(6) Put people first and practice social responsibilities.
Do a good job in rural revitalization industrial projects to ensure the healthy and sustainable development of industrial projects. By increasing the training capacity of local managers
To provide talent guarantee for the healthy and long-term development of industrial projects. Integrate Fangda Carbon's corporate culture and management experience into industrial poverty alleviation projects
Among the projects, assist the completion of the annual goals and tasks of the rural revitalization industry project.
2. Industry situation of the company during the reporting period
The carbon industry belongs to the basic raw material industry and is an indispensable basic material in the development of the national economy. Carbon materials are used in many fields.
It is a special material that cannot be replaced by any metal and non-metal materials, and is widely used in metallurgy, chemical industry, machinery manufacturing, aerospace,
Wind energy, solar energy, nuclear power, new energy and other fields. Carbon products can be roughly divided into graphite products, carbon products, and new carbon materials according to the production process.
There are four categories of materials and other carbon products, of which graphite products mainly include graphite electrodes and special graphite.
In February 2022, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment jointly issued the
Guiding Opinions on the High-Quality Development of the Iron and Steel Industry" pointed out that by 2025, the iron and steel industry will basically form a reasonable layout structure,
Stable source supply, advanced technology and equipment, outstanding quality brand, high level of intelligence, strong global competitiveness, green, low-carbon and sustainable
High-quality development pattern. The industrial structure has been continuously optimized. The development level of industrial agglomeration has been significantly improved, and the concentration of the iron and steel industry has been greatly improved.
The process structure has been significantly optimized, and the proportion of EAF steel output in the total crude steel output has increased to more than 15%. In the medium and long term, with the
With the steady development in China, the demand for graphite electrodes will continue to rise, and the industry has a broad space for development.
China Carbon Industry Association officially implemented the "T/ZGTS001-2019 Carbon Industry Air Pollution Emission Standard in September 2019"
In 2021, in accordance with the requirements of the Ministry of Industry and Information Technology of the People's Republic of China, the "Calculation Method of Carbon Dioxide Emissions from Carbon Products Manufacturing" was formulated and issued.
Carbon industry concentration is expected to further increase.
3. Businesses engaged in by the company during the reporting period
According to the "Guidelines for Industry Classification of Listed Companies" promulgated by the China Securities Regulatory Commission, the company's industry is the non-metallic mineral products industry. male
The company is mainly engaged in the development, production and sales of new graphite and carbon materials. Products include graphite electrodes, carbon bricks for blast furnaces, and stones for electrolytic aluminum
Ink cathode carbon block, special graphite products, carbon/graphite materials for nuclear power, graphene and its downstream products, supercapacitor activity
High-end graphite anode materials for carbon and lithium-ion batteries, carbon fibers, carbon/carbon composite materials and other carbon new material products. Leading product stone
The downstream industry demand for ink electrodes is mainly concentrated in electric arc furnace steelmaking, submerged arc furnace smelting yellow phosphorus, abrasives and industrial silicon and other industries.
Furnace steelmaking demand is the largest. The isostatic pressing graphite products produced by Chengdu Carbon, a wholly-owned subsidiary of the company, are widely used in semiconductors, solar
Volt, mold processing, nuclear energy, metallurgy, petrochemical and many other fields. IV. Analysis of core
competitiveness during the reporting period ÿApplicable ÿNot applicable
(1) The advantages of cutting-edge scientific research system.
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The company is the world's leading production and supply base for high-quality carbon products, a research and production base for nuclear-related carbon materials, and a leader in the domestic carbon industry.
head enterprise. In recent years, the company has been rated as a national high-tech enterprise, a national technology innovation demonstration enterprise, and a national technology and trade innovation.
The leading enterprise of the base, the backbone enterprise of strategic emerging industries in Gansu Province. It has a national-level enterprise technology center, a post-doctoral research station,
Gansu Province Carbon New Material Engineering (Research) Center, Gansu Province Industrial Design Center, Gansu Province Science and Technology Innovation Base, and cooperated with Qing
Hua University, University of Science and Technology Beijing, Lanzhou University, Hunan University, Shanxi Coal Chemical Institute of Chinese Academy of Sciences, Lanzhou University of Technology and other well-known domestic universities
The institute strengthened R&D cooperation and jointly established "Tsinghua University Fangda Carbon Core Graphite Research Center" and "Lanzhou University Fangda Carbonite Research Center"
Graphene Research Institute” and other research and development platforms. It has independent intellectual property rights in accordance with the law in core key technologies, and independently enjoys ownership and use.
right to use. Occupy in the fields of blast furnace carbon bricks, carbon/graphite materials for nuclear power, research and production of graphene preparation and application technology
leading position. The company has now formed a research and development of cutting-edge new material products, supplemented by the upgrading of traditional products, raw material research and development.
It is a supplementary and supportive R&D system and a diversified industrial system.
(2) Advantages of mature quality system.
Based on the research and development and production of carbon products for more than 50 years, the company has established and improved the research and development,
Production, quality, equipment, safety, environmental protection, occupational health and other management systems, obtained the nuclear safety equipment manufacturing license, CNAS practical
Laboratory accreditation certificate, ISO9001 quality management system, ISO14001 environmental management system and OHSAS18001 occupational health and safety management
System certificates, etc., the overall technological capability has reached the international advanced level.
(3) The world-class production technology level advantage.
After years of R&D and accumulation, the company's large-scale electrodes have been widely recognized by domestic and foreign customers, solving the problem of domestic production of graphite electrodes.
Extremely technical short board. The ultra-high power ÿ750mm and ÿ800mm graphite electrodes produced by the company fill the domestic gap. Among them, large size
Ultra-high-power graphite electrodes and long-life blast furnace carbon bricks are listed as national key new products. Subsidiary Chengdu Carbon has been selected by the People's Republic of China
The Ministry of Industry and Information Technology of the People's Republic of China listed the third batch of specialized, special and new "little giants" enterprises.
(4) Advantages of advanced equipment.
The company has the international advanced level of carbon products production equipment. It has successively introduced electric heating kneaders from the United States, Japan and Germany,
Secondary roasting tunnel kiln, electrode cleaning machine, high pressure impregnation, vibration molding machine and other key equipment of international advanced level, especially from
The fully automatic batching and 40MN vertical ramming horizontal press equipment imported from Japan is the most advanced large-scale electrode production equipment in the world today.
There are domestic advanced level internal string graphitization furnace and 20000KVA DC graphitization furnace, large-scale electrode and joint production line, nuclear grade carbon /
Graphite material production line. The technical level of equipment has reached the domestic first-class and world-leading level.
(5) Advantages of a complete product system.
The company has a number of carbon production subsidiaries and raw material production and processing companies, with a reasonable geographical layout, realizing resource sharing, centralized
R&D, complementary advantages, and coordinated marketing of the industrial structure. According to the equipment status of each subsidiary, standardize production, divide labor and cooperate, and can produce
Various varieties and specifications of carbon products and special graphite products required by domestic and foreign customers. Products are divided into four series, the production of high school
Low-end products can complement each other in the market.
(6) Focus on sustainable development.
The company has many years of advantages in the production, operation and management of carbon enterprises. Through continuous innovation of production and operation management, continuous improvement of new
The management mechanism of "fine management" runs through a series of links such as procurement, production, quality, sales, and financial management. to branch
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Technological innovation drives the healthy and sustainable development of enterprises; achieves environmental protection standards, clean and civilized production; refines the connection between production and sales, and attaches great importance to products
Quality, with excellent product quality and after-sales service market; speed up the upgrading of traditional products, take technological innovation, resource saving
A sustainable and environmentally friendly way.
V. Main operating conditions during the reporting period
During the reporting period, the company responded to the national policy of carbon peaking, carbon neutrality, and energy transition, actively complied with the new changes in the carbon market, and properly responded to the
In response to the impact of the fluctuating and uncertain factors of the epidemic, we will seize the market opportunities such as the improvement of downstream market demand and the increase in the price of graphite electrode products by changing the strain.
Continue to maintain and develop the scientific research and quality system, production technology level, advanced equipment, sustainable
continuous development and many other advantages, give full play to the advantages of flexible systems and mechanisms, and further promote refined management and cost reduction and efficiency enhancement, and give full play to the advantages of flexible systems and mechanisms.
The leading role of sales, precise efforts to create benefits, and operating results have increased significantly year-on-year.
During the reporting period, the company produced 196,300 tons of graphite carbon products (including 169,300 tons of graphite electrodes and 19,300 tons of carbon bricks),
Produced 452,800 tons of iron fine powder; realized total operating income of 4,651,772,700 yuan, a year-on-year increase of 31.44%; attributable to listed company shares
Dong's net profit was 1,084,595,200 yuan, a year-on-year increase of 98.11%.
(1) Analysis of main business
1. Analysis of changes in related items in the income statement and cash flow statement
Unit: Currency: RMB
Change ratio
Subject Number of this period Same period last year
ÿ%ÿ
Operating income 4,651,772,746.11 3,539,172,251.49 31.44
Operating cost 3,093,100,911.91 2,523,093,243.30 22.59
sales expense 133,539,805.51 100,445,915.24 32.95
Management fees 507,382,135.50 399,395,057.29 27.04
Financial expenses -155,877,848.17 -239,591,458.48 Not applicable
R&D expenses 69,584,880.14 87,735,968.41 -20.69
Net cash flow from operating activities -37,844,166.75 579,183,207.12 -106.53
Net cash flow from investing activities 3,724,015,146.66 -4,620,195,742.39 Not applicable
Net cash flow from financing activities -1,765,642,301.71 -216,045,875.81 Not applicable
Non-operating income 8,159,186.35 437,394,882.71 -98.13
investment income 413,278,092.00 118,159,470.36 249.76
Reasons for changes in operating income: mainly due to the increase in product prices and sales.
Explanation of the reasons for changes in operating costs: mainly due to the increase in the price of raw materials, and the corresponding increase in operating costs.
Explanation of the reasons for the change in selling expenses: mainly due to the increase in income and the increase in the salaries of personnel in the sales department.
Reasons for changes in administrative expenses: mainly due to the increase in remuneration.
Reasons for changes in financial expenses: mainly due to the decrease in interest income.
Reasons for changes in research and development expenses: mainly due to the decrease in the input of materials for research and development projects.
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Explanation for the change in net cash flow from operating activities: mainly due to the increase in purchase of raw materials compared to the previous period.
Reasons for changes in net cash flows from investing activities: mainly due to the withdrawal of wealth management products during the reporting period and the decrease in investment expenditures.
Reasons for changes in net cash flows from financing activities: mainly due to the implementation of the 2020 profit distribution plan during the reporting period.
cash dividends.
Explanation of the reasons for the change in non-operating income: mainly due to the transfer of part of the equity of Jiujiang Bank in the non-operating income project of the previous period, which was
Non-operating income accounts included 426 million yuan.
Reasons for changes in investment income: Mainly due to the increase in investment income arising from the disposal of Jilin Chemical Fiber shares in the current period.
A detailed description of the major changes in the company's business type, profit composition or profit source during the current period
2. Income and cost analysis
details as follows:
(1). Main business by industry, product, region and sales model
Unit: Currency: RMB
Main business by industry
operating income business success

gross margin ratio
gross profit margin Incomparable Benby
Operating income by industry Operating cost Increase or decrease in the previous year
ÿ%ÿ Annual increase or decrease Annual increase or decrease
ÿ%ÿ
ÿ%ÿ ÿ%ÿ
Add 5.23
Carbon Industry 3,947,392,072.17 2,783,605,768.86 29.48 31.05 22.00
percentage points
Increase
Extractive industries 392,746,615.19 113,829,923.24 71.01 -6.56 -31.45 10.53
percentage point
Others 25,073,052.78 19,776,122.54
Total 4,365,211,740.14 2,917,211,814.64
Main business by product
operating income business success

gross margin ratio
gross profit margin Incomparable Benby
Operating income by product Operating cost Increase or decrease in the previous year
ÿ%ÿ Annual increase or decrease Annual increase or decrease
ÿ%ÿ
ÿ%ÿ ÿ%ÿ
Carbon system Add 5.23

3,947,392,072.17 2,783,605,768.86 29.48 31.05 22.00
Goods percentage points
Increase
Iron concentrate 392,746,615.19 113,829,923.24 71.01 -6.56 -31.45 10.53
percentage point
Others 25,073,052.78 19,776,122.54
Total 4,365,211,740.14 2,917,211,814.64
Main business by region
operating income business success gross margin ratio

gross profit margin
Operating Income by Region Operating cost Incomparable Benby Increase or decrease in the previous year
ÿ%ÿ
Annual increase or decrease Annual increase or decrease ÿ%ÿ
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ÿ%ÿ ÿ%ÿ
Add 3.13
Domestic 3,522,182,067.36 2,261,600,319.26 35.79 34.71 28.44
percentage points
Add 6.36
Overseas 843,029,672.78 655,611,495.38 22.23 2.06 -5.66
percentage points
Total 4,365,211,740.14 2,917,211,814.64
(2). Analysis table of production and sales
Production Sales volume

inventory ratio
than last year than last year
Main Product Unit Production Sales Volume Inventory Increase or decrease in the previous year
increase or decrease increase or decrease
ÿ%ÿ
ÿ%ÿ ÿ%ÿ
Tonnes of carbon products 196,339.74 197,904.34 10,083.78 5.25 7.35 -23.60
Tonnes of iron concentrate 452,826.00 319,031.39 135,054.81 -7.83 -36.49 10,616.93
Description of production and sales
none
(3). Performance of major purchase contracts and major sales contracts
(4). Cost analysis table
unit: yuan
By industry
This period accounts for Current Amount

Minute last year
Cost structure total cost Same as last year
Row Current Amount Amount in the same period of last year total cost
project Proportion period change ratio
industry Proportion(%)
(%) example(%)
Raw materials 1,882,226,448.43 64.81 1,260,560,903.36 65.04 49.32
artificial 313,830,590.04 10.81 253,085,730.03 10.03 24.00

Charcoal
white
energy 456,134,448.07 15.71 395,099,340.12 15.66 15.45
industry
Manufacturing costs 252,179,914.12 8.68 233,785,631.78 9.27 7.87
ore 88,591,135.03 57.79 97,647,336.19 66.51 -9.27
electricity bill 24,023,890.68 15.67 21,073,321.58 14.35 14.00
Pick
Raw materials 11,296,885.36 7.37 9,255,843.91 6.30 22.05
dig
industry
salary 21,326,315.96 13.91 15,309,937.84 10.43 39.30
depreciation 3,641,928.57 2.38 3,538,794.86 2.41 2.91
Manufacturing expenses 4,417,023.28 2.88
By product
Minute Cost structure This period accounts for last year Current Amount
Current Amount Amount in the same period of last year
Produce project total cost total cost Same as last year
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Goods Proportion Proportion (%) Period change ratio
(%) example(%)
Raw materials 1,882,226,448.43 64.81 1,260,560,903.35 65.04 49.32
Charcoal
artificial 313,830,590.04 10.81 253,085,730.03 10.03 24.00

white
system
energy 456,134,448.07 15.71 395,099,340.12 15.66 15.45
Goods
Manufacturing costs 252,179,914.12 8.68 233,785,631.78 9.27 7.87
ore 88,591,135.03 57.79 97,647,336.19 66.51 -9.27
electricity bill 24,023,890.68 15.67 21,073,321.58 14.35 14.00
iron Raw materials 11,296,885.36 7.37 9,255,843.91 6.30 22.05
Refined
salary 21,326,315.96 13.91 15,309,937.84 10.43 39.30

pink
depreciation 3,641,928.57 2.38 3,538,794.86 2.41 2.91
Manufacturing expenses 4,417,023.28 2.88
Cost analysis and other information
none
(5). Changes in the scope of consolidation due to changes in the equity of major subsidiaries during the reporting period
(6) Significant changes or adjustments to the company's business, products or services during the reporting period
(7). Major sales customers and major suppliers
A. The company's main sales customers
The sales of the top five customers amounted to RMB 679,823,600, accounting for 14.61% of the total annual sales;
The sales of the joint party is 00,000 yuan, accounting for 0% of the total annual sales.
During the reporting period, the proportion of sales to a single customer exceeded 50% of the total, there were new customers among the top 5 customers, or there was a heavy dependence on less
number of customers.
B. The company's main suppliers
The purchase amount of the top five suppliers was 658.8715 million yuan, accounting for 21.30% of the total annual purchase; the purchase amount of the top five suppliers
The purchase amount of related parties in China is 00,000 yuan, accounting for 0% of the total annual purchase amount.
During the reporting period, the proportion of purchases from a single supplier exceeded 50% of the total, and there were new suppliers in the top 5 suppliers or serious dependence.
Depends on a small number of suppliers.
3. Other explanations
4. Fees ÿApplicable
ÿNot applicable
Unit: Currency: RMB
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The amount of the current period is higher than that of the same period of the previous year
project This period Previous period
Change ratio (%)
sales expense 133,539,805.51 100,445,915.24 32.95
Management fees 507,382,135.50 399,395,057.29 27.04
Financial expenses -155,877,848.17 -239,591,458.48 Not applicable
R&D expenses 69,584,880.14 87,735,968.41 -20.69
5. R&D investment (1).
R&D investment table
unit: yuan
Expenditure R&D investment in 69,584,880.14
the current period 0
69,584,880.14
1.50
(2). R&D personnel situation table
The number of R&D personnel in the company 296
The ratio of the number of R&D personnel to the total number of the company (%) 10.28
Educational structure of R&D personnel
Educational Structure Category Educational structure number of people
PhD student 2
Postgraduate 24
Undergraduate 226
Specialist 44
High school and below 0
Age structure of R&D staff
age structure category age structure
Under 30 years old (excluding 30 years old) 87
30-40 years old (including 30 years old, excluding 40 years old) 125
60 years old and above 2
(3). Situation description
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The company continues to promote brand building, rely on technological innovation to build core competitiveness, and lead the technological development of the carbon industry. 2021,
Won the Excellent Brand Supplier of China Steel. Major breakthroughs have been made in key scientific research projects, and 18 nationally authorized patents (2 issued
Ming patent, 16 utility model patents); high-end blast furnace carbon bricks customized for strategic customers solve the problem of customers relying on imported single procurement
Problems, the realization of domestic substitution of imports, and diversified procurement have promoted new breakthroughs in the localization of the company's high-end blast furnace carbon bricks. company through
"Super-high" electrodes, "New Quanjing" carbon blocks and "high-precision" new materials form a new technological development pattern. (4)
Reasons for major changes in the composition of R&D personnel and their impact on the future development of the company
6. Cash flow ÿApplicable
ÿNot applicable
Unit: Currency: RMB
The amount of this period is higher than
project This period Previous period year-on-year change
Dynamic ratio (%)
Net cash flow from operating activities -37,844,166.75 Net cash flow from investing 579,183,207.12 -106.53
activities 3,724,015,146.66 -4,620,195,742.39 Not applicable
Net cash flow from financing activities -1,765,642,301.71 -216,045,875.81 Not applicable
(2) Explanation on major changes in profit caused by non-main business
(3) Analysis of assets and liabilities
1. Assets and Liabilities
unit: yuan
end of the current period End of the current period

End of last period
total capital Amount compared to the previous period
project name Closing amount of the current period End of last period of total assets
percentage of production Last change ratio
Proportion(%)
ÿ%ÿ ÿ%ÿ
Monetary funds 7,756,346,758.33 Transactional financial 41.92 5,790,362,709.17 30.10 33.95
funds
639,019,115.47 3.45 4,051,987,498.10 21.07 -84.23
Produce
Accounts 554,431,564.07 3.00 392,876,374.29 2.04 41.12
Receivable 1,738,151,495.51 9.39 1,334,975,215.96 6.94 30.20
Inventory Contract 16,252,199.85 0.09 10,667,941.12 0.06 52.35
Assets Other Non-current Funds

313,345,688.48 1.69 221,941,349.89 1.15 41.18
financial assets
short-term loan 398,356,766.67 220,436,911.24 1.15 80.71

2.15
bills payable 299,333,548.59 580,012,446.94 3.02 -48.39

1.62
accounts payable 445,494,204.88 327,783,577.32 1.70 35.91

2.41
Taxes payable 81,884,576.57 56,159,333.96 0.29 45.81

0.44
other instructions:
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Monetary funds: mainly due to the redemption of wealth management products in the current period, and the balance of monetary funds increased.
Held-for-trading financial assets: mainly due to the redemption of wealth management products during the current period, the balance of held-for-trading financial assets decreased.
Accounts receivable: mainly due to the increase in operating income for the current period, accounts receivable increased.
Inventory: mainly due to the increase in demand for products during the reporting period, and the increase in raw materials and work in progress.
Contract assets: mainly due to the increase in product quality assurance deposits.
Other non-current financial assets: mainly due to changes in the fair value of the invested partnership funds.
Short-term borrowings: mainly due to the increase in bank borrowings obtained during the current period.
Notes payable: mainly due to the decrease in acceptance bills issued in the current period.
Accounts Payable: Mainly due to the increase in the payment for raw materials that have not yet reached the settlement period.
Taxes payable: mainly due to the increase in sales revenue for the current period and the increase in taxes payable.
2. Overseas assets ÿApplicable
ÿNot applicable
3. Restrictions on major assets by the end of the reporting period
Unit: Currency: RMB
project Book value at the end of the period Restricted Reason
Money funds 334,821,778.94 Margin, pledge
Receivables Financing 221,049,532.57 pledge
fixed assets 2,368,232.11 mortgage
total 558,239,543.62
Note: The financing of restricted receivables in the current period was mainly due to the issuance of bills payable by the company as a pledge of bank acceptance bills.
4. Other instructions
(IV) Analysis of industry operating information
For details, please refer to Section III, “Management Discussion and Analysis” of this report.
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(5) Analysis of investment status
Overall analysis of external equity
investment ÿApplicable ÿNot applicable
In May 2021, Hefei Carbon, a wholly-owned subsidiary of the company, invested in the establishment of a full-scale industrial park in Xiatang Town, Changfeng County, Hefei, Anhui
Changfeng Fangda Carbon Materials Co., Ltd., a wholly-owned subsidiary, has a registered capital of RMB 50 million, and its business scope is graphite and
Manufacture of carbon products; sales of graphite and carbon products
project).
In August 2021, in order to promote the company's long-term development, extend and improve the company's industrial chain, the company will use its own capital of 600 million yuan
Coin, and jointly invested with Tianjin Huxu Haihe and Haihe Fund to establish Haihe Fangda Fund.
In December 2021, under the condition that the working capital required for normal operation is guaranteed, the company's use limit will not exceed RMB 500 million
(including 500 million yuan) of its own funds for securities investment, and the use of idle funds not exceeding 6 billion yuan (including 6 billion yuan)
Gold to buy financial products.
1. Significant equity investment
2. Significant non-equity investments
The company held the second extraordinary meeting of the eighth session of the board of directors on August 20, 2021.
Proposal for the Establishment of Investment Funds and Related Party Transactions. With its own capital of 600 million yuan, the company cooperates with related parties Tianjin Huxu Haihe and non-related parties Haihe.
River Fund co-sponsored the establishment of Haihe Fangda Fund. In October 2021, Haihe Fangda Fund completed the completion of the China Securities Investment Fund Industry Association.
Completed the filing procedures, filing number: SSW296, and obtained the private equity investment fund filing certificate. As of the end of the reporting period, the company has accumulated
36 million yuan.
The company held the fifth extraordinary meeting and the third meeting of the eighth session of the Board of Directors on December 8, 2021 and December 10, 2021 respectively.
The sixth interim meeting of the eighth board of directors, the meeting reviewed and approved, in the case of ensuring the liquidity required for normal operation, in order to improve the
The capital operation efficiency, the company uses its own funds of no more than 500 million yuan (including 500 million yuan) for securities investment, and the use limit does not exceed 500 million yuan.
Idle funds exceeding RMB 6 billion (including RMB 6 billion) were used to purchase wealth management products.
3. Financial assets measured at fair value
Unit: Currency: RMB
Impact on current profit

project Beginning of the period end of period Current period changes
amount
transactional gold
4,051,987,498.10 639,019,115.47 -3,412,968,382.63 93,742,268.47
Financial
Assets Receivables -
1,222,223,069.65 1,199,715,024.93 -22,508,044.72

Financing
other non-flows
Monetary financing 221,941,349.89 313,345,688.48 91,404,338.59 71,404,338.59
Produce
Total 5,496,151,917.64 2,152,079,828.88 -3,344,072,088.76 165,146,607.06
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4. The specific progress of major asset restructuring and integration during the reporting
period ÿApplicable ÿNot applicable
(VI) Sale of major assets and equity
(VII) Analysis of major holding companies
industry
service Registered capital total assets (million Net assets (million Operating income operating profit net profit
Company Name Main product or service
sex (10,000 yuan) Yuan) Yuan) (10,000 yuan) (10,000 yuan) (10,000 yuan)
quality
Industrial investment, high-tech
investment in technology projects
capital management, corporate capital
Production entrusted management, enterprise
Industrial Assets Restructuring and Mergers and Acquisitions
planning, electromechanical
products, chemical products
(except hazardous chemicals
Shanghai Fangda cast products, monitoring chemistry
investment management capital products, fireworks,

-
6,000.00 84,935.69 6,820.91 24,015.43 19,183.76
Limited Liability Enterprise civilian explosives,
company industry precursor chemicals
products), metallurgical furnace
materials, metal products
Sales, Consulting Services
(approved by law
projects, after the relevant
After approval by the department
carry out business activities
verb: move).
pregnancy Carbon product manufacturing, steel

Fushun Carbon
Produce sales of metallurgical materials,
Limited Liability 6,326.00 128,381.17 111,148.38 39,160.03 4,577.56 4,951.50
Enterprise new carbon products
company
industry hair, design.
Carbon products and by-products
Product production, processing and sales
pregnancy For sale, the company produces its own products

Hefei Carbon
Produce product export business and
Enterprise Machines required by the company
company
industry Mechanical equipment, spare parts
parts, raw and auxiliary materials
Import business
Production and sales of carbon systems
Listed products, chemical products
goods (excluding dangerous goods),
Operating self-produced products and
The entry and exit of related technologies

pregnancy
Chengdu Rongguang Export business, our factory

Produce
Carbon shares required for production and research 10,000.00 143,542.09 107,263.00 34,620.62 4,085.14 3,506.50
Enterprise
limited company Raw materials, machinery

industry
equipment, instruments
watch, spare parts, machine
Machining, plumbing
equipment, technology development
service
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2021 Annual Report
Iron ore mining, general
freight, tailings sand
hair; iron powder, general
pass machinery (except the pot

pregnancy
Fushun Laihe Furnace, elevator) plus

Produce
Mining Limited labor; steel sales; 2,198.94 175,770.02 169,525.56 39,918.57 25,655.86 19,055.14
Enterprise
company Crushed stone processing, pin

industry
sale; agricultural products
planting, processing, pinning
sale; leisure tourism
verb: move.
pregnancy Calcined coke, needle coke

Fushun Fangda
Produce manufacture, sale, oil
High-tech materials 5,000.00 20,539.46 16,534.86 41,259.86 1,314.09 916.12
Enterprise Coke sales, industrial water
limited company
industry sales, heating
Production and sales of carbon
pregnancy products, chemical products,

Chengdu Carbon
Produce Operating self-produced products and
Enterprise The entry and exit of related technologies
company
industry export business, carbon
product research and development, etc.
New carbon materials, stone
Oil coking products, chemical

Fushun Fangtai pregnancy
Production and sales of academic fibers

Precision carbon material Produce
sale (national law, 18,000.00 44,293.18 366.84 4.59 -3,062.41 -3,062.21

material limited Enterprise
prohibited by administrative regulations

manage industry
Projects and pre-licensing required
Except for items that are allowed)
Production and sales of coal coke
Oil deep processing products
(washing oil); coal char
Asphalt, light oil, anthracene
Oil, Carbon Black Oil, Phenol
oil, industrial naphthalene,
pregnancy Oil, neutral sodium phenolate

Jiangsu Fangda
Produce Production and sales of self-produced products
Carbon Chemical 17,500.00 46,625.85 30,993.10 26,930.12 -3,898.24 -5,109.70
Enterprise product; security system monitor
limited company
industry control service; tap water
production and supply; pollution
Water treatment and regeneration
Use; quality inspection technology
service; international, national
Domestic trade agency service
service.
(VIII) Situation of structured entities controlled by the company
6. The company's discussion and analysis on the company's future development
(1) Industry pattern and trends
The carbon industry is an important raw material industry in the country. Carbon materials can not be replaced by any metal and non-metal materials in many fields
The special materials are widely used in metallurgy, chemical industry, machinery manufacturing, aerospace, wind energy, solar energy, nuclear power, new energy and other fields. carbon
The main raw materials of vegetarian products are waste residue petroleum coke and pitch coke in the production process of petrochemical and coal chemical industries.
Produce various carbon products. This is the secondary utilization of energy and is a typical circular economy industry. According to the production process of carbon products
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2021 Annual Report
It can be divided into four categories: graphite products, carbon products, new carbon materials and other carbon products, of which graphite products mainly include graphite electric
Extreme, special graphite.
The downstream industry demand for graphite electrodes is mainly concentrated in four industries: electric arc furnace steelmaking, submerged arc furnace smelting yellow phosphorus, abrasives and industrial silicon.
Among them, the electric furnace steelmaking demand is the largest. The steelmaking technology with electric furnace as the core has great advantages in production efficiency, environmental protection, capital construction investment cost, process
There are obvious advantages in terms of flexibility. Electric furnace steelmaking uses electrodes to introduce current into the furnace, and a strong current passes through the gas at the lower end of the electrode.
Arc discharge is generated, and a large amount of heat is released for smelting.
Under the guidance of the national supply-side structural reform policy, it is an inevitable trend for the iron and steel industry to take the road of transformation and upgrading and low-carbon green development.
Electric furnace short-process steelmaking will become one of the key policy encouragement directions during the "14th Five-Year Plan" period of the national steel industry, and the proportion of electric furnace steelmaking will be
It shows an increasing trend, which in turn drives the release of demand for graphite electrodes.
(II) Company development strategy
The company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and closely aims at "serving the country by industry and building a global carbon
The enterprise development goal of “Strengthening the Enterprise with Sustainability”, and follows the enterprise development goal of “operating an enterprise must be beneficial to the government, to the enterprise, and to the employees”.
Industry values, relying on technological progress and fine management, speed up product structure adjustment, optimize resource allocation, give full play to equipment advantages, implement
Brand strategy, forming a priority to develop new carbon materials, focusing on the development of graphite electrodes, and stable development of the overall development of carbon bricks and main raw materials
ideas, continue to extend the carbon industry chain, increase integration efforts, and continue to seek industry integration to improve industry concentration and promote industry development.
High-quality development of the
industry. (3) Business plan
1. Adhere to market orientation, and crisis breeds new opportunities.
Under the impact of the epidemic in the century, the evolution of the century-old situation has accelerated, and the external environment has become more complex, severe and uncertain.
The situation of excess energy and disorderly competition still exists. We must adhere to the market orientation, and the sales work must conscientiously summarize the achievements made in 2021.
Experience and existing deficiencies, especially in the face of new problems, new situations and new challenges in the market, look for opportunities in crisis, seize opportunities, welcome
Difficult to go up. It is necessary to closely focus on the new development opportunities for the realization of the "dual carbon" goal of the downstream industry, enhance the breadth of cooperation, and focus on large-scale
Ink electrode market sales achieved a new breakthrough. We must adhere to the market-oriented, on the premise of ensuring the completion of sales tasks, in accordance with the "efficiency"
According to the principle of "profit first", the order should be selected, and the receivables and collection of the payment should be well planned;
Quality, there must be from the heart to the company, the love of the work and the pride and ambition of always striving for the first, and strive to improve sales performance. must persist
Market-oriented, procurement, production, technology, equipment, finance and other departments should play a good role in synergy, aiming at lean production,
The connection between production and sales is precise and efficient, the quality meets the needs of customers, the equipment is in good condition and the cost control is in place, and the efficiency of resource allocation is comprehensively improved.
Improve the core competitiveness of products, and strive to achieve "maximizing sales and minimizing costs".
2. Focus on technological leadership and accelerate R&D innovation.
Technical quality management should conform to the new situation of "double carbon" goal, innovate thinking and methods, and always adhere to "customer demand-oriented"
Through horizontal benchmarking with advanced enterprises in the industry and sector, and vertical benchmarking with the company's product quality management level over the years, we can identify the quality
Weak points of quantity management and key points of process improvement, take customer use results and feedback on market quality objections as the entry point, face up to the problem
The quality improvement and service upgrade should be carried out in a targeted manner, and the quality of graphite electrodes and blast furnace carbon bricks should be significantly improved. to keep catching
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2021 Annual Report
The research and development and application of graphene, the research and development and application of high-end anode materials and other technological innovations should be carried out.
The expansion of military products and other fields, the research and development and application of high-end anode materials must adhere to the goal of "high standards and guaranteed profits", so as to maintain the company's interests.
Continuous development creates new profit growth points.
3. Give full play to incentive orientation and enhance endogenous motivation.
It is necessary to continue to play the guiding role of the compensation incentive plan.
Combined with the responsibilities and characteristics of each unit and each position, targeted innovation of organizational and personal performance management goals, so that personal goals, values
Traction and profit-driven organic combination. It is necessary to increase the introduction of professional talents from famous brand schools and high-level talents in the industry, and build a talent ladder
The construction of the team supplements fresh blood for the high-quality development of the enterprise.
4. Strengthen the supervision of the sector to achieve parallel development.
Strengthening supervision and management is an objective requirement to strengthen enterprise management and improve the quality of enterprise management. To combine market changes, new
Management requirements and the actual situation of each enterprise in the carbon sector, optimize the supervision mechanism, strengthen the supervision force, improve the supervision level, and create the supervision price
value. Supervision work should be problem-oriented, based on the current situation, take a long-term perspective, insist on self-innovation, and find gaps through "vertical benchmarking,
"Horizontally benchmarking and making up for shortcomings" to achieve that all enterprises in the carbon sector go hand in hand.
Adhering to the core of "maximizing the interests of the sector", we will build first and then break through, and we will be steady and steady. Compact and compress the main responsibilities and supervisory responsibilities, improve
Reward and punishment assessment mechanism, to achieve the system of reverence and prohibition. It is necessary to strictly save, eliminate waste, improve resource efficiency, and implement classified policies.
The promotion of supervision work is not only targeted, but also can play a role of inferring others. It is necessary to consolidate the grassroots, lay the foundation, and practice the basic skills.
"Three bases" work, improve the comprehensive supervision of the carbon sector office, the professional supervision of various functional departments, and the implementation of the carbon sector production command center
The supervision and management mode of effective linkage of time supervision and process minister system realizes information sharing, rapid response, precise execution, timely response,
Effective management mechanism for continuous improvement.
5. Build a firm safety red line and do a good job in source management.
All managers must establish a high awareness of the "red line" of safety and environmental protection, and in accordance with the relevant requirements of the new "Safety Production Law",
Strengthen the accountability and accountability of "three managements and three musts" and "post employees" safety responsibilities, clarify the management responsibilities of safety subjects, and do a good job
Post safety training and education, to achieve the advancement of post safety thresholds, to respect life, rules, and responsibilities, and to improve essential safety
full management level. In terms of environmental protection, we must adhere to the overall requirements of "controlling the total amount, controlling the concentration, and strictly controlling", and accelerate the promotion of roasting flue gas depth
Governance project to effectively control graphitization dust emissions to ensure that pollutant emissions and emission concentrations meet the standards, in order to promote the ecology of the Yellow River Basin
Conservation and high-quality development contribute to the power of Fangda Carbon.
6. Adhere to positive thinking and stimulate positive energy.
We must always adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and thoroughly study the essence of the Sixth Plenary Session of the 19th CPC Central Committee.
God, the spirit of the Central Economic Work Conference, gather ideological consensus, transform the spirit into the driving force for enterprise development, and promote the progress of management work.
step up. All cadres and employees must stick to positive thinking, infiltrate positive thinking into the depths of their ideological consciousness, and put positive thinking into flesh and blood.
change. It is not only necessary to deeply study the core essence of positive thinking, but also to strive to transform positive thinking into inner ideology and put it into action.
It is necessary to strengthen the awareness of the platform, deeply understand the huge benefits brought by the enterprise platform to personal development and family, be grateful to the enterprise, and dedicate to the enterprise.
It is necessary to overcome and abandon the consciousness of covetousness, neglect of diligence, laziness of innovation, relaxation of self, and forgetfulness of responsibility.
The mind, the perseverance of self-denial, the wisdom of seeing the details, the responsibility lies with me.” Managers should get rid of the burden of thinking and be diligent
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Learning, being good at thinking and daring to act, learning is the beginning of putting into practice, and implementation is the result of developing habits. "Knowing is the beginning of action,
Action is the achievement of knowledge", to truly achieve the unity of knowledge and action.
(IV) Possible risks ÿApplicable ÿNot applicable
1. Operational risks
With the expansion of the company's business scale and the gradual increase in the volume of import and export trade, international trade frictions, repeated epidemics, global economic
Factors such as the slowdown in economic growth may have an impact on the company's import and export business.
Higher requirements, if the company cannot make timely adjustments to adapt to the above changes, the company will have certain operating risks.
Countermeasures: Guided by customer and market demand, scientifically coordinate production, supply and sales, comply with the general trend of the "dual circulation" market, and vigorously develop
To develop the domestic market, reasonably adjust the supply of the domestic and foreign markets, so as to maximize the company's interests. Adhere to "promoting with technological innovation
Enterprise strength, meet customer needs with first-class products" quality policy, actively promote key scientific research work, do a good job in scientific research work and large-scale
The combination of production. At the same time, continue to promote refined management, according to the best resource efficiency and the greatest contribution rate of ton of products to enterprise benefits.
principle, adjust the product structure, and improve the operation quality of the company's overall production and operation.
2. Environmental risks
In the context of carbon peaking, carbon neutrality, and energy transition policies, environmental protection standards have been continuously improved, and the company's environmental protection standards, emissions and energy saving
Emission reduction has put forward higher requirements.
Countermeasures: The company continues to carry out the upgrading and transformation of cleaner production and environmental protection equipment.
And the renovation of environmental protection equipment has further improved the company's pollutant control level and effectively reduced pollutant emissions.
3. Exchange rate risk
Some of the company's products are sold to the international market, and exchange rate fluctuations affect the company's export volume and exchange losses.
Countermeasures: The company tries its best to match foreign currency income with foreign currency expenditure to reduce exchange rate risk. and strengthen the foreign exchange market
Collect and analyze information, grasp the dynamics of the foreign exchange market in a timely manner, and negotiate and adjust the settlement currency and settlement method in a timely manner.
(V) Other ÿApplicable
ÿNot Applicable
7. Explanation on the circumstances and reasons why the company did not disclose in accordance with the standards due to inapplicability of the standards or special reasons such as state secrets and business secrets
Section 4 Corporate Governance
I. Explanation on corporate governance ÿApplicable ÿNot
applicable
In 2021, the company will strictly comply with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Listed Companies"
Governance Guidelines, Shanghai Stock Exchange Listing Rules and other relevant laws and regulations, normative documents and the Articles of Association, etc.
To meet the requirements of relevant corporate governance documents, constantly improve the corporate governance structure of the company, standardize the company's various business operations, and strengthen information disclosure.
Demonstrate the sense of responsibility, establish and improve the internal control system, improve the transparency of the company's operations, and comprehensively improve the level of corporate governance.
All directors, supervisors and senior management personnel of the company fulfill their duties, effectively exercise their rights and perform their obligations in accordance with the rules and regulations.
The convening, convening and voting procedures of the third meeting of the Board of Directors are in compliance with relevant regulations.
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(1) About shareholders and shareholders' meeting
During the reporting period, the company strictly complied with the laws and regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange, as well as the Articles of Association and the
Rules of Procedures for Shareholders' Meeting
make your own right. The company's general meeting of shareholders shall strictly follow the prescribed procedures for matters such as related transactions, and related shareholders shall implement the rules when voting.
avoid. During the reporting period, the company held a total of 5 general meetings of shareholders to deliberate on 15 proposals.
Legality issued a legal opinion, and in strict accordance with the requirements, the votes of small and medium investors were separately counted and disclosed in a timely manner.
(2) About directors and the board of directors
During the reporting period, the company held 14 board meetings and reviewed 38 proposals. The board of directors of the company conscientiously implements relevant laws and regulations
and the rights and obligations conferred by the Articles of Association, and the board meeting procedures are compliant. All directors of the company can act conscientiously and responsibly
Attend the board of directors with an attitude to ensure the prudence, scientificity and rationality of decision-making on major issues of the company. The company's independent directors are on the board of directors
When making decisions, it played a role of decision-making reference and supervision and checks and balances, expressed independent opinions on various major issues, and effectively maintained all shares.
East interests.
(3) About Supervisors and the Board of Supervisors
During the reporting period, the Company convened the Supervisory Committee 10 times and reviewed 17 proposals. The Supervisory Committee strictly follows the "People's Republic of China
The Company Law, the Securities Law of the People's Republic of China, the Articles of Association and the Rules of Procedure of the Supervisory Committee of the Company and other relevant laws and regulations.
Regulations, conscientiously perform and independently exercise the supervisory powers and duties of the board of supervisors, and monitor the company's business activities, financial status, major decisions,
Effective supervision has been carried out on the procedures for holding the general meeting of shareholders and the performance of duties by directors and senior management, so as to effectively maintain the company
interests and interests of all shareholders.
(IV) Investor Relations Management
The company attaches great importance to investor relationship management.
Taiwan and other forms to maintain interactive communication with investors, answer carefully, and explain patiently. Reporting period, held in 2020 and 2021
In the first half of the year, the performance briefing session and the online collective reception day were attended more than 100 times, and the company's production and operation status and development were discussed with investors.
Planning and other issues of concern, to enhance investors' understanding and recognition of the company.
(5) Information disclosure
The company designated "China Securities Journal", "Shanghai Securities News" and the website of Shanghai Stock Exchange (http://www.sse.com.cn)
Media for company information disclosure. Strictly perform information disclosure obligations in accordance with regulations, ensuring the timeliness and fairness of information disclosure work
fully perform the information disclosure obligations of listed companies and safeguard the legitimate rights and interests of investors;
All shareholders have an equal opportunity to receive relevant information.
Whether there is any material difference between corporate governance and laws, administrative regulations and CSRC regulations on listed company governance;
big difference, the reason should be explained
2. The specific measures taken by the controlling shareholder and actual controller of the company to ensure the independence of the company's assets, personnel, finance, organization, business,
etc., as well as the solutions, work progress and follow-up work plans that affect the company's independence ÿApplicable ÿNo Be applicable
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The controlling shareholder, actual controller and other units under its control are engaged in the same or similar business as the company, and the situation of horizontal competition
Or the impact of major changes in horizontal competition on the company, the resolution measures taken, the progress of the resolution and the follow-up resolution plan ÿApplicable
ÿNot applicable III. Brief introduction to the general meeting of shareholders
The search index of the designated website where Disclosure date of

Date of the session meeting outcome
the resolution is published publication of resolution
First Extraordinary
February 4, 2021 February 5, 2021 The Proposal on Increasing the Business Scope and Amending Some
General Meeting of http://www.sse.com.cn
Articles of the Articles of Association was reviewed and approved.
Shareholders in 2021
Reviewed and approved the 2020 Work Report of the Board
of Directors, the 2020 Work Report of the Supervisory
Committee, the Company's 2020 Financial Final Report,
2020 Annual General the Company's 2020 Profit Distribution Plan, the 2020 Annual
May 19, 2021 May 20, 2021
Meeting of http://www.sse.com.cn Report Full Text and Summary, and the Company's 2020
Shareholders Raised Fund Deposits. Special Report on Actual Use",
"Proposal on Expected Daily Related Party Transactions in
2021", and "Proposal on Applying for Comprehensive Credit
Business". The Proposal on Determining Allowances for
Independent Directors of the Eighth Session of the Board of

Second Extraordinary
June 29, 2021 June 30, 2021 Directors, the Proposal on Re-election of Directors, the
Proposal on Election of Independent Directors, and the
Proposal on Election of Supervisors were reviewed and approved.
The Third Extraordinary

December 2, 2021 December 3, 2021 The Proposal on Renewing the Appointment of Accounting Firms was
reviewed and approved.
The Fourth Extraordinary

December 27, 2021 December 28, 2021 The Proposal on Using Idle Funds to Purchase Wealth Management
Products was reviewed and approved.
Preference shareholders whose voting rights have been restored request to convene an extraordinary
general meeting ÿApplicable ÿNot applicable Description of the general meeting ÿApplicable ÿNot
applicable
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IV. Information on Directors, Supervisors and Senior Management
(1) Changes in shareholding and remuneration of current and outgoing directors, supervisors and senior management personnel during the reporting period
Unit: share
increase
During the reporting period

reduce Are you in
obtained from the company
sex year Shares during the year Change Company close
Name and Position (Note) Term start date Term end date Number of shares held at the beginning of the year Number of shares held at the end of the year pre-tax
do not age Increase or decrease the amount of change verb: move joint party
total remuneration
Original get paid
(10,000 yuan)
due to
increase
Chairman Dang Xijiang Male 58 June 29, 2021 June 29, 2024 2,671,957.00 2,801,957.00 130,000.00 150
hold
increase
Yan Kuixing Director Male 60 June 29, 2021 June 29, 2024 2,117,199.00 2,227,199.00 110,000.00 Yes
hold
increase
Liu Yinan Director Male 45 June 29, 2021 June 29, 2024 0 89,600.00 89,600.00 Yes
hold
Qiu Yapeng Director Male 41 June 29, 2021 June 29, 2024 Shu Wenbo Director Male 54 June 29, 2021 June 29, 2024 1,386,380.00 1,386,380.00 Xu 0 0 0 Yes
Zhixin Director Male 47 June 29, 2021 June 29, 2024 Huang Zhihua Director Male54 June 29, 2021 June 29, 2024 Wei Yanheng Independent Director Male53 June 29, 2021 May 9, 2023 Huang JunIndependent Director 0 Yes
0
Female59 June 29, 2021 June 29, 2024 Day Peng Shuyuan Independent Director Female 57 June 29, 2021 June 29, 2024 Wu LiIndependent Director Female 56 June 29, 2021 0 of the
June 29, 2024 Li Xin, Chairman 0 Yes
0 29, 2024 Guo Linsheng Supervisor

Supervisory Committee Female 42 June 29, 2021 2024 June 29 Shi Jinhua Supervisor Male 53 June 29, 2021 June 29, 2024 Lu Lu Supervisor Female 40 June 29, 2021 June 0 Male 45 0 Yes
0
June 29, 2021 June 2024 July 29 Zhang Zirong Supervisor Male 58 June 29, 2021 June 29, 2024 Qiu Zongyuan, General Manager Male 55 June 29, 2021 June 29, 2024 1,169,700.00 0 0 10
0 0 0 10
0 0 0 10
0 0 0 10
0 0 0 Yes
0 0 0 Yes
0 0 0 11.08
0 0 0 18.04
81,200.00 81,200.00 879,700.00 0 41.43
-290,000.00 minus 49.82
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2021 Annual Report
hold
increase
Yu Yong CFO Male 49 Jun 29, 2021 Jun 29, 2024 0 12,100.00 12,100.00 65.52
hold
Wang Bo Deputy General Manager Male 47 June 29, 2021 June 29, 2024 1,131,920.00 1,131,920.00 Zhang Tianjun Deputy General Manager Male 58 June 29, 2021 June 0 67.20
29, 2024 1,594,320.00 1,594,320.00 Anmin Board Secretary Male 29 June 29, 2024 118,902.00 Jing Li 0 56.07
118,902.00 0 28.12
Deputy General Manager Female 50 June 29, 2021 March 11, 2022 1,835,680.00 1,835,680.00 0 34.8
(Leaving)
Yang Yuanji
male
(outgoing)
12,107,258.0 12,158,958.0
total/ // / / 51,700.00 / 562.08 /
0 0
Name Main work experience He has
served as the director of the Party Committee Office of Lantan Group, Secretary of the General Party Branch of the Graphitization Plant, Secretary of the General Party Branch of the No. 2 Forming Plant, and Minister of the Organization Department of the Party Committee; Chairman of Sanmenxia Longxin Carbon Co., Ltd.; Fangda Carbon
Dang Xijiang Deputy General Manager of Su New Material Technology Co., Ltd., General Manager of Chengdu Rongguang Carbon Co., Ltd.; Director and General Manager of Fangda Carbon New Material Technology Co., Ltd.; currently Liaoning Fang
Director and Vice President of Da Group Industrial Co., Ltd., and Chairman of Fangda Carbon New Material Technology Co., Ltd.
Former Assistant Engineer, Secretary of the Youth League Committee, Section Chief, Secretary of the Party Committee, and Factory Director of Fushun Special Steel Steelmaking Plant; General Manager of Fushun Carbon Co., Ltd.; General Manager of Liaoning Fangda Group Industrial Co., Ltd.
Yan Kuixing Director; Chairman of Fangda Carbon New Material Technology Co., Ltd.; currently Director, President and Party Committee Member of Liaoning Fangda Group Industrial Co., Ltd., Fangda Carbon New Material Technology Co., Ltd.
company director.
Former Vice President of D&S Media Group; Assistant President of Beijing Blue Focus Brand Management Consultant Co., Ltd.; President of China Forestry Property Rights Exchange; Investment of Everbright Sun Life Insurance Co., Ltd.
Liu Yinan Deputy General Manager of the Capital Department; Executive Director and Executive Committee Member of China Fuqiang Financial Group Co., Ltd.; currently Director, Vice President and Deputy Secretary of the Party Committee of Liaoning Fangda Group Industrial Co., Ltd., Fang Datan
Director of Su New Material Technology Co., Ltd.
He used to be the Deputy Director of Human Resources Department, Director of the Secretariat of the Board of Directors, Secretary of the Board of Directors, Assistant to the Chairman of the Board of Directors of Liaoning Fangda Group Industrial Co., Ltd.; currently Liaoning Fangda Group Industrial Co., Ltd.
Qiu Yapeng
Director, Vice President, Secretary of the Youth League Committee, Member of the Party Committee; Director of Fangda Special Steel Technology Co., Ltd., Director of Fangda Carbon New Material Technology Co., Ltd.
He used to be the financial director of Jiujiang Pinggang Iron and Steel Co., Ltd., the financial director of Jiangxi Fangda Iron and Steel Group Co., Ltd. and Jiangxi Pinggang Industrial Co., Ltd., and the financial director of Liaoning Fangda Group Industrial Co., Ltd.
Xu Zhixin Deputy Director of Operations, Director and Vice President of Liaoning Fangda Group Industrial Co., Ltd., Chairman and General Manager of Ningbo Pinggang Trading Co., Ltd., Pinggang International (Asia) Co., Ltd., Jiangxi West Dagang
General Manager of Iron Group Co., Ltd., Chairman of Fangda Special Steel Technology Co., Ltd., and Director of Fangda Carbon New Material Technology Co., Ltd.
He used to be assistant to general manager, deputy general manager, general manager and chairman of Chengdu Rongguang Carbon Co., Ltd.; deputy general manager and general manager of Fangda Carbon New Material Technology Co., Ltd.; Chengdu Carbon Co., Ltd.
Shu Wenbo
He is the general manager and chairman of the board of directors of Fangda Carbon New Material Technology Co., Ltd., and the general manager of Baofang Carbon Material Technology Co., Ltd.
Huang Zhihua served as assistant to general manager and deputy general manager of Fangda Special Steel Technology Co., Ltd., general manager, chairman and secretary of the party committee of Jiujiang Pinggang Iron and Steel Co., Ltd.
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2021 Annual Report
Deputy General Manager, Chairman of Jiujiang Pinggang Iron and Steel Co., Ltd., General Manager of Jiangxi Pinggang Industrial Co., Ltd., General Manager of Jiangxi Fangda Iron and Steel Group Co., Ltd., Vice President of Liaoning Fangda Group Industrial Co., Ltd., Hukou Fangda Hengyuan
Real Estate Development Co., Ltd. Chairman of the company, Chairman of Jiangxi Dazhou Iron and Steel Group Co., Ltd., Chairman of Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd., Executive Director of Jiangxi Seagull Trading Co., Ltd., Chairman of Sichuan Dazhou Iron and Steel Group
Co., Ltd.
Huang Jun was an associate professor and professor at the School of Economics, Renmin University of China. He is currently the deputy dean and professor of the School of Applied Economics of Renmin University of China; the independent director of Fangda Carbon New Material Technology Co., Ltd.
He used to be the chief financial officer, secretary of the board of directors and deputy general manager of Beijing Tianhui Parts Co., Ltd., and director of the Outreach Department of Beijing Sino-foreign Celebrity Cultural Industry Group. He is currently an independent director of Fangda Carbon New
Peng Shuyuan
Material Technology Co., Ltd. From 2006 to 2012, he served as the independent director of Lanzhou Great Wall Electric Co., Ltd., and served as the legal consultant for the restructuring and reorganization of several provincial state-owned enterprises. He devoted himself to the research and practice
of corporate legal system and corporate governance. The Equilibrium Mechanism of Relationships. Currently an associate professor of Northwest Normal University, a part-time lawyer of Gansu Jincheng Law Firm, an arbitrator of Lanzhou Arbitration Commission, independent of Gansu Jingyuan Coal
Wei Yanheng and Electricity Co., Ltd., Gansu Dunhuang Seed Industry Group Co., Ltd. and Fangda Carbon New Material Technology Co., Ltd. director. He used to teach at Benxi University; he used to be the deputy dean of Shenyang University of Technology; from February 2008 to now, he has been teaching at
Northeastern University. He is currently an independent director of Shenyang Chemical Co., Ltd., an independent director of Jinbei Automobile Co., Ltd., Jinzhou Shengong Semiconductor Co., Ltd., and an independent director of Fangda Carbon New Material Technology Co., Ltd. He used to be the
accountant, assistant minister and deputy director of the financial department of Liaoning Fangda Group Industrial Co., Ltd.; the director of the financial department of Jiujiang Pinggang Iron and Steel Co., Ltd.; currently the director of the financial department of Liaoning Fangda Group Industrial Co.,
Wu Li
Ltd., Fangda Carbon New Material Technology Co., Ltd. supervisor. He used to be the accountant of the financial department of Jinhua Chemical (Group) Co., Ltd., the deputy section chief and section chief of the financial department of Jinhua Chemical (Group) Co., Ltd.; the deputy director of the
financial department of Fangda Jinhua Chemical Technology Co., Ltd., and the financial officer of Liaoning Fangda Group Industrial Co., Ltd. Assistant Minister. He is currently the Chief Financial Officer of Fangda Medical (Yingkou) Co., Ltd., the Chief Financial Officer of Fangda Mass Hospital, the
Li Xin
Chief Financial Officer of Fangda Medical Investment Management Co., Ltd., and the Supervisor of Fangda Carbon New Material Technology Co., Ltd. He used to work in the office of Lanzhou Hailong New Material Technology Co., Ltd., and served as a supervisor and assistant to the office director
of Fangda Carbon New Material Technology Co., Ltd. He is currently a supervisor of Fangda Carbon New Material Technology Co., Ltd. He used to be the corporate administrator, planner, and minister assistant of the General Management Department of Fangda Carbon New Materials Technology
Shi Jinhua Co., Ltd.; director of the company's general office; currently, the supervisor of Fangda Carbon New Materials Technology Co., Ltd. Former Deputy Director, Director, Assistant General Manager, Chief Accountant of the Financial Department of Chengdu Rongguang Carbon Co., Ltd.; General Manager
of Chengdu Carbon Co., Ltd.; Deputy Chief Financial Officer and Chief Financial Officer of Fangda Carbon New Material Technology Co., Ltd.; now Chengdu Carbon Co., Ltd. Chairman, Secretary of the Party Committee, Secretary of the Disciplinary Committee of the limited liability company, Chairman
of Chengdu Rongguang Carbon Co., Ltd., and General Manager of Fangda Carbon New Material Technology Co., Ltd. He used to be assistant to general manager, deputy general manager, Rongguang project team leader, party secretary and general manager of Fangda Carbon New Material
Lu Lu
Technology Co., Ltd.; general manager, party secretary, and disciplinary committee secretary of Chengdu Rongguang Carbon Co., Ltd. Secretary of the Party Committee, Chairman, General Manager, Deputy General Manager, Secretary of the Disciplinary Committee of the responsible company; Vice
Chairman of Baofang Carbon Materials Technology Co., Ltd.; currently Chairman of Meishan Fangda Rongguang Carbon Co., Ltd., Deputy Chairman of Fangda Carbon New Material Technology Co., Ltd. General manager. He used to be the director of the finance department of Fangda Carbon New
Guo Linsheng
Material Technology Co., Ltd., the financial director of Hefei Carbon New Material Technology Co., Ltd., and the deputy financial director and director of Fangda Carbon New Material Technology Co., Ltd.; currently, the supervisor of Fangda Carbon New Material Technology Co., Ltd., Deputy Finance
Director. He used to be the deputy director of the financial department of Liaoning Fangda Group Industrial Co., Ltd., the deputy director, director and deputy director of the financial department of Fangda Carbon New Material Technology Co., Ltd.; the financial director of Fushun Carbon Co., Ltd.;
Qiu Zongyuan currently Fangda Carbon New Materials Chief Financial Officer of Technology Co., Ltd.
Zhang Tianjun
Zhang Zirong
Yu Yong
Wang Bo used to be the director of the roasting plant, the director of the general sales department, the director of the graphitization plant, the director of the pressing plant, and the deputy general manager of Fangda Carbon New Material Technology Co., Ltd., Baofang Carbon Materials Technology Co., Ltd.
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2021 Annual Report
General manager; currently vice chairman of Baofang Carbon Material Technology Co., Ltd., deputy general manager of Fangda Carbon New Material Technology Co., Ltd.
Former Deputy Chief of Finance Department of Lanzhou Carbon (Group) Co., Ltd.; Chief Financial Officer of Shanghai Longchang Investment Management Co., Ltd.; General Manager and Executive Director of Shanghai Fangda Investment
Management Co., Ltd.; Auditor of Fangda Carbon New Material Technology Co., Ltd. Minister of Department; Deputy General Manager and Chairman of Shanghai Fangda Investment Management Co., Ltd.; Secretary of the Board of Directors, Deputy
Anmin
Chief Financial Officer and Chief Financial Officer of Fangda Carbon New Material Technology Co., Ltd.; currently Deputy General Manager of Shanghai Fangda Investment Management Co., Ltd., Secretary of the Board of Fangda Carbon New Material
Technology Co., Ltd. Description of other situations:
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2021 Annual Report
1. After the thirty-ninth interim meeting of the seventh board of directors was held on January 6, 2021, due to work adjustment, Mr. Xu Peng no longer serves
The position of executive deputy general manager of the company.
2. After the forty-first extraordinary meeting of the seventh board of directors was held on May 31, 2021, due to work changes, Mr. Zhang Tianjun no longer
Served as the general manager of the company. At the same time, Mr. Qiu Zongyuan was appointed as the general manager of the company, and Mr. Zhang Tianjun was appointed as the deputy general manager of the company.
3. The company will hold the second extraordinary general meeting of shareholders in 2021 on June 29, 2021, and elect Mr. Huang Zhihua and Mr. Xu Zhixin as
Director of the eighth board of directors of the company.
4. After the eighth extraordinary meeting of the eighth board of directors was held on March 11, 2022, due to work adjustment, Ms. Li Jing no longer served
Deputy general manager of the company.
(2) Positions of current and outgoing directors, supervisors and senior management during the reporting period
1. Positions in shareholder units
Staff last name Position held in the shareholder unit term of office end of term
Shareholder name
name start date expiry date
Yan Kuixing Liaoning Fangda Group Industrial Co., Ltd. Dangxijiang Liaoning Fangda Managing Director, President
Group Industrial Co., Ltd. Huang Zhihua Liaoning Fangda Group Industrial Co., Ltd. Director, Vice President
Huang Zhihua Jiangxi Da Steel Group Co., Ltd. Huang Zhihua Jiangxi Pinggang Director, Vice President
Industrial Co., Ltd. Huang Zhihua Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. Chairman
Company Huang Zhihua Sichuan Dazhou Iron and Steel Group Co., Ltd. Huang Zhihua Managing Director
Jiangxi Seagull Trading Co., Ltd. Huang Zhihua Northern Heavy Industry Group Co., director
Ltd. Huang Zhihua Hai Southern Aviation Development Co., Ltd. Huang Zhihua Northeast Chairman
Pharmaceutical Group Co., Ltd. Huang Zhihua executive Director
Chairman
director
director
Tianjin Yishang Group Co., Ltd. Vice Chairman
Director, Vice President, Party Committee

Liu Yinan Liaoning Fangda Group Industrial Co., Ltd.
vice secretary
Xu Zhixin Liaoning Fangda Group Industrial Co., Ltd. Xu Zhixin Jiangxi Da Steel Group Director, Vice President
Co., Ltd. Xu Zhixin Xu Zhixin Jiangxi Pinggang Industrial Co., Ltd. Xu Zhixin Executive Managing Director
Director and General Manager of Pinggang

Jiangxi International (Asia)
Automobile Leaf Co., Co.,
Spring Ltd. Ltd. Chairman, General Manager
director
Xu Zhixin Shanghai Huxu Investment Management Co., Ltd. Xu Zhixin Hai Nanfang director
Aviation Development Co., Ltd. Xu Zhixin Fangda Carbon New Material Technology Co., director
Ltd. Qiu Yapeng Liaoning Fangda Group Industrial Co., Ltd. Qiu Yapeng Qiu Yapeng Liaoning director
Fangda Real Estate Group Co., Ltd. Qiu Yapeng Beijing Fangda International Industrial director
Investment Co., Ltd. Qiu Yapeng Fangda Special

Tianjin Steel
Yishang Technology
Group Co., Ltd.Co., Ltd. Li Xin Liaoning director
Fangda Group Industrial Co., Ltd. Shi Jin Hua Fangda Medical (Yingkou) Co., Ltd. Shi Jin Hua director
Fang Da Mass Hospital director
director
Minister of finance
financial director
financial director
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2021 Annual Report
Shi Jinhua Fangda Medical Investment Management Co., Ltd. is a shareholder of Liaoning financial director
Fangda Group Industrial Co., Ltd. Supervisor
of employment The above companies are affiliated companies of the company.
illustrate
2. Employment in other units
Positions held in other units term of office term ends

Name of employee Other unit name
start date date
Huang Gansu Jincheng Law Firm, School of Applied Economics, Professor
Jun Wei Renmin University of China lawyer
Yanheng Wei Yanheng Gansu Jingyuan Coal and Electricity Co., Ltd. Gansu Dunhuang independent director
Seed Industry Group Co., Ltd.

Wei Yanheng independent director
Company
Wu Li Northeastern University Wu Li Shenyang Chemical

Ltd. Wu Li
Co.,
Jinbei Master Instructor
Automobile Co., Ltd. Wu Li JinzhouLtd.

Shengong
in other units
Semiconductor Co., independent director
independent director
independent director
The other units mentioned above are not affiliated with the company.
job description
(3) Remuneration of Directors, Supervisors and Senior Management
Directors, Supervisors, Senior Management The remuneration of the company's senior management is approved by the Remuneration and Appraisal Committee of the Board of Directors.
Remuneration Decision Process Submit to the board of directors and the general meeting of shareholders for deliberation and implementation.
The salary standard of directors, supervisors and senior management personnel working full-time in the company shall be based on their
The actual operation and management positions held by the company are based on the actual profitability of the company and the individual
Directors, Supervisors, Senior Management
Contribution comprehensive assessment, determined with reference to the company's salary assessment system; not working full-time in the company
Remuneration basis
The directors (except independent directors) and supervisors do not receive remuneration from the company. Independent director allowance
It shall be formulated by the board of directors according to the actual situation and submitted to the general meeting of shareholders for approval.
Directors, Supervisors and Senior Management

Payment will be made during the tenure based on the assessment results.
Actual payment of remuneration at the end
of the reporting period for all directors, supervisors and
Reports actually received by senior managers The total pre-tax remuneration received from the company during the reporting period was RMB 5.6208 million.
total remuneration
(IV) Changes in directors, supervisors and senior management of the company
Name Position held Director Changes Outgoing Reason for change
Yang Yuanji Director Director Elections work adjustment
Huang Zhihua Elections election
Xu Zhixin election
(5) Explanation on punishments by securities regulatory authorities in the past three years
(6) Others
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2021 Annual Report
V. Information about the Board of Directors held during the reporting period
The Thirty-ninth Date Resolutions of
Extraordinary Meeting of the Seventh the meeting The meeting reviewed and approved the "Proposal on Dismissing the Company's
January 6, 2021
Board of Directors of Fangda Carbon Senior Management". The meeting reviewed and approved the "Proposal on Increasing the
Business Scope and Amending Part of the Articles of Association" and "Proposal on Holding the
The 40th Extraordinary Meeting of the 7th
January 18, 2021 Company's First Extraordinary General Meeting in 2021". The meeting reviewed and approved
Board of Directors of Fangda Carbon
the "2020 Annual Work Report of the Board of Directors", "2020 Annual General Manager Work
Report", "2020 Independent Director's Work Report", "the Company's 2020 Annual Financial
Final Report", "the Company's 2020 Annual Profit Distribution Plan", the full text of the 2020
Annual Report and "Summary", "Special Report on the Deposit and Actual Use of Funds
Raised by the Company in 2020", "2020 Internal Control Evaluation Report", "2020 Audit
The tenth meeting of the seventh board of
April 13, 2021 Committee Performance Report", "Proposal on Estimated Daily Related Party Transactions in
directors of Fangda Carbon
2021", "About Application "Proposal on Handling Comprehensive Credit Business" and "Proposal
on Holding the Company's 2020 Annual General Meeting". The meeting reviewed and approved
the "Full Text and Text of Fangda Carbon's 2021 First Quarter Report" and "Proposal on the
Subsidiary's Use of Idle Raised Funds to Temporarily Supplement Working Capital". The meeting
reviewed and approved the "Proposal on Dismissal and Appointment of the Company's Senior
The Eleventh Meeting of the Seventh Board of
April 23, 2021 Management". The meeting reviewed and approved the "Proposal on the Election of the Board
Directors of Fangda Carbon
of Directors", "Proposal on Determining the Allowance for Independent Directors of the Eighth
The 41st Extraordinary Meeting of the 7th Session of the Board of Directors", "Proposal on Amending the "Implementation Rules of the
May 31, 2021
Board of Directors of Fangda Carbon Professional Committee of the Fangda Carbon Board of Directors", and
The 42nd Extraordinary Meeting of the

June 11, 2021
7th Board of Directors of Fangda Carbon
Proposal to Hold the Second Extraordinary General Meeting of Shareholders in 2021. The
meeting reviewed and approved the Proposal on Election of the Chairman, the Proposal on Determining
The first extraordinary meeting of the eighth
June 29, 2021 and Determining the Members of the Professional Committees of the Board of Directors, and the Proposal
board of directors of Fangda Carbon
on the Appointment of Senior Management and Securities Affairs Representatives. The meeting reviewed
and approved the "Proposal on the Company's Use of Idle Raised Funds to Temporarily Supplement
The second extraordinary meeting of the eighth
August 20, 2021 Working Capital", "Proposal on Investing in the Establishment of Investment Funds and Related Party
Transactions", and "Proposal on Increasing Daily Related Party Transactions in 2021". The meeting
reviewed and approved the "Full Text and Text of Fangda Carbon's 2021 Semi-annual Report" and
The first meeting of the eighth board of
August 24, 2021 "Fangda Carbon's Special Report on the Deposit and Actual Use of the Company's Raised Funds in the
directors of Fangda Carbon
First Half of 2021". The meeting reviewed and approved the "Proposal on Amending the Registration and
Management System for Insiders of Fangda Carbon Inside Information" and "Proposal on the Rectification
The third extraordinary meeting of the eighth
October 15, 2021 Report of Gansu Securities Regulatory Bureau's Decision on Administrative Supervision Measures".
The second meeting of the eighth board of

The meeting on October 25, 2021 reviewed and approved the "Fangda Carbon 2021 Third Quarterly Report".
directors of Fangda Carbon The fourth interim
meeting of the eighth board of directors of The meeting reviewed and approved the Proposal on Renewing the Appointment of Accounting
November 16, 2021
Fangda Carbon The fifth interim meeting of Firms and the Proposal on Convening the Company's Third Extraordinary General Meeting in
the eighth board of directors of Fangda Carbon 2021. The meeting reviewed and approved the "Proposal on Using Own Funds for Securities
December 8, 2021
Investment". The meeting reviewed and approved the "Proposal on Using Idle Funds to Purchase
Wealth Management Products" and "Proposal on Holding the Company's Fourth Extraordinary
The Sixth Interim Meeting of the Eighth Board
December 10, 2021 General Meeting in 2021".
of Directors of Fangda Carbon
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VI. Directors' performance of duties
(1) Directors' participation in the board of directors and shareholders' general meetings
participating shareholders
Participation in the Board of Directors
whether Shareholders
Director's
independent This year should to communicate whether two consecutive attending the meeting
name out in person entrust Absences
director plus board way parameter did not participate in person times of the assembly
number of seats number of seats
frequency add times Add a meeting No No No No No No No number
Whether Dang Xijiang or Yan 14 14 0 0 0 No No No No No No No No

5
Kuixing or Liu Yinan or Qiu 14 14 14 0 0 No No No No No No No No

2
Yapeng or Huang Zhihua or 14 14 14 0 0 No No No No No No No No

2
Zhang Tianjun or Shu Wenbo 14 14 14 0 0 No No No No No No No No

2
or Yang Yuanji or Xu Zhixin or 8 8 8 0 0 No No No No No No No No

2
not Huang Jun or Peng 6 6 6 0 0 No No No No No No No

2
Shuyuan or Wei Yanheng or 14 14 14 0 0 2
Wu Liyi? 6 6 6 0 0 2
8 8 8 0 0 2
14 14 14 0 0 2
14 14 14 0 0 2
14 14 14 0 0 2
14 14 14 0 0 2
The number of board meetings held during the year 14
Including: the number of on-site meetings The number of 0
meetings held by means of communication The number of 0
meetings held on-site combined with the means of communication 14
(2) Dissents raised by directors on matters related to the company
(3) Others
7. Special Committees under the Board of Directors
(1) Membership of special committees under the board of directors
Special Committee Category member name
Audit Committee Liu Yinan, Wu Li, Peng Shuyuan, the chairman is Wu Li.
Nomination Committee Dang Xijiang, Wei Yanheng, Huang Jun, the chairman is Wei Yanheng.
Remuneration and Appraisal Dang Xijiang, Peng Shuyuan, Wu Li, the chairman is Peng Shuyuan.
Committee Strategy Committee Dang Xijiang, Huang Zhihua, Wei Yanheng, the chairman is Dang Xijiang.
(2) During the reporting period, the Audit Committee held 6 meetings
Date and content of the meeting Important comments and suggestions Other duties and duties
Audit Committee of the Board of Directors

the audit committee
March 30, 2021 CPA with annual audit
2020 Annual Accounting Report
Communication of the second annual report.
Audit work is communicated,
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Determined the company's 2020
annual audit work arrangement and
work priorities, maintained continuous
communication, and urged it to submit
the audit report within the planned time limit.
The company's financial report is true, complete and accurate, and there is no
related fraud, fraud or material misstatement. The company's financial statement
is prepared in accordance with the accounting standards for business enterprises

The "Fangda Carbon 2020
and the company's financial system, and it reflects the company's financial
April 13, 2021 Annual Report" was reviewed
statements fairly in all material aspects. 2020 Financial Condition, Results of
and approved.
Operations and Cash Flows. The audit committee has no objection to the 2020
annual audit report issued by it and agreed to submit it to the board of directors of
the company for deliberation. The information contained in the 2021 first quarterly
The "Full Text and Text of report prepared by the company objectively and truly reflects the company's
Fangda Carbon's 2021 First business management and financial status from January to March 2021, and
April 23, 2021
Quarter Report" was reviewed agreed to submit it to the board of directors for deliberation. After carefully reading
and approved. the company's 2021 semi-annual report, the company's audit committee believes
that the information contained in the company's 2021 semi-annual report objectively
The "Full Text and Text of
and truly reflects the company's operation management and financial status from
Fangda Carbon's 2021 Semi-
August 24, 2021 January to June 2021, and agrees to submit it to the board of directors. deliberation.
annual Report" was reviewed
After carefully reading the company's 2021 third quarter report, the company's
and approved.
audit committee believes that the information contained in the company's 2021
third quarter report objectively and truly reflects the company's business
The "Fangda Carbon's 2021 management and financial status from January to September 2021, agrees Submit
October 25, 2021
Third Quarterly Report" was to the board of directors for consideration. During its tenure as the company's
reviewed and approved. financial reporting and internal control auditing agency, Tianyi International strictly
followed the relevant national laws and regulations, abided by professional ethics,
adhered to the principles of independent, objective, and impartial auditing, and
carried out auditing work in strict accordance with the provisions of the auditing
The Proposal on Renewing the standards. The audit committee of the company proposes to the board of directors
November 16,
Appointment of Accounting Firms was to re-appoint Tianji International as the auditor of the company's 2021 annual
2021
reviewed and approved. financial report and internal control.
(3). During the reporting period, the Nomination Committee held 3 meetings
Other performance
Date meeting content Important comments and suggestions
of duties
The "Proposal on Recommending

It is agreed to nominate Mr. Qiu Zongyuan as the general manager of the company and Mr. Zhang Tianjun as the deputy general
May 30, 2021 the Company's Senior Management"
manager of the company, and submit it to the board of directors for deliberation.
was reviewed and approved.
Agreed to nominate Mr. Dang Xijiang, Mr. Yan Kuixing, Mr. Huang Zhihua, Mr. Liu Yinan, Mr. Xu
The Proposal on Recommending Zhixin, Mr. Qiu Yapeng, and Mr. Shu Wenbo as the candidates for non-independent directors of
June 10, 2021 Candidates for the Board of Directors the eighth session of the Board of Directors; nominated Mr. Wei Yanheng, Ms. Wu Li, Ms. Huang
was reviewed and approved. Jun, and Peng Shuyuan Ms. is a candidate for independent director of the 8th Board of Directors
of the Company, and she is submitted to the Board for consideration. It is agreed to nominate Mr.
The Proposal on Dang Xijiang as the Chairman of the Company, Mr. Qiu Zongyuan as the General Manager of the
Recommendation of Chairman Company, Mr. Yu Yong as the Chief Financial Officer of the Company, Mr. An Min as the Secretary
June 28, 2021
and Senior Management was of the Board of Directors of the Company, Mr. Wang Bo, Mr. Zhang Tianjun and Ms. Li Jing as the
reviewed and approved. Deputy General Managers of the Company. Board review.
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(4) During the reporting period, the Remuneration and Appraisal Committee held one meeting
other duties
Date meeting content Important comments and suggestions
responsibility
reviewed and approved the The allowance for independent directors of the eighth board of directors is based on the industry in which the company is located.
Determine the eighth board of directors According to the actual situation of the company, there is no damage to the interests of the company and shareholders.
June 10, 2021
Negotiation on the allowance of independent directors In accordance with the relevant national laws and regulations. Consent director
case". The matter will be referred to the Board of Directors for consideration.
(5) The specific circumstances of the objection
8. Explanation of the Board of Supervisors finding that the company has risks
The Supervisory Committee has no objection to the supervision matters during the reporting period.
IX. Employees of the parent company and major subsidiaries at the end of the
reporting period (I) Employees
Number of on-the-job employees of the 2,567
parent company Number of on-the-job employees 2,564
of major subsidiaries Total number of active 5,131
employees 0
Professional Composition Professional composition
Category Production Personnel 3,127
Sales Personnel Technical 140
Personnel Financial Personnel 410
Administrative Personnel Other 75
Personnel Total Education 512
Level 867
5,131
Educational level category: Quantity (person)
Bachelor's degree and above Personnel 557
from junior college, high school technical 999
school and below 1,689
1,886
total 5,131
(2) Remuneration policy
The company has established a complete salary and welfare system and
The performance appraisal system, on the basis of objectively evaluating the performance of employees, realizes that the personal benchmark salary matches the relative value of the position, and the individual
Compensation is matched with performance, and total compensation is matched with the company's benefits. Through the combination of compensation and performance management, employees' work enthusiasm is improved.
Rewards the advanced and spurs the backward, embodies the employment mechanism centered on selection, competition, incentive and elimination, and effectively motivates employees to improve their performance.
Quality and creative completion of the work, fully mobilize the enthusiasm of employees, stimulate their potential, and strive to create a talent-attracting, retaining
A mechanism and environment that encourages talents to stand out, attracting more outstanding talents to grow together with the enterprise.
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(3) Training plan ÿApplicable
ÿNot applicable
The company has established a complete training system. According to the training plans and training needs reported by each department every year, career development is formulated for employees
Development planning, including training content including corporate culture, leadership, employee quality, professional skills, office automation software use skills
In various aspects, the training forms are divided into centralized teaching by management personnel, group training by external lecturers, etc. Responsible for the implementation of the training plan
The training methods include lectures, demonstrations, seminars, audio-visual methods, role-playing and case studies, simulation and
games, etc. By continuously enriching training resources and improving the training system, the company encourages and supports employees to actively participate in training, providing various
The staff has formulated a training plan that combines personal growth with the needs of the company, which has effectively improved the skill level and comprehensive quality of the company's
employees. (IV) Outsourcing of labor services ÿApplicable ÿNot applicable X. Profit distribution or capital reserve conversion plan (1) Formulation, implementation or adjustment of cash dividend policy
1. Formulation of cash dividend policy
Chapter VIII Financial Accounting System, Profit Distribution and Audit of the Articles of Association stipulates the company's cash dividend policy. Clearly defined
"The priority of cash dividends relative to stock dividends in profit distribution; the specific distribution plan shall be determined by the board of directors in accordance with the "Articles of Association"
It is formulated in full consideration of the company's profit scale, cash flow status, development stage and current capital needs. in satisfying
Under the condition of cash dividend distribution, the accumulated profits distributed in cash in the last three years shall not be less than the average annual distribution realized in the last three years.
Thirty percent of the profit. "Ensures the transparency and operability of cash dividends to effectively maintain the interests of minority shareholders and investors.
legitimate interests. The company's profit distribution plan is strictly implemented in accordance with the provisions of the "Articles of Association" and the resolution of the company's general meeting of shareholders.
2. Implementation of the cash dividend policy
The Company's 2020 Annual General Meeting of Shareholders reviewed and approved the "2020 Profit Distribution Plan": the Company's 2020 annual
The net profit of the shareholders of the listed company was RMB 547,458,300. The net profit realized by the parent company in 2020 was RMB 353.744 million, accrued
The statutory surplus reserve is RMB 35,374,400, plus the undistributed profit at the beginning of the year of RMB 5,526,216,400, the profit available for distribution at the end of 2020
It is RMB 5,844,586,000. The company will distribute cash dividends of RMB 5 (tax included) for every 10 shares to all shareholders in total
1,902,985,200 yuan (tax included), in line with the fact that the accumulated profits distributed in cash in the last three years are not less than the annual profits realized in the last three years.
Thirty percent of all distributable profits. The above profit distribution has been distributed in June 2021. (II) Special explanation of cash dividend policy
Whether the minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests have
been fully protected
ÿYes ÿNo ÿYes
ÿNo ÿYes ÿNo ÿYes
ÿNo ÿYes ÿNo
(3) In the reporting period, if the parent company is profitable and the profit available to shareholders for distribution by the parent company is positive, but no cash profit distribution plan has been proposed, the company
Reasons, use and use plan of undistributed profits should be disclosed in detail ÿApplicable ÿNot applicable
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Reasons why the parent company was profitable during the reporting period and the parent company’s profit available for
Use and Plan of Use of Undistributed Profits
distribution to shareholders was positive, but no cash profit distribution plan was proposed
1. The industry and characteristics of the company: According to the promulgation of the China Securities Regulatory Commission The retained undistributed profits of the company are mainly used for daily business operations.
The "Guidelines for Industry Classification of Listed Companies", the industry to which the company belongs is non- business development, working capital, new project investment needs, the city
Metal mineral products industry. The company is mainly engaged in graphite and carbon new materials Field development investment, environmental protection investment, etc. Keep the company healthy
development, production and sales. Products include graphite electrode, carbon for blast furnace Production, operation and scale expansion, seeking for the company and shareholders
Bricks, graphite cathode carbon blocks for electrolytic aluminum, special graphite products, nuclear Maximize the benefits.
Electric carbon/graphite materials, graphene and its downstream products, super electric The board of directors of the company attaches great importance to the reasonable investment of investors
Activated carbon for containers, high-end graphite anode materials for lithium-ion batteries, In the future, the company will, as always, attach great importance to the present
Carbon new material products such as carbon fiber and carbon/carbon composite materials. along with Returns to investors in the form of gold dividends, strictly in accordance with
Accelerated implementation of national carbon peaking, carbon neutrality, and energy transition policies, Relevant laws and regulations and the "Articles of Association" and other provisions, comprehensively
Intensified competition in the industry; repeated epidemics and rising raw material prices, resulting in A variety of factors related to profit distribution are considered together, ranging from
The production and operation pressure faced by the company continued to increase. From the perspective of company development and investor returns,
2. The company's development stage and its own business model: the company actively responds Actively implement the company's profit distribution system, and cooperate with the majority of investors
In response to national carbon peaking, carbon neutrality, and energy transition policies, continue to seek Investors share the results of the company's development.
Industry mergers and acquisitions and industry integration, closely aiming at "industry serving the country, creating
The corporate development goal of becoming the world's leading carbon enterprise, relying on technological progress and
Fine management, accelerate product structure adjustment, optimize resource allocation, develop
Take advantage of equipment, implement brand strategy, and form a new priority for the development of carbon
materials, focusing on the development of graphite electrodes, stable development of carbon bricks, main raw materials
The overall development idea of materials, continuously extend the carbon industry chain, increase the
integration, improve industrial concentration, and promote high-quality development of the industry
exhibition. The company's supply, production and marketing system is independent and complete, based on years of carbon production
The history of research and development, production and operation of products, established and improved with carbon
The supply, production and marketing management system suitable for the products has established a long-term relationship with customers.
Friendly partnership.
3. Profitability and capital requirements: the company will be operational in 2021
Income of 4.652 billion yuan, net profit attributable to shareholders of listed companies
1.084 billion yuan. Taking into account the actual situation of the company's business development,
Based on long-term development strategic planning, the company continues to seek industrial mergers and acquisitions and
Industry integration complements, improves and optimizes the company's existing industries; at the same time, the company
Investment in market development, internal technical transformation projects, environmental protection construction, etc.
Continued investment is required. Take into account the company's sustainability and stability
stable and healthy development, and the retained undistributed profits will be used for daily operations,
Project investment and extensional development needs to meet the company's various operations
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reduce the cost of external financing, enhance the
Ability to manage risks and better safeguard the long-term interests of the company and all shareholders
beneficial.
XI. The company's equity incentive plan, employee stock ownership plan or other employee incentive measures and their influence Incentives not disclosed in the
announcement or with follow-up progress Equity incentives ÿApplicable ÿNot applicable Other explanations ÿApplicable ÿNot applicable Employee stock ownership plan
ÿApplicable ÿNot applicable to other incentive measures ÿApplicable ÿNot applicable (III) Directors and senior management Equity incentives granted to personnel during the
reporting period ÿApplicable ÿNot applicable (IV) The evaluation mechanism for senior management personnel, and the establishment and implementation of the incentive
mechanism during the reporting period ÿApplicable ÿNot applicable
The company has established a sound, fair and transparent performance appraisal and reward and punishment mechanism. The company's senior management implements basic annual salary and completion
A business target assessment system combining annual business indicators and rewards. The Remuneration and Appraisal Committee of the Company's Board of Directors is responsible for supervising the Company's senior management.
Conduct a comprehensive evaluation of the work ability, performance of duties, and fulfillment of responsibility objectives of management personnel, and review the annual remuneration plan.
And submit it to the company's board of directors and shareholders' general meeting for consideration and approval. By strengthening the compensation incentive and restraint mechanism, it is conducive to strengthening the company
The sense of duty of the senior management personnel, promote the improvement of the company's operating efficiency and work efficiency, and align the company's interests with the public.
It is convenient to fully mobilize and give full play to the enthusiasm and initiative of the company's senior management, and
The company is developing steadily.
XII. Construction and implementation of the internal control system during the reporting period ÿApplicable
ÿInapplicable For details, please refer to the 2021 Internal Control Evaluation Report of Fangda Carbon New
Material Technology Co., Ltd. disclosed on the same day as this report. Explanation on major defects in internal control during the reporting period ÿApplicable ÿNot applicable XIII. Management and
control of subsidiaries during the reporting period
The company has formulated the "Fangda Carbon New Materials Technology Co., Ltd. Subsidiary Management System" and "Fangda Carbon New Materials Technology Co., Ltd."
"Management Measures for Shareholding Companies of Co., Ltd.", "Carbon Plate Cost Reduction and Benefit Supervision and Assessment Plan", etc.
It has established an effective operation mechanism and an incentive and restraint mechanism to ensure the asset rights and operation and management responsibilities of the joint-stock company.
Responsibilities, formulation of annual business plans, establishment of joint inspection teams, establishment of daily inquiry mechanisms, etc., continued to strengthen and effectively control
the operating risk of the subsidiary.
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14. Relevant information on the internal control audit report
The Chartered Certified Public Accountants (Special General Partnership) audited the company's internal control and issued an audit opinion.
The disclosure website is http://www.sse.com.cn.
Whether to disclose the internal control audit report: yes
Type of opinion on internal control audit report: standard unqualified opinion
15. The rectification of self-examination problems in the special action of listed company governance
According to the China Securities Regulatory Commission's "Announcement on Carrying out Special Actions on Corporate Governance of Listed Companies" ([2020] 69
No.), in line with the principle of seeking truth from facts, the company carried out a special corporate governance project in accordance with the "Special Self-Inspection Checklist for Corporate Governance of Listed Companies".
Items of self-inspection work were completed, and the online self-inspection checklist was completed on time.
On September 24, 2021, the company received the "Administrative Regulatory Measures Decision" issued by the China Securities Regulatory Commission Gansu Regulatory Bureau.
Determination". The company has formulated corresponding rectification measures for the problems and requirements mentioned, strictly in accordance with the China Securities Regulatory Commission.
The Gansu Supervision Bureau actively implemented the rectification and held the third extraordinary meeting of the eighth board of directors of the company on October 15, 2021
At the meeting, the "Proposal on the Rectification Report of the Gansu Supervision Bureau's Decision on Administrative Supervision Measures" was reviewed and approved.
The Gansu Supervision Bureau of the Securities Regulatory Commission submitted a written rectification report, and the rectification was completed in December 2021 (specifically
For details, please refer to the company's disclosure on China Securities Journal, Shanghai Securities News and the website of Shanghai Stock Exchange on October 16, 2021
Announcement on the Rectification Report of Gansu Supervision Bureau's Decision on Administrative Supervision Measures, Announcement No.: 2021-060). pass
This special work on corporate governance has strengthened the awareness of self-improvement of corporate governance and improved the standard operation level of the company.
XVI. Others ÿApplicable ÿNot applicable
Section 5 Environmental and Social Responsibility
1. Environmental information
(1) Explanation on the environmental protection of the company and its main subsidiaries that are key pollutant discharge units announced by the environmental protection
department ÿApplicable ÿNot applicable 1. Pollutant discharge information ÿApplicable ÿNot applicable
Company headquarters: The main pollutants involved in the company headquarters are wastewater and waste gas, and the characteristic pollutants are COD, ammonia nitrogen, particulate matter,
Green smoke, SO2, NOX. The generated waste water is discharged up to the standard after centralized treatment, and the waste gas is purified by bag filter and electrostatic precipitator.
After reaching the standard discharge. There is 1 waste water discharge outlet, which is located on the south side of the factory area. The waste water discharge of the company headquarters is subject to the "Comprehensive Wastewater Discharge Standard"
(GB8978-1996) first-class standard, in which pH value 6-9, CODÿ100mg/L, ammonia nitrogenÿ15mg/L, the company wastewater during the reporting period
The emission amount is 516,500 tons, the COD emission amount is 4.98 tons, and the ammonia nitrogen emission amount is 0.34 tons. The average concentration of COD is 8.44mg/L, ammoniazapine
The average concentration is 0.59mg/L. There are 117 exhaust gas discharge ports, including 7 main exhaust gas discharge ports, located in the roasting workshop. Exhaust emissions are suitable
Use "Industrial Furnace Air Pollutant Emission Standard" (GB9078-1996), in which asphalt smokeÿ50mg/m3, SO2ÿ850mg/m3.
"Comprehensive Emission Standard of Air Pollutants" (GB16297-1996) secondary standard, particulate matter ÿ 120mg/m3, particulate matter during the reporting period
The emissions were 77.5 tons, the asphalt fume emissions were 84.6 tons, the SO2 emissions were 219.7 tons, and the NOX emissions were 191.7 tons. the above indicators
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Meet the total emission requirements and comply with relevant emission standards.
The main pollutants involved in Hefei Carbon are waste gas and waste water, and the characteristic pollutants of waste gas are asphalt fume; the characteristic pollutants of waste water are COD,
Suspended solids, PH. The generated waste gas is purified and treated by electrostatic precipitator and then discharged up to the standard; the generated waste water is discharged up to the standard after centralized treatment.
There are 6 main exhaust gas discharge ports in the factory area, 9 general discharge ports are distributed in the relevant workshops, and 1 standard discharge port for cooling wastewater is set up. waste
Air emission is applicable to "Industrial Furnace Air Pollutant Emission Standard" (GB9078-1996) and "Air Pollutant Comprehensive Emission Standard"
(GB16297-1996) Level 2 standard, organized emission concentration at the factory boundary: smoke (powder) dust ÿ 30mg/m³, asphalt smoke emission concentration
ÿ50mg/m³, sulfur dioxide emission concentration ÿ200mg/m³, nitrogen oxide emission concentration ÿ300mg/m³. Unorganized smoke emission at the factory boundary
Dustÿ1mg/m³, sulfur dioxideÿ0.4mg/m³. Wastewater discharge is applicable to "Integrated Wastewater Discharge Standard" (GB8978-1996) II
Grade standard, in which CODÿ150mg/L, suspended solidsÿ200mg/L. During the reporting period, Hefei carbon soot emissions were 2.71 tons, two
The emission of sulfur oxides is 4.94 tons, and the emission of nitrogen oxides is 2.56 tons; the amount of waste water is 5,000 tons; the COD emission concentration of the standard outlet is
38mg/L, suspended solids discharge concentration is 56mg/L, pH value is 7.4. The above indicators are lower than the approved total emissions, in line with the relevant emissions
Put standard.
The main pollutant involved in Fushun Carbon is exhaust gas, and the characteristic pollutant is asphalt smoke. The generated exhaust gas is purified by electrostatic precipitator
After reaching the standard discharge, the factory has set up 15 standard exhaust gas discharge outlets, which are distributed in the relevant workshops. Exhaust gas emission is applicable to "Industrial Furnace Air Pollution
Dye Emission Standard" (GB9078-1996) and "Comprehensive Emission Standard of Air Pollutants" (GB16297-1996) secondary standard, discharge
Emission concentration: smoke (powder) dustÿ200mg/m³, asphalt smoke emission concentrationÿ40mg/m³, sulfur dioxide emission concentrationÿ850mg/m³,
Nitrogen oxide emission concentration ÿ 240mg/m³, particulate matter ÿ 120mg/m³. The above indicators meet the total emission requirements and meet the relevant emissions
standard.
The main pollutants involved in Meishan Rongguang are waste water. The production waste water is not discharged. The domestic waste water is discharged into the septic tank after reaching the standard.
Municipal network. There are 3 waste water discharge outlets in the factory area, which are located next to the gate of the logistics channel of the factory area, next to the sewage treatment station of the 50,000-ton project,
Next to the front gate of the factory. Meishan Rongguang wastewater discharge is applicable to the comprehensive sewage discharge standard GB8978-1996, and the sewage is discharged into urban sewers
Water quality standard GB/T 31962-2015, in which suspended solidsÿ400mg/L, five-day biochemical oxygen demandÿ300mg/L, chemical oxygen demandÿ
500mg/L, petroleum ÿ20mg/L, ammonia nitrogen (NH3-N) ÿ45mg/L, total phosphorus (calculated as P) ÿ8mg/L, pH value: 6-9.
In 2021, the concentration and total amount of wastewater pollution factors will be fully discharged.
The main pollutants involved in Jiangsu Fangda are waste water and exhaust gas, and the characteristic pollutants are COD, ammonia nitrogen, particulate matter, SO2, NOX , etc.
The generated wastewater is centrally treated by the sewage treatment station and then discharged to Zhongchuang Sewage Treatment Co., Ltd. Tar distillation, industrial naphthalene distillation, miscellaneous
The exhaust gas of the phenol oil tubular heating furnace and the heat transfer oil furnace is discharged up to the standard after being treated by incineration + denitration facilities; the exhaust gas of the hazardous waste warehouse is discharged through
After primary-efficiency filtration + activated carbon adsorption treatment, the discharge reaches the standard; the odor discharge outlet of the sewage station is treated by the lye spray tower + biological filter and then discharges up to the standard
discharge; the columnar asphalt forming discharge outlet is discharged up to the standard after being treated by a bag filter. There is one waste water discharge outlet in the factory area, which is located at the gate of the factory area.
On the northwest side; there are 7 organized waste gas discharge outlets, which are distributed in each installation area and public and auxiliary facilities of the plant. The company's wastewater discharge is applicable to "coking
Industrial Pollutant Emission Standard (GB16171-2012), of which CODÿ150mg/L, ammonia nitrogenÿ25mg/L; waste from main discharge outlet
Air emission is subject to the "Coking Chemical Industry Pollutant Emission Standard" (GB16171-2012), of which particulate matter ÿ 15mg/m3,
SO2ÿ30mg/m3, NOXÿ150mg/m3. In 2021 , the company will discharge 87,105 tons of wastewater, 4.37 tons of COD, and ammonia nitrogen.
Emissions are 0.078 tons. The average concentration of COD was 45.42mg/L, and the average concentration of ammonia nitrogen was 2.16mg/L. Air Emissions: Particulate Matter Emissions
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0.36 tons, SO2 emissions 0.022 tons, NOX emissions 1.21 tons. The above indicators meet the total emission requirements and meet the relevant emissions
standard.
The main pollutants involved in Fangda High-tech are exhaust gas, and the characteristic pollutants are particulate matter and SO2. The exhaust gas is discharged up to the standard, and the main flue gas is discharged
There are 3 vents, which are distributed in the calcination workshop. Exhaust gas emission is applicable to "Industrial Furnace Air Pollutant Emission Standard" (GB9078-1996),
Among them, particulate matter ÿ 200mg/m3, SO2 ÿ 850mg/m3. In the second half of 2022, Fangda High-tech particulate matter emissions are 4.08 tons, SO2
The emission is 59.88 tons. The above indicators meet the total emission requirements and comply with relevant emission standards.
The main pollutants involved in Chengdu Carbon are waste water, waste gas, solid waste, production waste water is not discharged outside, and domestic waste water is treated by septic tanks.
The discharge that meets the standard enters the municipal pipe network, and the pollution factors of the exhaust gas mainly include particulate matter, asphalt smoke, SO2, and NOX. The waste gas passes through the bag filter,
The electrostatic precipitator environmental protection equipment is discharged up to the standard after purification. There is one waste water discharge outlet in the factory area, which is located next to the main gate on the south side of the factory area.
There is one main gas discharge port, which is the exhaust gas discharge port of the roasting process in the first workshop of the dipping and roasting branch. The discharge of carbon waste water in Chengdu is applicable to the "Comprehensive Wastewater Discharge
Discharge Standard" (GB8978-1996) three-level standard, of which CODÿ500mg/L, SSÿ400mg/L, PH6-9, the main exhaust gas
Emission is applicable to the "Emission Standard of Air Pollutants for Industrial Furnaces" (GB9078-1996), of which soot dust ÿ 200mg/m3, asphalt smoke
ÿ50mg/m3, SO2ÿ850mg/m3. The above indicators meet the total emission requirements and comply with relevant emission standards.
2. Construction and operation of pollution prevention and control facilities
The company headquarters has built corresponding environmental protection facilities for each pollution-producing link. The main environmental protection facilities are bag filter,
Electrostatic precipitators, sewage treatment stations, etc., all environmental protection facilities are managed in the same way as production facilities, and regular maintenance is carried out to ensure that the equipment
of normal operation. In the prevention and control of construction dust pollution, the main measures are water sprinkler and dust suppression measures and dust-proof net covering measures;
Industry, supporting spray dust suppression measures. In the project construction, the "three simultaneous" system is strictly implemented, and all kinds of pollution control facilities are related to the main body.
Production facilities are designed, constructed and put into operation at the same time.
All major subsidiaries have built environmental protection treatment facilities for each pollution-producing link, and all kinds of environmental protection facilities are related to the main production facilities.
Simultaneous design, simultaneous construction, and simultaneous operation.
3. Environmental impact assessment of construction projects and other environmental protection administrative licenses
The company headquarters and all subsidiaries carry out environmental impact assessment work in strict accordance with the requirements of environmental protection laws and regulations, and all construction projects are
Environmental impact assessment was carried out as required, and all environmental protection procedures were complete. The headquarters and all major subsidiaries have obtained pollutant discharge licenses, so as to achieve
Licensed sewage.
4. Emergency plan for environmental emergencies ÿApplicable
ÿNot applicable
The company and its affiliated key pollutant discharge units have established a sound environmental protection risk emergency response mechanism and formulated the "Sudden Environmental Pollution Incidents".
Emergency Response Plan", and filed with the government environmental protection department. The company and its affiliated key pollutant discharge units have established an emergency response mechanism.
Emergency rescue organization, reserve emergency rescue materials. Regularly carry out emergency drills for environmental emergencies to continuously improve the company's response to emergencies
Emergency response capability for environmental incidents. 5.
Environmental self-monitoring plan ÿApplicable ÿNot applicable
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The company and key pollutant discharge subsidiaries have formulated environmental self-testing plans as required, and entrusted a qualified third-party testing agency to carry out environmental self-testing on a regular basis.
Environmental self-test work. The waste water discharge outlet and the main exhaust gas discharge outlet are equipped with online monitoring facilities, online monitoring facilities and government environmental protection departments
Monitoring platform network operation. Online monitoring facilities entrust professional institutions to be responsible for daily operation and maintenance. 6.
Administrative penalties due to environmental issues during the reporting period ÿApplicable ÿNot applicable 7. Other environmental information that should be
disclosed
During the reporting period, the company purchased environmental pollution liability insurance in accordance with the law, and the insurance was within the validity period.
According to the "General Department of Ecology and Environment of Gansu Province on Printing and Distributing the "List of Cleaner Production Audit Enterprises in Key Industries in Gansu Province in 2020"
According to the requirements of the "Knowledge", the company will carry out clean production audit work, complete the implementation of various medium and high cost plans and organize acceptance in 2021.
On December 31, 2021, the Municipal Bureau of Ecology and Environment issued the "Lanzhou Municipal Bureau of Ecology and Environment on Fangda Carbon New Material Technology Co., Ltd.
"Acceptance Opinions on Cleaner Production Review of Co., Ltd.", the company successfully passed the cleaner production review and acceptance.
On June 11, 2021, Fushun Municipal Bureau of Ecology and Environment issued Fuhuan Shen [2021] No. 8 on Fushun Carbon Co., Ltd.
It has passed the notification document of cleaner production audit and evaluation, and completed the cleaner production audit and filing.
(2) Explanation on environmental protection of companies other than key pollutant discharge units
ÿApplicable ÿNot applicable (3) Relevant information that is conducive to ecological protection, pollution
prevention and performance of environmental responsibilities ÿApplicable ÿNot applicable
In 2021, the company will carry out the construction of environmental protection projects, further improve the modernization level of the company's environmental protection equipment, and strengthen pollution control.
The company recognizes the development concept of "treating the ecological environment like life" and continues to increase investment in promoting environmental protection construction.
(IV) Measures and effects taken to reduce carbon emissions during the reporting period ÿApplicable ÿNot applicable
During the reporting period, the company invested a lot of money in environmental protection upgrades. Completed the sewage upgrading system of Dongkou regulating tank within one year
System transformation project, sewage plant sludge dewatering project, vehicle installation of sewage control device project, wastewater online monitoring system upgrade project
Projects and other more than ten environmental protection renovation projects, all of which have been successfully put into operation. Through the upgrading and transformation of environmental protection equipment, carry out environmental hidden dangers
Investigation and rectification, continuous benchmarking, rectification and improvement, further strengthen the company's environmental protection management performance, effectively improve the environmental quality of the factory area, and polish the flowers.
Garden factory "green business card". At the same time, it advocates employees to save water and electricity, put an end to long running water and dripping, and strictly use electricity for lighting.
We strive to reduce energy costs and strive to be a demonstrator, promoter and practitioner of water and electricity saving. 2. Social responsibility
work
The company adheres to the corporate tenet of "take from the society and return it to the society", and deeply practice "operating an enterprise must be beneficial to the government,
It is beneficial to the enterprise and beneficial to the employees", and integrates social responsibility into the enterprise's own development to achieve economic benefits and
Social benefits are organically unified. Adhere to the healthy and harmonious development of enterprise and employees, enterprise and society, enterprise and environment, and work together with customers to develop
to continuously promote the high-quality development of the company.
(1) Protection of the rights and interests of shareholders and creditors
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According to the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Governance Guidelines for Listed Companies", "Shanghai Securities Law"
Stock Exchange Listing Rules and other relevant laws and regulations, normative documents and relevant corporate governance documents such as the Articles of Association,
Continuously improve the corporate governance structure and internal control system to effectively protect the rights and interests of all shareholders. Formed the shareholders' meeting, the board of directors
The board of directors, the board of supervisors and the management management are the main structure of decision-making, supervision and operation management institutions, in strict accordance with the requirements of relevant systems
Specifications run. The company's directors, independent directors and supervisors work diligently and conscientiously, and the company's managers and other senior management personnel strictly enforce the
The decisions of the general meeting and the board of directors have faithfully performed their duties and better safeguarded the interests of the company and the legitimate rights and interests of the majority of shareholders.
The company continues to improve its corporate governance structure, standardize company operations, and strengthen company information disclosure. During the reporting period, the company strictly
Perform information disclosure obligations in accordance with regulations, ensure the timeliness and fairness of information disclosure work, and effectively maintain the integrity of the company's shareholders.
legal rights. A total of 14 board meetings, 10 supervisory committees and 5 shareholders' general meetings were held throughout the year, and 70 proposals were reviewed and approved.
The company attaches great importance to the management of investor relations.
Taiwan and other forms to maintain interactive communication with investors, answer carefully, and explain patiently. Reporting period, held in 2020 and 2021
In the first half of the year, the performance briefing session and the online collective reception day were attended more than 100 times, and the company's production and operation status and development were discussed with investors.
planning and other issues of concern.
(2) Protection of the rights and interests of consumers and suppliers
The company follows the principle of equal consultation, fairness and voluntariness to seek common development with customers and suppliers to achieve a win-win situation. Continuously improve the groove
Through the exchange mechanism, regularly or irregularly visit suppliers and customers to enhance mutual understanding. Through technical exchanges, inquiry and price comparison, electronic
Establish a fair and equitable procurement and supply system by means of bidding and other methods to provide a good competitive environment for qualified raw material suppliers,
Committed to creating a stable and sustainable supply chain. The company pays attention to the development trend of the industry and the market, continuously improves the quality management system, improves
Improve product quality, establish a product quality information feedback mechanism, and establish a strategy based on first-class products and services to meet customer needs
Partnerships. The company's graphite electrodes and other products are well-known at home and abroad, and have been awarded as an excellent brand supplier of Chinese steel.
(3) Protection of employee rights and interests
Adhere to the employee-centered development concept, continuously improve the employee welfare system, and strive to solve the worries of employees. business in
At the same time of rapid development, the income of employees is also increasing steadily, and the various benefits that benefit employees, including their families, continue to increase, encouraging employees
Actively act based on the position, strive to create benefits, maintain the company's continuous profitability, and fully share the achievements of the company's development.
(4) Pay attention to team building and take the initiative to undertake social obligations
The company actively explores the organic combination of market-oriented reform selection methods and cadre selection and appointment methods, and has established a “continuous discovery, dynamic
"Management" talent reserve mechanism, and carry out the activities of managers above the department level to enter the team. Adhere to employee training and learning, and increase talent training
to strengthen research and development cooperation with well-known domestic research institutes and colleges and universities, carry out technical competitions, and effectively promote training through competition and competition through competition.
The role of promoting learning and comprehensively improving operational skills
In 2021, we will introduce mature talents, fresh college graduates, fresh high school graduates and other types and levels of personnel,
Enrich the corresponding positions of the company to meet the company's talent echelon construction. At the same time, vigorously carry out the recruitment of retired military personnel, actively deploy
Co-government to address employment issues for returning veterans.
(5) Strengthening the thinking of the rule of law and promoting the management of enterprises according to law
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Integrity management, continuously strengthen legal education and publicity, pay attention to system construction and strengthen implementation, supervision and inspection, and enhance the morale of cadres and employees.
The concept of the rule of law and the awareness of compliance, improve the level of business operation in accordance with the law, consciously fulfill the obligation to pay taxes in accordance with the law, and pay taxes in full and on time.
Contribute more to the country. During the reporting period, it was awarded the medal of "Legalized Business Environment Demonstration Site".
(6) Fully implement the epidemic prevention and control measures, coordinate the epidemic prevention and control and production and operation, and face the new situation of epidemic prevention and control,
New challenges, compress and consolidate the responsibility for epidemic prevention and control, conscientiously implement various measures for epidemic prevention and control, arrange for a special person to contact and urge them to implement it conscientiously
The relevant regulations of the local government and enterprises on the prevention and control of new coronary pneumonia, and actively promote the form of online conferences for technical exchanges and bidding.
It has ensured both epidemic prevention and control and production and operation, ensuring the health and life safety of employees, and effectively protecting the country.
The production demand for products of domestic and foreign downstream enterprises. In October 2021, the epidemic prevention and control situation in Lanzhou was severe, and the company organized epidemic prevention and control
The emergency control team rushed to the front line of anti-epidemic in Honggu District to support the local epidemic prevention and control, showing the spiritual outlook and good image of Fangda employees.
(7) Assisting the rural revitalization of Dongxiang Autonomous County in Gansu Province
Operation of garment processing, construction engineering, hand embroidery, pastry food processing, taxis and buses, template processing, etc. in the county
The rural revitalization projects such as labor and labor have attracted more than 2,500 local employees. In 2021, each project company will have full attendance per month per employee
The capital income is more than 2,600 yuan and will be paid in full monthly. Continue to improve the management level and technical level of local practitioners, promote
Practitioners participate in daily management, provide talent guarantee for the healthy development of industrial projects, and lay a solid foundation for the next development of county-level enterprises.
Let the rural revitalization road of Dongxiang County go wider and wider.
The company insists on doing charity and public welfare, showing responsibility, and continuing to promote the implementation of "Fang Wei Foundation · Lanzhou Second Hospital Hospice" charity
The project (annual donation of 1 million yuan) provides free analgesia treatment, psychological counseling, nursing guidance, etc. for patients with advanced cancer pain in Gansu Province
Serve. The company was awarded the honorary title of "National Red Cross Model Unit" by the Chinese Red Cross, and the "Fangwei Foundation" initiated by the company
Was awarded the honorary title of "Chinese Red Cross Dedication Medal".
(8) The company regards safety and environmental protection work as the lifeline of the company, and fully implements the importance of "lucid waters and lush mountains are invaluable assets"
Discuss, adhere to the concept of "treat the ecological environment like life", in order to create a "garden factory", promote clean production,
Carrying out 5S management, building an environmental protection standardization enterprise as the starting point, and fulfilling the social responsibility of environmental protection, the environmental protection technical transformation project is in accordance with the "higher than the national standard".
standards, and to ensure that it will not fall behind in ten or even twenty years, and to reach the advanced level of developed countries.”
Make every effort to create "green carbon". Be the vanguard of environmental protection development in the carbon industry, create a beautiful ecological business card, and promote high-quality and sustainable enterprises.
continuous development. In 2021, the company completed the renovation project of the sewage lifting system of the Dongkou adjustment tank, the sludge dewatering project of the sewage plant, the
The project of adding sewage control device to the vehicle, upgrading and transforming the waste water online monitoring system, etc., all projects have been put into operation, and the operation efficiency is
Fruit is good. The company's HSE management system operates effectively and continuously improves, and successfully passed the certification of CQC Gansu Evaluation Center at the end of 2021
review. 3.
Consolidate and expand the achievements of poverty alleviation, rural revitalization and other specific situations ÿApplicable ÿNot applicable
The company earnestly implements the rural revitalization strategy of the Party Central Committee and the State Council, continues to consolidate and expand the achievements in poverty alleviation, and promote rural revitalization.
Operation of garment processing, construction engineering, hand embroidery, pastry food processing, taxis and buses, template processing, etc. in the county
The rural revitalization project has attracted more than 2,500 local employees. In 2021, the monthly average salary of employees of each project company with full attendance will be
The income is more than 2,600 yuan and will be paid in full monthly. Continue to improve the management level and technical level of local employees, and promote employment
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Personnel participate in daily management, provide talent guarantee for the healthy development of industrial projects, and lay a solid foundation for the next development of county-level enterprises.
We will deepen poverty alleviation and continue to consolidate the achievements of poverty alleviation.
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Section VI Important Matters
I. Fulfillment of commitments (I)
Commitments made by the company's actual controller, shareholders, related parties, acquirers, and the company and other related parties during the reporting period or continuing to the reporting
Is it If it is not
Is
fulfilled
there
in time,
a
Commitment the next
Commitment party In case of failure to perform in time, the specific reasons for the failure to perform shall be stated
Background Commitment Type Commitment step
Commitment time and deadline should
be
deadline for performance
explained
Solve Liaoning Liaoning Fangda and its actual controller promise: "1) The company and its controlled enterprises will not directly or indirectly engage in business that 2006 timely and strictly implemented?
the Fangda Group competes with Hailong Technology (now renamed Fangda Carbon), participate in or invest in any possible shares. Businesses that compete with the business year
competition Industrial Co., of Hailong Technology. 2) If the company and its controlled enterprises have any business opportunities to engage in, participate in or invest in any business
Ltd. and its that may compete with the graphite carbon business engaged in by Hailong Technology, the company should Notify Hailong Technology of the above-
actual controller mentioned business opportunities. Within a reasonable period specified in the notice, Hailong Technology will give an affirmative reply that it is willing to take
advantage of the business opportunity, and the company will give up the business opportunity; if Hailong Technology does not reply or gives a negative reply,
3) If the listed company suffers losses due to the violation of the above commitments, the company will fully compensate Hailong Technology.”
Commitments
made in the
acquisition Solve year 2006 Whether affected by factors such as local policies and government relocation plans, the company's subsidiaries Fushun Carbon, Hefei Carbon, and
report or property Rongguang Carbon failed to obtain relevant warrants. According to relevant government documents, the subsidiaries Fushun
equity change defects Carbon, Hefei Carbon, and Rongguang Carbon will apply for the land use right certificate and house ownership certificate
report such as Liaoning Fangda promises: "(1) Accelerate the processing of ownership documents such as land certificates and real estate certificates for various land, after the relocation work is completed. The details are as follows: (1) Hefei Carbon shares the same piece of land with its
Liaoning
land houses and other assets, and complete the processing before the end of 2007. The cost and expenses involved in the document process shall be borne by original shareholder, Hefei Aluminum Co., Ltd., and operates in the same area. In 2002, according to the requirements of
Fangda Group
the company according to the original shareholding ratio. (3) The company will be liable for the loss caused by the land, houses and other ownership issues Hefei Municipal Government, all state-owned land rights certificates were recovered by Hefei Industrial Investment Holding
Industrial Co.,
involved in this transaction affecting the normal operation of Hailong Technology , and fulfill the obligation of compensation within one month.” Co., Ltd. for unified management. In July 2004, Hefei Aluminum Co., Ltd. went bankrupt by policy, and the land used by Hefei
Ltd.
Carbon was leased. In order to speed up the optimization of the layout of the central urban area, the government requires the
overall relocation of Hefei Carbon to the agglomeration area for operation and development.
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During the exhibition, Hefei Carbon has also drawn up a relocation plan. The enterprise has not had any disputes over
ownership, nor has it affected the normal production and operation of the enterprise. After the relocation work is completed,
the land use rights and building ownership certificates of Hefei Carbon will be processed. In October 2017, the company
successfully acquired 47.89% equity of Hefei Carbon held by CITIC Investment Holdings Co., Ltd., and Hefei Carbon
became a wholly-owned subsidiary of the company. According to the spirit of the "Opinions on Accelerating the
Transformation and Development of Industrial Optimization Layout in Hefei's Central Urban Area", in 2019, Hefei Carbon
signed the "Changfeng County Investment Promotion Project Investment Cooperation Agreement" with the People's
Government of Xiatang Town, Changfeng County, and Hefei Carbon moved to Xiatang, Changfeng County. The town has
invested in the construction of a carbon product project with an annual output of 50,000 tons, and the relocation work is
carried out in an orderly manner as planned. (2) Rongguang Carbon was established in 1992. In June 2011, the General
Office of the Chengdu Municipal Government issued the "Minutes of the Meeting on Research on the Issues Related to the
Technological Transformation, Expansion and Relocation of Fangda Group's Project in Chengdu". For relocation, after the
relocation work is completed, the Rongguang Carbon Land Use Right Certificate and the Building Ownership Certificate will
be uniformly processed. So far, there has been no ownership dispute over the ownership of the company's land and houses.
Rongguang Carbon has signed a contract with the government on the relocation process and relocation compensation, and
the relocation work is proceeding in an orderly manner as planned. (3) Fushun Carbon is an enterprise restructured and
established under the leadership of the local government in 2002. During the restructuring, part of the land use rights and
house ownership have not been transferred due to historical reasons. So far, there has been no ownership dispute over the
land and housing use rights, nor has it affected the normal production and operation of the company. Since 2006, Fushun
Carbon has taken measures to actively promote the transfer of the above-mentioned land and real estate. It has gone
through the necessary preparatory work for transfer procedures, and has communicated with the municipal government and
the land management department for many times, but it has been unsuccessful due to policy constraints. In 2008, the
Liaoning Provincial Party Committee and the provincial government proposed the implementation of the Shen-Fu city
integration strategy. Since Fushun Carbon is located in the core area of Shen-Fu city integration, the Fushun Municipal
Government has included the relocation and reconstruction plan of Fushun Carbon in the government's work schedule. In
2012, the Fushun Municipal Government officially included the relocation of Fushun Carbon in the "Outline of the Twelfth
Five-Year Plan for National Economic and Social Development of Fushun City", and Fushun Carbon also compiled the
"Technical Plan for Relocation and Transformation". After the relocation and transformation of the enterprise is completed,
the land use right certificate and the building ownership certificate shall be processed together. Fushun Carbon is negotiating with the government about relocation
Resolve 1. Liaoning Fangda and its actual controller undertake: "The company will continue to exercise shareholder rights in strict accordance no Yes
Liaoning
related with the Company Law and other laws and regulations and the relevant provisions of the Articles of Association of the joint-stock
Fangda
party transactions company; conduct related transactions involving the company's affairs at the shareholders' general meeting. When voting, perform the
Group
obligation of abstaining from voting; the company promises to eliminate all acts of illegally occupying the funds and assets of listed year
Industrial
companies; under any circumstances, Hailong Technology is not required to provide any form of guarantee to the company; in the 2006
Co., Ltd.
related transactions between the two parties, Strictly follow market principles and try to avoid unnecessary connected transactions.
and its
Necessary connected transactions for continuing operations should be dealt with in the way agreed by both parties, follow market-based
actual controller
pricing principles, and avoid damage to the rights and interests of the majority of small and medium shareholders. 2. Liaoning Fangda and its actual controller
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Commitment: "The company and Hailong Technology will try to avoid and reduce related transactions as much as possible. For related
transactions that cannot be avoided or have reasonable reasons, the company promises to follow the principles of market fairness, fairness and
openness, and sign contracts in accordance with the law. Agreement, perform legal procedures, perform information disclosure obligations and
go through relevant approval procedures in accordance with the articles of association of Hailong Technology, relevant laws and regulations and
the "Shanghai Stock Exchange Listing Rules" and other relevant regulations, and ensure that the related transactions will not damage Hailong
Technology and other shareholders. legitimate interests."
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(2) There is a profit forecast for the company's assets or projects, and the reporting period is still in the profit forecast period, the company shall explain
whether the assets or projects have reached the original profit forecast and the reasons ÿHave reached ÿNot achieved ÿNot applicable (3) Performance
commitment Completion and impact on goodwill impairment test ÿApplicable ÿNot applicable
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II. Non-operating capital occupation by the controlling shareholder and other related parties during the reporting period ÿApplicable
ÿNot applicable
III. Illegal guarantee ÿApplicable ÿNot
applicable
IV. Explanation of the board of directors of the company on the "non-standard opinion audit report" of the accounting firm ÿApplicable ÿNot
applicable
V. The company's analysis and explanation on the reasons and effects of changes in accounting policies, accounting estimates or correction of major accounting errors
(1) The company's analysis and explanation on the reasons and impact of changes in accounting policies and accounting estimates
1. Changes in accounting policies
(1) The company will implement the Accounting Standards for Business Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) from January 1, 2021
Relevant regulations, adjust right-of-use assets, lease liabilities, retained earnings at the beginning of the year and other relevant items in the financial statements according to the cumulative impact.
The amount of the project will not be adjusted for the comparable period information. This change in accounting policy has no impact on the company's consolidation and presentation of the company's financial statements.
(2) The company will implement the Accounting Standards for Business Enterprises Interpretation No. 14 (Cai Kuai [2021] No. 1) from January 1, 2021
Relevant regulations, according to the cumulative impact, adjust the amount of retained earnings at the beginning of the period and other related items in the financial statements, and compare the information in the comparable period.
No adjustment will be made. This accounting policy change has no impact on the company's consolidation and the company's financial statements.
(3) On December 31, 2021, the Ministry of Finance issued the Interpretation No. 15 of Accounting Standards for Business Enterprises (Cai Kuai [2021] 35)
No. 15) (hereinafter referred to as Interpretation No. 15), the relevant provisions of Interpretation No. 15 on “Related Presentation of Centralized Management of Funds”, since the promulgation
effective from today. If the financial statements before the interpretation are not presented in accordance with the above provisions, the financial statement data of the comparable period shall be compared in accordance with this interpretation.
Adjust accordingly. This accounting policy change has no impact on the company's consolidation and the company's financial statements.
2. Changes in accounting estimates
During the reporting period of the company, there was no change in accounting estimates.
(2) The company's analysis and explanation on the reasons and impact of the correction of major accounting errors
(3) Communication with the former accounting firm
(4) Other instructions
VI. Appointment and dismissal of accounting firms
Unit: 10,000 Yuan Currency: RMB
Currently employed
Name of domestic accounting firm Remuneration BOC International Certified Public Accountants (Special General Partnership)
of domestic accounting firm Auditing period of 80
domestic accounting firm 6
Name remuneration
Internal Control Audit Accounting Firm BOC International Certified Public Accountants (Special
10
General Partnership)
Sponsor Guo Yuhui, Dong Ximing 0
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Explanation on the appointment and dismissal of accounting firms
After deliberation and approval at the company's third extraordinary general meeting in 2021, the company will continue to employ Tianzhi International Certified Public Accountants (special
General partnership) is the company's 2021 annual financial report and internal control audit institution, with a term of one year. For details, please refer to the company's
On November 16, 2021, on the designated media "China Securities Journal", "Shanghai Securities News" and the website of the Shanghai Stock Exchange
(http://www.sse.com.cn) disclosed the "Announcement of Fangda Carbon on Renewing the Appointment of an Accounting Firm" (Announcement No.:
2021-067ÿÿ
Explanation on the change of accounting firm during the audit period
ÿApplicable ÿNot applicable VII. Situations facing delisting risk (1) Reasons
for delisting risk warning ÿApplicable ÿNot applicable (2) Countermeasures
to be taken by the company ÿApplicable ÿ Not applicable (3) Situation and
reasons for facing termination of listing ÿApplicable ÿNot applicable VIII.
Matters related to bankruptcy and reorganization ÿApplicable ÿNot
applicable IX. Major litigation and arbitration ÿThe company has major
litigation and arbitration this year ÿThe company has no major litigation or
arbitration this year Litigation and arbitration matters (1) Litigation and
arbitration matters that have been disclosed in temporary announcements
and have no follow-up progress ÿApplicable ÿ Overview and types of
inapplicable matters
query index
In December 2021, the company received the "People's Republic of China For details, please refer to the company's announcement on December 25, 2021
Civil Ruling of the Supreme People's Court of China (2020) Supreme Court Designated media "China Securities News", "Shanghai Securities News" and the
Min Zai No. 77. Retrial applicant Shanghai Aijian Trust Co., Ltd. SSE website (http://www.sse.com.cn)
The company has a relationship with the company and the defendant Henan Fuda Electric Power Group in the first instance. Disclosed "Fangda Carbon on Receipt of Civil Judgment and Final Judgment"
Co., Ltd., British Virgin Panyu Development Co., Ltd., Hengchang Announcement of the Judgment (Announcement No. 2021-075).
International Investment Co., Ltd., China United Certified Public Accountants Co., Ltd.
The case of a company shareholder injuring the company's creditors' interests and liability disputes, no
(2017) Beijing Civil Final made by Beijing Higher People's Court
Civil Judgment No. 601, to the Supreme People's Court of the People's Republic of China
The court applied for retrial, the Supreme People's Court of the People's Republic of China
A collegial panel was formed in accordance with the law to hear the case in public.
The trial was concluded, and the judgment was as follows: (1) Maintain the high level of Beijing Municipality
People's Court (2017) Jingminzhong No. 601 Civil Judgment;
(2) This judgment is final.
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(2) Litigation and arbitration situations not disclosed in the temporary announcement or with subsequent
progress ÿApplicable ÿNot applicable (3) Other explanations ÿApplicable ÿNot applicable This judgment is
final and will not have any impact on the current and future profits of the company influences. X. Listed
companies and their directors, supervisors, senior managers, controlling shareholders, and actual controllers
are suspected of violating laws and regulations, and have been punished
Penalty and rectification
ÿApplicable ÿNot applicable XI.
Explanation on the integrity of the company and its controlling shareholder and actual controller during the reporting period
ÿApplicable ÿNot applicable XII. Significant related transactions (I) Related transactions related to daily operations 1 ÿ Matters that
have been disclosed in the temporary announcement and have no progress or changes in subsequent implementation ÿApplicable
ÿNot applicable 2. Matters that have been disclosed in the temporary announcement but have progress or changes in subsequent
implementation ÿApplicable ÿNot applicable
(1) The company and its subsidiaries sell carbon products to Fangda Special Steel and Jiangxi Pinggang and their subsidiaries (disclosed on April 15, 2021).
"Fangda Carbon's Estimated 2021 Annual Report" published on the website of Shanghai Stock Exchange and published in China Securities Journal and Shanghai Securities News.
Related Party Transaction Announcement, Announcement No.: 2021-022). The actual sales (excluding tax) in 2021 will be 62.4903 million yuan.
(2) The company and its subsidiaries sold carbon products to Beijing Fangda and its subsidiary Beijing Fangda (disclosed on April 15, 2021 at
The website of the Shanghai Stock Exchange and the "Fangda Carbon's Estimated 2021 Routine Relationship" published in China Securities Journal and Shanghai Securities News.
Transaction Announcement, Announcement No.: 2021-022). The actual sales (excluding tax) in 2021 will be 4.9569 million yuan.
(3) The company sells furnace head, furnace tail conductive electrodes and other products to Baofang Carbon Materials (disclosed in Shanghai transaction on April 15, 2021)
The website of the Exchange and the "Fangda Carbon's Announcement on Expected Daily Connected Transactions in 2021" published in China Securities Journal and Shanghai Securities News.
Announcement, Announcement No. 2021-022). The actual sales (excluding tax) in 2021 will be RMB 27,583,500.
(4) Jiangsu Fangda, a holding subsidiary of the company, sells soft asphalt, anthracene oil and other products to Fangda Sikemo (April 15, 2021)
Disclosed on the website of the Shanghai Stock Exchange and published in the China Securities Journal and Shanghai Securities News, Fangda Carbon’s report on the expected date of 2021
Regular Connected Transaction Announcement, Announcement No.: 2021-022). The actual sales (excluding tax) in 2021 is 12,363.06
million.
(5) The company and its subsidiaries purchase oil from Fangda International Trade (including its subsidiary Suifenhe Fangda International Trade Co., Ltd., etc.)
Raw materials such as coke (disclosed on the website of Shanghai Stock Exchange on April 15, 2021 and "Fang Fang" published in China Securities Journal and Shanghai Securities News
Big Carbon Announcement on Expected Routine Connected Transactions in 2021, Announcement No.: 2021-022). Actual purchases in 2021
The amount (excluding tax) is RMB 43.0577 million.
(6) The company and its subsidiaries purchased coal tar from Fangda International Trade and Sichuan Daxing (disclosed at Shanghai Exchange on April 15, 2021)
The website of the Exchange and the "Fangda Carbon's Announcement on Expected Daily Related Party Transactions in 2021" published in China Securities Journal and Shanghai Securities News.
Announcement, Announcement No. 2021-022). The actual purchase amount (excluding tax) in 2021 is RMB 37.4318 million.
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(7) The company and its subsidiaries purchased needle coke and other raw materials from Beijing Fangda and its subsidiaries Beijing Fangda and Fangda Sikemo respectively
(Disclosed on the website of Shanghai Stock Exchange on April 15, 2021 and the "Fangda Carbon Customs" published in China Securities Journal and Shanghai Securities News
Announcement on Daily Connected Transactions Expected in 2021, Announcement No.: 2021-022). The actual purchase amount in 2021 (not
Tax included) was RMB 146,964,100.
(8) The company accepts Baofang Carbon Materials to provide labor services (disclosed on the website of Shanghai Stock Exchange on August 21, 2021 and published on
"Fangda Carbon's Announcement on Increasing Routine Connected Transactions in 2021" published in China Securities Journal and Shanghai Securities News, Announcement No.:
2021-046). The actual processing fee (excluding tax) incurred in 2021 is RMB 37.4739 million.
3. Matters not disclosed in the temporary announcement
(II) Connected transactions of asset or equity acquisition and sale
2. Items that have been disclosed in temporary announcements, but there are progress or changes in subsequent
4. If performance agreement is involved, the achievement of performance during the reporting period shall be disclosed
(3) Significant related-party transactions of joint foreign investment
1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent
2. Items that have been disclosed in the temporary announcement, but there is progress or change in the subsequent
36 million yuan.
(IV) Credit and debt transactions with related parties
1. Matters that have been disclosed in temporary announcements and have no progress or changes in subsequent
2. Items that have been disclosed in temporary announcements, but there are progress or changes in subsequent
(V) Financial business between the company and the financial company with an associated relationship, the financial company controlled by the company and the related
party ÿApplicable ÿNot applicable
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(VI) Others
ÿApplicable ÿNot
applicable 13. Significant contracts and
their performance (I) Custody, contracting
and leasing 1. Custody ÿApplicable ÿNot
applicable 2. Contracting ÿApplicable
ÿNot applicable 3. Leasing ÿ Applicable ÿ
Not applicable
Unit: Currency: RMB

The
Amount involved in
lessor name Leasing assets Lease start date Lease end date
leased assets
rental income connection relation

Lessor's name
Whether connected transaction
Basis for determining rental income

impact of rental income on the company
China Huarong Asset

23,088,167.8 4
Management Co., Ltd. Shanghai Bund Huarong April 11, 2021 April 10, 2026 0 0 0 no
other
Shanghai Branch Building Office Building
Shanghai Fangda
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(2) Guarantees ÿApplicable
ÿNot applicable
Unit: 10,000 Currency: RMB Company’s external
guarantees (excluding guarantees to subsidiaries)
Total amount of guarantees incurred during the reporting period (excluding guarantees to 0
subsidiaries) Total balance of guarantees at the end of the reporting period (A) (excluding
guarantees to subsidiaries) 100,000
Guarantee of the company and its subsidiaries to its subsidiaries
Total amount of guarantees to subsidiaries during the reporting period 0
Total amount of guarantees to subsidiaries at the end of the reporting 0
period (B) Total amount of company guarantees (including guarantees to subsidiaries)
Total Guarantee (A+B) 100,000
Proportion of total guarantees to the company’s net assets (%) 6.77
Including: The amount of guarantees provided for shareholders,
actual controllers and their related parties (C) The amount of debt guarantees provided directly 0
or indirectly for the guaranteed objects whose asset-liability ratio exceeds 70% ( D) The
amount in which the total amount of guarantee exceeds 50% of the net assets (E) The total 0
amount of the above three guarantees (C+D+E) The unexpired guarantee may bear joint and
several liability for repayment 0
Not applicable
As of the end of the reporting period, the company's total external guarantee was RMB 1,000
million (RMB 1,000,000,000 was the mutual guarantee amount between the company and Fangda
Description of guarantee
Special Steel. On November 16, 2020, Fangda Special Steel and the Gansu Branch of the Export-
Import Bank of China signed a maximum The amount of guarantee contract, the guarantee amount of
250 million yuan is included in the above-mentioned mutual insurance amount). No overdue guarantee.
(3) Entrusting others to manage cash assets 1. Entrusted wealth management
(1) Overall entrusted wealth management ÿApplicable ÿNot applicable Other
situations ÿApplicable ÿNot applicable (2) Individual entrusted wealth management
Unit: 10,000 yuan Currency: Whether the RMB has gone through
legal procedures
Annualized
Expected earnings
Amount of entrusted wealth Entrusted financing Entrusted financing rate of actual
trustee (if any)
management start date termination date return gain or loss
Sources of funds
capital investment
Entrusted financial management type Remuneration determination method actual recovery
Whether thereAmount
is a proxy
of inprovision
the futurefor impa
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( if
any )
ICBC Shenyang 33,000.00 2020/12/28 2021/7/6 By 3.1% 531.970849 retracted financial plan yes
Tiexi Sub-branch Bank
private capital
structured deposit financial management
ICBC Shenyang 15,000.00 2021/1/7 2021/12/20 Own funds 3.34% 476.934863 retracted Yes Yes
Tiexi Sub-branch Bank
ICBC Qingyuan 86,000.00 2020/12/28 2021/12/22 Self-owned funds 3.02% 1,386.348274 retracted Yes Yes
Sub-branch Bank
ICBC Qingyuan 14,000.00 3.32% 444.866953 retracted Yes Yes
Sub-branch Bank
ICBC Shenyang 5,000.00 2020/12/28 2021/7/6 3.1% 80.601644 retracted Yes Yes
Yuhong Sub-branch Bank
private capital
ICBC Shenyang 183,000.00 2020/12/28 2021/7/6 3.1% 1,905.288767 retracted Yes Yes
Heping Sub-branch Bank
private capital
ICBC Shenyang 111,000.00 2021/1/6 2021/12/20 Own funds 3.33% 4,444.865753 915.5477674 Recovered Yes Yes
and sub-branch Bank
bank yield By bank yield By bank yield By bank yield By bank yield By bank yield By bank yield
Other situations
(3) Impairment provision for entrusted
wealth management ÿApplicable ÿNot
applicable 2. Entrusted loans (1)
Overall situation of entrusted loans
ÿApplicable ÿNot applicable Other
situations ÿApplicable ÿNot applicable
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(2) Individual entrusted loans ÿApplicable
ÿNot applicable to other situations
ÿApplicable ÿNot applicable (3) Provision for
impairment of entrusted loans ÿApplicable
ÿNot applicable 3. Other situations
ÿApplicable ÿNot applicable (IV) Other
significant contracts ÿApplicable ÿ XIV.
Explanation on other major events that have
a significant impact on investors' value
judgments and investment decisions
On February 23, 2021 and February 24, 2021, the company disclosed the "Fangda Carbon's Information on the Actual Controller's Increase in Shareholdings" respectively.
Announcement of the Company's Shares and Subsequent Shareholding Plans, "Fangda Carbon's Announcement on the Shareholding Plans of Some Directors and Senior Management
As of the close of market in the afternoon of February 24, 2021, Mr. Fang Wei, the actual controller, collected the shares through the Shanghai Stock Exchange with his own funds.
In the middle of the auction transaction method, the accumulated shares of the company increased by 13,473,800 shares, and the accumulated shares accounted for 0.35% of the total share capital of the company.
The total amount of increased holdings is equivalent to RMB 99,998,238, and the plan to increase holdings has been completed; as of August 25, 2021, part of the
Directors and senior executives have accumulated 341,700 shares of the company, accounting for 0.0090% of the company's total share capital, and the total amount of accumulated increase
Equivalent to RMB 2,854,458, the increase in holdings was completed. The actual controller Mr. Fang Wei and some directors and senior managers of the company
13,815,500 shares of the company’s stock held by the employees in total, and the cumulative increase in shares accounted for 0.36% of the company’s total share capital.
The total amount is RMB 102,852,696.
36 million yuan.
Section 7 Changes in Shares and Shareholders
I. Changes in share capital (I) Table
of changes in shares 1. Table of changes in
shares During the reporting period, the
company's total number of shares and share capital structure did not change. 2. Explanation of
changes in shares ÿApplicable ÿNot applicable 3. The impact of changes in shares on financial
indicators such as earnings per share and net assets per share in the last year and the latest
period (if any) ÿApplicable ÿNot applicable 4. The company considers it necessary or other contents required to be disclosed by securities regulators ÿApplicable ÿNot
applicable
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(2) Changes in restricted shares
II. Securities Issuance and Listing
(I) Securities issuance as of the reporting period
Explanation of securities issuance as of the reporting period (for bonds with different interest rates during the duration, please explain separately):
(2) Changes in the total number of shares of the company and changes in the structure of shareholders and changes in the structure of assets and liabilities of the company
(3) Existing internal employee shares
3. Shareholders and actual controllers
(1) Total number of shareholders
The total number of ordinary shareholders as at the end of the reporting period (households) 269,551
The total number of ordinary shareholders at the end of the previous month before the disclosure date of the annual report
274,490
(household)
(2) As at the end of the reporting period, the top ten shareholders and top ten tradable shareholders (or shareholders not subject to selling restrictions) shareholdings
Unit: share
Shareholdings of the top ten shareholders
have Pledge, token or freeze
Shareholder name reporting period Proportion sales restriction condition shareholder

Number of shares held at the end of the period
(full name) Internal increase or decrease (%) pieces of shares Share quality
quantity
quantity status
Non-precincts
Liaoning Fangda Group Industrial Co., Ltd.
1,524,413,321 40.05 0 pledge 903,354,000 national law
limited company
people
Hong Kong Securities Clearing Company Limited

121,086,377 199,238,354 5.23 0 unknown unknown
manage
Industrial and Commercial Bank of China Co., Ltd.
Co., Ltd.-China Europe Times First national law

34,677,804 0.91 0 unknown
Frontier Equity Sponsored Securities people
investment fund
Bank of China Limited
Division - Harvest New Energy New Materials

31,108,381 0.82 0 none unknown
stock-based securities investment base
Money
Zhejiang Yiwu Tanzhen Investment
Managing Partnership (Limited)
Partnership)-Zhengxin Valley (Tanzhen) Price 22,554,480 0.59 0 none unknown
Value China Exclusive Private Equity
investment fund
China Construction Bank Co., Ltd.
Co., Ltd.-Cinda Australia Silver New -21,835,014

20,946,675 0.55 0 none unknown
Energy Industry Equity Securities
investment fund
Fang Wei 18,480,200 0.49 0 none unknown
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2021 Annual Report
Agricultural Bank of China Co., Ltd.
Co., Ltd. - Harvest Environmental Protection Low

14,134,031 0.37 0 none unknown
carbon stock securities investment base
Money
Agricultural Bank of China Co., Ltd.
Co., Ltd. - CSI 500

1,889,900 12,553,653 0.33 0 none unknown
Easy Open Index Securities
investment fund
Bank of China Limited
Division - E Fund Resources Industry 12,222,124 0.32 0 none unknown
Hybrid Securities Investment Fund
Shareholdings of the top ten shareholders without restrictions on sales
Number of tradable shares held without selling restrictions Type and quantity of shares
Shareholder name
quantity Kind of quantity
RMB
Liaoning Fangda Group Industrial Co., Ltd. 1,524,413,321 1,524,413,321
Ordinary
shares in RMB
Hong Kong Securities Clearing Company Limited 199,238,354 199,238,354
common stock
Industrial and Commercial Bank of China Limited - China

RMB
European Times Pioneer Equity Sponsored Securities Investment 34,677,804 34,677,804
common stock
Fund
Bank of China Limited - Harvest RMB

31,108,381 31,108,381
Energy New Materials Equity Securities Investment Fund common stock
Zhejiang Yiwu Tanzhen Investment Management Partnership

RMB
Industry (Limited Partnership)-Zhengxin Valley (Danzhen) Value 22,554,480 22,554,480
common stock
China Exclusive Private Equity Investment Fund
China Construction Bank Corporation - Letter

RMB
DAOB New Energy Industry Equity Securities Investment 20,946,675 20,946,675
common stock
Fund
RMB
Fang Wei 18,480,200 18,480,200
Ordinary
Agricultural Bank of China Limited - Jia shares in RMB

14,134,031 14,134,031
Real Environmental Protection Low-Carbon Equity Securities common stock
Investment Fund Agricultural Bank of China Co., Ltd. - China

RMB
Securities 500 Trading Open Index Securities Investment 12,553,653 12,553,653
common stock
Fund
Bank of China Limited - E Fund RMB

12,222,124 12,222,124
Description of the special account for repurchase Common stock
among the top ten shareholders of hybrid securities not applicable
investment funds in the resource industry

Not applicable
Explanation of rights and waiver of voting rights
Among the above shareholders, Liaoning Fangda Group Industrial Co., Ltd. and Mr. Fang Wei, a natural person shareholder, acted in unison.
The above-mentioned shareholders are affiliated or acting in concert There is no relationship with other shareholders. Except for Mr. Fang Wei, a natural person shareholder, the
illustrate The company does not know whether there is an associated relationship among the remaining shareholders above or whether it is subject to the regulations of the China Securities Regulatory Commission and the Exchange.
of concerted action.
Preferred shareholders and shareholdings with restored voting rights

Not applicable
Explanation of the quantity
Number of shares held by the top ten shareholders with restrictions on sales and conditions of restrictions on sales
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2021 Annual Report
(3) Strategic investors or general legal persons became the top 10 shareholders due to
placement of new shares ÿApplicable ÿNot applicable 4. Information on controlling
shareholders and actual controllers Date of establishment of the representative
Liaoning Fangda Group Industrial Co., Ltd.
Yan Kuixing on April 24, 2000 Industrial
investment and management of the invested
properties of the company, metal materials, building materials, electrical equipment, auto parts,
hardware tools, rubber products, instruments, office supplies, chemicals Sales of products
(excluding hazardous chemicals), coke, mineral powder, limestone, sales of metallurgical
materials, self-operated and agency import and export of various commodities and technologies,
except for those commodities and technologies that are restricted or prohibited from import and
Main business
export by the state (according to law Items that are subject to approval can only carry out
business activities after being approved by the relevant departments). Liaoning Fangda Group
Industrial Co., Ltd. holds 41.92% equity of Fangda Special Steel through its wholly-owned
subsidiary Jiangxi Fangda Iron and Steel Group Co., Ltd. and its concerted party Jiangxi
Automobile Leaf Spring Co., Ltd. (Securities abbreviation: Fangda Special Steel Securities Code:
600507); Liaoning Fangda Group Industrial Co., Ltd. and its wholly-owned subsidiary Jiangxi Da
Iron and Steel Group Co., Ltd. hold 57.29% equity of Northeast Pharmaceutical (stock
abbreviation: Northeast Pharmaceutical Securities Code: 000597); Liaoning Fangda Group
Industrial Co., Ltd. holds 38.34% equity of Zhongxing Commercial (Securities abbreviation:
Shareholdings of other domestic and overseas listed companies that controlled
Zhongxing Commercial Securities Code: 000715); Hainan Fangda Group Industrial Co., Ltd., a
and participated in during the reporting period
subsidiary of Liaoning Fangda Group Industrial Co., Ltd., and its subsidiaries, Grand China
Airlines Co., Ltd., and American Aviation Ldc hold Hainan Aviation Holding Co., Ltd. (600221.SH)
24.95% equity; Jiujiang Pinggang Iron and Steel Co., Ltd. indirectly controlled by Liaoning
Fangda Group Industrial Co., Ltd. holds 10.91% equity of Lingyuan Iron and Steel Co., Ltd.
(600231); Liaoning Fangda Group Industrial Co., Ltd. Jiangxi Pinggang Industrial Co., Ltd.
indirectly controlled by the company holds 10.09% equity of Henan Jinma Energy Co., Ltd.
(HK.6885). none
Other information
2 Natural person
ÿApplicable ÿNot applicable 3
The company has no special explanation on the controlling shareholder
ÿApplicable ÿNot applicable 4 Explanation on the change of the controlling
shareholder during the reporting period ÿApplicable ÿNot applicable 5 The property
rights and control relationship between the company and the controlling
shareholder are not applicable Block Diagram ÿApplicable ÿNot Applicable
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2021 Annual Report
(2) The actual controller
1 Legal person
2 Natural person
Fang Wei
Nationality: Chinese
Have you obtained the right of abode in other countries or regions?
Chairman of Beijing Fangda International Industrial Investment Co., Ltd., Liaoning Fangda Group
Main occupation and position
Chairman of the Industrial Co., Ltd., and director of Jiangxi West Large Iron and Steel Group Co., Ltd.
Now it is Fangda Carbon New Material Technology Co., Ltd. and Fangda Special Steel Technology Co., Ltd.
Co., Ltd., Northeast Pharmaceutical Group Co., Ltd., ZTE-Shenyang Commercial

Domestic and overseas listed companies that have been controlled in the past 10 years
Industry Building (Group) Co., Ltd., Hainan Airlines Holding Co., Ltd.
Division situation
The actual controller of the company. Zengwei Hangjin Technology Co., Ltd. (formerly known as Fangda)
Jinhua Chemical Technology Co., Ltd.) is the actual controller.
3 Special explanation on the fact that the company has no actual controller
4 Explanation on the change of the company's control during the reporting period
5 Block diagram of the property rights and control relationship between the company and the actual
controller ÿApplicable ÿNot applicable
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2021 Annual Report
6 The actual controller controls the company through trust or other asset management methods
(3) Other information on controlling shareholders and actual controllers
V. The proportion of the company's controlling shareholder or the largest shareholder and its persons acting in concert with the accumulative number of pledged shares to the number of company shares held by them
above 80%
6. Other legal person shareholders holding more than 10% of the shares
7. Explanation on share restriction and reduction
VIII. Specific implementation of share repurchase during the reporting period
Section VIII Preference Shares
Section IX Bonds Related Information
I. Corporate bonds, corporate bonds and non-financial corporate debt financing instruments
II. Convertible corporate bonds ÿApplicable
ÿNot applicable
Section X Financial Report
I. Audit report
Audit Report
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2021 Annual Report
Day occupation word [2022] No. 10564
All shareholders of Fangda Carbon New Material Technology Co., Ltd.:
I. Audit opinion
We have audited the attached financial statements of Fangda Carbon New Material Technology Co., Ltd. (hereinafter referred to as Fangda Carbon), including
Consolidated and parent company balance sheets at 31 December 2021, 2021 consolidated and parent company income statement, consolidated and parent company
Statement of Cash Flows, Consolidated and Parent Company Statements of Changes in Equity, and Notes to the Financial Statements.
We believe that the attached financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises in all material respects and fairly reflect Fangda
Consolidated and Parent Company Financials of Carbon at December 31, 2021 and Consolidated and Parent Company Operating Results and Cash for 2021
flow.
2. Forming the basis for the audit opinion
We performed the audit work in accordance with the Chinese Certified Public Accountants Auditing Standards. "Certified Accountant's Financial
The "Responsibility for Auditing Statements" section further elaborates on our responsibilities under these standards.
Otherwise, we are independent of Fangda Carbon and fulfill other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for an audit opinion.
3. Key audit matters
The key audit matters are the matters that, based on our professional judgment, are considered to be of most significance in the audit of the financial statements of the current period. of these matters
We do not express an independent opinion on these matters in the context of our audit of the financial statements as a whole and the formation of our audit opinion.
Key Audit Matters How the matter was addressed in the audit
revenue recognition
The recognition standard and time point of revenue recognition of Fangda Relevant audit procedures include, but are not limited to:
Carbon’s sales of goods are: the time point of revenue recognition for domestic sales is (1) Understand and test the internal control related to revenue recognition
when the customer signs for receipt; the time point for revenue recognition for foreign sales system;
is when the goods have been declared offshore and the company has obtained the invoices (2) Select samples to check sales contracts, identify contract terms and conditions related to the transfer
and boxes corresponding to the transaction. bill of lading. of control over commodities, and evaluate whether the accounting policies for revenue recognition conform
In 2021, Fangda Carbon's operating income is 4.652 billion yuan, of which to the requirements of the Accounting Standards for Business Enterprises;
carbon products income is 3.947 billion yuan, accounting for 84.86% of the operating (3) Execute analysis procedures on revenue and costs, including analysis procedures for the
income, and iron powder income is 393 million yuan, accounting for 8.44% of the current period’s income, cost, gross profit margin and the previous period’s comparative analysis
operating income. It is an important component of the income statement. There may of major products;
be potential misstatement of whether revenue recognition is recorded in the (4) Check the supporting documents related to revenue recognition, among which
appropriate financial statement period, for which we have identified revenue Sales contracts, sales invoices, product delivery documents, delivery receipts, inspection
recognition as a key audit matter. documents, waybills, settlement documents related to domestic sales revenue
etc.; invoices, packing lists, bills of lading, etc. related to foreign income;
(5) According to the sampling principle, select the balance and sales of customer correspondence funds
sales to check the authenticity of operating income;
(6) For domestic sales revenue recognized around the balance sheet date
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2021 Annual Report
Key Audit Matters How the matter was addressed in the audit
Enter, check whether the delivery receipt and the finished product issue document are consistent with the income.
Recognition period matches; for countries recognized around the balance sheet date
External sales revenue, check invoices, customs declarations, packing lists, bills of lading, etc.
Whether the date is consistent with the revenue recognition period;
Check whether there is any sales of finished goods after the balance sheet date
Sales returns to assess whether sales revenue is in the right period
confirm.
Money funds
As of December 31, 2021, the balance of monetary funds in Fangda Relevant audit procedures include, but are not limited to:
Carbon's consolidated financial statements was 7.756 billion yuan, accounting for (1) Understand and test the internal control related to monetary funds; (2) Analyze the
41.92% of the total assets in the consolidated financial statements, which has a rationality of bank deposit balances; (3) Obtain the list of opened bank accounts and corporate
significant impact on the financial statements. credit reports.
We identified monetary funds as a key audit matter.
report, check the list of opened bank accounts with the detailed bank account, check the
integrity of bank accounts; check the corporate credit report, and pay attention to whether there
are monetary funds with restricted use rights and external guarantees;
(4) Obtain and check bank account statements to confirm that each bank
Check whether the closing balance of the bank account is correct, and carry out the confirmation procedure at the same time;
(5) Select samples to perform bank flow inspection procedures, pay attention to
Whether there is any abnormality in the income, and pay attention to whether there is the occupation of funds
by related parties;
(6) Focus on checking the collections and assets and liabilities before the balance sheet date
Whether the business corresponding to the payment after the balance sheet date and its accounting treatment are
normal.
4. Other information
The management of Fangda Carbon (hereinafter referred to as the management) is responsible for other information. Additional information includes Fangda Carbon's 2021 annual
Information covered in the report, excluding the financial statements and our audit report.
Our audit opinion on the financial statements does not cover the other information, nor do we issue any form of assurance on the other information
in conclusion.
In conjunction with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information
There is a material inconsistency or a material misstatement that appears to exist in the financial statements or what we learned during the audit.
Based on the work we have performed, if we determine that other information is materially misstatement, we should report that fact. At this
On the other hand, we have nothing to report.
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2021 Annual Report
V. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting Standards for Business Enterprises so that they can be fairly reflected, and for the design, implementation and maintenance of the financial statements.
Maintain the necessary internal controls so that the financial statements are free from material misstatement due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating Fangda Carbon's ability to continue as a going concern and for disclosing matters related to going concern
(where applicable), and apply the going concern assumption unless liquidation is planned, operations are discontinued or there is no other realistic option.
Those charged with governance are responsible for overseeing Fangda Carbon's financial reporting process.
6. The CPA's Responsibilities for the Audit of Financial Statements
Our objective is to obtain reasonable assurance that the financial statements as a whole are free from material misstatement due to fraud or error, and
Issue an audit report containing an audit opinion. Reasonable assurance is a high level of assurance, but does not
A material misstatement is always detected when a material misstatement exists. Misstatements may result from fraud or error, and if misstatements are reasonably expected to be
Misstatements are generally considered material if they collectively affect the economic decisions that users of the financial statements make based on the financial statements.
We exercise professional judgment and maintain professional scepticism in conducting our audit in accordance with Auditing Standards. At the same time, we
Also do the following:
(1) Identify and assess the risk of material misstatement of the financial statements due to fraud or error, and design and implement audit procedures to address
These risks, and obtain sufficient and appropriate audit evidence as a basis for expressing an audit opinion. As fraud may involve collusion,
Falsification, willful omission, misrepresentation or overriding of internal control, high risk of failure to detect material misstatement due to fraud
Risk of material misstatement due to failure to detect errors.
(2) To understand the internal control related to the audit, in order to design appropriate audit procedures, but the purpose is not for the effectiveness of the internal control
Sexual opinion.
(3) Evaluate the appropriateness of the management's selection of accounting policies and the rationality of accounting estimates and related disclosures.
(4) Draw conclusions about the appropriateness of management's use of the going concern assumption. At the same time, based on the audit evidence obtained, it may be possible to
Whether there are significant uncertainties in matters or circumstances that cause significant doubts about the ability of the other party to continue as a going concern. if
We have concluded that a material uncertainty exists and auditing standards require us to draw the attention of users of the financial statements in our audit report to financial
relevant disclosures in the financial statements; if the disclosure is insufficient, we should express a non-qualified opinion. Our conclusions are based on the
information available on the day. However, future events or circumstances may cause Fangda Carbon to not be able to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect the relevant transactions and events;
item.
(6) Obtain sufficient and appropriate audit evidence on the financial information of the entities or business activities in Fangda Carbon to verify the financial statements.
Issue an audit opinion. We are responsible for the direction, supervision and performance of the group audit and are solely responsible for our audit opinion.
We communicate with those charged with governance on matters such as the planned scope, timing and significant audit findings of the audit, including communicating our
Notable internal control deficiencies identified during the audit.
We also provide a statement to those charged with governance that we have complied with ethical requirements related to independence and communicate with those charged with
All relationships and other matters reasonably believed to affect our independence, and related precautions, if applicable.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period, and therefore
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2021 Annual Report
a key audit matter. We describe these matters in our audit report unless laws and regulations prohibit public disclosure of these matters, or
In rare circumstances, if the adverse consequences of communicating a matter in the audit report would reasonably be expected to outweigh the public interest
benefit, we determined that the matter should not be communicated in the auditor's report.
Chinese Certified Public Accountant
Liu Dan
(Project partner):
Beijing China
Chinese Certified Public Accountant: Yang Jian
April 22, 2022
Chinese Certified Public Accountant: Li Yaxiong
2. Financial Statements
Consolidated Balance Sheet
December 31, 2021
Prepared by: Fangda Carbon New Material Technology Co., Ltd.
Unit: Currency: RMB
project Notes December 31, 2021 December 31, 2020
Current Assets:
Money funds 7,756,346,758.33 5,790,362,709.17
Settlement provisions
Loan funds
Tradable financial assets 639,019,115.47 4,051,987,498.10
Derivative financial assets
bill receivable 54,211,233.26
accounts receivable 554,431,564.07 392,876,374.29
Receivables Financing 1,199,715,024.93 1,222,223,069.65
Prepayments 159,807,741.00 140,124,479.47
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2021 Annual Report
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 167,078,225.63 189,149,768.21
Of which: Interest receivable
Dividends receivable
Repurchase of resale financial assets
stock 1,738,151,495.51 1,334,975,215.96
contract assets 16,252,199.85 10,667,941.12
Assets held for sale
Non-current assets due within one year
Other current assets 32,937,968.97 41,840,812.44
Total current assets 12,317,951,327.02 13,174,207,868.41
Non-current assets:
Disbursement of loans and advances
Debt investment
Other debt investments
Long-term receivables
long-term equity investment 2,467,761,766.37 2,538,643,866.06
Investment in other equity instruments
Other non-current financial assets 313,345,688.48 221,941,349.89
investment real estate
fixed assets 2,241,806,910.27 2,156,136,363.45
Construction in progress 482,290,975.87 437,991,528.03
productive biological assets
Oil and gas assets
right-of-use asset 16,546,032.11
intangible assets 455,119,388.75 403,722,258.01
Development expenditure
goodwill 38,572,350.94
Long-term prepaid expenses 1,200,547.96 669,813.51
Deferred tax assets 62,535,925.54 41,958,666.55
Other non-current assets 144,389,691.59 221,627,044.38
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2021 Annual Report
Total non-current assets 6,184,996,926.94 6,061,263,240.82
total assets 18,502,948,253.96 19,235,471,109.23
Current liabilities:
short-term loan 398,356,766.67 220,436,911.24
borrowing from the central bank
borrowed funds
Held-for-trading financial liabilities
Derivative financial liabilities
bills payable 299,333,548.59 580,012,446.94
accounts payable 445,494,204.88 327,783,577.32
advance payment
contract liabilities 155,199,445.07 182,416,216.81
Financial assets sold under repurchase
Deposits and deposits
Agent for buying and selling securities
Agent underwriting securities
Payroll payable 97,836,949.17 89,524,573.14
Taxes payable 81,884,576.57 56,159,333.96
Other payables 192,867,072.80 166,345,828.24
Of which: Interest payable 219,899.12 559,565.79
dividends payable 2,139,998.15 1,967,198.15
Fees and commissions
Reinsurance Accounts Payable
held-for-sale liabilities
Non-current liabilities due within one year 253,500,374.23
Other current liabilities 183,346,279.11 191,539,873.94
Total current liabilities 2,107,819,217.09 1,814,218,761.59
Non-current liabilities:
Insurance contract reserve
Long term loan 250,000,000.00
Bonds payable
Of which: preferred stock
perpetual bond
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2021 Annual Report
lease liability 13,455,296.89
Long-term payables 332,259.46
Long-term employee compensation payable
Estimated liabilities
Deferred income 325,227,914.84 321,114,871.41
Deferred tax liabilities 57,193,590.94 57,088,616.96
Other non-current liabilities 248,075,240.27 248,364,241.00
Total non-current liabilities 644,284,302.40 876,567,729.37
Total Liabilities 2,752,103,519.49 2,690,786,490.96
Owner's Equity (or Shareholders' Equity):
Paid-up capital (or share capital) 3,805,970,368.00 3,805,970,368.00
Other equity instruments
perpetual bond
capital reserve 897,279,729.09 898,084,818.00
Less: treasury stocks
Other comprehensive income 13,286,883.79 10,626.17
Special reserves 46,248,649.20 59,602,826.57
surplus reserve 1,197,026,582.42 1,153,852,581.72
general risk preparation
undistributed profit 8,804,875,836.65 9,666,439,838.14
Equity attributable to equity holders

14,764,688,049.15 15,583,961,058.60
(or shareholders' equity) total
Minority interests 986,156,685.32 960,723,559.67
Owner's Equity (or Shareholders' Equity)

15,750,844,734.47 16,544,684,618.27
Aggregate liabilities and owners' equity (or shareholders

18,502,948,253.96 19,235,471,109.23
equity) total
Person in charge of the company: Dang Xijiang Person in charge of accounting work: Yu Yong Person in charge of accounting department: Zhao Erqin
Parent Company Balance Sheet
December 31, 2021 Prepared
by: Fangda Carbon New Material Technology Co., Ltd.
Unit: Currency: RMB
project Notes December 31, 2021 December 31, 2020
Current Assets:
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2021 Annual Report
Money funds 4,616,679,079.93 4,946,431,271.46
Tradable financial assets 430,908,049.19 2,409,916,410.18
Derivative financial assets
bill receivable 51,099,267.78
Receivables Financing 456,817,192.82 542,895,109.68
Prepayments 61,336,087.62 66,771,058.60
Other receivables 1,480,710,001.14 1,865,499,148.45
Of which: Interest receivable
Dividends receivable 13,695,723.88 13,695,723.88
stock 882,536,097.15 790,798,430.75
contract assets 16,252,199.85 10,667,941.12
Assets held for sale
Non-current assets due within one year
Other current assets 10,515,801.56
Total current assets 8,365,591,274.86 10,902,628,336.52
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
long-term equity investment 3,395,296,516.16 3,361,380,677.61
Investment in other equity instruments
investment real estate
fixed assets 872,655,602.57 849,430,939.63
productive biological assets
Oil and gas assets
right-of-use asset
intangible assets 107,037,977.16 111,248,119.34
Development expenditure
goodwill
Long-term prepaid expenses
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2021 Annual Report
Deferred tax assets 26,140,546.24 22,115,267.01
Other non-current assets 18,600,000.00 31,060,000.00
Total non-current assets 4,735,622,507.36 4,609,617,641.31
total assets 13,101,213,782.22 15,512,245,977.83
Current liabilities:
short-term loan 398,356,766.67 150,000,000.00
Derivative financial liabilities
bills payable 80,612,752.46 403,799,906.24
advance payment
contract liabilities 112,611,448.24 169,257,318.55
Payroll payable 22,273,435.64 48,646,634.18
Taxes payable 20,442,825.69 4,112,640.89
Other payables 1,282,046,680.43 2,153,473,900.88
Of which: Interest payable 339,666.67
dividends payable
held-for-sale liabilities
Non-current liabilities due within one year 250,006,085.00
Other current liabilities 121,358,336.29 85,624,003.59
Total current liabilities 2,435,647,633.36 3,139,091,164.15
Non-current liabilities:
Long term loan 250,000,000.00
Bonds payable
perpetual bond
lease liability
Long-term payables 332,259.46
Long-term employee compensation payable
Estimated liabilities
Deferred income 9,632,603.45 11,052,593.21
Deferred tax liabilities 5,664,015.65 3,646,373.89
Other non-current liabilities
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2021 Annual Report
Total non-current liabilities 15,628,878.56 264,698,967.10
Total Liabilities 2,451,276,511.92 3,403,790,131.25
Owner's Equity (or Shareholders' Equity):
Paid-up capital (or share capital) 3,805,970,368.00 3,805,970,368.00
perpetual bond
capital reserve 1,311,536,078.57 1,312,267,018.73
Less: treasury stocks
Other comprehensive income 13,314,954.99
Special reserves 22,711,639.68 22,569,053.74
surplus reserve 1,166,237,431.05 1,123,063,430.35
Owner's Equity (or 4,330,166,798.01 5,844,585,975.76
Shareholders' Equity) of Undistributed Profits

10,649,937,270.30 12,108,455,846.58
Aggregate liabilities and owners' equity (or shareholders

13,101,213,782.22 15,512,245,977.83
Equity) Total person
in charge of the company: Dang Xijiang Person in charge of accounting work: Yu Yong Person in charge of accounting department: Zhao Erqin
Consolidated Income Statement
January-December 2021
Unit: Currency: RMB
project Notes 2021 2020
I. Total operating income 4,651,772,746.11 3,539,172,251.49
Of which: operating income 4,651,772,746.11 3,539,172,251.49
interest income
Premium earned
Fee and commission income
2. Total operating cost 3,722,005,176.55 2,943,169,725.94
Of which: Operating costs 3,093,100,911.91 2,523,093,243.30
interest expense
Fees and Commissions Expenses
Surrender
Net payout
Net withdrawal of insurance liability reserves
dividend payment policy
73 / 207
2021 Annual Report
Reinsurance costs
Taxes and surcharges 74,275,291.66 72,091,000.18
sales expense 133,539,805.51 100,445,915.24
Management fees 507,382,135.50 399,395,057.29
R&D expenses 69,584,880.14 87,735,968.41
Financial expenses -155,877,848.17 -239,591,458.48
Of which: interest expense 22,802,083.04 45,411,600.06
interest income 188,076,827.60 281,090,451.03
Plus: other income 45,129,274.35 63,226,591.86
Investment income (losses are marked with "-"

413,278,092.00 118,159,470.36
Fill in)
Of which: For associates and joint ventures

60,692,679.58 -80,588,570.21
The investment income of
the business is measured at amortized cost.
Asset derecognition income
Exchange gains (losses are marked with "-"
fill in)
Net exposure hedging gains (losses are marked with "-
” number)
Gains from changes in fair value (losses in
31,039,725.31 -7,141,727.90
Fill in with "-") Credit
impairment losses (losses are marked with "-"

-27,182,725.06 -16,309,637.06
number)
Asset impairment losses (losses are marked with "-"

-40,973,862.65 -477,765,585.46
number)
Income from disposal of assets (losses are

-1,962,848.45 11,449,181.75
Fill in with "-") 3.
Operating profit (for losses, fill in with "-"
1,349,095,225.06 287,620,819.10
List)
Plus: Non-operating income 8,159,186.35 437,394,882.71
Less: Non-operating expenses 26,581,471.53 64,083,346.31
4. Total profits (total losses are marked with "-"

1,330,672,939.88 660,932,355.50
number)
Less: Income tax expense 215,096,257.19 124,250,935.75
V. Net profit (fill in with "-" for net loss

1,115,576,682.69 536,681,419.75
(1)
Classification by business continuity
1. Net profit from continuing operations (net loss equal to

1,115,576,682.69 536,681,419.75
Fill in with "-") 2. Net
profit from discontinued operations (net loss equal to
Fill in with "-")
(2) Classification by ownership
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2021 Annual Report
1. Net profit attributable to shareholders of the parent company

1,084,595,183.21 547,458,328.20
(The net loss is represented by "-") 2. Minority
shareholders' profit and loss (net loss is represented by "-")

30,981,499.48 -10,776,908.45
”) 6. Net after-
tax other comprehensive income 13,276,257.62 10,626.17
(1) Others belonging to the owners of the parent company

13,276,257.62 10,626.17
Comprehensive income, net after tax 1.
Other comprehensive items that cannot be reclassified into profit or loss
combined income
(1) Changes in re-measurement of defined benefit plans
Forehead
(2) Others that cannot be transferred to profit or loss under the equity method
Comprehensive income
(3) Fair value of other equity instrument investments
change
(4) Fair value of the company's own credit risk
change
2. Other comprehensive reclassification to profit or loss

13,276,257.62 10,626.17
Income (1)
Other comprehensive items that can be transferred to profit or loss under the equity method
13,314,954.99
Combined
income (2) Changes in fair value of other debt investments
(3) Financial assets are reclassified and included in other comprehensive
Amount of combined income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedging reserve
(6) Differences in translation of foreign currency financial statements -38,697.37 10,626.17
(7) Others
(2) Other comprehensive assets attributable to minority shareholders
Net after-tax amount of combined income
7. Total comprehensive income (1) 1,128,852,940.31 536,692,045.92
Comprehensive income attributable to owners of the parent company

1,097,871,440.83 547,468,954.37
Total combined income
(2) Comprehensive income attributable to minority shareholders

30,981,499.48 -10,776,908.45
8. Earnings
per share:
(1) Basic earnings per share (yuan/share) 0.29 0.14
(2) Diluted earnings per share (RMB/share) 0.29 0.14
Parent company income statement
January-December 2021
Unit: Currency: RMB
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2021 Annual Report
I. Operating income 2,404,879,548.83 2,139,066,982.29
Less: operating costs 1,780,701,668.38 1,620,013,295.80
Taxes and surcharges 24,262,169.31 26,717,744.81
sales expense 81,451,056.02 65,091,014.18
Management fees 179,121,218.41 164,210,870.03
R&D expenses 51,488,772.01 70,853,761.87
Financial expenses -105,058,907.99 -224,421,669.09
Of which: interest expense 20,079,641.20 32,894,098.34
interest income 127,707,177.50 252,520,758.15
Plus: other income 18,747,205.18 30,556,883.99
Investment income (losses are marked with "-"

152,866,077.55 20,261,183.19
fill in)
Of which: For associates and joint ventures
76,259,529.92 -56,017,991.18
The investment income of
the business is measured at amortized cost.
Asset derecognition income
Net exposure hedging gains (losses are marked with "-
” number)
Gains from changes in fair value (losses in
16,429,415.05 19,669,504.94
Fill in with "-") Credit
impairment losses (losses are marked with "-"

-25,384,782.35 22,720,133.74
number)
Asset impairment losses (losses are marked with "-"

-48,974,068.26 -477,763,521.24
number)
Asset disposal gains (losses are
488,646.72
Fill in with "-") 2.
Operating profit (for losses, fill in with "-"
507,086,066.58 32,046,149.31
List)
Plus: Non-operating income 2,586,970.46 428,953,153.74
Less: Non-operating expenses 8,210,607.15 59,959,329.81
3. Total profits (total losses are marked with "-"

501,462,429.89 401,039,973.24
number)
Less: Income tax 69,722,422.94 47,296,017.66
expenses IV. Net profit (net loss is filled with “-” number
431,740,006.95 353,743,955.58
(1)
Net profit from continuing operations (net loss equal to

431,740,006.95 353,743,955.58
Fill in with "-") (2) Net
profit from discontinued operations (net loss equal to
Fill in with "-")
V. Other comprehensive income, net after tax 13,314,954.99
(1) Other comprehensive items that cannot be reclassified into profit or loss
76 / 207
2021 Annual Report
combined income
1. Remeasurement of changes in defined benefit plans
Forehead
2. Others that cannot be transferred to profit or loss under the equity method
3. Fair value of other equity instrument investments
change
4. The fair value of the company's own credit risk
change
(2) Other comprehensive items reclassified into profit or loss

13,314,954.99
Income 1.
Other comprehensive items that can be transferred to profit or loss under the equity method
13,314,954.99
2. Changes
in fair value of other debt investments
3. Financial assets are reclassified and included in other comprehensive
Amount of combined income
4. Provision for credit impairment of other debt investments
5. Cash flow hedge reserve
6. Differences in translation of foreign currency financial statements
7. Others
6. Total comprehensive income 445,054,961.94 353,743,955.58
7. Earnings per share:
(1) Basic earnings per share (yuan/share)
(2) Diluted earnings per share (RMB/share)
Consolidated Statement of
Cash Flows January-December 2021
Unit: Currency: RMB
1. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor services
4,490,127,136.75 3,077,206,161.41
Money
Net increase in customer deposits and interbank deposits
top up
Net increase in borrowing from the central bank
Net increase in borrowings from other financial institutions
top up
Received from the original insurance contract premium
cash
Net cash received from reinsurance operations
Net increase in policyholders' savings and investment funds
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2021 Annual Report
Charges of interest, fees and commissions

cash
Net increase in borrowed funds
Net increase in repurchase business funds
Net cash received from agents buying and selling securities
Forehead
Refunds of taxes and 20,191,527.46 43,960,832.68
fees received and other related business activities

412,772,697.45 693,311,207.22
cash
Subtotal of cash inflows from operating activities 4,923,091,361.66 3,814,478,201.31
Buying goods and accepting payment for labor services

3,184,977,528.36 1,630,951,678.13
Net
increase in loans and advances to cash customers
Deposits with central banks and banks, net

increase
Pay the original insurance contract compensation
cash
Net increase in borrowed funds
Payment of interest, fees and commissions

cash
Cash to pay policy dividends
Paid to and for employees

772,072,812.10 635,311,893.95
Various
taxes and fees paid in 530,223,972.67 450,914,600.64
cash to pay other related business activities

473,661,215.28 518,116,821.47
cash
Subtotal of cash outflows from operating activities 4,960,935,528.41 3,235,294,994.19
Net cash flow from operating activities -37,844,166.75 579,183,207.12
2. Cash flow from investing activities:
Cash back on investment 2,270,135,579.02 1,499,925,514.78
Cash received from investment income 149,278,712.65 185,620,025.82
to dispose of fixed assets, intangible assets and

2,936,126.16 61,144,965.44
Net cash recovered from other long-term assets
Disposal of subsidiaries and other business units
net cash received
Receive other information related to investment activities

4,320,000,000.00 5,363,048,219.18
cash
Subtotal of cash inflows from investing activities 6,742,350,417.83 7,109,738,725.22
Purchase and construction of fixed assets, intangible assets and

154,251,406.05 200,566,804.70
Cash paid for other long-term assets
Cash Investment 1,614,083,865.12 4,030,430,230.46
Net increase in mortgage loans
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2021 Annual Report
Acquisition of subsidiaries and other business units

334,937,240.96
Net cash paid to pay
other investment activities related
1,250,000,000.00 7,164,000,191.49
cash
Subtotal of cash outflows from investing activities 3,018,335,271.17 11,729,934,467.61
cash flow from investing activities

3,724,015,146.66 -4,620,195,742.39
net amount
3. Cash flow from financing activities:
Cash received from absorbing 2,514,316.00 1,300,000.00
investments Including: Subsidiaries absorbing minority shareholders

1,000,000.00 1,300,000.00
Cash received from
investing Cash received from 1,112,708,056.21 2,277,681,651.14
borrowing Other cash received related to financing activities
cash
Subtotal of cash inflows from financing activities 1,115,222,372.21 2,278,981,651.14
Cash distribution of dividends, 936,074,753.61 2,444,244,739.90
profits or interest paid to pay off debt

1,941,462,837.81 50,782,787.05
Cash paid of
which: Subsidiary paid to minority shares
7,568,941.60
Dividends and profits paid
by shareholders and other related financing activities

3,327,082.50
Subtotal
of cash outflows from cash financing activities 2,880,864,673.92 2,495,027,526.95
cash flow from financing activities

-1,765,642,301.71 -216,045,875.81
4.
Changes in exchange rates to cash and cash, etc.
2,522,490.82 6,170,769.85
5. Net increase
in cash and cash equivalents
1,923,051,169.02 -4,250,887,641.23
Forehead
Add: Beginning cash and cash equivalents

5,498,473,810.37 9,749,361,451.60
Balance
VI. Balance of cash and cash equivalents at the end of the period
7,421,524,979.39 5,498,473,810.37
Forehead
Parent company cash flow statement
from January to December 2021
Unit: Currency: RMB
1. Cash flow from operating activities:
Cash received from sales of goods and rendering of services 2,149,173,427.01 1,816,630,987.75
Refund of taxes received 17,099,983.72 28,742,212.80
and other cash received related to business activities

2,242,131,268.64 526,065,125.60
Money
79 / 207
2021 Annual Report
Subtotal of cash inflows from operating activities 4,408,404,679.37 2,371,438,326.15
Cash for purchasing goods and accepting labor services 1,654,701,441.52 650,814,736.42
Cash paid to and for employees 388,458,358.39 334,351,039.21
taxes paid 185,598,166.77 218,699,072.61
Payment of other cash related to operating activities 2,813,234,430.16 485,895,784.59
Subtotal of cash outflows from operating activities 5,041,992,396.84 1,689,760,632.83
Net cash flow from operating activities -633,587,717.47 681,677,693.32
2. Cash flow from investing activities:
Cash back on investment 103,144,129.69 71,544,892.73
Cash received from investment income 117,256,676.53 70,774,614.37
Disposal of fixed assets, intangible assets and other

1,802,348.88
Net cash recovered from his long-term assets
on disposal of subsidiaries and other business units
net cash received
Other cash received relating to investing activities 2,940,000,000.00 3,184,000,000.00
Subtotal of cash inflows from investing activities 3,162,203,155.10 3,326,319,507.10
Purchase and construction of fixed assets, intangible assets and other

27,337,220.34 17,116,880.53
Cash paid from his long-term assets
Cash paid for investment to 57,514,316.00 2,816,786,128.51
obtain payments from subsidiaries and other business units
Net cash paid

Payment of other cash related to investment activities
1,110,000,000.00 5,014,000,000.00
Money
Subtotal of cash outflows from investing activities 1,194,851,536.34 7,847,903,009.04
Cash flows from investing activities

1,967,351,618.76 -4,521,583,501.94
net
3. Cash flow from financing activities:
Absorbed cash received from investments
Get cash received from borrowing 785,437,292.30 1,246,586,500.00
Receive other cash related to fundraising activities
Subtotal of cash inflows from financing activities 785,437,292.30 1,246,586,500.00
cash paid for debt repayment 550,200,000.00 1,483,586,500.00
Distribute dividends, profits or repay interest payments

1,919,502,322.61 39,852,097.93
of cash
to pay other cash related to financing activities 28,100,000.00
Subtotal of cash outflows from financing activities 2,497,802,322.61 1,523,438,597.93
Net cash flow from financing activities IV. -1,712,365,030.31 -276,852,097.93
Changes in exchange rates to cash and cash equivalents

2,231,830.15 6,822,789.13
influence of things
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2021 Annual Report
V. Net increase in cash and cash equivalents -376,369,298.87 -4,109,935,117.42
Add: Beginning balance of cash and cash equivalents 4,728,819,620.68 8,838,754,738.10
VI. Balance of cash and cash equivalents at the end of the period 4,352,450,321.81 4,728,819,620.68
81 / 207
2021 Annual Report
Consolidated Statement of Changes in Owner's
Equity January-December 2021
Unit: Currency: RMB
2021
one
other
reduce
project rights and interests like minority shareholders
ÿ Total owner's equity
Paid-up capital (or shares Excellent Other comprehensive income wind That beneficial
capital reserve library Special reserve surplus reserve undistributed profit Subtotal
Book) tool forever beneficial risk he
That live
First continued allow
share
other stocks prepare
1. On
year-end 960,723,559.67
1,153,852,581.
Balance 3,805,970,368.00 Plus: Yes 898,084,818.00 10,626.17 59,602,826.57 9,666,439,838.14 15,583,961,058.60 16,544,684,618.27
72
accounting policy
change
Previous term difference
error correction
same control
under the control of the enterprise
business merger
other
two
beginning of the year 1,153,852,581. 15,583,961,058.60 960,723,559.67 16,544,684,618.27

3,805,970,368.00 898,084,818.00 10,626.17 59,602,826.57 9,666,439,838.14
72
balance
Three, this
43,174,000.7
Period increase or decrease -805,088.91 -13,354,177.37 -861,564,001.49 -819,273,009.45 25,433,125.65 -793,839,883.80
13,276,257.62 0
Change money
82 / 207
2021 Annual Report
Amount (minus
less "-"
(1)
Total
13,276,257.62 1,084,595,183.21 1,097,871,440.83 30,981,499.48 1,128,852,940.31
2,569,037.77 2,569,037.77
2,640,000.00 2,640,000.00
comprehensive income (2) Owner's investment and capital reduction 1. Common stock invested by the owner 2. Other equity instrument holders' input
capital 3. shares
4. Pay the
amount
included in
the owner's
equity.
-70,962.23 -70,962.23
Others (3)
Profit
43,174,000.7
distribution -1,946,159,184.70 -1,902,985,184.00 -7,741,741.60 -1,910,726,925.60
0
83 / 207
2021 Annual Report
1. Withdrawal
of surplus
43,174,000.7
-43,174,000.70
reserve 2 . 0
Extract
general risk
provision 3 .
Distribution
to owners (or
-1,902,985,184.00 -1,902,985,184.00 -7,741,741.60 -1,910,726,925.60

shareholders)
4. Others (IV)
Internal
transfer of
owner's
equity 1.
Capital
reserves are
converted
into capital
(or shares
this) 2. surplus
Converting public
reserves to increase
capital (or shares
this) 3. surplus
Reserves
make up for
losses 4.
Changes to
defined benefit plans
84 / 207
2021 Annual Report
amount carried forward
retained income
beneficial
5. other
Profit carry forward
retained income
beneficial
6. other
(five)
special storage -13,354,177.37 -375,670.00 -13,729,847.37
-13,354,177.37
Prepare 1. This period

30,895,195.23 2,562,292.85 33,457,488.08
Extract 30,895,195.23
2. This period
44,249,372.60 44,249,372.60 2,937,962.85 47,187,335.45
use (six)
-805,088.91 -805,088.91 -805,088.91

Other
four, this
1,197,026,582.
end of period 897,279,729.09 13,286,883.79 46,248,649.20 8,804,875,836.65 14,764,688,049.15 986,156,685.32 15,750,844,734.47
42
Balance 3,805,970,368.00
2020
one
other
reduce
project rights and interests like

ÿ Minority shareholders' equity Total owner's equity
Paid-up capital (or shares Excellent Other comprehensive wind That
capital reserve library Special reserve surplus reserve undistributed profit Subtotal
Book) tool forever income risk he
That deposit
First continued allow
share
other stocks prepare
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2021 Annual Report
1. Last year
2,718,550,263.00 1,981,719,878.83 60,819,728.41 1,118,478,186.16 9,154,355,905.50 15,033,923,961.90 833,523,497.71 15,867,447,459.61
Ending Balance
Plus: Accounting
Policy change
Early error
correct
same control
under the enterprise
and
other
2. This year
2,718,550,263.00 1,981,719,878.83 60,819,728.41 1,118,478,186.16 9,154,355,905.50 15,033,923,961.90 833,523,497.71 15,867,447,459.61
Beginning balance
III. Current period
increase or decrease
Amount (minus
1,087,420,105.00 -1,083,635,060.83 10,626.17 -1,216,901.84 35,374,395.56 512,083,932.64 550,037,096.70 127,200,061.96 677,237,158.66
less than
"-"No
fill in)
(1) Comprehensive
total revenue 10,626.17 547,458,328.20 547,468,954.37 -10,776,908.45 536,692,045.92

Forehead
(2) The
invested in
3,785,044.17 3,785,044.17 137,506,082.82 141,291,126.99
and reduce capital
Book
1. all
invested by
common stock
1,300,000.00 1,300,000.00
2. other
Equity Instrument
Holder votes
into capital
3. shares
Payment is credited
Ownership
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2021 Annual Report
Amount of
benefit 4. other 3,785,044.17 3,785,044.17 136,206,082.82 139,991,126.99
(3) Profit
35,374,395.56 -35,374,395.56
Profit
distribution 1. extract
35,374,395.56 -35,374,395.56
Surplus
reserve 2. extract
general risk
Prepare 3. to all
have (or
shareholders)
Assign 4. other
(4) The
Ownership 1,087,420,105.00 -1,087,420,105.00

Internal carryover
1. capital
Accumulation to increase
1,087,420,105.00 -1,087,420,105.00
capital (or
share capital)
2. surplus
Accumulation to increase
capital (or
share
capital) 3. surplus
Provident compensation
Loss 4. set up
Benefit plan
change balance
transfer to storage
5. other
Carry forward
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2021 Annual Report
income
6. other
(5) Specialized
-1,216,901.84 -1,216,901.84 470,887.59 -746,014.25
Item Reserve
1. This period
31,362,317.49 31,362,317.49 3,188,449.90 34,550,767.39
Extract
2. This period
32,579,219.33 32,579,219.33 2,717,562.31 35,296,781.64
Use
(6) its
he
Fourth, this issue

3,805,970,368.00 898,084,818.00 10,626.17 59,602,826.57 1,153,852,581.72 9,666,439,838.14 15,583,961,058.60 960,723,559.67 16,544,684,618.27
Ending balance
Statement of Changes in Owner's Equity of Parent
Company from January to December 2021
Unit: Currency: RMB
2021
reduce
ÿ
project Paid-up capital (or shares

sustainable
capital reserve library Other comprehensive income special reserve surplus reserve undistributed profit Total owner's equity
Book) priority other
debt
live
share
share
One, last year
closing balance
22,569,053.74 1,123,063,430.35 5,844,585,975.76 12,108,455,846.58
3,805,970,368.00 1,312,267,018.73
Plus: Accounting
policy change
earlier error
just
other
2. The current year
initial balance
1,312,267,018.73 22,569,053.74 1,123,063,430.35 5,844,585,975.76 12,108,455,846.58
3,805,970,368.00
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2021 Annual Report
3. Increase in this period
Less changes
(reduced -730,940.16 13,314,954.99 142,585.94 43,174,000.70 -1,514,419,177.75 -1,458,518,576.28
by "-"
List)
(1) Comprehensive
13,314,954.99 431,740,006.95 445,054,961.94
Total Income
(2) All
investment and reduction
Less
capital 1. owner
put in ordinary
Stock 2. other rights
beneficial tool holding
3ÿ Share branch
pay for all

owner's equity
4. other
(3) Profit
43,174,000.70 -1,946,159,184.70 -1,902,985,184.00
Allocate
1. Withdraw profit
43,174,000.70 -43,174,000.70
surplus
reserve 2. to all
or (or shares) -1,902,985,184.00 -1,902,985,184.00
East) allocation
3. other
(4) All
Insider's rights
Carry forward 1. Capital Corporation
Turn accumulated capital into capital increase
(or share capital)
2. surplus company
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2021 Annual Report
(or share capital)
3. surplus company
Accumulate losses
4. set by
Changes in benefit plan
Amount carried forward and retained
income
5. other comprehensive
Combined income carry forward
retained earnings
6. other
(5) Special
142,585.94 142,585.94
Reserve
1. this issue
8,390,753.04 8,390,753.04
Pick
2. this issue
8,248,167.10 8,248,167.10
use
(6) Others
-730,940.16 -730,940.16
Fourth, the current period

3,805,970,368.00 1,311,536,078.57 13,314,954.99 22,711,639.68 1,166,237,431.05 4,330,166,798.01 10,649,937,270.30
closing balance
In 2020 its

he
reduce:
project Paid-up capital (or shares Comprehensive
capital reserve in stock Special reserves surplus reserve undistributed profit Total owner's equity
Book) combine
Preference Shares Perpetual Bonds Others
share
receive
beneficial
One, last year

2,718,550,263.00 2,398,506,130.07 17,400,573.32 1,087,689,034.79 5,526,216,415.74 11,748,362,416.92
Ending
balance plus: accounting
policy change
earlier error
just
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2021 Annual Report
other
2. The current year

2,718,550,263.00 2,398,506,130.07 17,400,573.32 1,087,689,034.79 5,526,216,415.74 11,748,362,416.92
Initial balance 3.
Increase in the current period
Less changes
(reduced 1,087,420,105.00 -1,086,239,111.34 5,168,480.42 35,374,395.56 318,369,560.02 360,093,429.66
by "-"
List)
(1) Comprehensive
353,743,955.58 353,743,955.58
Total Income
(2) All
investment and reduction 1,180,993.66 1,180,993.66
less capital
1. owner
put in ordinary
Stock 2. other rights
beneficial tool holding
3ÿ Share branch
pay for all

owner's equity
4. other 1,180,993.66 1,180,993.66
(3) Profit
35,374,395.56 -35,374,395.56
Allocate
1. Withdraw profit
35,374,395.56 -35,374,395.56
surplus
reserve 2. to all
or (or shares)
East) allocation
3. other
(4) All
Insider's rights 1,087,420,105.00 -1,087,420,105.00
carry over
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2021 Annual Report
1. Capital Corporation
Turn accumulated capital into capital increase 1,087,420,105.00 -1,087,420,105.00
(or share capital)
2. surplus company
(or share capital)
3. surplus company
Accumulate losses
4. set by
Changes in benefit plan
Amount carried forward and retained
income
5. other comprehensive
Combined income carry forward
retained earnings
6. other
(5) Special
5,168,480.42 5,168,480.42
Reserve
1. this issue
12,976,783.08 12,976,783.08
Pick
2. this issue
7,808,302.66 7,808,302.66
use
(6) Others
Fourth, the current period

3,805,970,368.00 1,312,267,018.73 22,569,053.74 1,123,063,430.35 5,844,585,975.76 12,108,455,846.58
closing balance
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2021 Annual Report
3. Basic information of the company
1. Company Profile
Fangda Carbon New Material Technology Co., Ltd. (full name in English: Fangda Carbon New Material Co., Ltd, formerly
Lanzhou Hailong New Material Technology Co., Ltd.) was approved by Ganzheng Letter of Gansu Provincial People's Government on December 16, 1998 [1998]
No. 87 and on December 24, 1998, approved by the Gansu Provincial Economic System Reform Commission Gan Ti Gai Fa [1998] No. 76 document,
Lanzhou Carbon Group Co., Ltd. is the main sponsor, in conjunction with Yaojie Mining Bureau and Taixi Group Co., Ltd. (formerly
Co-sponsored by the Coal Shaft Mining Bureau, Gansu Qilianshan Cement Co., Ltd., and Lanzhou Kejin Technology Co., Ltd.
Co., Ltd. On August 20, 2002, the company adopted all the systems in Shanghai Stock Exchange and Shenzhen Stock Exchange.
80,000,000 ordinary shares (A shares) were issued to the public online by means of pricing and allotment to secondary market investors.
It was listed and traded on the Shanghai Stock Exchange on August 30, 2002. The stock abbreviation: Hailong Technology (now changed to Fangdatan)
Element), stock code: 600516.
The parent company of the company is Liaoning Fangda Group Industrial Co., Ltd., which holds 1,524,413,321.00 shares, with a shareholding ratio of
40.05%, and the ultimate controller is Mr. Fang Wei.
The company's unified social credit code: 91620000710375560A; legal representative: Dang Xijiang; registered address: Gansu
No. 11 Tansu Road, Haishiwan Town, Honggu District, Lanzhou City, Province. Approved business scope: research and development of new graphite and carbon materials, technology
R&D, technology promotion, production and processing, wholesale and retail; carbon fiber, special carbon products, high-purity graphite products, carbon-carbon composite materials
materials, lithium-ion battery anode materials research and development, technology research and development, technology promotion, production and processing, wholesale and retail; graphene and other
R&D, production, sales and technical services of tourism products; R&D, production and sales of graphene functional masks; operating the company
Import and export business of self-produced products and technologies; operate the raw and auxiliary materials, machinery and equipment, instruments and meters, spare parts required for the production of the enterprise
Import and export business of accessories and technologies (except for nationally restricted varieties); business processing with imported materials and "three to one supplement" business; catering services
Business, hotel, accommodation services.
The scope of consolidation of the Company's consolidated financial statements is determined on the basis of control, including the financial statements of the Company and all subsidiaries
surface. Subsidiaries refer to enterprises or entities controlled by the company.
For the changes in the scope of consolidation of the Company's consolidated financial statements for the current period, please refer to the note "VIII. Changes in the scope of consolidation", note
"9. Rights and Interests in Other Subjects".
The financial report of the company has been approved by the board of directors of the company for publication on April 22, 2022.
2. Scope of Consolidated Financial Statements
As of December 31, 2021, the subsidiaries within the scope of the Company's consolidated financial statements are as follows:
Shareholding ratio
Main Proportion of How to
Full name of subsidiary The business nature of the place of registration ÿ%ÿ
place of business voting rights get

(%) Direct and indirect
Fushun Fangda High-tech Materials Co., Ltd. Liaoning Fushun Liaoning Fushun Production Enterprise 60.00 60.00 New
Shanghai Fangda Investment Management Co., Ltd.

Shanghai Shanghai Investment Enterprise 100.00 100.00 New
company
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2021 Annual Report
Shareholding ratio
main Proportion of How to
Full name of subsidiary The business nature of the place of registration ÿ%ÿ
place of business voting rights get
(%) Direct and indirect
same control
Fushun Laihe Mining Co., Ltd. Liaoning Fushun Liaoning Fushun Production Enterprise 97.99 97.99
system merger
same control
Chengdu Carbon Co., Ltd. Sichuan Chengdu, Sichuan Chengdu production enterprise 100.00 100.00
system merger
Fushun Fangtai Precision Carbon Materials Co., Ltd. same control

Liaoning Fushun Liaoning Fushun Production Enterprise 100.00 100.00
manage system merger
Non-identical
Fushun Carbon Co., Ltd. Liaoning Fushun Liaoning Fushun Production Enterprise 65.54 65.54
control merge
Non-identical
Hefei Carbon Co., Ltd. Anhui Hefei, Anhui Hefei production enterprise 100.00 100.00
control merge
Non-identical
Chengdu Rongguang Carbon Co., Ltd., Sichuan Chengdu, Sichuan Chengdu production enterprise 60.00 60.00
control merge
Chengdu Fangda Carbon Research Institute Co., Ltd.

Sichuan Chengdu Sichuan Chengdu Scientific Research 100.00 100.00 New
manage
Linxia, Gansu Province Linxia, Gansu Province

Gansu Classical Shengdong Construction Poverty Alleviation and Development
Dongxiang ethnic group Dongxiang ethnic group Building Construction 40.00 40.00 New
limited company
Zhi County Zhi County

Gansu Benju Handicraft Development Co., Ltd.
Dongxiang ethnic group Dongxiang ethnic group Production enterprise 60.00 60.00 New
manage

Dongxiang Autonomous County Fangda Tengda Clothing
Dongxiang ethnic group Dongxiang ethnic group Production enterprises 54.12 54.12 New
limited company
Gansu Fangda Jiuxing Formwork Co., Ltd. Dongxiang ethnic group Dongxiang ethnic group Production enterprise 60.00 60.00 New
Non-identical
Jiangsu Fangda Carbon Chemical Co., Ltd. Jiangsu Xuzhou Jiangsu Xuzhou Production Enterprise 46.73 80.00
control merge
Fangda (South Korea) International Trade Co., Ltd.

Korea Korea Trading Company 100.00 100.00 New
company
Fangda (Moscow) International Trade Co., Ltd.

Russian Russian Trading Company 100.00 100.00 New
limited company
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2021 Annual Report
4. Basis for preparation of financial statements 1.
Basis for preparation
The financial statements are based on the assumption of going concern of the company, according to the actual transactions and in accordance with the Accounting Standards for Business Enterprises.
and prepared based on the following important accounting policies and accounting estimates.
2. Going concern ÿApplicable
ÿNot applicable
The Company has not had any events or circumstances that have caused significant doubts about the Company's ability to continue as a going concern for 12 months from the end of the reporting period.
V. Important accounting policies and accounting estimates
Specific accounting policies and accounting estimates reminders:
1. Statement of Compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the company based on the above-mentioned basis are in compliance with the latest accounting standards for business enterprises issued by the Ministry of Finance and its application
The requirements of the guidelines, interpretations and other relevant regulations (collectively referred to as the accounting standards for business enterprises) truly and completely reflect the company merger
and parent company's financial status, mergers and parent company's operating results and cash flows.
In addition, the preparation of this financial report is based on the No.
No. 15 - General Provisions on Financial Reporting (revised in 2014) and "Regarding the Implementation of the New Accounting Standards for Business Enterprises by Listed Companies"
Notice of Matters” (Accounting Department Letter [2018] No. 453) presentation and disclosure requirements.
2. Accounting period
The company's fiscal year starts from January 1st to December 31st in the Gregorian calendar.
3. Operating cycle
The business cycle of the company starts from January 1st to December 31st in the Gregorian calendar.
The operating cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents. Our company
Take 12 months as an operating cycle and use it as the standard for dividing the liquidity of assets and liabilities.
4. Bookkeeping currency
The company's functional currency is RMB.
5. Accounting treatment for business combination under common control and not under common control
1. Accounting treatment for business combination under the same control
The company obtains a business combination under the same control in one transaction or realizes a business combination under the same control step by step through multiple transactions.
The assets and liabilities are measured according to the book value of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. Our company
The difference between the book value of the net assets obtained and the book value of the combined consideration paid (or the total face value of the issued shares) shall be adjusted.
This reserve; if the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment method for business combination not under common control
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2021 Annual Report
On the purchase date, the Company paid more attention to the difference between the merger cost and the fair value share of the identifiable net assets of the acquiree obtained in the merger.
If the merger cost is less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the first
First, carry out the measurement of the fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the measurement of the merger cost.
After review, if the merger cost is still less than the fair value share of the identifiable net assets of the acquiree obtained in the merger, the difference is
The amount is included in the current profit and loss.
A business combination not under the same control is realized step by step through multiple transactions, and should be handled in the following order:
(1) Adjust the initial investment cost of long-term equity investment. If the equity held before the purchase date is accounted for by the equity method,
The fair value of the equity on the purchase date is re-measured, and the difference between the fair value and its book value is included in the current investment income;
The equity of the acquiree held before the purchase date involves other comprehensive income and other changes in owner's equity under the equity method
If it is changed to the current income on the purchase date, due to the change in net liabilities or net assets of the investee's re-measurement of the defined benefit plan
Other comprehensive income generated is excluded.
(2) Confirm the goodwill (or the amount included in the current profit and loss). Adjust the initial investment cost of long-term equity investment after the first step
Compared with the fair value share of the identifiable net assets of the subsidiary that should be enjoyed on the purchase date, the former is greater than the latter, and the difference is recognized as goodwill;
The former is smaller than the latter, and the difference is included in the current profit and loss.
Dispose of equity step by step through multiple transactions until loss of control over the subsidiary:
(1) Judging whether the various transactions in the process of disposing of equity in steps to losing control over the subsidiary belong to a "package deal"
the rules
The terms, conditions and economic impact of the disposal of each transaction of equity investment in the subsidiary meet one or more of the following conditions:
Often it is indicated that multiple transactions should be accounted for as a package transaction:
1) These transactions are entered into at the same time or taking into account the influence of each other;
2) Only these transactions as a whole can achieve a complete commercial result;
3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
4) A transaction is uneconomical on its own, but it is economical when considered together with other transactions.
(2) Various transactions in the process of disposing of equity in steps to losing control over the subsidiary belong to the accounting of “package transactions”
Approach
If the various transactions that dispose of the equity investment in the subsidiary until the loss of control is a package transaction, each transaction shall be
Accounting for a disposal of a subsidiary and loss of control; however, each disposal before the loss of control
The difference between the purchase price and the share of the subsidiary's net assets corresponding to the disposal investment shall be recognized as its share in the consolidated financial statements.
When he loses control, his comprehensive income is transferred to the profit and loss of the current period when he loses control.
In the consolidated financial statements, the remaining equity shall be recalculated according to its fair value on the date of loss of control
quantity. The sum of the consideration obtained from the disposal of the equity and the fair value of the remaining equity, minus the shareholding of the atomic company calculated according to the original shareholding ratio
The difference between the shares of net assets continuously calculated since the date of purchase shall be included in the investment income of the current period when the control right is lost. Yohara
Other comprehensive income related to equity investment in subsidiaries shall be converted into investment income for the current period when control is lost.
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2021 Annual Report
(3) The various transactions in the process of disposing of equity in steps to the loss of control over the subsidiary do not belong to the “package deal” meeting.
counting method
If the disposal of the investment in the subsidiary does not lose control, the disposal price in the consolidated financial statements and the disposal of the investment are entitled to the corresponding rights.
The difference of the subsidiary's share of net assets is included in the capital reserve (capital premium or share premium), if the capital premium is insufficient to offset,
Retained earnings should be adjusted.
In the case of disposing of the investment in the subsidiary and losing control, in the consolidated financial statements, the remaining equity shall be
The fair value on the date of loss of control is remeasured. The sum of the consideration obtained from disposal of equity and the fair value of the remaining equity, less
To calculate the difference between the shares of the original subsidiary's net assets continuously calculated from the date of purchase, calculated according to the original shareholding ratio,
Included in the investment income in the current period when the control right is lost. Other comprehensive income related to the equity investment of the original subsidiary shall be
When controlling right, it is converted into investment income for the current period.
6. Preparation of Consolidated Financial Statements
The consolidated financial statements are based on the financial statements of the parent company and its subsidiaries.
Prepared in accordance with Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements.
7. Classification of joint arrangements and accounting for joint operations
1. Identification and classification of joint venture arrangements
A joint arrangement is an arrangement under the joint control of two or more parties. The joint arrangement has the following characteristics
Signs: 1) All participants are bound by the arrangement; 2) Two or more participants exercise joint control over the arrangement.
No one participant can control the arrangement alone, and any participant who has joint control of the arrangement can
Prevent other parties or groups of parties from taking sole control of the arrangement.
Joint control refers to the common control over an arrangement in accordance with relevant agreements, and the relevant activities of the arrangement must be
Decisions can only be made after the unanimous consent of the parties sharing control.
Joint arrangements are divided into joint operations and joint ventures. Joint operation means that the joint venture party enjoys the relevant assets of the arrangement and undertakes the
A joint arrangement with liabilities related to the arrangement. A joint venture refers to a joint venture in which the joint venture party only has rights to the net assets of the arrangement.
Row.
2. Accounting treatment of joint venture arrangements
The participants in the joint operation shall confirm the following items related to their share of interests in the joint operation, and follow the relevant enterprise meeting rules.
Accounting treatment according to the provisions of the accounting standards: 1) Recognize the assets held individually, and recognize the assets jointly held according to their shares;
2) Recognize the liabilities borne individually, and recognize the liabilities jointly borne according to its share; 3) Recognize the sale of the joint economic benefits that it enjoys.
4) Recognize the income generated by the joint operation due to the sale of output according to its share; 5) Recognize the separate income
The expenses incurred, and the expenses incurred by the joint operation shall be recognized according to its share.
The participants of the joint venture shall, in accordance with the provisions of the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment
Investments are accounted for.
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2021 Annual Report
8. Determination of cash and cash equivalents
Cash in the cash flow statement refers to the company's cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to the period held
Short-term limit (generally refers to the maturity within three months from the date of purchase), strong liquidity, easy to convert into a known amount of cash, value changes
Investments with little risk.
9. Foreign currency business and foreign currency statement translation
1. Foreign currency business translation
Foreign currency transactions are translated into RMB at the spot exchange rate on the transaction date when they are initially recognized. balance sheet date,
Foreign currency monetary items are translated at the spot exchange rate on the balance sheet date.
The additional exchange difference between the principal and interest of foreign currency special borrowings related to assets eligible for capitalization shall be included in the current profit and loss;
Foreign currency non-monetary items measured at cost are still translated at the spot exchange rate on the transaction date without changing their RMB amount;
Foreign currency non-monetary items measured at fair value shall be converted at the spot exchange rate on the date when the fair value is determined, and the difference shall be included in the current loss
profit or other comprehensive income.
2. Translation of foreign currency financial statements
Assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance sheet date; owners' equity items
Except for the item "undistributed profit", other items are translated at the spot exchange rate on the date of the transaction; income and expenses in the income statement
The items are converted at the spot exchange rate on the transaction date. The difference between the translation of foreign currency financial statements arising from the above translation shall be confirmed.
Consider other comprehensive income.
10. Financial Instruments
1. Recognition and derecognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.
Financial assets bought and sold in a conventional manner are recognized and derecognized on a transaction date basis. buy and sell financial assets in a conventional manner,
Refers to the collection or delivery of financial assets within the time limit stipulated by regulations or common practice in accordance with the terms of the contract. trading day,
Refers to the date on which the company commits to buy or sell financial assets.
If the following conditions are met, derecognition of financial assets (or part of financial assets, or part of a group of similar financial assets)
cents), i.e. written off from its accounts and balance sheet:
(1) The right to receive cash flow from financial assets expires;
(2) The right to receive the cash flow of financial assets has been transferred, or under the "pass-through agreement", it has undertaken to promptly collect the cash flow.
The obligation to pay the cash flow in full to a third party; and (a) substantially transfer substantially all risk of ownership of the financial asset
and rewards, or (b) while substantially neither transferring nor retaining substantially all the risks and rewards of ownership of the financial asset,
But gave up control of the financial asset.
2. Classification and measurement of financial assets
The Company's financial assets are initially recognized in accordance with the Company's business model for managing financial assets and contracts for financial assets
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2021 Annual Report
Cash flow characteristics are classified as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive
Profitable financial assets and financial assets at fair value through profit or loss. Subsequent accounting of financial assets
The amount depends on its classification.
The company's classification of financial assets is based on the company's business model for managing financial assets and the cash flow of financial assets.
features are classified.
(1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized cost: the company manages the financial assets
The business model of the asset is to collect contractual cash flows; the contractual terms of the financial asset
Cash flows generated are only payments of principal and interest based on the amount of principal outstanding. For such financial assets,
The actual interest rate method is adopted, and the subsequent measurement is carried out according to the amortized cost, and the gains or losses arising from the amortization or impairment are included in the current
period profit and loss.
(2) Debt instrument investments at fair value through other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value through other comprehensive income.
Financial assets: The company's business model for managing the financial assets is to both collect contractual cash flows and sell financial assets.
assets; the contractual terms of the financial asset provide that the cash flows generated on a specific date are only for the principal and outstanding
Payment of interest based on the principal amount paid. For such financial assets, fair value is used for subsequent measurement. its discount
Or premium is amortized using the effective interest method and recognized as interest income or expense. Except for impairment losses and foreign currency monetary financial facilities
The exchange difference of the financial assets is recognized as the current profit and loss, and the changes in the fair value of such financial assets are recognized as other comprehensive income.
When the financial asset is derecognized, its accumulated gains or losses are transferred to the current profit and loss. Interest income related to such financial assets,
Included in current profit and loss.
(3) Equity instrument investments measured at fair value through other comprehensive income
The company irrevocably chooses to designate some non-trading equity instrument investments as measured at fair value and its changes are measured.
For financial assets included in other comprehensive income, only relevant dividend income is included in the current profit and loss, and changes in fair value are treated as other comprehensive income.
Revenue is recognized until the financial asset is derecognized, and its accumulated gains or losses are transferred to retained earnings.
(4) Financial assets at fair value through profit or loss
The above financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income
Financial assets other than assets are classified as financial assets measured at fair value through profit or loss for the current period. at the initial confirmation
In order to eliminate or significantly reduce accounting mismatches, financial assets may be designated at fair value through changes in
Financial assets included in the current profit and loss. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are
be included in the current profit and loss.
If and only if the Company changes its business model for managing the financial assets, all affected related financial assets will be
rearrange.
For financial assets measured at fair value through profit or loss, relevant transaction costs are directly included in current loss
The transaction costs related to other types of financial assets are included in the initial recognition amount.
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2021 Annual Report
3. Classification and measurement of financial liabilities
The Company's financial liabilities are classified at initial recognition as: financial liabilities measured at amortized cost and financial liabilities measured at fair value
Financial liabilities whose changes are included in the current profit and loss.
Financial liabilities that meet one of the following conditions can be designated at fair value and their changes are included in the current period at initial measurement
Financial liabilities for profit or loss: (1) the designation can eliminate or significantly reduce accounting mismatches; (2) according to the official written document
a corporate risk management or investment strategy, based on fair value for a portfolio of financial liabilities or a portfolio of financial assets and financial liabilities
Carry out management and performance evaluation, and report to key management personnel on this basis within the company; (3) The financial liability includes
Embedded derivatives that require a separate split.
The company determines the classification of financial liabilities at the time of initial recognition. For those measured at fair value through profit or loss
financial liabilities, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financial liabilities are included in its initial recognition.
recognized amount.
The subsequent measurement of financial liabilities depends on their classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest method is adopted and the subsequent measurement is carried out according to the amortized cost.
(2) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss, including financial liabilities held for trading (including financial liabilities
Derivatives of debt) and financial liabilities designated at initial recognition as measured at fair value through profit or loss for the current period.
4. Financial Instrument Offset
If the following conditions are met at the same time, financial assets and financial liabilities shall be listed in the balance sheet as the net amount after offsetting each other:
has a legal right to set off the recognized amount, and such legal right is currently enforceable; the plan is settled on a net basis, or the same
Realize the financial asset and pay off the financial liability.
5. Impairment of financial assets
The company's financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income
For debt instrument investment and financial guarantee contracts, etc., the loss provision is recognized on the basis of expected credit losses. credit loss, which is the
All contractual cash flows receivable under the contract and all cash flows expected to be received by the company discounted at the original effective interest rate
The difference between , which is the present value of the total cash shortfall.
The Company considers all reasonable and substantiated information, including forward-looking information, on amortized basis, either individually or in combination.
Financial assets measured at cost and financial assets at fair value through other comprehensive income (debt instruments)
estimated credit losses.
(1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the company will
The amount of expected credit loss during the duration of the measurement of its loss provision; if the credit risk of the financial instrument has been recognized since the initial recognition
There is no significant increase, the company measures its losses according to the amount equivalent to the expected credit loss of the financial instrument in the next 12 months
Prepare. The resulting increase or reversal of the loss provision is included in the current profit and loss as an impairment loss or gain.
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Specifically, the company divides the process of credit impairment of financial instruments that are not credit-impaired at the time of purchase or origination into:
There are three stages, with different accounting treatment methods for the impairment of financial instruments at different stages:
Stage 1: Credit risk has not increased significantly since initial recognition
For financial instruments in this stage, the enterprise shall measure the loss provision based on the expected credit loss in the next 12 months,
And calculate the interest income based on its book balance (that is, before deducting the impairment provision) and the actual interest rate (if the instrument is a financial asset, the following
same).
Stage 2: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise shall measure the loss according to the expected credit loss of the entire duration of the instrument
Reserve, and calculate interest income based on its book balance and effective interest rate.
Stage 3: Credit impairment occurs after initial recognition
For a financial instrument at this stage, the enterprise shall measure the loss according to the expected credit loss of the entire duration of the instrument
provision, but the calculation of interest income differs from financial assets in the first two stages. For credit-impaired financial facilities
The enterprise should calculate it according to its amortized cost (book balance minus provision for impairment, that is, book value) and actual interest rate
interest income.
For financial assets that are credit-impaired at the time of purchase or origination, an enterprise should only
Changes in expected credit losses are recognized as loss provisions, and interest income is calculated based on its amortized cost and credit-adjusted effective interest rate.
enter.
For financial instruments with low credit risk on the balance sheet date, the company chooses not to use the credit at the time of initial recognition.
risk, and directly assume that the instrument's credit risk has not increased significantly since initial recognition.
(2) Judgment criteria for whether the credit risk has increased significantly since the initial recognition
If a financial asset has a significantly higher probability of default during the expected lifetime determined at the balance sheet date than at the time of initial recognition
If the probability of default within the expected duration determined at the time of writing indicates a significant increase in the credit risk of the financial asset. Except in special cases
In addition, the company adopts the change of default risk in the next 12 months as the change in default risk during the entire duration.
A reasonable estimate to determine whether there has been a significant increase in credit risk since initial recognition.
(3) Portfolio method for assessing expected credit risk on a portfolio basis
The company evaluates credit risk individually for financial assets with significantly different credit risks, such as disputes or involvement with the other party
Receivables from litigation and arbitration; receivables for which there are obvious signs that the debtor is likely to be unable to perform its repayment obligations.
Except for the financial assets that are individually assessed for credit risk, the company divides financial assets into different categories based on common risk characteristics.
group, assessing credit risk on a portfolio basis.
1) Notes receivable
The company measures the loss provision for bills receivable according to the expected credit loss amount equivalent to the entire duration. based on
The credit risk characteristics of notes receivable are divided into different combinations:
project The basis for confirming the combination
Notes Receivable Portfolio A trade acceptance draft
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Notes Receivable Portfolio B bank acceptance bill
2) Accounts receivable
For receivables that do not contain significant financing components, the company will calculate the expected credit loss amount equivalent to the entire duration
For the receivables with significant financing components, the company chooses to always use the equivalent of the period of
The amount of expected credit losses measures the loss allowance.
Except for the accounts receivable that are individually assessed for credit risk, they are divided into different groups based on their credit risk characteristics:
project Basis for determining the combination
Accounts Receivable Portfolio A Receivable from external customers
Accounts Receivable Portfolio B Amounts receivable from related parties within the scope of consolidation
3) Receivables financing
Payment of interest based on the principal amount paid.
The company will transfer the receivables held by discount or endorsement, and this type of business is more frequent and involves the amount of money
It is also relatively large, and the essence of its management business model is to both collect contractual cash flows and sell them.
It is classified as a financial asset with changes in fair value through other comprehensive income.
4) Other receivables
Based on whether the credit risk of other receivables has increased significantly since the initial recognition, the company adopts an amount equivalent to the next 12
Impairment losses are measured at the amount of expected credit losses within a month, or for the entire duration. In addition to the individual assessment of credit risk, other applications
In addition to collection, based on its credit risk characteristics, it is divided into different combinations:
Other Receivables Portfolio A Other receivables such as deposits, security deposits and reserve funds (excluding other receivables portfolio B)
Other receivables group B Amounts receivable from related parties within the scope of consolidation
6. Transfer of financial assets
If the company has transferred almost all the risks and rewards of the ownership of the financial assets to the transferee, the recognition of the financial assets shall be terminated.
Assets; if almost all the risks and rewards of ownership of financial assets are retained, the financial assets will not be derecognized.
If the company neither transfers nor retains almost all the risks and rewards of ownership of financial assets, the following situations
Condition handling: if the control over the financial asset is abandoned, the financial asset shall be derecognized and the resulting assets and liabilities shall be recognized;
If the control of the financial asset is abandoned, the relevant financial asset shall be recognized according to the degree of its continued involvement in the transferred financial asset, and corresponding
Recognize related liabilities.
If it continues to be involved by providing financial guarantees for the transferred financial assets, it shall be subject to the book value and financial
The lower of the guaranteed amount, confirms the assets formed by the continued involvement. The amount of financial guarantee, which refers to the consideration received
, the maximum amount that will be required to be repaid.
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11. Notes receivable
Determination method and accounting treatment method of expected credit loss of notes receivable
The company measures the loss provision for bills receivable according to the expected credit loss amount equivalent to the entire duration. based on
The credit risk characteristics of notes receivable are divided into different combinations:
project The basis for confirming the combination
Notes Receivable Portfolio A trade acceptance draft
Notes Receivable Portfolio B bank acceptance bill
12. Accounts receivable
Determination method and accounting treatment method of expected credit loss of accounts receivable
For receivables that do not contain significant financing components, the company will calculate the expected credit loss amount equivalent to the entire duration
For the receivables with significant financing components, the company chooses to always use the equivalent of the period of
The amount of expected credit losses measures the loss allowance.
Except for the accounts receivable that are individually assessed for credit risk, they are divided into different groups based on their credit risk characteristics:
Accounts Receivable Portfolio A Receivable from external customers
Accounts Receivable Portfolio B Amounts receivable from related parties within the scope of consolidation
13. Receivables financing
Payment of interest based on the principal amount paid.
The company will transfer the receivables held by discount or endorsement, and this type of business is more frequent and involves the amount of money
It is also relatively large, and the essence of its management business model is to both collect contractual cash flows and sell them.
It is classified as a financial asset with changes in fair value through other comprehensive income.
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
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Based on whether the credit risk of other receivables has increased significantly since the initial recognition, the company adopts an amount equivalent to the next 12
Impairment losses are measured at the amount of expected credit losses within a month, or for the entire duration. In addition to the individual assessment of credit risk, other applications
In addition to collection, based on its credit risk characteristics, it is divided into different combinations:
Other Receivables Portfolio A Other receivables such as deposits, security deposits and reserve funds (excluding other receivables portfolio B)
Other receivables group B Amounts receivable from related parties within the scope of consolidation
15. Inventory
1. Classification of inventory
Inventories include finished goods or commodities held for sale in the ordinary course of
materials and materials consumed in the production process or the provision of labor services. Mainly include: raw materials, work in progress and self-made semi-finished products, weekly
Transfer materials, finished products, goods in stock, entrusted processing materials, dispatched goods, etc.
2. Valuation method of issued inventory
When the company's inventory is dispatched, the cost is determined by the moving weighted average method.
3. The basis for the determination of the net realizable value of inventories and the accrual method for the provision for depreciation of inventories
On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and the cost of a single inventory is higher than the net realizable value.
Inventory depreciation reserves are set aside for the difference in value. Inventories directly used for sale, in the normal production and operation process, use the estimated value of the inventory
The net realizable value is determined by the selling price less estimated selling expenses and related taxes; inventories that need to be processed are
In the normal production and operation process, the estimated selling price of the finished products produced minus the estimated cost to be incurred at the time of completion.
The net realizable value is determined by the amount after sales expenses and related taxes; on the balance sheet date, a part of the same inventory has
If the contract price is agreed and there is no contract price for other parts, the net realizable value shall be determined separately, and the corresponding cost shall be calculated.
Compare with each other, and determine the amount of provision or reversal of inventory depreciation reserves respectively.
4. Inventory system of inventory
The inventory system of inventory is perpetual inventory system.
5. Amortization method for low-value consumables and packaging
The company's low-value consumables and packaging materials are purchased according to the actual needs, and are included in the relevant asset costs or
Current profit and loss.
16. Contract Assets
(1). Recognition method and standard of contract assets
The Company will have the unconditional (i.e., only depending on the passage of time) right to collect consideration from the customer as a receivable
item list, the right to receive consideration that the goods have been transferred to the customer, and the right depends on other than the passage of time
Factors are presented as contract assets.
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(2). Determination method and accounting treatment method of expected credit loss of contract assets
For the determination method and accounting treatment method of the expected credit loss of the contract assets of the company, please refer to Note "III. (10) Financial
Financial Tools".
17. Assets held for sale
The company classifies corporate components (or non-current assets) that meet the following conditions simultaneously as held for sale: (1) According to
The practice of selling such assets or disposal groups in similar transactions can be sold immediately under the current conditions; (2) The sale is very likely to occur,
A resolution has been made on a sale plan and a firm purchase commitment has been obtained (a firm purchase commitment refers to the
Entered into a legally binding purchase agreement that contains such important factors as transaction price, time and sufficiently severe breach of contract penalties.
terms, so that the possibility of a major adjustment or revocation of the agreement is extremely unlikely). The sale is expected to close within a year. Already received
In accordance with relevant regulations, approval from relevant authorities or regulatory authorities is required.
The Company adjusts the estimated net residual value held for sale to reflect its fair value less selling costs (but not
Exceed the original book value of the item held for sale), the difference between the original book value and the estimated net residual value after adjustment is regarded as asset impairment
Losses are included in current profit and loss, and provision for impairment of assets held for sale is made. Decreases in assets recognized for disposal groups held for sale
The amount of value loss shall first be offset against the book value of the goodwill in the disposal group, and then the amount of the goodwill in the disposal group shall be measured according to the applicable provisions of this standard.
The proportion of the book value of each non-current asset shall be deducted proportionally to its book value.
On the subsequent balance sheet date, the net increase in the fair value of the non-current assets held for sale after deducting the selling expenses, the previous
The written-down amount shall be recovered and reversed within the amount of asset impairment loss recognized after being classified as held for sale.
The recovered amount is included in the current profit and loss. Asset impairment losses recognized before being classified as held for sale shall not be reversed. Subsequent assets and liabilities
If the net amount of the disposal group held for sale on the table date increases after deducting the selling expenses, the previously written down amount shall be recovered.
The amount of asset impairment loss recognized for non-current assets according to the measurement provisions of this standard after being classified as held for sale
If it is reversed internally, the reversed amount shall be included in the current profit and loss. The book value of goodwill that has been written off, and the non-current flow
Asset impairment losses recognized before moving assets are classified as held for sale shall not be reversed. Assets confirmed by disposal groups held for sale
The amount of subsequent reversal of production impairment losses shall be based on the non-current assets in the disposal group that are subject to the measurement provisions of this standard except for goodwill.
According to the proportion of the book value of the production, increase its book value proportionally.
If the enterprise loses control over the subsidiary due to the sale of its investment in the subsidiary, etc., no matter whether the enterprise is sold or not
Retaining part of the equity investment, when the investment in the subsidiary to be sold meets the classification conditions of the held-for-sale category, should be listed in the parent company.
In the company's individual financial statements, the investment in subsidiaries is generally classified as held-for-sale, and in the consolidated financial statements
There are assets and liabilities classified as held for sale.
18. Debt investment
(1). Determination method and accounting treatment method of expected credit loss of debt investment
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19. Other debt investments
(1) Determination method and accounting treatment method of expected credit loss of other debt investments
20. Long-term receivables
(1). Determination method and accounting treatment method of expected credit loss of long-term receivables
21. Long-term equity investment
1. Determination of investment cost
(1) In the case of a merger of enterprises under the same control, the merging party shall pay cash, transfer non-cash assets, assume debts or
If equity securities are issued as the merger consideration, on the merger date, the final controlling party will merge financial assets according to the owner's equity of the merged party.
The share of book value in the statement as its initial investment cost. Consolidated pair of initial investment cost and payment for long-term equity investment
Adjust the capital reserve (capital premium or equity premium) for the difference between the book value of the stock price or the total face value of the shares issued; capital
If the reserve is insufficient to offset, the retained earnings shall be adjusted.
If the merger of enterprises under the same control is realized step by step, the merger date shall be calculated based on the shareholding ratio and shall enjoy the book value of the merged party.
The share of owner's equity is taken as the initial investment cost of the investment. The initial investment cost plus the book value of the original long-term equity investment
The difference between the sum of the book value of the newly paid consideration for further shares acquired on the previous merger date shall be adjusted to the capital reserve (capital premium or share price).
This premium), if the capital reserve is insufficient to offset, the retained earnings will be offset.
(2) In the case of business combination not under the same control, the fair value of the merger consideration paid on the purchase date shall be used as its
Initial investment cost.
(3) Except for the formation of business merger: if it is obtained by paying cash, the actual purchase price paid shall be used as its initial value.
Investment cost; if it is obtained by issuing equity securities, the fair value of the issued equity securities shall be used as its initial investment cost;
If the investor invests, the value agreed in the investment contract or agreement shall be regarded as the initial investment cost (the value agreed in the contract or agreement).
except unfair).
2. Subsequent measurement and profit and loss recognition method
For long-term equity investments that the company can control over the investee, the cost method is used in the company's individual financial statements
Accounting; long-term equity investments with joint control or significant influence are accounted for using the equity method.
When the cost method is adopted, the long-term equity investment is priced at the initial investment cost, except for the price or consideration actually paid when the investment is obtained.
In addition to the declared but undistributed cash dividends or profits included in the dividend, the cash dividends or profits declared and distributed by the investee are entitled to
Profits are recognized as investment income for the current period, and at the same time, whether long-term investments are impaired or not is considered according to the relevant asset impairment policy.
When the equity method is adopted, the initial investment cost of a long-term equity investment is greater than the identifiable net assets of the investee at the time of the investment.
If the fair value share, it is classified as the initial investment cost of long-term equity investment; the initial investment cost of long-term equity investment is less than the investment cost of long-term equity investment
If it should enjoy the fair value share of the investee's identifiable net assets at the time of
cost of investment.
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When the equity method is adopted, after the long-term equity investment is obtained, the net profit or loss realized by the investee that should be enjoyed or shared shall be calculated according to the
share, recognize investment gains and losses and adjust the book value of long-term equity investments. When recognizing the share of the net profit and loss of the investee
When the investment is obtained, based on the fair value of the identifiable assets of the investee when the investment is obtained, in accordance with the Company's accounting policies and
During the accounting period, and offset the internal transaction profit and loss with associates and joint ventures, it is attributable to the investment according to the shareholding ratio.
The part of the invested enterprise (however, if the internal transaction loss belongs to the asset impairment loss, it should be recognized in full), and the net profit of the invested entity will be accounted for.
Confirm after adjustment. Calculate the portion that should be distributed according to the profit or cash dividend declared by the investee, and reduce the long-term accordingly.
The book value of the equity investment. The company recognizes the net loss incurred by the investee in the book value of the long-term equity investment and
Other long-term equity that substantially constitutes the net investment in the investee is written down to zero, and the company is obliged to bear additional losses
except. Adjust the book value of the long-term equity investment for other changes in the owner's equity of the investee other than the net profit or loss
and included in owner's equity.
3. The basis for determining the control and significant influence on the investee
Control means having power over the investee, enjoying variable returns by participating in the relevant activities of the investee, and
and have the ability to use the power over the investee to affect the amount of returns; significant impact refers to the investor’s financial impact on the investee
It has the power to participate in decision-making and operating policies, but cannot control or jointly control the formulation of these policies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investment in subsidiaries without losing control
When part of the long-term equity investment in the subsidiary is disposed of without losing control, the disposal price shall be compared with the disposal investment.
The difference between the corresponding book value is recognized as the current investment income.
(2) Partial disposal of equity investment or loss of control over subsidiaries due to other reasons
If the equity investment is partially disposed of or the control over the subsidiary is lost due to other reasons, the disposed equity shall be carried forward to the other party.
The book value of the long-term equity investment corresponding to the sale of shares, the difference between the sale proceeds and the book value of the disposal of the long-term equity investment
The difference is recognized as investment income (loss); at the same time, for the remaining equity, it should be recognized as long-term equity according to its book value
investments or other related financial assets. If the remaining equity after disposal can exercise joint control or significant influence on the subsidiary, it shall be
Accounting treatment shall be carried out in accordance with the relevant regulations on the conversion of the cost method to the equity method.
5. Impairment test method and impairment provision method
Investments in subsidiaries, associates and joint ventures, if there is objective evidence on the balance sheet date that they are impaired,
The corresponding provision for impairment is made according to the difference between the book value and the recoverable amount.
22. Investment real estate
1. Investment real estate includes leased land use rights, land use rights held and prepared to be transferred after appreciation, and land use rights that have been leased out.
rented buildings.
2. The initial measurement of investment real estate is based on cost, and the subsequent measurement is carried out using the cost model.
Depreciation or amortization is carried out in the same way as property and intangible assets. On the balance sheet date, there are signs that investment real estate
In case of impairment, the corresponding impairment provision shall be made according to the difference between the book value and the recoverable amount.
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23. Fixed assets
(1). Confirmation conditions
Fixed assets refer to those held for the production of commodities, the provision of labor services, rental or business management, with a useful life exceeding one meeting.
Tangible assets for the fiscal year.
Fixed assets are recorded at the actual cost at the time of acquisition, and the annual average is adopted from the month following the month when they reach the expected usable state.
depreciation method.
(2). Depreciation method
Category Depreciation Depreciation period (years) Residual rate annual depreciation rate
House and Building method Straight-line 25-45 5.00 2.11-3.80
Special Equipment method Straight-line method 10-15 5.00 6.33-9.50
Universal straight-line 5-18 5.00 5.28-19.00
Equipment Transporter method 8-12 5.00 7.92-11.88
3. Impairment test method for fixed assets and provision for impairment
On the balance sheet date, if there are signs that the fixed assets are impaired, the difference between the book value and the recoverable amount shall be calculated.
Make corresponding provision for impairment.
(3). Recognition basis, valuation and depreciation method of fixed assets under financing lease
If one or more of the following criteria are met, it is identified as a financial lease: (1) At the expiration of the lease term, all the leased assets
(2) The lessee has the option to purchase the leased asset, and the purchase price is expected to be much lower than the purchase price of the leased asset.
The fair value of the leased asset when the option is exercised, such that it is reasonably certain at the lease inception date that the lessee will exercise the option.
(3) Even if the ownership of the asset is not transferred, the lease term accounts for more than 75% (including 75%) of the useful life of the leased asset;
(4) The present value of the lessee's minimum lease payment on the lease commencement date, which is almost equal to the fair value of the leased asset on the lease commencement date
More than 90% (including 90%); the present value of the lessor's minimum lease receipts on the lease start date is almost equivalent to the lease start date
More than 90% (including 90%) of the fair value of the leased assets; (5) The leased assets are of special nature.
Only the renter can use it.
Fixed assets under financing lease are calculated by comparing the fair value of the leased asset on the lease commencement date with the present value of the minimum lease payment.
The lower one is recorded in the account, and depreciation is accrued according to the depreciation policy of its own fixed assets.
24. Construction in progress
1. When the construction in progress reaches the predetermined usable state, it shall be transferred to fixed assets according to the actual cost of the project. Available for reservation
If it is still in the state but has not yet completed the final accounts, it will be transferred to the fixed assets according to the estimated value first, and then the actual cost will be calculated after the final accounts have been completed.
Adjust the original provisional value, but no longer adjust the depreciation that has been accrued.
2. On the balance sheet date, if there are signs that the construction in progress is impaired, the difference between the book value and the recoverable amount shall be calculated according to the difference between the book value and the recoverable amount.
Appropriate provision for impairment shall be made.
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25. Borrowing costs
1. Recognition principles for capitalization of borrowing costs
If the borrowing costs incurred by the company can be directly attributable to the acquisition, construction or production of assets that meet the capitalization conditions, they shall be
Capitalized and included in the cost of relevant assets; other borrowing costs are recognized as expenses when incurred and included in the current profit and loss.
2. Period of capitalization of borrowing costs
(1) Capitalization begins when the borrowing costs meet the following conditions at the same time: 1) The asset expenditure has occurred; 2) The borrowing costs
3) The acquisition, construction or production activities necessary to make the asset ready for use or sale have started.
(2) If an asset that meets the capitalization conditions is abnormally interrupted in the process of acquisition, construction or production, and the interruption time continues
If the borrowing costs continue for more than 3 months, the capitalization of borrowing costs shall be suspended; the borrowing costs incurred during the suspension period shall be recognized as current expenses until the capital
The purchase and construction of the property or the production activity restarts.
(3) When the purchased, constructed or produced assets that meet the capitalization conditions are ready for use or sale, the borrowing fee shall be
Use stop capitalization.
3. Capitalized amount of borrowing costs
If a special loan is borrowed for the purchase, construction or production of assets that meet the capitalization conditions, the amount actually incurred in the current period of the special loan shall be used.
Interest expense (including amortization of discount or premium determined by the effective interest method), less the deposit of unused borrowing funds in
The amount after the interest income obtained by the bank or the investment income obtained from the temporary investment, determine the interest amount that should be capitalized
If general borrowings are occupied for the purchase, construction or production of assets that meet the capitalization conditions, the accumulated asset expenditure exceeds the special
The weighted average number of asset expenditures of borrowings is multiplied by the capitalization rate of occupied general borrowings to calculate and determine that general borrowings should be capitalized.
Amount of interest.
26. Biological Assets
27. Oil and gas properties
28. Right-of-use assets
29. Intangible assets
(1). Valuation method, service life, impairment test
Intangible assets include land use rights, patent rights and non-patent technology, etc., and are initially measured at cost.
Intangible assets with limited service life shall be realized according to the expected economic benefits related to the intangible assets within the service life.
The current method is systematically amortized reasonably, and if the expected realization method cannot be reliably determined, the straight-line method is used for amortization. The specific years are as follows:
project Amortization period (years)
Land use rights 50
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Mining rights 6-10
forest land acquisition 8.75
royalties 5
Computer Software 3
For intangible assets with definite service life, if there is evidence of impairment on the balance sheet date, the corresponding impairment provision shall be made according to the
difference between the book value and the recoverable amount; The intangible assets of the Company are tested for impairment annually, regardless of whether there is an indication of
impairment.
(2) Accounting policy for internal research and development
expenditure ÿApplicable ÿNot applicable
Expenses for the research phase of internal research and development projects are included in the current profit and loss when incurred. Internal research and development project development stage
Expenditure for the segment, and the following conditions are met at the same time, it is recognized as an intangible asset: (1) The intangible asset is completed so that it can be used or
The sale is technically feasible; (2) there is an intention to complete the intangible asset and use or sell it; (3) the intangible asset
The way in which economic benefits are generated, including the existence of a market for products produced using the intangible asset or the existence of the intangible asset itself.
In the market, intangible assets will be used internally and can prove their usefulness; (4) There are sufficient technical, financial resources and other
Resource support to complete the development of the intangible asset and have the ability to use or sell the intangible asset; (5) Attributable to the intangible asset
Expenditures for the development phase of an asset can be measured reliably.
Expenditures for the company's internal research and development projects, which are divided into research stage expenditures and development stage expenditures.
1) The research phase of an internal research and development project refers to the ingenuity undertaken to acquire or understand new scientific or technical knowledge
planned investigation. The company's expenditures in the research stage shall be included in the current profit and loss when incurred.
2) The development stage of an internal research and development project refers to the application of research results to a
A plan or design to produce new or substantially improved materials, devices, products, etc.
The company's expenditures in the development stage are only recognized as intangible assets when the following conditions are met at the same time:
(1) It is technically feasible to complete the intangible asset so that it can be used or sold;
(2) Have the intention to complete the intangible asset and use or sell it;
(3) The way in which the intangible assets generate economic benefits, including the existence of a market for the products produced by using the intangible assets
Or the intangible asset itself exists in the market, and the intangible asset will be used internally, which can prove its usefulness;
(4) There are sufficient technical, financial and other resource support to complete the development of the intangible asset and have the ability to make
use or sell the intangible asset;
(5) Expenses attributable to the development stage of the intangible assets can be measured reliably.
Expenditure in the development stage, if the above conditions are not met, shall be included in the current profit and loss when incurred.
30. Impairment of long-term assets
31. Long-term Deferred Expenses
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Long-term deferred expenses are recorded according to the actual amount incurred, and are amortized evenly in stages within the benefit period or the specified period. if long-term
If the amortized expense item cannot benefit the future accounting period, the amortized value of the item that has not been amortized will be transferred to the current profit and loss.
The company's long-term deferred expenses include community housing renovation, leased office space decoration fees, forest land rent, etc., long-term deferred expenses
Expenses are amortized on a straight-line basis over the expected benefit
period. 32. Contract liabilities
(1). Recognition method of contract liabilities
The company lists the obligation to transfer goods to customers that has received or receivable consideration from customers as contract liabilities.
The amount received prior to the transfer of the promised goods.
The Company offsets the contract assets and contract liabilities under the same contract and presents them in net amount. 33. Employee compensation
(1). Accounting treatment of short-term compensation ÿApplicable ÿNot applicable
Employee remuneration refers to the various other than share-based payment given by the company for obtaining the services provided by the employees or for the termination of the labor relationship.
any form of remuneration or compensation. Employee compensation includes short-term compensation, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided
by the Company to employees' spouses, children, dependants, survivors of deceased employees and other beneficiaries are also employee compensation.
Short-term remuneration, the company recognizes the actual short-term remuneration as a liability during the accounting period when the employee provides services, and
Included in the current profit and loss or related asset costs. Among them, non-monetary benefits are measured at fair value. (2) Accounting treatment of post-
employment benefits ÿApplicable ÿNot applicable (3). Accounting treatment of dismissal benefits ÿApplicable ÿNot applicable
The company terminates the labor relationship with the employee before the expiration of the labor contract, or proposes compensation to encourage the employee to voluntarily accept the layoff.
When the company cannot unilaterally withdraw the labor relationship termination plan or layoff proposal, and confirms and involves the payment of dismissal benefits On the earlier date of the reorganization-
related costs and expenses, the liabilities arising from the compensation for the termination of the labor relationship with the employees shall be recognized, and shall be included in the current profit and loss. (4)
Accounting treatment of other long-term employee benefits
The employees of the company participate in the basic social pension insurance organized and implemented by the local labor and social security department. The company takes
The payment base and proportion of the local social basic endowment insurance shall be paid to the local social basic endowment insurance agency on a monthly basis
pension insurance premiums. After the employees retire, the local labor and social security department is responsible for paying the basic social pension to the retired employees.
gold. During the accounting period when the employees provide services, the company recognizes the amount to be paid according to the above social security regulations as liabilities,
And included in the current profit and loss or related asset costs. 34.
Lease liabilities ÿApplicable ÿNot applicable 35. Estimated liabilities
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1. Obligations arising from external guarantees, litigation matters, product quality guarantees, loss contracts and other contingent matters have become the current obligations of the company.
The performance of such obligations is likely to cause economic benefits to flow out of the company, and the amount of such obligations can be reliable. When measuring, the company recognizes the
obligation as an estimated liability. 2. The company initially measures the estimated liabilities according to the best estimate of the expenditure required to perform the relevant current obligations, and
On the balance sheet date, the book value of the estimated liabilities shall be reviewed. 36. Share-
based payment ÿApplicable ÿNot applicable 1. Types of share-based payment
Includes equity-settled share-based payments and cash-settled share-based payments. 2. Determination of the fair
value of equity instruments
(1) If there is an active market, it shall be determined according to the quotation in the active market. (2) If
there is no active market, use valuation techniques, including reference to the prices used in recent market transactions between parties who are familiar with the situation and willing to
trade, reference to the current fair value and cash flow of other financial instruments that are substantially the same Discount method and option pricing model, etc.
3. The basis for confirming the best estimate of vesting equity instruments is
estimated based on the latest obtained follow-up information such as changes in the number of vesting employees. 4.
Relevant accounting treatment of implementation, modification and termination of share-based payment plan
(1) Equity-settled share-based payment
Equity-settled share-based payments that are exercisable immediately after grant in exchange for employee services shall be paid in accordance with the equity instruments on the grant date.
The fair value is included in the relevant costs or expenses, and the capital reserve is adjusted accordingly. Equity-settled share-based payment that can be exercised in exchange for employee
services after the completion of the service during the waiting period or when the specified performance conditions are met, on each balance sheet date during the waiting period, the best estimate of
the number of exercisable equity instruments is Based on the fair value of the equity instruments on the grant date, the services obtained in the current period are included in the relevant costs or
expenses, and the capital reserve is adjusted accordingly.
Equity-settled share-based payment in exchange for services of other parties, if the fair value of services of other parties can be measured reliably, it shall be measured according to the
fair value of services of other parties on the date of acquisition; if the fair value of services of other parties cannot be reliably measured, but the value of equity instruments If the fair value can be reliably
measured, it shall be measured according to the fair value of the equity instrument on the date of service acquisition, included in the relevant costs or expenses, and the owner's equity shall be
increased accordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payments that are exercisable immediately after grant in exchange for employee services shall be borne by the Company on the date of grant.
The fair value of the bonds is included in the relevant costs or expenses, and the liabilities are increased accordingly. The cash-settled share-based payment that can be exercised in exchange for
employee services after the completion of the service during the waiting period or meeting the specified performance conditions shall be based on the best estimate of the vesting situation on each
balance sheet date during the waiting period. According to the fair value of the liabilities assumed by the company, the services obtained in the current period are included in the relevant costs or
expenses and the corresponding liabilities.
(3) Amendment and termination of share-based payment plan
If the modification increases the fair value of the equity instruments granted, the company shall calculate the fair value of the equity instruments according to the increase in the fair value of the equity instruments.
Recognize the increase in services obtained accordingly; if the modification increases the number of equity instruments granted, the company will correspondingly recognize the fair value of the
increased equity instruments as the increase in services obtained; if the modification is feasible in a way that is beneficial to employees The company shall consider the modified exercising conditions
when dealing with the exercising conditions.
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If the modification reduces the fair value of the equity instruments granted, the company continues to recognize the amount of services obtained based on the fair value of the equity instruments on
the grant date, regardless of the reduction in the fair value of the equity instruments; if the modification reduces the granted equity The number of instruments, the company will reduce the part as the
cancellation of the granted equity instruments;
The exercising conditions are modified in a way that is beneficial to the employees, and the modified exercising conditions are not considered when dealing with the exercising conditions.
If the company cancels the granted equity instruments or settles the granted equity instruments during the waiting period (except those cancelled due to failure to meet the vesting conditions), the
cancellation or settlement will be treated as accelerated vesting, and the original vesting will be confirmed immediately. The amount confirmed during the remaining waiting period. 37. Other financial instruments
such as preference shares and perpetual bonds ÿApplicable ÿNot applicable 38. Revenue (1). Accounting policies adopted for revenue recognition and measurement ÿApplicable ÿNot applicable
1. Recognition of income
When the company has fulfilled the performance obligations in the contract, that is, revenue is recognized when the customer obtains control over the relevant commodities. get phase
The right to control a commodity refers to the ability to direct the use of the commodity and obtain almost all economic benefits from it.
2. According to the relevant provisions of the revenue standard, the company judges that the nature of the relevant performance obligations is "performance performed within a certain period of time".
Obligations” or “performance obligations performed at a certain point in time”, respectively, the revenue is recognized according to the following principles.
(1) The company fulfills its performance obligations within a certain period of time if it meets one of the following conditions:
1) When the company performs the contract, the customer obtains and consumes the economic benefits brought by the company's performance.
2) The client can control the assets under construction during the performance of the company's contract.
3) The assets produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to
Accumulates the collection of the performance portion completed to date.
For the performance obligations performed within a certain period of time, the company recognizes the revenue according to the performance progress within the period of time, but,
Except where the progress of performance cannot be reasonably determined. The company considers the nature of the commodity and uses the output method or the input method to determine the appropriate
progress of performance. (2) For performance obligations that are not performed within a certain period of time, but are performed at a certain point in time, the Company shall
The company recognizes revenue when the customer obtains control over the relevant commodities.
When judging whether the customer has obtained control of the commodity, the company considers the following indicators:
1) The company has the current right to receive payment for the product, that is, the customer has the current payment obligation for the product.
2) The company has transferred the legal ownership of the product to the customer, that is, the customer already has the legal ownership of the product. 3) The company has transferred
the commodity in kind to the customer, that is, the customer has the commodity in physical possession. 4) The company has transferred the main risks and rewards of ownership of the
product to the customer, that is, the customer has obtained the ownership of the product.
the main risks and rewards of the rights.
5) The customer has accepted the item. 6) Other
indications that the customer has obtained control of the goods. 3. Measurement of revenue The
Company shall measure revenue according to the transaction price allocated to each individual
performance obligation. When determining the transaction price, the Company
The company considers the impact of factors such as variable consideration, significant financing components in the contract, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
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The company determines the best estimate of variable consideration based on the expected value or the most likely amount, but includes transactions with variable consideration
The transaction price should not exceed the amount that is unlikely to have a significant reversal of the accumulated recognized revenue when the relevant uncertainty is eliminated.
When assessing whether it is highly probable that a significant reversal of the accumulated recognized revenue will not occur, an enterprise shall also consider the possibility and proportion of the reversal
of revenue.
(2) Significant financing components
If there is a significant financing component in the contract, the company shall determine the transaction price based on the amount payable in cash assuming the customer obtains control over
the commodity. The difference between the transaction price and the contract consideration shall be calculated in real terms during the contract period.
Amortization using the international interest rate method.
(3) Non-cash consideration
If the customer pays non-cash consideration, the company determines the transaction price according to the fair value of the non-cash consideration. If the fair value of the non-cash consideration
cannot be reasonably estimated, the company indirectly determines the transaction price with reference to the stand-alone selling price of the goods it undertakes to transfer to the customer
grid.
(4) Consideration payable to customers
In the case of consideration payable to customers, the consideration payable shall be written off against the transaction price, and the current revenue shall be written off at the later of the time
when the relevant income is recognized and when the customer consideration is paid (or promised to be paid), but the consideration payable to the customer is Except for obtaining other clearly
distinguishable goods.
If the consideration payable by the enterprise to the customer is to obtain other clearly distinguishable goods from the customer, the purchased goods shall be confirmed in a manner consistent
with other purchases of the enterprise. If the consideration payable by the enterprise to the customer exceeds the fair value of the clearly distinguishable commodities obtained from the customer, the
excess amount shall be offset against the transaction price. If the fair value of clearly distinguishable commodities obtained from customers cannot be reasonably estimated, the enterprise shall offset the
full amount of the consideration payable to the customer against the transaction price.
4. The company's specific policies for revenue recognition The
revenue recognition time point for domestic sales is when the customer signs for receipt; the revenue recognition time point for foreign sales is when the goods have been declared offshore and
Revenue is recognized when the company obtains the invoice, packing list and bill of lading corresponding to the transaction.
(2) Differences in accounting policies for revenue recognition due to different business models for similar businesses
39. Contract costs
Contract costs are divided into contract performance costs and contract acquisition costs. If the
cost incurred by the company for performing the contract meets the following conditions, it is recognized as an asset as a contract performance cost: 1. The cost is directly related to a current or
expected contract, including direct labor, direct materials, and manufacturing expenses.
(or similar), costs expressly borne by the customer and other costs incurred solely as a result of the contract;
2. The cost increases the company's resources for fulfilling performance obligations in the future; 3. The cost
is expected to be recovered. If the incremental cost incurred by the Company for obtaining the contract is
expected to be recovered, it shall be recognized as an asset as the cost of obtaining the contract;
However, if the amortization of the asset does not exceed one year, it can be included in the current profit and loss when it occurs.
Assets related to contract costs are amortised on the same basis as revenue from goods or services related to the asset is recognised. If the book value of assets related to contract
costs is higher than the difference between the following two items, the company will calculate the excess part.
Make provision for impairment and recognize it as asset impairment loss:
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1. The remaining consideration expected to be obtained for the transfer of goods or services related to the asset;
2. Estimate the cost to be incurred for the transfer of the relevant goods or services. If the above asset
impairment provision is subsequently reversed, the book value of the asset after the reversal shall not exceed the assumption that no impairment provision shall be made.
the book value of the asset on the date of reversal. 40. Government grants
1. Government grants include government grants related to assets and government grants related to income.
2. If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable; if the government subsidy is a non-monetary asset, the
Measured at fair value. If the fair value cannot be obtained reliably, it is measured at the nominal amount.
3. The government subsidy adopts the gross method:
(1) The government grants related to assets are recognized as deferred income, and are reasonably and systematically paid within the useful life of the relevant assets.
The method is included in profit or loss in installments. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the
The unallocated balance of related deferred income is transferred to the current profit and loss of asset disposal.
(2) Government subsidies related to income, which are used to compensate relevant expenses or losses in subsequent periods, are recognized as deferred income,
During the period of confirming the relevant expenses, it shall be included in the current profit and loss; if it is used to compensate the relevant expenses or losses incurred, it shall be directly included in the
current profit and loss.
4. For government subsidies that include both asset-related parts and income-related parts, distinguish different parts and carry out
Accounting treatment; if it is difficult to distinguish, it is generally classified as government grants related to income.
5. The company will include government subsidies related to the company's daily activities into other income according to the substance of economic business; government subsidies not
related to the company's daily activities should be included in non-operating income and expenditure. 6. The company will allocate the discounted interest on the policy-based preferential loan to
the lending bank and the finance will be subsidized according to the finance.
The interest funds are directly allocated to the company in two cases:
(1) The finance will allocate the discounted funds to the loan bank, and the loan bank will provide the company with a loan at a policy-oriented preferential interest rate
, the company chooses to conduct accounting treatment according to the following methods:
The actual received loan amount is taken as the entry value of the loan, and it is calculated based on the loan principal and the policy preferential interest rate.
about borrowing costs.
(2) If the finance directly transfers the discounted funds to the company, the company will offset the relevant borrowing costs with the corresponding discounted interest.
41. Deferred tax assets/deferred tax liabilities
1. According to the difference between the book value of assets and liabilities and their tax bases (items not recognized as assets and liabilities)
If the tax base can be determined according to the tax law, the difference between the tax base and its book value) shall be recovered as expected
Deferred income tax assets or deferred income tax liabilities are recognized in the calculation of the applicable tax rate during the period in which the asset or the liability is settled.
2. Recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be obtained to offset deductible temporary differences.
On the balance sheet date, there is conclusive evidence that it is probable that sufficient taxable income will be obtained in the future to offset the deductible temporary income.
If there is a timing difference, the deferred tax assets that have not been recognized in the previous accounting period are recognized.
3. On the balance sheet date, review the book value of deferred income tax assets.
If sufficient taxable income is obtained to offset the benefits of deferred tax assets, the book value of deferred tax assets will be written down.
When it is probable that sufficient taxable income will be obtained, the written-down amount is reversed.
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4. The current income tax and deferred income tax of the company are included in the current profit and loss as income tax expenses or gains, but do not include the following
Income tax arising from circumstances: (1) business mergers; (2) transactions or events directly recognized in owners' equity. 42. Leasing
(1). Accounting treatment of operating leases
When the company is the lessee, on the start date of the lease period, except for short-term leases and low-value asset leases that choose to adopt simplified treatment
Except for leases, right-of-use assets and lease liabilities are recognized for leases. After the commencement date of the lease period, the Company adopts the cost model for subsequent measurement of
the right-of-use asset. With reference to the relevant depreciation provisions of "Accounting Standards for Business Enterprises No. 4 - Fixed Assets", depreciation is accrued for right-of-use assets. If the
lessee can reasonably determine that it will obtain the ownership of the leased asset at the expiration of the lease term, it shall accrue depreciation over the remaining useful life of the leased asset. If it
cannot be reasonably determined that the ownership of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of the lease term and the
remaining useful life of the leased asset. In accordance with the provisions of "Accounting Standards for Business Enterprises No. 8 - Impairment of Assets", the company determines whether the right-of-
use asset is impaired, and performs accounting treatment on the identified impairment losses.
reason.
As the lessor, the Company adopts the straight-line method to recognize lease receipts from operating leases as rental income during each period of the lease term. Capitalize the initial direct
expenses related to operating leases, amortize them on the same basis as rental income recognition during the lease term, and include them in the current profit and loss by installments.
(2). Accounting treatment method of financial lease ÿApplicable
ÿNot applicable
When the company is the lessee, on the lease start date, the lease liability is calculated at a fixed periodic interest rate during the lease term
The interest expense for each period shall be included in the current profit and loss. According to the "Accounting Standards for Business Enterprises No. 17 - Borrowing Expenses" and other standards
that should be included in the cost of relevant assets, such provisions shall apply. For short-term leases and low-value asset leases, choose not to recognize right-of-use assets and lease liabilities, and
include the lease payments for short-term leases and low-value asset leases in the cost of relevant assets or current profits and losses on a straight-line basis over the lease term.
If the company acts as the lessor, on the commencement date of the lease period, the finance lease shall be recognized for the financial lease receivables, and the recognition shall be terminated.
Finance lease assets, and calculate and recognize interest income in each period of the lease period according to a fixed periodic interest rate.
(3) Determination method and accounting treatment method of lease under the new lease standard
43. Other significant accounting policies and accounting estimates
44. Changes in significant accounting policies and accounting estimates
(1). Changes in important accounting policies
Remarks (names and
amounts of report items

The content and reasons for changes in accounting policies approval procedure
that are significantly
affected)
The Company will implement the relevant provisions of Accounting Standards for Business
The third meeting of the eighth board of directors and the ninth
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) from January 1, 2021, and adjust the right-of-
meeting of the eighth board of supervisors held by the company
use assets, lease liabilities, retained earnings at the beginning of the year and financial statements
according to the cumulative impact. That on April 22, 2022
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The amount of other related items will not be adjusted for the comparable period information
Consideration by.
all. The accounting policy changes have implications for corporate consolidation and corporate finance
Reporting has no effect.
The company will implement the "Accounting Standards for Business Enterprises" from January 1, 2021
Interpretation No. 14 (Cai Kuai [2021] No. 1)

Already company on April 22, 2022
It is stipulated that the retained earnings at the beginning of the period should be adjusted according to the cumulative impact
The third meeting of the eighth board of directors held
and other related items in the financial statements, compared to the comparable period
The Ninth Meeting of the Eighth Supervisory Committee
Information is not adjusted. The Accounting Policy Changes on Corporate Consolidation
Consideration by.
and the company's financial statements.
On December 31, 2021, the Ministry of Finance issued the "Enterprise Meeting
Accounting Standards Interpretation No. 15 (Cai Kuai [2021] 35
No., hereinafter referred to as Interpretation No. 15), in Interpretation No. 15 Already company on April 22, 2022
The relevant provisions of "Related Presentation of Centralized Management of Funds", The third meeting of the eighth board of directors held
Implemented from the date of publication. Explain that the pre-release financial statements are not The Ninth Meeting of the Eighth Supervisory Committee
If presented in accordance with the above provisions, the comparative period shall be compared in accordance with this Interpretation Consideration by.
The financial statement data in between are adjusted accordingly. the accounting
The policy change has no impact on the company's consolidation and the company's financial statements.
other instructions
For details, please refer to the "Announcement of Fangda Carbon on Changes in Accounting Policies" disclosed on the same day, announcement number: 2022-024
(2). Changes in significant accounting estimates
(3). The first implementation of the new lease standards from 2021 to adjust the financial statements at the beginning of the year for the first implementation
(4) Explanation on retrospective adjustment of previous comparative data when the new lease standards are implemented for the first time from 2021
45. Others
6. Tax
1. Main taxes and tax rates
Main taxes and tax rates
Taxes Tax basis sales tax rate
Value Added of goods or provision of taxable services 1%ÿ3%ÿ6%ÿ9%ÿ13%

Tax Consumption Tax
business tax
Urban maintenance and Actual turnover tax paid Taxable 1.00ÿ7.00

construction tax, corporate income Actual turnover tax 15.00ÿ25.00
income tax, education fee paid Real estate rental income 5.00
and additional property 70% of the original value of 12.00
tax, property tax, land the fixed assets of self-owned real estate If the land use 1.20
use tax area is levied on an ad valorem basis, it 3.00-10.50 yuan/square meter
is excluded from product sales revenue

Resource tax 5.00
70% after shipping
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If there are taxpayers with different corporate income tax rates, an explanation of the disclosure
2. Tax benefits
1. According to the Ministry of Finance and the State Administration of Taxation, the General Administration of
The Caishui [2011] No. 115 stipulates that graphite special-shaped parts, graphite blocks, graphite powder and graphite produced from waste graphite are used as raw materials.
For carburizing agent, the policy of refunding 50% of the value-added tax upon collection is implemented. In this period, the company implements the policy of refunding 50% of the value-added tax immediately upon collection.
policy.
2. According to the Ministry of Finance and the State Administration of Taxation "Notice on Specific Policy Issues in Resource Tax Reform", Caishui [2016]
Article 3(2) of No. 54, for the depletion period when the actual mining period is more than 15 years (the remaining service period shall not exceed 5 years)
Mineral resources mined by mines are subject to a 30% reduction in resource tax. Fushun Laihe Mining Co., Ltd., a subsidiary of the company, has
Starting from the 1st, the policy of 30% reduction of resource tax will be enjoyed.
3. According to the relevant tax policies of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation on the in-depth implementation of the Western Development Strategy
Notice of Issues, Caishui [2011] No. 58, from January 1, 2011 to December 31, 2021,
Enterprises in encouraged industries in the district will be levied corporate income tax at a reduced rate of 15%. At present, the company and its subsidiary Chengdu Carbon Co., Ltd.
The main business of the company conforms to the industrial projects stipulated in the "Catalogue of Encouraged Industries in the Western Region", and the main business income accounts for the company's
If the total income is more than 70%, the company can declare and pay tax at the corporate income tax rate of 15%. The company's operating business in 2021 did not occur
Changed, the company and its subsidiary Chengdu Carbon Co., Ltd. shall declare and pay taxes at the corporate income tax rate of 15%.
3. Other
ÿApplicable ÿNot Applicable
7. Notes to Consolidated Financial Statements
1. Monetary funds
Unit: Currency: RMB
Project Closing balance Opening
cash bank deposits 73,379.04 balance 80,299.64
Total other monetary 7,304,671,809.66 5,260,695,825.34
funds Including: 451,601,569.63 529,586,584.19
Deposited overseas 7,756,346,758.33 5,790,362,709.17
826,330.68 682,077.82
total payment
other instructions
The restricted funds in the monetary funds at the end of the period include deposits of RMB 334,821,778.94 such as bills and letters of guarantee.
At the end of the period, there was no amount deposited overseas and the repatriation of funds was restricted.
2. Trading financial assets
Unit: Currency: RMB
Items Closing balance Opening
are measured at fair value with changes included in the current period 639,019,115.47 balance 4,051,987,498.10
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Profit and loss of financial assets
in:
Equity instrument investment 639,019,115.47 980,574,457.00
in other - total wealth management products and structured 3,071,413,041.10
deposits 639,019,115.47 4,051,987,498.10
other instructions:
3. Derivative financial assets
4. Notes receivable
(1). List of Notes Receivable by Category
Unit: Currency: RMB
Project Ending balance Opening Balance
Bank Acceptance Notes
Total Commercial 54,211,233.26
Acceptance Notes 54,211,233.26
(2). Notes receivable pledged by the company at the end of the period
(3). Notes receivable that have been endorsed or discounted by the company at the end of the period and are not yet due on the balance sheet date
Unit: Currency: RMB
Project End-of-period derecognition amount Amount not terminated at the end of the period
Bank Acceptance Notes
Total Commercial 150,000.00
Acceptance Notes 150,000.00
(4). At the end of the period, the company transferred the bills to accounts receivable due to the failure of the drawer to perform
(5). Disclosed by classification by bad debt provision method
Unit: Currency: RMB
Ending balance Opening balance
Book balance bad debt

Book balance bad debt provision
Amount
account
count
category Book face
carry Compare carry
Proportion value Money Money value
amount amount Compare example Compare
(%) Forehead Forehead value

example (%) example
(%) (%)
per item
bad debts
prepare
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By combination
bad debts
54,478,176.33 100.00 266,943.07 0.49 54,211,233.26
prepare
in:
commercial acceptance
54,478,176.33 100.00 266,943.07 0.49 54,211,233.26
A total of
54,478,176.33 bills of exchange / 266,943.07 / 54,211,233.26 / /
Provision for bad debts is made on a single item basis:
Provision for bad debts by combination:
If the bad debt provision is made according to the general model of expected credit loss, please refer to the disclosure of other receivables:
(6). The situation of bad debt provision
Unit: Currency: RMB
The amount of changes in the current
category Opening Balance period is recovered or transferred Ending balance

accrual write off or write off
times
Provision for bad debts is made on a single item basis
bill receivable
Calculated by combination of credit risk characteristics

266,943.07 266,943.07
The total amount of notes receivable for which bad debt
provision has been made is 266,943.07. Among them, the amount of bad debt provision recovered 266,943.07
or reversed in the current period is important:
(7) Notes receivable actually written off in the current period
other instructions
5. Accounts receivable
(1). Disclosure by age
Unit: Currency: RMB
aging Closing book balance
Within 1 year
Of which: sub-items within 1 year
Within 1 year Subtotal 527,494,857.49
1 to 2 years 2 to 3 22,500,424.58
years Over 3 years 13,340,381.81
99,533,595.05
total 662,869,258.93
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(2). Disclosure by classification by bad debt provision method
Unit: Currency: RMB
Ending balance Provision for bad debts
Book balance bad debt provision Book balance in the opening balance
category accrual Book accrual Book

Proportion Proportion
amount amount Proportion value amount amount Proportion value
(%) (%)
(%) (%)
per item
bad debts 84,902,109.16 16.98 84,902,109.16 100.00

84,739,921.91 12.78 84,739,921.91 100.00
prepare
in:
Of which: single
item amount
large and single

31,296,289.33 6.26 31,296,289.33 100.00
Provision for bad debts 31,296,289.33 4.72 31,296,289.33 100.00
should be prepared
Collection
single amount
Although not significant
but single
53,605,819.83 10.72 53,605,819.83 100.00
bad debts 53,443,632.58 8.06 53,443,632.58 100.00
Prepared receivables
Accounts
By combination
bad debts 578,129,337.02 87.22 23,697,772.95 4.10 554,431,564.07 415,178,512.13 83.02 22,302,137.84 5.37
392,876,374.29
prepare
in:
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2021 Annual Report
accounts receivable
578,129,337.02 87.22 23,697,772.95 4.10 554,431,564.07 415,178,512.13 83.02 22,302,137.84 5.37 392,876,374.29
Combination A
Total 662,869,258.93 100.00 108,437,694.86 554,431,564.07 500,080,621.29 100.00 107,204,247.00 392,876,374.29
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Unit: Currency: RMB
Percentage of
name
provision for bad debts in book balance at the end of the period (%) Reasons for provision
A single significant amount is combined
Provision for bad debts 31,296,289.33 31,296,289.33 100.00

Not expected to be recovered
accounts receivable
Although the single amount is not significant
However, the single-item allowance for bad debts 53,443,632.58 53,443,632.58 100.00
Not expected to be recovered
Prepared accounts receivable
The 84,739,921.91 84,739,921.91 100.00
description of the total provision for bad debts by individual items:
Portfolio accrual item: accounts receivable portfolio A
Unit: Currency: RMB
Ending balance
name
Accounts bad debt Provision ratio (%)
receivable within 1 year 527,494,857.49 1 to 2 years

22,500,424.58 2 to 3 years provision 2,584,724.81 0.49
13,340,381.81 More than 3 years 14,793,673.14 Total 578,129,337.02

Recognition standard and 2,304,043.49 10.24
description of bad debt provision by combination: 4,709,154.78 35.30
14,099,849.87 95.31
23,697,772.95 4.10
(3). The situation of bad debt provision
Unit: Currency: RMB
Amount of change in the current period
That
resell
category Opening Balance retract or turn he Ending balance
accrual or nuclear
times Change
pin
verb: move
A single significant amount
And single-item provision for bad

31,296,289.33 31,296,289.33
accounts receivable
Accounts
Although the single amount is not
Major single item provision

53,605,819.83 162,187.25 53,443,632.58
Bad debt provision receivable
Accounts
Accounts receivable portfolio A 22,302,137.84 1,395,635.11 23,697,772.95
123 / 207
2021 Annual Report
Total 107,204,247.00 1,395,635.11 162,187.25 108,437,694.86
Among them, the amount of bad debt provision recovered or reversed in the current period is important:
(4) Accounts receivable actually written off in the current period
(5) The accounts receivable of the top five ending balances collected by the arrears
Unit: Currency: RMB
Accounts receivable ending balance total

company name Ending balance Ending balance of bad debt provision
Proportion (%)
1 27,851,926.60 4.20 136,474.44
2 18,248,012.65 2.75 18,248,012.65
3 15,185,891.82 2.29 74,410.87
4 14,571,013.42 2.20 137,207.11
5 14,509,712.22 2.19 71,097.59
total 90,366,556.71 13.63 18,667,202.66
(6). Accounts receivable derecognized due to transfer of financial assets
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
other instructions:
6. Receivables financing
Unit: Currency: RMB
Project Closing balance Opening
Bank Acceptance Bills Total 1,199,715,024.93 balance 1,212,218,575.86
Commercial Acceptance Bills 10,004,493.79
1,199,715,024.93 Increase/ 1,222,223,069.65
decrease and fair value changes of receivables financing during the current period:
other instructions:
(1) Pledged receivables financing at the end of the period
Unit: Currency: RMB
project Amount pledged at the end of the period Remark
bank acceptance bill 221,049,532.57
total 221,049,532.57
(2) Receivable financing that has been endorsed or discounted at the end of the period but not yet due
124 / 207
2021 Annual Report
Unit: Currency: RMB
project Amount to be derecognized at the end of the period Remarks of the amount to be derecognized at the end of the period
bank acceptance bill 495,259,408.75 163,013,437.02
commercial acceptance bill
total 495,259,408.75 163,013,437.02
At the end of the period, there was no receivables financing that was transferred to accounts receivable due to the drawer's failure to perform the contract.
7. Advance payment
(1). Prepayments are listed by aging
Unit: Yuan Currency: RMB Beginning
Ending balance Balance

aging
Amount Proportion Amount Proportion
within 1 year 158,799,762.36 1 to 2 years (%) 99.37 139,193,365.35 (%) 99.34
184,344.31 2 to 3 years 36,627.30 More than 3

years 787,007.03 0.12 144,107.09 76,695.78 0.10
Total 159,807,741.00 0.02 710,311.25 0.05
0.49 140,124,479.47 0.51
100.00 Explanation of the 100.00
reasons for not timely settlement of prepayments with an age of more than 1 year and an important amount:
none
(2) Prepayments of the top five ending balances collected by prepayment objects
Total amount of closing balance of prepayments

company name Ending balance
proportion(%)
1 23,888,069.44 14.95
2 20,864,648.06 13.06
3 13,691,447.10 8.57
4 10,910,821.78 6.83
5 10,470,444.75 6.55
total 79,825,431.13 49.96
other instructions
8. Other receivables
List of items
Unit: Currency: RMB
project Ending balance Opening Balance
Interest receivable
Total other 167,078,225.63 189,149,768.21
receivables 167,078,225.63 189,149,768.21
125 / 207
2021 Annual Report
other instructions:
Interest receivable
(1). Classification of interest receivable
(2). Important overdue interest
(3). Provision for bad debts
other instructions:
(1). Dividends receivable
(2). Important dividends receivable aged over 1 year
other instructions:
Other receivables
(1). Disclosure by age
Unit: Currency: RMB
Within 1 year
Within 1 year Subtotal 32,549,640.80
1 to 2 years 2 to 3 78,216,337.35
years Over 3 years 53,914,196.21
138,130,515.54
total 302,810,689.90
(2) Classification by nature of payment
Unit: Currency: RMB
The nature of Closing book balance Opening book balance
the payment 267,248,532.92 262,984,876.40
deposit 12,116,460.24 12,142,213.82
126 / 207
2021 Annual Report
reserve 2,937,277.21 4,713,855.13
other 20,508,419.53 21,864,711.86
total 302,810,689.90 301,705,657.21
Unit: Currency: RMB
The first stage Expectations for the Expectation letter
entire duration of the second stage for the entire duration of the third stage
bad debt provision Expected credit losses total
credit loss (not incurred With loss (occurred letter
over the next 12 months
credit impairment) use impairment)
More than January 1, 2021

9,251,565.90 103,304,323.10 112,555,889.00
Forehead
amount in this issue
-- transfer to the second stage
-- transfer to the third stage
-- go back to the second stage
-- go back to the first stage
This period's accrual is 142,306.12 25,603,028.01 25,745,334.13
reversed in the current period 63,000.00 63,000.00
and written off in the current period
Write-off of other 2,505,758.86 2,505,758.86
changes in the current period
December 31, 2021

6,888,113.16 128,844,351.11 135,732,464.27
Explanation of the significant changes in the book balance of other receivables with changes in the loss provision in the current period:
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:
(4) The situation of bad debt provision
Unit: Currency: RMB
Amount of change in the current period
That
Category Beginning Balance retract or turn he Ending balance

accrual write off or write off
times Change
verb: move
First
9,251,565.90 142,306.12 2,505,758.86 6,888,113.16
stage
two
stage
third
103,304,323.10 25,603,028.01 63,000.00 128,844,351.11
stage
127 / 207
2021 Annual Report
Total 112,555,889.00 25,745,334.13 63,000.00 2,505,758.86 Among them, the amount of bad debt provision reversed 135,732,464.27
or recovered in the current period is important:
(5) Other receivables actually written off in the current period
Unit: Currency: RMB
Other Write-off amount
receivables actually written off by the project 2,505,758.86
Among them, the write-off of other important receivables:
Unit: Currency: RMB
Other receivables nuclear fulfillment Is the payment made by

company name Reason for write-off amount
nature Whether the program link transaction is generated or not
1
Current account 2,505,758.86 Internal approval for cancellation of the counterparty company
Notes / 2,505,758.86 / / /
on write-off of total other receivables:
(6) Other receivables with top five ending balances collected by debtors
Unit: Currency: RMB
account for other receivables

money Ending balance of
company name Ending balance aging Total ending balance
nature bad debt provision
Proportion of numbers (%)
3,957,468.35 Within 1 year
67,609,280.25 1 year to 2 years

1 current payment
51,366,234.79 2 to 3 years
56.76 46,838,334.58
48,939,325.40 over 3 years
65,627.71 Within 1 year
72,319.15 1 year to 2 years

2 current payment
94,100.01 2 to 3 years
5.74 17,373,861.02
17,141,814.15 over 3 years
3 12,000,000.00 over 3 years

current payment 3.96 12,000,000.00
4 10,068,251.18 over 3 years

current payment 3.32 10,068,251.18
1 year to 2 years
5 8,692,469.91
current (includes 2 2.87 869,246.99
total payment/ 220,006,890.90 years) / / 87,149,693.77
(7) Receivables involving government subsidies
(8) Other receivables derecognized due to transfer of financial assets
128 / 207
2021 Annual Report
(9) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
other instructions:
9. Inventory
(1). Inventory classification
Unit: Currency: RMB
Closing balance Opening Balance
inventory depreciation standard

Inventory impairment
project preparation/contract performance
Book balance book value book balance /Contract fulfillment Book value
Impairment of approximate cost
This impairment provision
Prepare
Raw materials 314,993,234.56 Products in 20,515.21 314,972,719.35 225,577,016.02 10,596,059.94 214,980,956.08
process 971,244,146.68 Inventory goods 9,874,695.70 961,369,450.98 813,521,811.04 8,862,222.36 804,659,588.68
244,824,077.35 Turnover materials 8,731,436.87 236,092,640.48 205,273,843.53 9,396,471.22 195,877,372.31
expendable
physical assets
contract performance
cost
packaging and
Low value and easy consumption 4,119,748.89 4,119,748.89 4,051,877.28 4,051,877.28

Goods
Outsourced processing
217,916,685.69 217,916,685.69 111,536,231.51 29,499.72 111,506,731.79
Material
issued goods 92,550.38 Engineering 92,550.38 1,469,679.57 1,469,679.57
construction
(completed 3,587,699.74 3,587,699.74 2,429,010.25 2,429,010.25

outstanding payment)
Total 1,756,778,143.29 18,626,647.78 1,738,151,495.51 1,363,859,469.20 28,884,253.24 1,334,975,215.96
(2) Provision for depreciation of inventories and provision for impairment of contract performance costs
Unit: Currency: RMB
Increase in this period Amount reduced for this period
project Opening Balance That That Ending balance

accrual reversal or resell
he he
raw materials 10,596,059.94 10,575,544.73 20,515.21
in-process 8,862,222.36 9,874,695.70 8,862,222.36 9,874,695.70
inventory 9,396,471.22 8,731,436.87 9,396,471.22 8,731,436.87
Reusable materials
consumable biological assets
129 / 207
2021 Annual Report
contract performance costs
Consigned processing materials 29,499.72 29,499.72
total 28,884,253.24 18,606,132.57 28,863,738.03 18,626,647.78
3. Inventory depreciation reserves
project Basis for accruing inventory depreciation reserves Reasons for writing off inventory depreciation reserves in the current
Raw materials, period The lower of cost and net realizable value Sold in the current period
self-made semi-finished products and in-process The lower of cost and net realizable value has been sold in the current period
inventory commodities, consigned processing The lower of cost and net realizable value has been sold in the current period
materials The lower of cost and net realizable value has been sold in the current period
(3) Explanation that the ending balance of inventory contains the capitalized amount of borrowing costs
(4) Explanation of the amortization amount of contract performance costs in the current period
other instructions
10. Contract assets
(1).Contract assets
Unit: Currency: RMB
item Closing balance Opening balance Book balance Impairment provision Book value Book value Impairment
eye provision Book value
quality
Save 16,332,227.77 80,027.92 16,252,199.85 10,718,317.21 50,376.09 10,667,941.12
Money
combine
16,332,227.77 80,027.92 16,252,199.85 10,718,317.21 50,376.09 10,667,941.12

count
(2) Amount and reasons for significant changes in book value during the reporting period
(3) Provision for impairment of contract assets in the current period
Unit: Currency: RMB
in the current period is the reason forThe

the provision
reason forfor
accrual
bad debts
in theofcurrent
contract
period
assets
and
29,651.83
the reversal of the write-off/write-off project
total 29,651.83 /
other instructions:
Contract asset portfolio A, contract assets for which bad debt provision is made according to aging analysis method
130 / 207
2021 Annual Report
name Ending balance
contract assets bad debt provision Provision ratio (%)
Total within 1 16,332,227.77 80,027.92 0.49
year 16,332,227.77 80,027.92 0.49
11. Assets held for sale
12. Non-current assets due within one year
Significant debt investments and other debt investments at the end of the period:
other instructions
none
13. Other current assets
Unit: Currency: RMB
contract acquisition cost
Receivable return cost
withholding tax 11,185,104.93 476,939.91
VAT payable at the end of the tax credit 21,752,864.04 41,363,872.53
total 32,937,968.97 41,840,812.44
other instructions
none
14. Debt investment
(1) Debt investment situation
(2). Important debt investments at the end of the period
(3). Withdrawal of provision for impairment
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly
other instructions
15. Other debt investments
(1) Other debt investments
(2). Other important debt investments at the end of the period
131 / 207
2021 Annual Report
(3). Withdrawal of provision for impairment
ÿApplicable ÿNot applicable The
amount of provision for impairment in the current period and the basis for assessing whether the credit risk of financial instruments has increased
significantly ÿApplicable ÿNot applicable Other explanations: ÿApplicable ÿNot applicable
16. Long-term receivables
(1).Long-term receivables
(2) Provision for bad debts
ÿApplicable ÿNot applicable The
amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial instruments has increased
significantly ÿApplicable ÿNot applicable
(3). Long-term receivables derecognized due to transfer of financial assets
(4) Amount of assets and liabilities formed by transferring long-term receivables and continuing to be involved
ÿApplicable ÿNot applicable Other
description ÿApplicable ÿNot
applicable None
Unit: Currency: RMB
Changes in other comprehensive
Investment gains income adjustments for the current Declaring

Opening Other Provision Ending Closing balance of
investee additional reduce and losses period cash
Balance changes for other balance impairment provision
investment investment recognized under dividends or
in equity impairment
the equity method profits
1. Subtotal of the joint
venture Fangda Sikemo 220,83

-
27,759 .06 187,689,98 8.69

(Jiangsu) Needle Coke Technology 7,555.6 8 33,175,
Co., Ltd. 326.05
-
220,83
27,759 .06 187,689,98 8.69
7,555.6 8 33,175,
326.05
2. Joint ventures
609,63
Baofang Carbon Material 6,238,0 615,869,19 9.42
1,196.1 8
Technology Co., Ltd. 03.24
-
1,468,3 13,314
Jiujiang Bank Co., Ltd. 97,699, 40,821, 1,537,738,0 70.95 425,684,011. 01
03,291. 88 ,954.9 9 758,69
523.30 000.00
9.22
- -
665,55 135,0
Jilin Chemical Fiber Co., Ltd. 510,651,18 8.89
5,833.3 3 15,05 18,570, 1,319,
3.87 174.08 416.49
Tianjin Haihe Fangda Industrial

36,000, 5,497,3 41,497,329. 43
Investment Fund Partnership
000.00 29.43
(Limited Partnership)
-
2,743,4 36,000, 135,0 90,864, 13,314 40,821, 2,705,755,7 88.69 425,684,011. 01
Subtotal
90,321. 000.00 15,05 681.89 ,954.9 2,078, 132 / 207 000.00
2021 Annual Report
39 3.87 9 115.71
-
2,964,3 135,0 13,314
36,000, 57,689, 40,821, 2,893,445,7 425,684,011.
total 27,877. 15,05 ,954.9 2,050,
000.00 355.84 000.00 77.38 01
07 3.87 9 356.65
18. Investment in other equity instruments
(1) Investment in other equity instruments
(2) Investment in non-trading equity instruments
other instructions:
19. Other non-current financial assets
Unit: Currency: RMB
Ningbo Meishan Bonded Port Area Fosun Weiying Equity Investment

313,345,688.48 221,941,349.89
Capital Fund Partnership (Limited Partnership)
Total 313,345,688.48 221,941,349.89
other instructions:
20. Investment real estate
Investment real estate measurement model
Not applicable
21. Fixed assets
item list
Unit: Currency: RMB
Fixed Assets 2,241,806,910.27 2,156,136,363.45
Fixed Assets Liquidation
total 2,241,806,910.27 2,156,136,363.45
other instructions:
fixed assets
(1).Fixed assets
Unit: Currency: RMB
Special equipment for project houses and buildings 1. Original book General equipment transport equipment total
value:
1. Opening balance 1,522,714,640.44 2,094,714,630.65 721,296,532.39 62,172,132.13 4,400,897,935.61
133 / 207
2021 Annual Report
2. This period increases the amount of money
100,941,512.96 283,650,224.83 78,735,936.85 14,446,919.01 477,774,593.65

Forehead
(1) Purchase (2) 2,479,541.16 5,350,490.10 13,898,546.69 10,641,525.42 32,370,103.37
Construction in progress
97,442,053.43 218,363,173.49 64,837,390.16 19,069.31 380,661,686.39
Cheng Zhuanjin
(3) Enterprise Cooperation
and increase
(4) Others 3. Reduction 1,019,918.37 59,936,561.24 3,786,324.28 64,742,803.89
in the current period

48,624,721.15 78,633,085.23 76,027,210.51 8,850,646.52 212,135,663.41
Forehead
(1) Dispose of or
2,012,491.82 31,811,555.87 11,284,406.62 8,850,646.52 53,959,100.83
Scrap (2)
transferred to
46,612,229.33 46,821,529.36 93,433,758.69
Construction (3)
Other Transfers
64,742,803.89 64,742,803.89
out
4. Closing balance of 1,575,031,432.25 2. Accumulated depreciation 2,299,731,770.25 724,005,258.73 67,768,404.62 4,666,536,865.85
1. Beginning balance 2. 565,192,468.81 1,272,390,367.02 342,837,041.36 46,720,167.67 2,227,140,044.86
Increase in current period

49,099,573.07 131,037,492.98 35,950,305.88 13,814,615.24 229,901,987.17
Forehead
(1) Provision (2) 49,099,573.07 131,037,492.98 35,817,871.25 9,986,676.40 225,941,613.70
Others 3. Reduction 132,434.63 3,827,938.84 3,960,373.47

2,968,243.72 32,190,752.77 8,210,359.12 6,478,398.91 49,847,754.52
Forehead
(1) Dispose of or
1,587,084.53 26,227,598.41 8,210,359.12 6,478,398.91 42,503,440.97
Scrap (2)
transferred to
820,030.00 2,563,910.08 3,383,940.08
Construction (3
Others transferred out 561,129.19 4. Closing balance 3,399,244.28 3,960,373.47
611,323,798.16 3. Impairment provision 1,371,237,107.23 370,576,988.12 54,056,384.00 2,407,194,277.51
1. Beginning balance 2. 17,621,527.30 17,621,527.30
Increase in current period

12,966,065.52 1,785.61 12,967,851.13
Forehead
(1) Provision (2) 831.61 1,785.61 2,617.22
Others 3. Reduction 12,965,233.91 12,965,233.91

12,965,233.91 88,466.45 13,053,700.36
Forehead
(1) Dispose of or
88,466.45 88,466.45
Retirement
(2) Others 4. Closing 12,965,233.91 12,965,233.91
balance 4. Book value 4,656,293.39 12,877,599.07 1,785.61 17,535,678.07
1. Book price at the end of the period

959,051,340.70 915,617,063.95 353,426,485.00 13,712,020.62 2,241,806,910.27
value
2. Book price at the beginning of the period
939,900,644.33 822,324,263.63 378,459,491.03 15,451,964.46 2,156,136,363.45

value
134 / 207
2021 Annual Report
(2). Temporarily idle fixed assets
Unit: Currency: RMB
prepare
project original book value Accumulated depreciation Impairment provision Book value
Note
Houses and buildings 37,491,678.66 25,729,537.72 4,656,293.39 7,105,847.55
Special equipment 382,990,431.44 244,746,865.98 21,813,254.05 116,430,311.41
General equipment 16,691,439.14 11,082,559.60 Transportation equipment 1,785.61 5,607,093.93
3,426,383.79 3,229,469.14 Total 196,914.65
440,599,933.03 284,788,432.44 26,471,333.05 129,340,167.54
(3) Fixed assets leased through financial leasing
(4) Fixed assets leased out through operating leases
(5) Fixed assets for which the certificate of title has not been obtained
Unit: Currency: RMB
Project Book value Reasons for not completing the title certificate
Fangda Carbon New Material Technology Co., Ltd.

147,466,877.78 The building before the transformation has not been processed.
Co., Ltd.
Fushun Fangda High-tech Materials Co., Ltd. 9,460,780.67 Not yet processed.
Chengdu Carbon Co., Ltd. 112,894,083.09 Newly-built workshops will be handled in a unified manner after other workshops are completed.
Fushun Laihe Mining Co., Ltd. 2,750,996.02 Hefei Carbon Co., Ltd. Self-built, can not apply for a house permit.
4,429,514.92 Chengdu Rongguang Carbon Co., Ltd. 140,542,795.56 No land certificate.
Due to municipal planning, it is temporarily unavailable.
Restructured in 2002, before the restructuring, because it had been mortgaged to
11,015,124.82 Banks, governments, historical reasons have not handled the transfer of accounts
Fushun Carbon Co., Ltd.
Continued, the newly built also did not apply for the real estate certificate.
total 428,560,172.86
other instructions:
Fixed Assets Liquidation
22. Construction in progress
item list
Unit: Currency: RMB
135 / 207
2021 Annual Report
Engineer material 357,804.50 1,169,848.51
total 482,290,975.87 437,991,528.03
other instructions:
Construction in progress
(1).Construction in progress
Unit: Currency: RMB
Ending balance Opening Balance
project
Provision for impairment of book balance Book value of provision for impairment of book balance Book value of provision for impairment of book balance
3100 tons of carbon fiber

218,957,399.33 32,702,058.40 186,255,340.93 218,957,399.33 30,000,000.00 188,957,399.33
project
30,000 tons per year
Graphite manufacturing and 43,251,819.76 43,251,819.76 71,370,887.91

71,370,887.91
Processing item
Annual output of 50,000 tons
Ultra High Power Graphite

129,836,439.47 129,836,439.47 90,275,777.09 90,275,777.09
Electrodes and Special Stones
Ink Project
Ultra High Power Graphite

16,320,591.73 16,320,591.73 38,223,231.98 38,223,231.98
Electrodes and Special Stones
Ink Project
Xiatang Town, Changfeng County

101,065,272.49 101,065,272.49 33,129,856.47 33,129,856.47
New plant with
new high pressure impregnation
and secondary roasting tunnel

10,341,696.64 10,341,696.64
Daoyao project
sewage station reclaimed water

1,937,497.94 1,937,497.94 1,921,656.36 1,921,656.36
use item
Fangda Hotel Item 2,250,514.55 2,250,514.55 1,690,889.75 1,690,889.75
Graphite electrode anti-counterfeiting

56,724.14 56,724.14
System software project 56,724.14 56,724.14
other 958,970.36 958,970.36 890,510.79 36,950.94 853,559.85
total 514,635,229.77 32,702,058.40 481,933,171.37 466,858,630.46 30,036,950.94 436,821,679.52
136 / 207
2021 Annual Report
(2) Changes in the current period of important projects under construction
Unit: Currency: RMB

That
middle: This period

Project accumulation
In this issue its This period Interest
Beginning of the period Transfer to solid in this period end of period input preoccupation Engineering progress capitalization of interest funds come
project name Budget number Increase in this period he reduced Interest capital
balance Fixed asset amount balance Proportion Every time Cumulative amount source
amount capital conversion rate
(%)
Money (%)
Forehead
3100 tons of carbon fiber loan,

1,470,000,000.00 218,957,399.33 218,957,399.33 28.35 35.00 51,762,672.18
dimension item self-funded
30,000 tons/year
Recruitment,
Special graphite
2,101,911,700.00 71,370,887.91 77,099,066.06 105,218,134.21 43,251,819.76 25.00 33.00 self-financing
Manufacturing and processing items
Money
eye
Annual output of 50,000
tons of ultra-high power

self-financing
Graphite electrodes and 715,921,300.00 90,275,777.09 71,799,085.21 32,238,422.83 129,836,439.47 58.00 50.00
Money
Special graphite items
eye
Annual output of 25,000
tons of ultra-high power
Graphite electrodes and 195,084,800.00 38,223,231.98 123,096,670.24 144,999,310.49 16,320,591.73 96.00 90.00
Special graphite items self-financing
Money
eye
Changfeng County Xiatang self-financing

421,081,287.15 33,129,856.47 67,935,416.02 101,065,272.49 27.78 41.00
New factory in town Money
137 / 207
2021 Annual Report
new high pressure dip
Stains & Secondary Baking 100 self-financing

109,885,000.00 10,341,696.64 75,927,015.33 86,268,711.97 79.00
Burning tunnel kiln item .00 Money
eye
Sewage station reclaimed water self-financing

7,024,000.00 1,921,656.36 15,841.58 1,937,497.94 28.00 30.00
Reuse project Money
Fangda Hotel Project self-financing

59,268,800.00 1,690,889.75 559,624.80 2,250,514.55 4.00 10.00
eye Money
total 5,080,176,887.15 465,911,395.53 416,432,719.24 368,724,579.50 513,619,535.27 / / / /

51,762,672.18
138 / 207
2021 Annual Report
(3) Provision for impairment of construction in progress in the current
Unit: Currency: RMB
Project Amount accrued in the current period Reason for
3100 tons of carbon fiber project 2,702,058.40 accrual The recoverable amount is lower than its book value
total 2,702,058.40 /
other instructions
Engineering
materials (1). Status of engineering
materials ÿApplicable ÿNot applicable
Unit: Currency: RMB
Closing balance Opening Balance

project
Book balance Impairment provision Book value Book value Impairment provision Book value
Engineering object 357,804.50 1,470,348.51 300,500.00 1,169,848.51

658,304.50 300,500.00
capital
Total 658,304.50 300,500.00 357,804.50 1,470,348.51 300,500.00 1,169,848.51
other instructions:
none
23. Productive biological assets (1).
Productive biological assets using the cost measurement model
(2).Productive biological assets using the fair value measurement model
other instructions
24. Oil and gas properties
Applicable ÿ Not applicable
25. Right-of-use assets
Unit: Currency: RMB
project houses and buildings total
1. Original book value
1. Opening balance
2. The increase in the current period 19,465,920.13 19,465,920.13
3. The decrease in the current period
4. Closing balance 2. 19,465,920.13 19,465,920.13
Accumulated depreciation
1. Opening balance
2. Increase in current period 2,919,888.02 2,919,888.02
(1) Accrual 3. Decrease 2,919,888.02 2,919,888.02
in current period
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2021 Annual Report
(1) Disposal
4. Closing balance III. 2,919,888.02 2,919,888.02
Provision for impairment
1. Opening balance
2. The increase in the current period
(1) Provision
3. The amount reduced in the current period
(1) Disposal
4. Closing balance
4. Book value
1. Book value at the end of the period 2. 16,546,032.11 16,546,032.11
Book value at the beginning of the period
other instructions:
none
26. Intangible assets
(1).Intangible assets ÿApplicable
ÿNot applicable
Unit: Currency: RMB
Use of land computer software

project patent Total mining rights, forest and land acquisition concessions
right piece
1. Original book value
1. Beginning balance 569,544,978.05 12,523,132.00 2. Increase in current period 41,619.84 78,973,821.58 116,433,093.74 50,000.00 777,566,645.21
62,916,000.00 62,916,000.00
Forehead
(1) Acquisition 62,916,000.00 62,916,000.00
(2) Internal R&D
(3) Increase in business combination
add
3. Decrease in this period

115,261.17 115,261.17
Amount
(1) Disposal 115,261.17 115,261.17
(2) Disposal of subsidiary
manage
(3) Others
4. Closing balance 632,345,716.88 12,523,132.00 41,619.84 78,973,821.58 116,433,093.74 50,000.00 840,367,384.04
2. Cumulative amortization
1. Beginning balance 165,830,398.37 12,523,132.00 33,941.51 78,973,821.58 116,433,093.74 50,000.00 373,844,387.20
2. Increase in current period

11,416,167.93 7,678.33 11,423,846.26
Forehead
(1) Provision (2) 11,416,167.93 7,678.33 11,423,846.26
Business combination
Increase
3. Decrease in the current period

20,238.17 20,238.17
Forehead
(1) Disposal (2) 20,238.17 20,238.17
Disposal of a subsidiary
140 / 207
2021 Annual Report
manage
(3) Others
4. Closing balance 177,226,328.13 12,523,132.00 41,619.84 78,973,821.58 116,433,093.74 50,000.00 385,247,995.29
3. Provision for impairment
1. Opening balance
2. This period increases the amount of money
Forehead
(1) Provision
(2) Business merger
Increase
3. Reduction in the current period
Forehead
(1) Disposal
4. Closing balance
4. Book value
1. Book price at the end of the period

455,119,388.75 455,119,388.75
value
2. Book price at the beginning of the period
403,714,579.68 7,678.33 403,722,258.01

value
(2) Situation of land use right for which the property right certificate has not been
obtained ÿApplicable ÿNot applicable
other instructions:
27. Development
expenditure ÿApplicable ÿNot applicable
28. Goodwill (1).
Original book value of goodwill
Unit: Currency: RMB
Added companies in Decrease in this period
this period
Investee name or
Opening Balance merge That where Ending balance
Matters forming goodwill other
form he set
of
Hefei Carbon Co., Ltd.

8,887,445.58 8,887,445.58
Company Fushun Carbon Co., Ltd.

13,202,293.98 13,202,293.98
Company
Jiangsu Fangda Carbon Chemical

38,572,350.94 18,938,948.31 19,633,402.63
Limited company
total 60,662,090.50 18,938,948.31 41,723,142.19
Other reductions in goodwill in the current period were based on the "Relation to the Acquisition of 100% Equity Interests in Cobbs (Jiangsu) Carbon Chemical Co., Ltd.
According to the "Consideration Adjustment" in the Rights Acquisition Agreement, the transaction consideration shall be adjusted.
141 / 207
2021 Annual Report
(2). Provision for impairment of
goodwill ÿApplicable ÿNot applicable
Unit: Currency: RMB
This period increases the current period decreases

Investee name or form
Opening Balance its where That Ending balance
Goodwill Matters accrual
he set him
Hefei Carbon Co., Ltd. 8,887,445.58 Fushun Carbon Co., Ltd. 8,887,445.58
13,202,293.98 Jiangsu Fangda Carbon Chemical Co., Ltd. 13,202,293.98
19,633,402.63 19,633,402.63
company
total 22,089,739.56 19,633,402.63 41,723,142.19
(3) Relevant information about the asset group or combination of asset groups where the goodwill is
located ÿApplicable ÿNot applicable
The company regards the operating long-term assets (including goodwill) of Jiangsu Fangda related to goodwill as an asset group, and its composition has not changed.
The asset group is consistent with the asset group determined on the purchase date, and the composition of the asset group is consistent with the recoverable amount of the asset group.
(4) Explain the goodwill impairment test process, key parameters (such as the forecast period growth rate, stability
period growth rate, profit margin, discount rate, forecast period, etc., if applicable) and recognition method for impairment loss of goodwill
The company adopts two methods to assess Jiangsu Fangda's investment in the net amount after deducting the cost of disposal and the present value of the estimated future cash flow.
Goodwill is assessed, and the higher one determines the recoverable amount.
After testing, the company made provision for impairment of Jiangsu Fangda's goodwill of RMB 19,633,402.63.
(5) Impact of goodwill impairment test
other instructions
29. Long-term deferred expenses
Unit: Currency: RMB
Increase in this period Amortization for the current period other reduction
project Opening Balance Ending balance
Forehead Forehead amount
Woodland rent 231,148.45 32,787.60 198,360.85
prospecting fee 240,116.35 441,509.43 125,902.54 555,723.24
Decoration and technical maintenance fees 198,548.71 59,799.36 138,749.35
Pipeline service fees 338,768.28 31,053.76 307,714.52
total 669,813.51 780,277.71 249,543.26 1,200,547.96
other instructions:
none
30. Deferred income tax assets/deferred income tax liabilities (1).
Deferred income tax assets that have not been offset ÿApplicable
ÿNot applicable
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2021 Annual Report
Unit: Currency: RMB
Closing balance Beginning
project deductible temporary Deferred tax balance deductible temporary Deferred tax
difference assets difference assets
Impairment of assets 275,723,493.26 52,024,411.25 236,690,188.51 37,571,699.83
Unrealized profits from internal transactions 509,572.72 44,583.42 854,183.40 105,759.38
Deductible losses
Government 47,353,404.25 9,727,650.72 24,166,193.21 3,624,928.98
subsidy and unpaid 837,615.59 209,403.90 838,031.43 209,507.86
wages total transactional 2,119,504.98 529,876.25 2,978,470.03 446,770.50
financial instruments 326,543,590.80 62,535,925.54 265,527,066.58 41,958,666.55
(2) Deferred income tax liabilities that have not been
offset ÿApplicable ÿNot applicable
Unit: Currency: RMB
Closing Beginning
project Balance Taxable Temporary Deferred tax Balance Taxable Temporary Deferred tax
difference liabilities difference liabilities
Business combination not under common control

169,206,192.32 42,301,548.08 186,496,282.04 46,624,070.51
Fair value of
other debt investments

change
Fair investment in other equity instruments
change in value
Amortization of Fixed Assets and 37,899,756.54 5,698,928.73 24,309,159.22 3,646,373.89
Intangible Assets of Held-for-trading Financial Instruments

61,287,427.53 9,193,114.13 45,454,483.73 6,818,172.56
pin
total 268,393,376.39 57,193,590.94 256,259,924.99 57,088,616.96
(3) Deferred income tax assets or liabilities listed in net amount after offset
(4). Details of unrecognized deferred tax assets
Unit: Currency: RMB
Deductible temporary 233,660,249.63 261,577,363.16
difference deductible loss 203,015,153.56 450,744,836.04
total 436,675,403.19 712,322,199.20
(5). Deductible losses of unrecognized deferred income tax assets will expire in the following years
Unit: Currency: RMB
years Closing amount Beginning amount Remark
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2021 Annual Report
2021 2022 46,465,611.34
2023 2024 43,218,546.27
2025 2026 31,220,475.06 61,088,963.81
28,873,304.72 225,512,988.23
85,416,055.36 74,458,726.39
57,505,318.42
203,015,153.56 450,744,836.04 /
total
other instructions:
31. Other non-current assets
Unit: Currency: RMB

project
contract acquisition cost
contract performance costs
Receivable return cost
contract assets
prepaid long-term assets

43,067,424.76 43,067,424.76 116,688,258.36
Project and land transfer 116,688,258.36
Jinlaihe Mining Community Workers

47,651,832.18 22,636,001.99 25,015,830.19 54,459,237.05 25,823,048.88 28,636,188.17
input tax
and
SOP compensation agreement increases 63,306,436.64 63,306,436.64

63,302,597.85 63,302,597.85
value tax
Dongxiang Autonomous County
Dongzhiyuan Public Passenger Transport 12,000,000.00 12,000,000.00

12,000,000.00 12,000,000.00
limited company
Linxiazhou aftertaste fast food

1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
Products Co.,
Ltd. Total 167,025,693.58 22,636,001.99 144,389,691.59 247,450,093.26 25,823,048.88 221,627,044.38
32. Short-term loans (1).
Classification of short-term
loans ÿApplicable ÿNot applicable
Unit: Currency: RMB
mortgage loan 248,204,600.00
mortgage loan 70,436,911.24
guaranteed loan
Credit loan 150,152,166.67 150,000,000.00
total 398,356,766.67 220,436,911.24
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2021 Annual Report
(2) Short-term borrowings that have been overdue but not
repaid ÿApplicable ÿNot applicable
Among them, the important overdue and outstanding short-term borrowings are as follows:
other instructions
During the reporting period, there was no short-term loan that was overdue but not repaid.
pledge loan
Unit: Currency: RMB
borrower loan principal pledge
China Export-Import Bank Gansu Branch 248,000,000.00 250 million yuan guarantee deposit
Total 248,000,000.00
33. Derivative financial liabilities
34. Notes payable
(1). List of bills payable
Unit: Currency: RMB
Types of Ending balance Opening Balance
Commercial Acceptance Bills
The total amount of 299,333,548.59 580,012,446.94
bank 299,333,548.59 580,012,446.94
acceptance bills due but not paid at the end of the current period is 0 yuan.
35. Accounts Payable
(1). List of accounts payable
Unit: Currency: RMB
Payable for goods 256,809,650.97 195,228,215.53
Payable for construction 141,396,694.27 86,283,513.34
work Payable for equipment 27,930,043.90 33,626,499.05
freight payable 19,357,815.74 12,645,349.40
total 445,494,204.88 327,783,577.32
(2). Important accounts payable aged over 1 year
Unit: Currency: RMB
project Ending balance Reasons for Outstanding or Carry-over
1 8,951,419.85 Not finalized
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2021 Annual Report
4 7,179,522.95 Procurement and production machine production time is long
5 3,372,843.50 The other party did not pay
7 2,030,183.14 The other party did not pay
9 1,894,758.00 The other party did not collect
total 50,763,774.73 /
other instructions
36. Advance receipts
(1). List of advance receipts
(2). Important advance receipts aged over 1 year ÿApplicable
ÿNot applicable
other instructions
37. Contract liabilities
(1) Contract liabilities
Unit: Currency: RMB
Total Ending balance Opening Balance
advance receipts 155,199,445.07 182,416,216.81
for the project 155,199,445.07 182,416,216.81
(2) Amount and reasons for significant changes in book value during the reporting
other instructions:
38. Employee benefits payable
(1). List of employee benefits payable
Unit: Currency: RMB
project Opening Balance Increase in this period Decrease the closing balance of the current period
1. Short-term remuneration 72,208,291.69 719,164,597.14 710,451,497.80 80,921,391.03
2. Post-employment benefits - set 17,316,281.45 68,799,347.48 69,200,070.79 16,915,558.14
146 / 207
2021 Annual Report
Withdrawal plan
3. Dismissal benefits
4. Others due within one year

He Welfare
total 89,524,573.14 787,963,944.62 779,651,568.59 97,836,949.17
(2). List of short-term remuneration
Unit: Currency: RMB
Item Opening Balance Increase in this period Decrease the closing balance of the current period
1. Salary, bonus, allowance

63,832,324.04 561,281,740.07 550,849,579.92 74,264,484.19
Subsidies and
subsidies II. Employee 2,707,488.31 65,087,414.07 67,794,902.38
benefits III. Social insurance premiums 1,318,516.16 Including: Medical 44,661,616.68 44,868,596.75 1,111,536.09
insurance premiums 1,318,025.01 Work-related injury insurance premiums 38,605,045.78 38,812,793.32 1,110,277.47
Maternity insurance premiums 491.15 5,651,214.37 5,650,538.90 1,166.62
405,356.53 405,264.53 92.00
4. Housing Provident Fund 1,919,539.80 40,888,785.48 41,028,102.28 1,780,223.00
5. Trade Union Funds and Employees

2,430,423.38 7,245,040.84 5,910,316.47 3,765,147.75
6. Short-term
paid absences
7. Short-term profit sharing plan

Draw
total 72,208,291.69 719,164,597.14 710,451,497.80 80,921,391.03
(3). List of defined withdrawal plans
Unit: Currency: RMB
Project Beginning Balance Increase in Current Period Decrease in Current Period Ending balance
basic pension insurance 15,114,348.33 65,920,291.70 66,309,813.42 14,724,826.61
Unemployment Insurance Premium

2,201,933.12 2,879,055.78 2,890,257.37 2,190,731.53
Enterprise annuity payment
total 17,316,281.45 68,799,347.48 69,200,070.79 16,915,558.14
other instructions:
39. Taxes payable
Unit: Currency: RMB

project Closing Opening
VAT balance 3,755,011.53 balance 11,746,984.63
consumption tax
business tax
corporate income tax 72,948,667.66 36,826,301.89
147 / 207
2021 Annual Report
Personal Income Tax
Urban maintenance and 340,421.75 357,236.37

construction tax, land use tax, 1,004,853.23 1,110,510.89
real estate tax, education fee, 313,406.23 320,720.66
additional withholding and 254,466.27 602,483.06
payment of personal income tax, resource 2,525,503.52 765,059.65
tax, stamp tax, others 2,282,928.95
392,573.84 1,893,830.26
349,672.54 253,277.60
total 81,884,576.57 56,159,333.96
40. Other payables

List of items
Unit: Currency: RMB

Interest 219,899.12 559,565.79

Payable 2,139,998.15 1,967,198.15
Dividend Payable 190,507,175.53 163,819,064.30
Other Payables Total 192,867,072.80 166,345,828.24
other instructions:
Interest payable
(1). Listed by category
Unit: Currency: RMB

Interest Ending balance Opening Balance
on long-term borrowings for repayment of principal due to installment of project interest 187,500.00
corporate bond interest
Interest payable on short-term borrowings 219,899.12 372,065.79

Preferred stock \ perpetual bonds classified as financial liabilities
Interest
total 219,899.12 559,565.79

Important Overdue Interest Scenarios:
other instructions:
Dividends
payable (1). Listed by
category ÿApplicable ÿNot applicable
Unit: Currency: RMB

common stock dividend 2,139,998.15 1,967,198.15
148 / 207
2021 Annual Report
Preference shares classified as equity instruments\permanent
Debt Renewal Dividend
Preferred Stock\Perpetual Bond Dividend-XXX
Preferred Stock\Perpetual Bond Dividend-XXX
Dividends Payable - XXX
Dividends Payable - XXX
total 2,139,998.15 Other 1,967,198.15
explanations, including important dividends payable that have not been paid for more than one year, should disclose the reasons for the unpaid:
The other party did not collect.
Other payables (1).
Other payables are listed according to the nature of the
payment ÿApplicable ÿNot applicable
Unit: Currency: RMB
Construction Payable 20,198,137.21 1,782,137.31
Payable Current 41,631,458.18 43,235,619.50
Account Payable Deposit 59,594,462.87 64,141,378.68
Payable Freight Payable 9,140,047.57 6,020,669.95
Labor Service Payable 4,256,636.90 4,046,789.51
Other Payables Total 55,686,432.80 44,592,469.35
190,507,175.53 163,819,064.30
(2). Important other payables aged over 1 year ÿApplicable
ÿNot applicable
Unit: Currency: RMB
project Ending balance Reasons for outstanding or carry-over
1 8,991,588.29 formed before conversion and not yet paid
2 3,028,320.00 Margin is not due
3 2,748,000.00 Project quality deposit, the project has not yet been settled
4 2,447,500.00 Payment terms have not been met
5 2,000,000.00 Formed before transformation, not yet paid
7 1,298,511.00 Payment terms have not been met
total 24,113,919.29 /
other instructions:
41. Liabilities held for sale
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2021 Annual Report
42. Non-current liabilities due within 1 year
Unit: Currency: RMB
Long- Closing balance Opening Balance
term borrowings due within 1 year 250,006,085.00
Bonds payable due within 1 year
Long-term payables due within 1 year
Total lease liabilities due within 1 year 3,494,289.23
253,500,374.23
43. Other current liabilities Other
current liabilities
Unit: Currency: RMB
short-term bonds payable
Payable for return
Total non-terminated 20,182,842.09 23,720,340.47
recognition of receivables for output tax receivables 163,163,437.02 167,819,533.47
to be transferred 183,346,279.11 191,539,873.94
Changes in short-term bonds payable:
other instructions:
44. Long-term loans (1).
Classification of long-term loans
Unit: Currency: RMB
pledge loan
mortgage loan
Guaranteed 250,000,000.00
loan credit loan
total 250,000,000.00
Explanation of the classification of long-term borrowings:
The company signed a loan contract with the Export-Import Bank of China Gansu Branch on December 22, 2020. The contract amount is
RMB 250,000,000, the term is 2 years, and the guarantee unit is Fangda Special Steel. Outstanding borrowings as of December 31, 2021
The principal of the loan is RMB 249,800,000.
Additional notes, including interest rate ranges:
2.7%
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2021 Annual Report
45. Bonds payable (1).
Bonds payable
(2) Increase or decrease in bonds payable: (excluding preferred shares, perpetual bonds and other financial instruments classified as financial liabilities)
(3) Explanation on the conversion conditions and conversion time of convertible corporate
bonds ÿApplicable ÿNot applicable
(4) Other financial instruments classified as financial liabilities explain the basic
information of other financial instruments such as preferred shares and perpetual bonds issued at the end of the period
Statement of changes in financial instruments such as preferred shares and perpetual bonds issued at the end of the period
Explanation of the basis for classifying other financial instruments as financial liabilities:
other instructions:
46. Lease liabilities
Unit: Currency: RMB
rental housing 13,455,296.89
total 13,455,296.89
47. List of long-term payables
Unit: Currency: RMB
Long-term payables
Total special 332,259.46
payables 332,259.46
other instructions:
Long-term payables
(1). Long-term payables are listed according to the nature of the
Special payables (1).
List special payables according to the nature of the
Unit: Currency: RMB
Project The reason for the increase in the opening balance in the current period and the decrease in the current period in the ending balance
allocated special funds 634,676.77 302,417.31 332,259.46
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2021 Annual Report
total 634,676.77 302,417.31 332,259.46
48. Long-term employee benefits payable
49. Estimated liabilities
50. Deferred income
Deferred income
Unit: Currency: RMB
project The reason for the increase in the opening balance in the current period and the decrease in the current period in the ending balance
Government subsidies 321,114,871.41 20,594,200.00 16,481,156.57 325,227,914.84
Total 321,114,871.41 20,594,200.00 16,481,156.57 325,227,914.84 /
Projects involving government subsidies:
Unit: Currency: RMB
New subsidy for this period Included in the current period Included in other other related to assets/
Opening balance of liability items Ending balance
amount Amount of external income Income amount change related to earnings
Land use rights

2,353,153.44 20,594,200.00 439,744.57 22,507,608.87 related to assets
Compensation High
Temperature Gas Cooled Reactor
3,223,282.84 582,805.44 2,640,477.40 related to assets

Appropriate
negative electrode material

449,999.71 200,000.04 249,999.67 related to assets
payment
natural gas boiler

Allocating
East and West Sewage Outlets

37,268.59 2,777.76 34,490.83 related to assets
payment
new electrode connection

Headline Project
Industrial Project Investment

15,000,000.00 15,000,000.00 related to assets
Provincial
strategic new
Industrial development 1,493,000.00 related to assets
Special funds 11,944,000.00 10,451,000.00
central strategic
Emerging Industry Specialist 5,000,000.00 related to assets
Project of 40,000,000.00 35,000,000.00
30,000 tons of funds
financial support 13,113,600.00 1,639,200.00 related to assets

11,474,400.00
Money
3100 tons of carbon fiber
Maintenance production project 6,343,483.68 related to assets
Science and technology funding 83,766,994.27 77,423,510.59
carbon products related to assets

140,000,000.00 140,000,000.00
eye
Center field leveling

program grant
total 321,114,871.41 20,594,200.00 16,481,156.57 325,227,914.84
152 / 207
2021 Annual Report
other instructions:
51. Other non-current liabilities
Unit: Currency: RMB
contract liabilities
relocation compensation 217,300,999.27 217,590,000.00
SOP compensation 30,774,241.00 30,774,241.00
total 248,075,240.27 248,364,241.00
52. Share capital
Unit: Currency: RMB
Increase or decrease in this change (+, 1) Share
Opening Balance issue conversion of provident fund Ending balance

Bonus other subtotals
new shares
Total number of shares 3,805,970,368.00 3,805,970,368.00
53. Other equity instruments (1).
Basic information on other financial instruments such as preference shares and perpetual bonds issued at the end of
the period ÿApplicable ÿNot applicable
(2). Statement of changes in financial instruments such as preferred shares and perpetual bonds issued at the end of the
Changes in the increase or decrease of other equity instruments in the current period, explanations for the reasons for the changes, and the basis for relevant accounting treatment:
other instructions:
54. Capital reserve
Unit: Currency: RMB
The opening balance of the project increased in the current period and decreased in the current period Capital premium (equity premium)
869,430,716.31 Other capital reserves 869,430,716.31
28,654,101.69 1,273,026.80 2,078,115.71 27,849,012.78
total 898,084,818.00 1,273,026.80 2,078,115.71 897,279,729.09
Other explanations, including the increase or decrease in the current period, and explanation of the reasons for the changes:
Note 1: The company recognizes the joint venture Fangdaxi Kemo according to the shareholding ratio. Due to the increase of special reserves, the company increases the capital reserve - other
His capital reserve amounted to RMB 27,759.06.
Note 2: The company confirms that the affiliated company Jiujiang Bank is due to the purchase of minority shareholders' equity and capital investment by shareholders according to the shareholding ratio.
The capital premium was reduced, and the capital reserve-other capital reserve amount was reduced by RMB 758,699.22.
Note 3: The company recognizes the joint venture Jilin Chemical Fiber according to the shareholding ratio due to the decrease in the capital reserve due to the capital invested by the owner.
Small capital reserve - other capital reserve amounted to RMB 1,319,416.49.
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2021 Annual Report
Note 4: The company sold the equity of Jilin Chemical Fiber held this year, and carried forward the changes in other equity recognized in previous years to investment income.
Increase capital reserve - other capital reserve amount of RMB 1,245,267.74. 55.
Treasury stock ÿApplicable ÿNot applicable 56. Other comprehensive income
Unit: Currency: RMB

Deduction of the amount incurred in the
Less: included in other current period: included in other comprehensive
Opening comprehensive income in income in the previous period and transferred to Attributable to Ending
project Amount before income tax for Deduct: income Attributable to parent company
Balance the previous period and retained earnings in the current period minority shareholders balance
the current period tax expense after tax
transferred to profit or loss after tax
I. Other
comprehensive
income that
cannot be
reclassified into
profit or loss
Including:
remeasurement
of changes in
defined benefit
plans Other
comprehensive
income that
cannot be
transferred
to profit or loss
under the equity
method Changes
in fair value
of other equity
instrument
investments
Other
comprehensive
10,626.17 13,276,257.62 13,276,257.62 13,286,883.79
income into profit
or loss Including:
other
comprehensive
income that can 13,314,954.99 13,314,954.99 13,314,954.99
be converted into
profit or loss
under the
equity method
Other debt
investment
changes in
fair value Amount
of financial assets
reclassified and
included in other
comprehensive
income Other debt investment credit
154 / 207
2021 Annual Report
impairment standard
prepare
cash flow
volume hedging reserve
prepare
Foreign Currency Finance
Report conversion 10,626.17 -38,697.37 -38,697.37 -28,071.20
difference
Other comprehensive
10,626.17 13,276,257.62 13,276,257.62 13,286,883.79
Total income
Other notes, including the adjustment of the effective portion of the cash flow hedging gain or loss to the initially recognised amount of the hedged item:
Other comprehensive income that can be transferred to profit or loss under the equity method is recognized by the company in accordance with the shareholding ratio of the affiliated enterprise Jiujiang Bank due to the revaluation of investment
Changes in reserves led to an increase in other comprehensive income, which increased the amount of other comprehensive income by RMB 13,314,954.99.
57. Special reserve
Unit: Currency: RMB
Safety production fee 50,992,984.21 Environmental 29,951,645.23 44,249,372.60 36,695,256.84
management and restoration basis

8,609,842.36 943,550.00 9,553,392.36
Money
total 59,602,826.57 30,895,195.23 44,249,372.60 46,248,649.20
58. Surplus reserve
Unit: Currency: RMB
Statutory surplus reserve 1,153,852,581.72 43,174,000.70 Discretionary surplus 1,197,026,582.42
reserve
Reserve Fund
business development fund
other
Total 1,153,852,581.72 43,174,000.70 1,197,026,582.42
59. Undistributed profits
Unit: Currency: RMB
Total This period Previous period
undistributed profits at the end of the 9,666,439,838.14 9,154,355,905.50
previous period before adjustment
+, decrease -)
Undistributed profit at the beginning of the adjustment period 9,666,439,838.14 9,154,355,905.50
Plus: Net attributable to owners of parent company for the period

1,084,595,183.21 547,458,328.20
Less
profit: Withdrawal of statutory surplus reserve 43,174,000.70 35,374,395.56
155 / 207
2021 Annual Report
Withdrawal of discretionary surplus reserve
Extract general risk provision
Ordinary stock dividends payable 1,902,985,184.00
ordinary stock dividends converted into share capital
Undistributed profit at the end of the period 8,804,875,836.65 9,666,439,838.14
60. Operating income and operating costs
(1) Operating income and operating costs
Unit: Currency: RMB
Amount for this period Amount in the previous period
project
Revenue cost Main business income cost
4,365,211,740.14 2,917,211,814.64 3,440,773,530.95 2,455,826,288.47
Other business 286,561,005.97 175,889,097.27 67,266,954.83 98,398,720.54
Total 4,651,772,746.11 3,093,100,911.91 3,539,172,251.49 2,523,093,243.30
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2021 Annual Report
(2) Income from contracts

Description of revenue generated by the contract:
(3). Explanation of performance
obligations ÿApplicable ÿNot applicable
(4) Explanation of apportionment to remaining performance
61. Taxes and surcharges
Unit: Yuan Currency: RMB Amount incurred
project Amount for this period in the previous period
sale tax
business tax
Urban maintenance and construction tax 14,607,115.09 12,728,185.34
Education fee surcharge 11,948,841.78 10,813,548.05
Resource 13,407,785.72 14,316,325.68
tax, real 10,432,106.76 10,406,235.99
estate tax, land use tax 17,429,260.10 17,564,314.22
vehicle usage tax 124,184.45 125,786.28
stamp duty 4,748,667.06 4,470,812.33
Environmental Protection 1,482,779.61 1,468,679.44
Tax Others 94,551.09 197,112.85
total 74,275,291.66 72,091,000.18
62. Sales expenses
Unit: Currency: RMB

project Amount for this period Amount in the previous period
Employee 66,249,653.88 44,753,462.76
Salary 26,341,957.22 24,708,275.05
Packaging 7,411,467.28 4,802,960.53
Fee 7,116,420.16 5,899,620.13
6,392,251.81 5,033,716.05
4,552,099.08 6,091,535.03
1,675,805.31 1,007,479.27
647,958.21 702,595.80
257,970.43 844,234.96
220,433.61 190,794.22
156,803.31 279,535.93
157 / 207
2021 Annual Report
Depreciation and Amortization Expenses 110,201.54 148,761.78

other 12,406,783.67 5,982,943.73
total 133,539,805.51 100,445,915.24
63. Administrative expenses
Unit: Currency: RMB

Employee 270,204,069.40 190,589,711.78

compensation depreciation and 59,628,102.63 47,976,622.96
amortization costs, repair 46,819,768.75 55,748,693.18
costs, downtime losses, 38,023,590.01 18,825,030.96
safety production costs, water 16,900,358.46 17,902,129.68
and electricity costs (energy) 13,403,744.03 10,946,169.86
Service Fees 11,596,456.26 9,973,111.68
Business Hospitality 6,925,841.81 7,028,647.95
Expenses Travel 6,587,616.50 6,043,775.16
Expenses Office 4,444,993.31 3,810,456.20
Expenses Material 4,280,821.06 2,299,461.96
Consumption 3,210,780.37 1,958,325.35
Insurance Expenses 2,960,990.92 5,998,926.92
Rental Fees 2,654,456.99 2,151,626.79
Transportation Expenses 1,289,192.15 5,464,667.09
Sewage charges 983,024.24 724,304.65
Environmental Governance Restoration Fund 189,850.86 1,191,931.02
Clearance and Commission Others 56,933.38 107,737.48
17,221,544.37 10,653,726.62
total 507,382,135.50 399,395,057.29
64. Research and development expenses
Unit: Currency: RMB

Depreciation Amount for this period Amount in the previous period
and amortization of 44,440,548.55 43,835,071.25

project employee compensation entrusted external 15,641,214.40 20,632,924.04
research and development expenses 5,389,701.08 17,438,170.38
and material expenses 1,676,160.94 3,039,368.55
Total other 2,437,255.17 2,790,434.19
expenses 69,584,880.14 87,735,968.41
65. Financial expenses
Unit: Currency: RMB
158 / 207
2021 Annual Report
interest expense 22,802,083.04 45,411,600.06
Less: Interest income 188,076,827.60 281,090,451.03
Exchange gains and losses 4,101,261.33 -2,520,376.26
handling fee 4,408,538.69 803,721.56
Unrecognized financing 652,316.00
expenses other 234,780.37 -2,195,952.81
total -155,877,848.17 -239,591,458.48
66. Other income
Unit: Currency: RMB
3100 tons of carbon fiber production project technology experience

6,343,483.68 6,502,708.14
fee
Disability insurance benefits reduced by 10% % 65,328.66
Government subsidy for the first phase of the site leveling project in some 207,922.80
factories. Government subsidy for the research and development of east 500,000.00
and west sewage outfalls for isostatic graphite barrels. Fushun City 2,777.76 2,777.76
Employment and Talent Service Center allocated
Pay (enterprise new apprenticeship training funds 99,000.00
subsidy)
Fushun Employment and Talent Center Vocational Skills

100,500.00
Can subsidize
negative electrode material allocation projects

200,000.04 200,000.04
High temperature gas cooled reactor project

582,805.44 582,805.44
Nuclear graphite R&D project grants 3,000,000.00
The comprehensive utilization of resources of the Honggu District Taxation Bureau is

1,202,042.71 1,073,467.61
Tax refund immediately
after levy issued by Lanzhou Honggu District Commerce Bureau in 2019

1,500,000.00 1,500,000.00
Export credit insurance subsidy appropriation
Lanzhou Honggu District Employment Bureau to pay for training

1,973,805.00 86,500.00
fee
Electrode Heater, Honggu District Science and Technology Bureau, Lanzhou City
100,000.00
Funding for key technology research projects, Lanzhou Municipal
Science and Technology Bureau, and major scientific and technological projects
1,000,000.00
Items
Lanzhou Municipal Bureau of Commerce stabilizes foreign trade in 2020

2,360,000.00 5,316,000.00
and the subsidy of the Longquan Economic and Information Bureau
for the foreign trade transformation and upgrading project

97,600.00 107,200.00
Amortization of financial support 165,000.00 4,500.00
funds for the 30,000-ton project of the 140,000.00
new apprenticeship training subsidy for female workers 1,639,200.00
Provincial special funds for the development of strategic emerging industries

1,493,000.00
Gold Amortization
159 / 207
2021 Annual Report
The 2018 export credit insurance subsidy was 78,000.00

invented by the City Market Supervision Administration
1,450.00
Patent funding
received by Lanzhou Municipal Bureau of Finance and Trade Remedy and Law
771,000.00
Legal aid project subsidy is collected
from Longquanyi District Economic and Information Technology Bureau
Industry technical standard formulation incentive project special 150,000.00

funds
Shoulongquanyi District Employment Service Administration
59,800.00
In 2021, the company will subsidize the employment service
administration of Longquanyi District by subsidizing the work-for-work training.

1,200.00
Industry monitoring subsidy
received outside Longquanyi District Bureau of Commerce in 2020

6,000.00
High-quality development funds for trade transformation and upgrading are
collected from the New Economy and Technology Bureau of Longquanyi District
High-tech Enterprise Recognition Award Special 50,000.00

funds
Natural Gas Boiler 222,222.24 222,222.24
Project Land Use Right 439,744.57 62,184.24
Compensation Land Tax, 3,088,801.00
Corporate Income Tax Rebate 6,244,647.79 4,913,690.20
Tax Reduction and Exemption 1,450,119.08 8,154,623.91
Stabilization Subsidy 350,000.04
1,105,000.00 926,400.00
3,000.00
Central special funds for strategic emerging industries
5,000,000.00 5,000,000.00
Amortized debt restructuring gains 1,505,609.81

Operation Contribution Award for New Electrode Joint Line Project of 230,000.00
Environmental Renovation and Dust Emission Equipment 350,000.04
Reconstruction Project 5,360,000.00
Provincial special funds for the development of strategic emerging
1,493,000.00
industries
The amortization of the financial support funds for the 30,000-ton project 1,639,200.00
in 2019 is the highest in the province's "three-fold and one-creation" support
1,000,000.00
New Technology Enterprise Growth
Incentives Safety Skills Training Subsidies 2,000.00

Safety Production Advanced Unit Award 10,000.00
Personal income tax return 1,830,213.73 7,868,708.24
High-tech enterprise identification subsidy 100,000.00
Lanzhou Municipal Finance Bureau export credit insurance insurance
1,500,000.00
Subsidy for the
construction of innovation platform of Lanzhou Municipal Bureau of Finance

1,200,000.00
Subsidized by
Lanzhou Bureau of Industry and Information Technology 200,000.00
160 / 207
2021 Annual Report
Development of provincial data and information industry in 2020
specific fund
Human Resources and Society in Honggu District, Lanzhou City
Security Bureau Special Award Payment April 2020 5,000,000.00
Month and June pension insurance
Lanzhou City Department of Commerce will be stable in 2021

1,450,000.00
Trade project development funds Lanzhou
Municipal Bureau of Commerce Small and medium-sized enterprises develop the country
240,000.00
International market project
fund collection opened in Shanghai Pudong New Area Expo area

810,000.00
The special fund of the Management Committee was awarded the
Contribution Award for Investment Promotion, the Longquan 100,000.00
Economic and Information Bureau's epidemic prevention mask subsidy, 2,300.00
and the Longquan Commerce Bureau's ISO9000 series quality.

7,264.00
Management system certification
subsidizes the patent of Chengdu Intellectual Property Service Center

600.00
Annual fee subsidy
Longquanyi District Economic and Information Bureau stabilized production

8,440.00
Total subsidy for the purchase of epidemic prevention materials for
full production
45,129,274.35 63,226,591.86
67. Investment income
Long- Amount for this period in the previous period
term equity investment income accounted for by item equity 60,692,679.58 -80,588,570.21
method Investment income from disposal of long-term equity 217,982,272.87 -86,345.78
investment Investment income from trading financial assets during the holding period
2,814,810.29 1,560,202.84
beneficial
Other equity instrument investments obtained during the holding period
dividend income
Interest income from debt investment during the holding period
Interest obtained from other debt investments during the holding period
income
Investment income from disposal of financial assets held for trading 38,529,601.12 82,334,330.86
Investment income from disposal of other equity instrument investments

3,063,222.00
beneficial
Investment income from disposal of debt investment
Investment income from disposal of other debt investments
Debt restructuring income 11,257.80 8,345,613.42
Wealth management 92,762,470.34 103,531,017.23
product income Investment income from holding other non-current assets 485,000.00
total 413,278,092.00 118,159,470.36
68. Net exposure hedging gains
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2021 Annual Report
69. Income from changes in fair value
Unit: Currency: RMB
Source of income from changes in fair value Amount for this period Amount in the previous period
Held-for-trading financial -40,364,613.28 -31,450,887.12
assets Including: fair value generated by derivative financial instruments
change in value
Investment real estate at fair value
total 31,039,725.31 -7,141,727.90
70. Credit impairment losses
Unit: Currency: RMB
Bad debt losses of bills receivable -266,943.07
Bad debt losses of accounts -1,233,447.86 9,998,017.09
receivable Bad debt losses of other -25,682,334.13 -26,307,654.15
receivables Impairment losses of debt investments
Impairment losses on other debt investments
Long-term receivables bad debt losses
Impairment loss on contract assets
total -27,182,725.06 -16,309,637.06
71. Asset impairment loss
Unit: Currency: RMB
1. Bad debt losses
2. Inventory depreciation losses and contract performance costs

-18,606,132.57 -21,994,247.42
Impairment loss
III. Impairment loss of long-term equity investment -425,684,011.01
4. Impairment loss of investment real estate
V. Impairment loss of fixed assets -2,617.22
6. Impairment loss of engineering materials
7. Impairment losses of construction in -2,702,058.40 -30,036,950.94
progress 8. Impairment losses of productive biological assets
9. Impairment losses of oil and gas properties
X. Impairment loss of intangible assets
11. Goodwill impairment loss -19,633,402.63
12. Others
162 / 207
2021 Annual Report
Total contract asset impairment -29,651.83 -50,376.09
losses -40,973,862.65 -477,765,585.46
72. Income from asset disposal
Unit: Currency: RMB
Net Amount for this period Amount in the previous period
income from project disposal of fixed 1,644,773.67 714.17
assets Net income from disposal of 488,646.72 11,448,467.58
intangible assets Total income from disposal of -4,096,268.84
other non-current assets -1,962,848.45 11,449,181.75
73. Non-operating income
Non-operating income
Unit: Currency: RMB
Include current non-recurring losses

Amount of
Total gains from disposal of non-current assets 262,620.29 93,243.09 benefit 262,620.29
Including: gains from disposal of fixed assets 262,620.29 Gains 93,243.09 262,620.29
from disposal of intangible assets
Gains from exchange of non-monetary assets
accept donations
Government grants 1,916,000.00 5,161,333.00 1,916,000.00
fines and confiscations 4,319,765.93 3,966,208.28 4,319,765.93
Repayment of litigation case execution 18,620.08 1,080,053.00 18,620.08
other 1,642,180.05 427,094,045.34 1,642,180.05
total 8,159,186.35 437,394,882.71 8,159,186.35
Government subsidies included in current profit and loss
Unit: Currency: RMB
related to/with the asset

Subsidy Program Amount incurred in the current period Amount incurred in the previous period
income related
Gansu Provincial Department of Finance 2019 Enterprise High Quality Development Award
850,000.00 related to income
Rewarding Longquan Economic and Information Bureau 500,000.00 related to income
to stabilize production and full production reward project 7,783.00 related to income
subsidy funds Longquan Commerce Bureau to deepen the 17,250.00 related to income
resumption of work and production funds 1,300.00 related to income

encourage
The first batch of provincial industrial development funds in 2020 will be rewarded 3,680,000.00 related to income
for resumption of work and production 2,000.00 related to income
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2021 Annual Report
Collect Ganmei and allocate the party organization of the park to support the epidemic prevention and control work party
fee
Women's Federation 70,000.00 related to earnings
grants Gansu Provincial Women's Federation to reward and 70,000.00 related to earnings
subsidize Shanghai Pudong New Area Expo Area Development Management Committee Anshang
1,176,000.00 related to earnings
The collection of special funds for cultivating business
subsidy is stable during the epidemic prevention and control period of the Economic and Information Bureau of Longquanyi District
600,000.00 related to earnings
Total fixed growth
bonus 1,916,000.00 5,161,333.00
other instructions:
74. Non-operating expenses
Unit: Currency: RMB
Include current non-recurring losses

amount of benefit
The total loss on disposal of non-current assets was 7,510,622.

7,207,296.81 7,510,622.93
93
Including: Loss on disposal of fixed assets 7,510,622.93 Loss on 7,207,296.81 7,510,622.93
disposal of intangible assets
Non-monetary asset exchange losses
Donate
public welfare donations 18,231,190.30 55,066,123.40 18,231,190.30
other 839,658.30 1,809,926.10 839,658.30
total 26,581,471.53 64,083,346.31 26,581,471.53
75. Income tax expenses
(1). Income tax expense table
Unit: Currency: RMB
Current Amount for this period Amount in the previous period
income tax expense of the project 235,568,542.20 107,803,824.26
Deferred tax expense -20,472,285.01 16,447,111.49
total 215,096,257.19 124,250,935.75
(2) Adjustment process of accounting profits and income tax
expenses ÿApplicable ÿNot applicable
Unit: Currency: RMB
project Amount for this period
Income tax 1,330,672,939.88
expense on total profit calculated at statutory/applicable tax 199,600,940.98
rate Impact of different tax rates applied to subsidiaries 52,502,275.00
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2021 Annual Report
Adjusting the effect of prior period income -4,529,516.06
tax Effect of non-taxable income -22,563,151.08
Effects of non-deductible costs, expenses and losses -1,211,837.37
Effect of using deductible losses of deferred tax assets not recognized in previous period -16,351,772.96
Deductible temporary differences or deductible deferred tax assets not recognized in current period 17,958,155.58
The impact of deducting losses
Changes in the opening balance of deferred tax assets/liabilities resulting from tax rate adjustments -1,891,671.34
Other income tax expenses -8,417,165.56
total 215,096,257.19
other instructions:
76. Other comprehensive income
77. Cash flow statement items
(1) Other cash received related to operating activities

Unit: Currency: RMB
Receipts of Current Accounts, Reserve Funds and Guarantees 180,922,687.95 235,718,946.70
Received Government Grants Received Interest Income 39,686,844.03 172,103,026.96
Received 186,823,593.73 281,090,451.03
Income such as fines and indemnities received 5,339,571.74 4,398,782.53
total 412,772,697.45 693,311,207.22
(2) Other cash paid related to operating activities

Unit: Currency: RMB
Project Amount for this period Amount in the previous period
management expenses, cash paid in R&D 160,990,665.41 102,530,349.78
expenses, cash paid in sales expenses, cash paid 67,178,150.82 47,184,723.77
in non-operating expenses, cash paid in handling 18,510,846.30 56,876,049.50
fees, etc. Current accounts, reserves and deposits 4,408,538.69 692,265.34
222,573,014.06 310,833,433.08
total 473,661,215.28 518,116,821.47
(3). Other cash received related to investment activities
Unit: Currency: RMB
The project Amount for this period Amount in the previous period
recovers the principal of financial management, etc.

4,320,000,000.00 5,363,048,219.18
total 4,320,000,000.00 5,363,048,219.18
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2021 Annual Report
(4) Other cash paid related to investment activities

Unit: Currency: RMB
Project Amount for this period Amount in the previous period
purchase and wealth management, etc. Payment of 1,250,000,000.00 7,164,000,000.00
principal to dispose of subsidiaries 191.49
total 1,250,000,000.00 7,164,000,191.49
(5) Other cash received related to financing activities
(6) Other cash paid related to financing activities

Unit: Currency: RMB
Pay the lease payment 3,327,082.50
total 3,327,082.50
78. Supplementary information on cash flow statement
(1). Supplementary information on cash flow
statement ÿApplicable ÿNot applicable
Unit: Currency: RMB
Supplementary Current Amount Amount of the previous period
information 1 . Reconciling net profit to cash flow from operating activities:
Net profit 1,115,576,682.69 536,681,419.75
plus: asset impairment provision, 12,110,124.62 477,765,585.46
credit impairment loss, depreciation 27,182,725.06 16,309,637.06
of fixed assets, depletion of oil and gas properties, depreciation of productive biological assets
225,941,613.70 179,661,120.94
Old
Amortization of right-of-use assets 2,919,888.02
Amortization of intangible assets 11,423,846.26 11,111,353.99
Amortization of long-term deferred expenses 249,543.26 181,254.16
Loss on disposal of fixed assets, intangible assets and other long-term assets
1,962,848.45 -714.17
(Revenues are listed with "-")
Loss on scrapping of fixed assets (Revenues are listed with 7,248,002.64 7,114,053.72
"-") Loss from changes in fair value (Revenues are listed with -31,039,725.31 7,141,727.90
"-") Financial expenses (Revenues are listed with "-") 20,279,592.22 39,240,081.66
Investment losses (revenues are listed with "-") Decrease in -413,278,092.00 -543,843,481.37
deferred tax assets (increase with "-") Increase in deferred tax -20,577,258.99 14,002,249.71
liabilities (decrease with "-") Decrease in inventories (increase 104,973.98 2,470,321.41
with "-" ”) Decrease in operating receivables (increase in “-”) -392,918,674.09 221,575,059.31
-587,938,063.85 Increase in operating payables (decrease in “-”) -17,092,193.41 Others -538,701,036.64
148,474,574.23
166 / 207
2021 Annual Report
Net cash flow from operating activities 2. Significant -37,844,166.75 579,183,207.12
investing and financing activities that do not involve cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within one year
Financing leased fixed assets
3. Net change in cash and cash equivalents:
Closing balance of cash 7,421,524,979.39 5,498,473,810.37
minus: Opening balance of cash 5,498,473,810.37 9,749,361,451.60
plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 1,923,051,169.02 -4,250,887,641.23
(2) Net cash paid for acquisition of subsidiaries in the current period
(3) Net cash received from disposal of subsidiaries in the current
(4) Composition of cash and cash equivalents
Unit: Yuan Currency: RMB Beginning
project Ending balance Balance
1. Cash 7,421,524,979.39 5,498,473,810.37
Of which: Cash on hand 73,379.04 80,299.64
Bank deposits readily available for payment 7,304,671,809.66 5,049,198,585.34
Other monetary assets readily available for payment

116,779,790.69 449,194,925.39
Money
Deposit central bank money available for payment
item
Deposits with other banks
Loans from other banks
2. Cash Equivalents
Of which: Bond investments due within three months
3. Balance of cash and cash equivalents at the end of the period 7,421,524,979.39 5,498,473,810.37
Including: used by the parent company or subsidiaries within the group
Restricted cash and cash equivalents
other instructions:
79. Notes to items in the Statement of Changes in Owner's
Equity Explain the names and adjusted amounts of "other" items that have adjusted the closing balance of the previous year:
80. Assets with restricted ownership or right to use ÿApplicable
ÿNot applicable
Unit: Currency: RMB
167 / 207
2021 Annual Report
project Book value at the end of the period Restricted Reason
Monetary Funds 334,821,778.94 Margin, pledge
Notes Receivable
stock
fixed assets 2,368,232.11 mortgage
intangible assets
Receivables Financing 221,049,532.57 pledge (note)
total 558,239,543.62 /
other instructions:
Note: The financing of restricted receivables in the current period was mainly due to the issuance of bills payable by the company as a pledge of bank acceptance bills.
81. Foreign currency monetary items
(1). Foreign currency monetary items
unit: yuan
Converted RMB balance at the end

project Closing foreign currency balance Converted exchange rate
of the period
Money funds 13,741,355.95
Of which: US dollars 1,651,813.94 6.3757 10,531,470.13
EUR 330,146.01 7.2197 2,383,555.14
Russian Ruble 596,615.83 0.0855 50,991.06
won 144,647,359.00 0.0054 775,339.62
accounts receivable 68,175,089.42
EUR 971,933.13 7.2197 7,017,065.62
Hong Kong dollar
Other receivables 10,794,844.31
EUR
Hong Kong dollar
(2) Description of overseas business entities, including for important overseas business entities, their main overseas business locations and bookkeeping standards should be disclosed
currency and selection basis, and the reasons for changes in the functional currency of bookkeeping should also be
disclosed ÿApplicable ÿNot Applicable
82. Hedging
83. Government subsidies
(1) Basic information on government
subsidies ÿApplicable ÿNot applicable
Unit: Currency: RMB
Kinds amount presentation item Amount included in current profit and loss
related to assets 20,594,200.00 Deferred income, other income 16,481,156.57
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Revenue-Related 20,265,445.03 other income 20,265,445.03
Total Revenue- 1,916,000.00 Non-operating income 1,916,000.00
Related 42,775,645.03 38,662,601.60
(2). Refund of government subsidy
ÿApplicable ÿNot applicable 84.
Others
8. Changes in the scope of consolidation
1. Business combination not under the same
control 2. Business combination under the same
control ÿApplicable ÿNot applicable
3. Reverse purchase
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4. Whether there is a situation in
which a single disposal of a subsidiary will result in the loss of control over the investment in the subsidiary
ÿApplicable ÿNot applicable Other explanations: ÿApplicable ÿNot applicable
5. Changes in the scope of consolidation caused by other
reasons Explain the changes in the scope of consolidation caused by other reasons (such as newly established subsidiaries, liquidated subsidiaries, etc.) and related circumstances:
1. In 2021, Qingdao Longcheng Power Materials Co., Ltd. will be cancelled. Tax cancellation procedures and industrial and commercial cancellation procedures have been completed in 2021.
2. In May 2021, the company invested in the establishment of a wholly-owned subsidiary, Changfeng Fangda Carbon Materials Co., Ltd., with registered capital
RMB 50,000,000, and as of December 31, 2021, the amount of capital issued is RMB 5,000,000. 6. Other ÿApplicable ÿNot
applicable
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IX. Interests in other entities 1. Interests in
subsidiaries
(1) Composition of enterprise group
Subsidiary Main business Shareholding ratio (%) How to

The business nature of the place of registration
Name Camp Direct and indirect get new
Fushun Fangda High-tech Materials Co., Ltd. Liaoning Fu

Liaoning Fushun Production Enterprise 60.00
company Shun

Shanghai Shanghai Investment Enterprise 100.00 New
Responsible
company Fushun Laihe Mining Co., Ltd. Liaoning Fu common control

Liaoning Fushun production enterprise 97.99
Shun and
Chengdu Carbon Co., Ltd. Sichuan Cheng common control

Sichuan Chengdu production enterprise 100.00
All and
Fushun Fangtai Precision Carbon Materials Co., Ltd. Liaoning Fu common control
Liaoning Fushun production enterprise 100.00
limited company Shun and
Fushun Carbon Co., Ltd. Liaoning Fu non-same control

Liaoning Fushun Production Enterprise 65.54
Shun merge
Hefei Carbon Co., Ltd. Anhui Hefei non-same control

Anhui Hefei production enterprise 100.00
Fat merge
Chengdu Rongguang Carbon Co., Ltd. Sichuan Cheng non-same control

Sichuan Chengdu production enterprise 60.00
company All merge
Chengdu Fangda Carbon Research Institute has Sichuan Cheng

Sichuan Chengdu Scientific Research 100.00 New
limited company All
Gansu Classical Shengdong Construction Poverty Alleviation Gansu province Linxia, Gansu Province
Building Construction 40.00 New
Development Co., Ltd. Linxia Prefecture State
Gansu Benju Handicraft Development Co., Ltd. Gansu province Linxia, Gansu Province
Production enterprise 60.00 New
limited company Linxia Prefecture State
Fangda Tengda, Dongxiang Autonomous County Gansu province Linxia, Gansu Province
Production enterprises 54.12 New
Clothing Co., Ltd Linxia Prefecture State
Gansu Fangda Jiuxing Template Co., Ltd. Gansu province Linxia, Gansu Province
Production enterprise 60.00 New
company Linxia Prefecture State
Jiangsu Fangda Carbon Chemical Co., Ltd. Jiangsu Xu non-same control

Jiangsu Xuzhou production enterprises 46.73
company State merge
Fangda (South Korea) International Trade

Korea Korea Trading Company 100.00 New
Co., Ltd. Fangda
(Moscow) International Trade

Russian Russian Trading Company 100.00 New
easy co., ltd.
other instructions:
Note 1: The company holds 40% equity of Gansu Classical Shengdong Construction Poverty Alleviation and Development Co., Ltd., but the company can decide its related production
operations, returns, financing, investment and asset disposal activities, so the company includes them in the scope of the consolidated financial statements.
Note 2: The company holds 46.73% equity of Jiangsu Fangda, but has 80% voting rights. According to the company's agreement with Coal Chemical Co., Ltd.
The joint venture contract concluded, regardless of the actual proportion of capital contribution, regarding the rights of the parties to the joint venture based on their respective rights to the joint venture company
Obligations, except for matters related to the distribution of the remaining assets during dissolution and liquidation, including the voting rights and interests at the shareholders’ meeting of the joint venture company
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Including the proportion of profit distribution, it is treated according to the proportion of 80% of the company and 20% of Coal Chemical. Therefore, it is judged that the company can determine its relevant
Activities such as production and operation, return, financing, investment and asset disposal are included in the scope of the consolidated financial statements.
(2). Important non-wholly-owned subsidiaries
Unit: Currency: RMB
Minority Shareholding Attributable to minority shareholders in the current period Announcement to minority shareholders in this issue Minority shareholders' equity at the end of the period
Subsidiary name
Ratio profit and loss dividends distributed balance
Fushun Fangda High-tech Materials

40.00% 3,664,460.26 70,230,362.51
Materials Co., Ltd.
Fushun Laihe Mining Co., Ltd.

2.01% 3,830,083.81 34,074,638.41
Co., Ltd.

34.46% 17,063,372.00 383,017,817.18
As the company's
Chengdu Rongguang Carbon Co., Ltd.

40.00% 14,026,008.78 -7,741,741.60 429,206,813.30
Co., Ltd. Jiangsu
Fangda Carbonization
53.27% -10,219,393.88 61,539,436.75
Explanation of the
shareholding ratio of the minority shareholders of the subsidiary of the Industrial Co., Ltd. being different from the voting rights ratio:
The company holds a 46.73% stake in Jiangsu Fangda, but has 80% of the voting rights. According to the agreement signed between the company and Coal Chemical Co., Ltd.
No matter what the actual capital contribution ratio is, regarding the rights and obligations of each joint venture party to the joint venture company based on their respective rights and obligations,
In addition to matters related to the distribution of the remaining property upon dissolution and liquidation, including the voting rights and profit distribution at the shareholders' meeting of the joint venture company
Including the proportion of the company, it is treated according to the proportion of 80% of the company and 20% of the coal chemical industry.
other instructions:
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(3). Main financial information of important non-wholly-owned
subsidiaries ÿApplicable ÿNot applicable
Unit: Currency: RMB

closing balance opening balance
Subsidiary name
Current assets, non-current assets, total assets, current liabilities, non-current liabilities, total liabilities, current assets, non-current assets, total assets, current liabilities, non-current liabilities, total liabilities
Fushun Fangda Gao

148,079,656.6 57,314,992.9
Limited new materials 205,394,649.62 40,046,025.17 40,046,025.17 115,696,252.77 61,947,836.76 177,644,089.53 21,456,615.72 21,456,615.72
8 4
company
Fushun Laihe Mine 1,616,977,923. 140,722,279. 1,757,700,203. 1,465,078,016.

62,444,560.85 62,444,560.85 145,480,834.38 1,610,558,851.15 91,004,559.13 91,004,559.13
industry co., ltd. 39 93 32 77
Fushun Carbon has 1,200,691,606. 83,120,125.6 1,283,811,731. 3,174,034. 1,086,910,538. 111,414,276.90

169,153,872.58 172,327,906.67 86,887,469.20 1,173,798,007.87 108,171,668.13 3,242,608.77
LLC 29 1 90 09 67
Chengdu Rongguang Carbon
577,356,206. 1,435,420,875. 212,536,52 192,646,769.

prime stock co., ltd. 858,064,669.05 150,254,296.36 362,790,826.29 972,371,521.46 480,013,167.13 1,452,384,688.59 202,511,391.12 395,158,160.97
47 52 9.93 85
company
Jiangsu Fangda Carbon

395,286,159. 65,280,150 68,548,252.6
Su Chemical Co., Ltd. 70,972,295.12 466,258,454.24 91,047,332.78 156,327,483.57 46,194,935.12 445,315,324.19 491,510,259.31 64,337,204.05 132,885,456.72
12 .79 7
company
Subsidiary name
cash from operating activities cash flow from operating activities

Operating income Net profit Total comprehensive income Operating income net profit Total comprehensive income
flow quantity
Fushun Fangda High-tech Materials Co., Ltd.

412,598,643.73 9,161,150.64 9,161,150.64 23,385,938.95 198,430,572.27 7,466,241.83 7,466,241.83 35,521,387.77
Fushun Laihe Mining Co., Ltd.

399,185,733.48 190,551,433.30 190,551,433.30 205,039,693.90 424,527,563.33 174,807,627.88 174,807,627.88 118,690,011.80
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2021 Annual Report

391,600,288.64 49,515,022.77 49,515,022.77 2,426,731.60 241,668,528.02 -53,423,521.68 -53,423,521.68 6,230,961.03
Chengdu Rongguang Carbon Co., Ltd.

346,206,186.06 35,065,021.94 35,065,021.94 204,640,718.70 206,595,791.73 23,622,544.67 23,622,544.67 -190,868,953.56
Jiangsu Fangda Carbon Chemical Co., Ltd.

269,301,201.88 -51,096,969.40 -51,096,969.40 -14,057,033.60 29,958,622.91 -12,468,450.21 -12,468,450.21 3,471,085.42
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2021 Annual Report
(4) Significant restrictions on using the assets of the enterprise group and paying off the debts of the enterprise group
ÿApplicable ÿNot applicable (5) Financial support or other support provided to structured entities included in the scope
of the consolidated financial statements ÿApplicable ÿNot applicable
other instructions:
2. Transactions in which the share of the owner's equity in the subsidiary has changed and the subsidiary is still controlled ÿApplicable
ÿNot Applicable
3. Interests in joint ventures or associates ÿApplicable ÿNot applicable
(1). Important joint ventures or associates ÿApplicable ÿNot applicable
Unit: Currency: RMB
For joint ventures or associates

Main business Shareholding ratio (%)
Joint venture or joint venture name The business nature of the place of registration Accounting Office for Corporate Investments
land
direct indirect management method
Pizhou City, Jiangsu Province, Pizhou

Fangda Xike Mo (Jiangsu) Needle
Xuzhou Jiangsu Economic Development Zone Pingguo Production enterprise 51.00 Equity method
Jiao Technology Co., Ltd.
West Road
Lanzhou City, Gansu Province
Baofang Carbon Material Technology Co., Ltd. Lanzhou, Gansu Jiatan, Ping'an Town, Ancient District Production enterprise 49.00 Equity method
village
Jilin City, Jilin Province

Jilin Province
Jilin Chemical Fiber Co., Ltd. Forest Economic and Technological Development Manufacturing 11.77 Equity method
forest city
216 Kunlun Street, District
Lian, Jiujiang City, Jiangxi Province

Jiangxi Province Nine
Jiujiang Bank Co., Ltd. Changhong Avenue, Xi District Finance 5.65 Equity method
Jiangshi
No. 619
Tianjin Binhai New Area

Tianjin Haihe Fangda Industrial Investment Base Shanghai Yellow Private Equity
Lingang Economic Zone Seaport 59.40 Equity method
Golden Partnership (Limited Partnership) Ura Ward industry
Pioneering Park
Explanation of the shareholding ratio in the joint venture or associate company being different from the voting rights ratio:
According to the "Sino-Foreign Joint Venture Contract", the board of directors of Fangda Xikemo is composed of the company and the minority shareholder Coal Chemical Co., Ltd.
Each appoints two directors, and important resolutions must be unanimously passed by the board of directors. Therefore, Fangda Xike Mo is the company and the joint stock company.
Coal Chemical Co., Ltd. is jointly controlled by the company, and the company's counterpart, Daxi Kemo, performs equity method accounting and is not included in the scope of consolidation.
According to the "Articles of Association of Baofang Carbon Materials Technology Co., Ltd.", the board of directors of Baofang Carbon Materials is composed of seven members.
Technology Co., Ltd. (formerly Baowu Carbon Material Technology Co., Ltd., Shanghai Baosteel Chemical Co., Ltd.) recommended four people, and the company recommended three
The resolutions of the board of directors must be approved by more than half of all directors who attend the meeting in person or by proxy.
This Baofang carbon material is jointly operated by Baowu Carbon Industry Technology Co., Ltd. and the company. The company conducts equity method accounting for Baofang carbon material, and does not
included in the scope of consolidation.
According to the "Tianjin Haihe Fangda Industrial Investment Fund Partnership Enterprise (Limited Partnership) Partnership Agreement", the Investment Decision Committee
Make decisions on investment and exit of partnership investment projects. The investment decision-making committee to form a valid resolution must be approved by all the committee members present at the meeting.
It is approved by the members, and the members appointed by Tianjin Haihe Industrial Fund Management Co., Ltd. have one-vote veto power. The company has the right to make investment decisions
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2021 Annual Report
The members appointed by the committee have significant influence on Haihe Fangda Fund, but do not control its operation. Therefore, the company calculates according to the equity method.
Not included in the scope of consolidation.
(2). Main financial information of important joint ventures
Unit: Currency: RMB
Closing balance/ Amount incurred in the current period Beginning balance/ Amount incurred in the
previous period Fangda Xike Mo (Jiangsu) needle Fangda Xike Mo (Jiangsu) Needle
Jiao Technology Co., Ltd. Jiao Technology Co., Ltd. 184,576,306.31
Current 214,459,110.35
assets Of which: cash and cash 16,275,539.45 22,031,703.44
equivalents Non-current assets Total assets 223,988,760.03 254,559,638.94
Current liabilities Non-current liabilities Total 408,565,066.34 469,018,749.29
minority interests 38,277,156.67 33,246,696.36
2,268,324.00 2,757,237.84
40,545,480.67 36,003,934.20
Adjustment of the share of net assets attributable to 368,019,585.67 433,014,815.09
shareholders' equity of the parent company calculated according to 187,689,988.69 220,837,555.68
the shareholding ratio
--Goodwill
--Unrealized profit from insider transactions
--other
The fair value of the equity investment in the joint venture for 187,689,988.69 220,837,555.68
which there is a public quotation for the book value of the equity investment in the joint venture
value
Operating Income 152,942,571.41 83,315,802.64
Finance Expenses -306,579.65 -78,157.50
Income Tax Expenses
Net profit -65,049,658.95 -111,892,276.60
Net profit from discontinued operations
Other comprehensive income
Total comprehensive -65,049,658.95 -111,892,276.60
income Dividends received from joint ventures during the year
(3). Main financial information of important associates
Unit: Currency: RMB
Closing Balance/ Amount of Current Period Beginning Balance/Amount of Last Period
Baofang Carbon Material Technology Jiujiang Bank Co., Ltd. Baofang Carbon Material Technology Jiujiang Bank Co., Ltd.
limited company limited company
Current assets, 265,691,916.82 668,113,937.08

447,966,997,000.00
1,589,668,606.23 1,036,886,267.04 405,808,644,000.00
non-current assets, 1,855,360,523.05 1,705,000,204.12

13,535,986,000.00
248,028,900.49 366,243,870.17
306,154,551.71 9,985,488,000.00
total assets, current 52,557,332.64 554,183,452.20

461,502,983,000.00
418,801,202.81 415,794,132,000.00
liabilities, non- 422,253,404,000.00 385,949,633,000.00
current liabilities, 3,836,354,000.00 3,214,953,000.00
total liabilities 426,089,758,000.00 389,164,586,000.00
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2021 Annual Report
Minority shareholders' equity 729,288,000.00 653,371,000.00
attributable to parent company shares

1,301,177,070.85 34,683,937,000.00 1,286,199,001.31 25,976,175,000.00
East equity is
calculated in proportion to the shareholding

637,576,764.71 1,564,882,694.31 630,237,510.64 1,468,303,291.88
Adjustment of the
share of net assets -- -21,707,565.29 -452,828,634.37 -20,606,314.46 -425,684,011.01
goodwill
--Internal transaction not implemented

-21,707,565.29 -20,606,314.46
Profit--
Other -452,828,634.37 -425,684,011.01
Equity in Associates
615,869,199.42 1,112,152,577.73 609,631,196.18 1,042,619,280.87
The book value of the
investment is publicly quoted
Equity investment in associates 1,485,884,400.00 1,494,130,928.04
fair value of capital
Operating Income 76,121,389.87 10,347,463,653.42 78,847.26 3,374,215,333.33
Income Tax Expenses 213,570,809.14 143,323,333.33
Net Profits Net Profits 14,978,069.54 1,784,704,111.66 -17,572,244.60 439,021,333.33
from Discontinued Operations
Run
Other comprehensive 235,864,801.13
income Total comprehensive income 14,978,069.54 2,020,568,912.79 -17,572,244.60 439,021,333.33
shares in joint ventures 40,821,000.00
profit
Closing Balance/ Amount of Current Period Beginning Balance/Amount of Last Period
ÿÿÿÿÿÿÿÿÿÿ2,231,742,977.01 Jilin Chemical Fiber Co., Ltd.
Current assets, 7,685,464,295.86 2,371,007,420.06
non-current assets, 9,917,207,272.87 7,484,196,566.29
total assets, current 5,112,911,191.07 9,855,203,986.35
liabilities, and non- 995,806,812.07 4,976,277,833.28
current liabilities, total 6,108,718,003.14 887,525,845.41
minority interests, -4,967,443.31 5,863,803,678.69
attributable to shareholders' 3,813,456,713.04 10,414,624.67
equity of the parent company, and adjustment 448,843,855.12 3,980,985,682.99
of the share of net assets calculated according to the 61,807,333.77 587,991,585.38
shareholding ratio -- goodwill -- unrealized profits from 61,807,333.77 77,564,247.95
internal transactions 77,564,247.95
--other
The book value of equity investment in associates 510,651,188.89 665,555,833.33
is publicly quoted.
1,344,690,290.96 605,194,586.64
Fair Value
Operating Income 3,561,449,285.32 2,499,714,527.34
Finance Expenses 274,699,355.32 296,539,340.77
Income Tax Expenses -17,129,272.95 -48,107,839.04
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2021 Annual Report
Net profit -161,443,827.34 -261,260,878.22
Net profit from discontinued operations
Other comprehensive 50,794,389.41

income Total -110,649,437.93 -261,260,878.22
comprehensive income Dividends received from associates during the year
(4) Summary financial information of unimportant joint ventures and associates ÿApplicable
ÿNot applicable
Unit: Currency: RMB
Closing balance/ Amount for the current period Beginning balance/ Amount for the previous period
Joint ventures:
Total book value of investments
The total number of the following items based on shareholding ratio
--Net profit
--Other comprehensive income
--Total comprehensive income
Associates:
The total book value of the investment The 41,497,329.43
total amount of the following items calculated according to the shareholding ratio
--Net profit -- 5,497,329.43
Other comprehensive income
--Other explanation of total 5,497,329.43
comprehensive income
none
(5) Explanation on significant restrictions on the ability of joint ventures or associates to transfer funds to the Company
(6) Excessive losses of joint ventures or associates ÿApplicable ÿNot
applicable
(7) Unrecognized commitments related to investment in joint ventures
(8) Contingent liabilities related to investment in joint ventures or associates ÿApplicable
ÿNot applicable
4. Important joint operation
5. Relevant explanations of the interests in structured entities not included in the scope of
consolidated financial statements:
6. Other
X. Risks related to financial instruments
The main financial instruments of the company, including monetary funds, trading financial assets, receivables, payables, loans, etc.,
For the detailed description of each financial instrument, please refer to the relevant items in Note VII. The risks associated with these financial instruments and the
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2021 Annual Report
The risk management policies adopted to mitigate these risks are described below. The management of the Company manages and monitors these risk exposures in order to
Ensure that the above risks are controlled within a limited range.
Risk Management Objectives and Policies: The Company's objective in risk management is to achieve an appropriate balance between risks and benefits, and will
The negative impact of risks on the company's operating performance is minimized, and the interests of shareholders and other equity investors are maximized. base
For this risk management objective, the basic strategy of the company's risk management is to identify and analyze the various risks faced by the company, establish appropriate
The bottom line of risk tolerance and risk management, and timely and reliable supervision of various risks to control risks within a limited range
within the perimeter.
The main risks arising from the Company's financial instruments are credit risk, liquidity risk and market risk.
(1) Classification of financial instruments
1. The book value of various financial assets on the balance sheet date
(1) December 31, 2021
measured at fair value and measured at fair value and
Its changes are included in the current loss Its changes are included in other comprehensive
Financial Assets Project Measured at amortized cost total
beneficial financial assets financial assets with combined income

of financial assets
Money funds 7,756,346,758.33 7,756,346,758.33
Tradable financial assets 639,019,115.47 639,019,115.47
bill receivable 54,211,233.26 54,211,233.26
total 8,532,067,781.29 952,364,803.95 1,199,715,024.93 10,684,147,610.17
(2) January 1, 2021
measured at fair value Measured at fair value
Financials that are automatically included in the current profit and loss and its changes are included in its
Financial asset items measured at amortized cost total
assets his comprehensive income

monetary assets
financial assets
Money funds 5,790,362,709.17 5,790,362,709.17
Tradable financial assets 4,051,987,498.10 4,051,987,498.10
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2021 Annual Report
total 6,372,388,851.67 4,273,928,847.99 1,222,223,069.65 11,868,540,769.31
2. The book value of various financial liabilities on the balance sheet date
(1) December 31, 2021
measured at fair value and its
Financial Liability Items Changes included in current profit and loss Other financial liabilities total
financial liabilities
Short-term 398,356,766.67 398,356,766.67
borrowings, bills 299,333,548.59 299,333,548.59
payable, 445,494,204.88 445,494,204.88
accounts payable, 190,727,074.65 190,727,074.65
other payables, total 1,333,911,594.79 1,333,911,594.79
(2) January 1, 2021
measured at fair value and its
Financial Liability Items Changes included in current profit and loss Other financial liabilities total
financial liabilities
Short-term 220,436,911.24 220,436,911.24
borrowings, bills 580,012,446.94 580,012,446.94
payable, 327,783,577.32 327,783,577.32
accounts payable, 164,378,630.09 164,378,630.09
other payables, total 1,292,611,565.59 1,292,611,565.59
(2) Credit risk
The largest credit risk exposure that may cause the company's financial loss at the end of the current period mainly comes from the failure of the other party to perform its obligations
resulting in the loss of the Company's financial assets. In order to reduce the credit risk, the company formulates the credit policy for customers,
Review the situation and implement other monitoring procedures to ensure that necessary action is taken to recover overdue claims. In addition, the company will
On the balance sheet date, the collection status of each individual receivable is reviewed to ensure that sufficient bad debt provision is made for the unrecoverable amount.
Therefore, the management of the Company believes that the credit risk assumed by the Company has been greatly reduced.
The Company's working capital is deposited in banks with higher credit rating, so the credit risk of working capital is low.
(3) Liquidity risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations on the due date. The Company's approach to managing liquidity risk is to ensure that
Sufficient liquidity to meet maturing obligations without causing unacceptable losses or damage to corporate reputation.
Maturity analysis of financial liabilities based on undiscounted contractual cash flows:
December 31, 2021
project Within 1 year 1+ years to 3 years3+ years total
short-term loan 398,356,766.67 398,356,766.67
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2021 Annual Report
bills payable 299,333,548.59 299,333,548.59
accounts payable 317,851,387.83 55,107,908.84 72,534,908.21 445,494,204.88
Other payables 107,067,643.13 45,499,202.77 38,160,228.75 190,727,074.65
Total 1,122,609,346.22 100,607,111.61 110,695,136.96 1,333,911,594.79
Connect to the table:
January 1, 2021
project
Within 1 year 1+ years to 3 years3+ years total
Short-term borrowings 220,436,911.24 220,436,911.24
Notes payable 580,012,446.94 580,012,446.94
Accounts payable 221,878,166.24 41,211,633.03 64,693,778.05 327,783,577.32
Other payables 101,952,773.33 26,646,354.63 35,779,502.13 164,378,630.09
Total 1,124,280,297.75 67,857,987.66 100,473,280.18 1,292,611,565.59
(IV) Market risk
Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in market interest rates. Book
The interest rate risk faced by the company mainly comes from bank borrowings. The company's bank borrowings related to floating interest rates, the interest expenses incurred will be
Included in the current profit and loss, reasonable changes in interest rates may have an impact on the current profit and loss and shareholders' equity.
2. Exchange rate risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to changes in foreign exchange rates. Book
The company tries to match foreign currency income with foreign currency expenditure as much as possible to reduce exchange rate risk. The company's exposure to foreign exchange risks is mainly related to the US dollar, European
In addition to the purchase and sales of the company and several subsidiaries in US dollars and euros, the company's other main business activities
Movements are settled in RMB.
The following table is the sensitivity analysis of exchange rate risk, reflecting that under the assumption that other variables remain unchanged, the foreign currency exchange rate is reasonable and likely to occur.
changes in the total profit (due to changes in the fair value of monetary assets and monetary liabilities).
This period
project [USD] exchange rate increase/(minus Gross profit/net profit increase Shareholders' Equity Increase/(Decrease
few) /(decrease) less)
RMB depreciates against [USD] 5.00% 4,475,070.19 4,475,070.19
Renminbi appreciates against [USD] 5.00% -4,475,070.19 -4,475,070.19
RMB depreciates against [Euro] 5.00% 3,716,821.16 3,716,821.16
Renminbi appreciates against [Euro] 5.00% -3,716,821.16 -3,716,821.16
Chinese yuan depreciates against [won] 5.00% 2,549.55 2,549.55
Renminbi appreciates against [South Korean won] 5.00% -2,549.55 -2,549.55
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Chinese yuan depreciates against [ruble] 5.00% 350,853.28 350,853.28
Renminbi appreciates against [ruble] 5.00% -350,853.28 -350,853.28
Connect to the table:
Previous period
project [USD] exchange rate increase/(minus Gross profit/net profit increase Shareholders' Equity Increase/(Decrease
few) /(reduce) few)
RMB depreciates against [USD] 5.00% 3,404,976.22 3,404,976.22
Renminbi appreciates against [USD] 5.00% -3,404,976.22 -3,404,976.22
RMB depreciates against [Euro] 5.00% 1,805,209.49 1,805,209.49
Renminbi appreciates against [Euro] 5.00% -1,805,209.49 -1,805,209.49
3. Equity instrument investment price risk
Equity instrument investment price risk refers to changes in the fair value of equity securities due to changes in stock index levels and the value of individual securities
and reduced risk.
As of December 31, 2021, the Company was exposed to assets arising from investments in individual equity instruments classified as investments in trading equity instruments
The resulting equity instrument investment price risk. The listed equity instrument investments held by the Company are listed on the Shanghai and Shenzhen Stock Exchanges.
And measured at the market price on the balance sheet date.
Market stock indices of the following stock exchanges at the close of business on the trading day closest to the balance sheet date, and during the year
Their respective high and low closing points are as follows:
Stock Exchange Closing Balance Current Period Highest/Lowest Opening Balance Last Period Highest/Lowest
Shanghai - A-Share Index

3,639.78 3,731.69/3,312.72 3,473.07 3,473.07/2,660.17
Shenzhen - A-Share Index

14,857.35 16,293.09/13,252.24 14,470.68 14,470.68/9,691.53
The following table illustrates, under the assumption that all other variables remain constant, the Company's net profit and shareholders' equity on the investment in equity instruments
Sensitivity to every 5% change in the fair value of assets (based on the book value at the balance sheet date).
Year 2021:
project Total book value profit/net profit increase Increase in shareholders' equity/
plus/(decrease) (reduce)
Listed equity instrument investment 590,973,111.00 29,548,655.55 29,548,655.55
Shanghai- 453,212,941.60 22,660,647.08 22,660,647.08
Held-for-trading equity instrument investment 453,212,941.60 22,660,647.08 22,660,647.08
Shenzhen- 137,760,169.40 6,888,008.47 6,888,008.47
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Hongkong
Held-for-trading equity instrument investment
Unlisted interests at fair value

321,549,977.20 16,077,498.86 16,077,498.86
tool investment
2020:
project Total Book Value Profit/Increase in Net Profit/ Shareholders' Equity Increase/(Decrease
(reduce) few)
Listed equity instrument investment 830,194,404.21 41,509,720.21 41,509,720.21
Shanghai- 572,903,898.58 28,645,194.93 28,645,194.93
Shenzhen- 256,613,818.24 12,830,690.91 12,830,690.91
Hongkong- 676,687.39 33,834.37 33,834.37
Held-for-trading equity instrument investment 676,687.39 33,834.37 33,834.37
Unlisted at fair value

230,124,972.86 11,506,248.64 11,506,248.64
Equity instrument investment
(5) Capital management
The primary objective of the Company's capital management is to ensure the Company's ability to continue as a going concern and to maintain healthy capital ratios to support
Business development and maximize shareholder value.
The Company manages the capital structure and adjusts it according to changes in the economic situation and the risk characteristics of the underlying assets. to maintain
Or adjust the capital structure, the company can adjust the profit distribution to shareholders, return capital to shareholders by issuing new shares or sell assets to reduce
Low debt. The Company is not subject to external mandatory capital requirements. Monitor capital with return on capital.
On December 31, 2021 and December 31, 2020, the return on capital of the Company is as follows:
Project Ratio Closing Balance or Closing Ratio Opening Balance or Opening
return on capital (%) 23.06 11.64
XI. Disclosure of fair value 1. Closing fair
value of assets and liabilities measured at fair value
Unit: Currency: RMB
Fair value at the end of the period
project Level 1 fair value Level 2 fair value Level 3 fair value
total
metering Value measurement metering
1. Continuous fair value measurement
(1) Held-for-trading financial assets 630,814,826.75 8,204,288.72 639,019,115.47
1. Measured at fair value and changes 630,814,826.75 8,204,288.72 639,019,115.47
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2021 Annual Report
Financial assets included in current
profit and loss (1) Debt instrument
investment (2) Equity instrument 630,814,826.75 8,204,288.72 639,019,115.47
investment (3) Derivative financial
assets 2. Designated financial assets at
fair value through profit or loss
(1) Debt instrument
investment (2) Equity
instrument investment (2)
Other debt investment (3) Other
equity instrument investment (4)
Investment real estate 1. Rental land
use rights 2. Rental buildings 3. Holding
and Land use rights to be transferred
after appreciation (VI) Financial liabilities
held for trading
1,199,715,024.93 1,199,715,024.93
313,345,688.48 313,345,688.48
630,814,826.75 1,199,715,024.93 321,549,977.20 2,152,079,828.88
1. Financial liabilities measured at fair value
and changes included in current profit and loss
Among them: Bonds issued for trading derivative
financial liabilities Others
2. Financial liabilities designated as
financial liabilities at fair value with changes
included in current profits and losses Total
liabilities continuously measured at fair
value II. Non-continuous fair value
measurement Total liabilities measured at
fair value discontinuously
2. Determination basis for the market price of continuous and non-continuous first-level fair value measurement items
The financial assets of the Company measured at fair value through profit or loss of the current period are listed company stocks, and their fair price is the closing price of the
stock exchange at the end of the period. 3. For continuous and non-continuous second-level fair value measurement items, the valuation techniques used and qualitative and quantitative
information on important parameters
For the receivable financing held, the par value is used to determine its fair value.
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4. For continuous and non-continuous third-level fair value measurement items, the valuation techniques used and qualitative and quantitative information on important parameters
1. Due to the investee enterprises Ningbo Meishan Bonded Port Area Fosun Weiying Equity Investment Fund Partnership (Limited Partnership), Mianyang Technology
The business environment, operating conditions and financial conditions of the Urban Industrial Investment Fund (Limited Partnership) have all changed, so the company has been audited
The net assets attributable to partners are measured as a reasonable estimate of fair value.
2. Waxon (Beijing) International Assets Appraisal Co., Ltd. provided by the invested enterprise Northeast Special Steel Group Co., Ltd.
Equity fair value valuation report based on the valuation report, which is measured according to the valuation as a reasonable estimate of fair
value. 5. For the continuous third-level fair value measurement items, the adjustment information between the opening and closing book values and unobservable parameters are sensitive.
Perceptual analysis
6. Continued fair value measurement items, if there is a transfer between different levels in the current period, the reason for the transfer and the determination of the transfer time point.
policy
7. Changes in valuation techniques during the current period and the reasons for the changes
8. Fair value of financial assets and financial liabilities not measured at fair value
The Company's financial assets and financial liabilities measured at amortized cost mainly include: monetary funds, notes receivable, accounts receivable,
Receivables financing, other receivables, short-term borrowings, notes payable, accounts payable, other payables, etc.
9. Others
ÿApplicable ÿNot applicable XII.
Related parties and related transactions 1. The
parent company of the enterprise ÿApplicable ÿNot
applicable
Unit: 10,000 yuan Currency: Shareholding ratio of
the parent company in RMB (%)

Proportion of voting rights of the
Parent company name registered place business nature registered capital
parent company to the company (%)
The ultimate controller of

Shenyang Investment Management 100,000.00 40.05 40.05
Liaoning Fangda Group
Industrial Co., Ltd. is Fangwei. 2. Subsidiaries of
the Company For details of the subsidiaries of
the Company, please refer to Note ÿApplicable ÿNot
Applicable For details of the Company's subsidiaries,
please refer to “IX. Equity in other entities” in this note.
3. Information about the joint ventures and joint ventures of
the company For details of the important joint ventures or joint ventures of
the company, please refer to Note ÿApplicable ÿNot applicable.
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2021 Annual Report
Other joint ventures or associates that have related party transactions with the company in the current period, or related party transactions with the company in the previous period and formed a balance
details as following
Name of joint venture or joint venture Directors and executives of
Baofang Carbon Material Technology Co., Ltd. companies related to the company serve as directors and executives of joint ventures
4. Other related parties
Names of other related parties Relationship between other related parties and the company
Dragon Catering Co., Ltd. Guizhou Fangda Huangguoshu Food Holding subsidiary of parent company
and Beverage Co., Ltd. North Heavy Industry Group Co., Ltd. Holding subsidiary of parent company
Shenyang Northeast Pharmacy Chain Co., Ltd. Zhongxing- Holding subsidiary of parent company
Shenyang Commercial Building (Group) Co., Ltd. Sichuan Daxing Holding subsidiary of parent company
Baohua Chemical Co., Ltd. Tianjin Department Store Commerce Holding subsidiary of parent company
and Trade Corporation Shenyang Northeast Pharmaceutical Holding subsidiary of parent company
Import and Export Trading Co., Ltd. Northeast Pharmaceutical Holding subsidiary of parent company
Group Supply and Marketing Co., Ltd. Northeast Pharmaceutical Group Holding subsidiary of parent company
(Ningbo) Sales Co., Ltd. Northeast Pharmaceutical Group Shenyang Holding subsidiary of parent company
First Pharmaceutical Co., Ltd. Shengjing Fangda Real Estate Holding subsidiary of parent company
Development Co., Ltd. Dongyao Group Chaoyang Pharmaceutical Co., Ltd. Dongxiang Holding subsidiary of parent company
Autonomous County Shengdong Trading Co., Ltd. Shenyang Fangdi Real Estate Co., Holding subsidiary of parent company
Ltd. Tianjin Total Logistics Distribution Co., Ltd. Sichuan Dazhou Iron and Steel Group Holding subsidiary of parent company
Co., Ltd. Beijing Fangda (Tianjin) International Trade Co., Ltd. Tianjin Yishang Holding subsidiary of parent company
Automobile Trading Co., Ltd. Gansu Fangdatong Special New Materials Co., Ltd. Holding subsidiary of parent company
Gansu Fangda Zhanyao New Material Packaging Co., Ltd. Liaoning Fangda New City Holding subsidiary of parent company
Real Estate Co., Ltd. Gansu Fangda Baiquan Agricultural Technology Co., Ltd. Gansu Holding subsidiary of parent company
Fangda Fuhuang East-West Cooperation Garment Co., Ltd. Gansu Fangda Jiujian Holding subsidiary of parent company
Peng Technology Development Co., Ltd. Gansu Fangda Youertamu Industry Holding subsidiary of parent company
Development Co., Ltd. Gansu Linxia Dongxiang Autonomous County Shengdong Hai Holding subsidiary of parent company
Limai Food Production Co., Ltd. Holding subsidiary of parent company
Holding subsidiary of parent company
limited company
Dongxiang Autonomous County Dongxiang Cooperation Meijia Rain Gear Co., Ltd. Holding subsidiary of parent company
Dongxiang Autonomous County Dongxiang Cooperation Shengweitang Food Co., Ltd. Holding subsidiary of parent company
Dongxiang Autonomous County Xiyuhang Clothing Co., Ltd. Dongxiang Autonomous Holding subsidiary of parent company
County Quanzhong Potato Industry Trading Co., Ltd. Holding subsidiary of parent company
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2021 Annual Report
5. Related party transactions
(1) Affiliated Transactions of Purchase and Sale of Commodities, Provision and Acceptance of Labor
Services Purchase of Commodities/Acceptance of Labor Services
Unit: Currency: RMB
In related party transactions

Related party Amount for the current period Amount for the previous period
Allow
Liaoning Fangda Group International Trade Co., Ltd. purchased goods 22,376,388.53 Suifenhe Fangda International Trade Co., Ltd. purchased goods 25,990,788.22
20,681,317.77 Fangda Sikemo (Jiangsu) Needle Coke Technology Co., Ltd. purchased goods 90,501,852.20 FangdaCo.,
Technology Sikemo (Jiangsu)Labor
Ltd. accepted Needle Coke
2,271,885.00 4,038,479.35
47,410,596.12
Beijing Fangda Carbon Technology Co., Ltd. purchases goods 56,155,494.90 Beijing Fangda (Tianjin) International Trade Co., Ltd. purchases goods 70,568,122.98
Shanghai Shuibo Xianglong Catering Co., Ltd. purchases goods Sichuan Daxing Baohua Chemical Co., Department
Ltd. purchases goods
Store 37,431,826.89
Commerce Tianjin
and306,725.67
Trade Corporation 51,712,886.43
purchases goods 1,838,224.22 Shenyang Northeast Pharmacy Chain Co., Ltd. purchases goods 22,897.95
and Shenyang Northeast
Export Trading Pharmaceutical
Co., Ltd. Import
purchases goods 67,991.00
Northeast Pharmaceutical Group Supply and Marketing Co., Ltd. purchases goods ZTE- Shenyang Commercial
Dongxiang
Building
Autonomous
(Group) County
Co., Ltd.
Shengdong
purchases
Co., Ltd. Trading
goods 28,867.93
purchases goods 1,245,067.23
20,288,446.28
306,472.79
196,630.59
1,230,722.26
376,117.16
532,358.36 1,782,945.11
151,468.73
14,178.94
58,561.05
Baofang Carbon Material Technology Co., Ltd. accepts labor services 37,473,868.91 Gansu Fangda Baiquan Agricultural Technology Co., Ltd. purchases 745,382.03
goods 465,990.83
Gansu Fangda Fuhuang East-West Cooperation Garment Co., Ltd. purchased goods 3,195,290.29
Gansu Fangda Jiujian Peng Technology Development Co., Ltd. purchased goods 1,119,730.97
Gansu Fangdatong Special New Materials Co., Ltd. purchased goods 2,123,893.79
Gansu Fangda Youerta Animal Husbandry Development Co., Ltd. purchased goods 695,963.30
Gansu Linxia Dongxiang Autonomous County Shengdong Hai Limai Food Manufacturing Co., Ltd. purchased goods 594,059.40
Tianjin Total Logistics Distribution Co., Ltd. purchased goods 130,951.59
Dongxiang Autonomous County East-West Cooperation Meijia Rain Gear Co., Ltd. purchased goods 1,584.16
Dongxiang Autonomous County East-West Cooperation Shengweitang Food Co., Ltd. purchased goods 80,796.40
Dongxiang Autonomous County Quanzhong Potato Industry Trading Co., Ltd. purchased goods 456,476.98
Dongxiang Autonomous County Xiyuhang Clothing Co., Ltd. purchased goods 1,561,946.85
Total 284,819,004.65 226,213,724.20
Sales of goods / provision of labor services
Unit: Currency: RMB
In related party transactions

Related party Amount for the current period Amount for the previous period
Allow
Fangda Special Steel Technology Co., Ltd. Sales of goods 28,355,219.63 Sales of goods 18,053,093.65
Jiujiang Pinggang Iron and Steel Co., Ltd. 27,267,472.12 Provision of labor services 33,457.00 24,385,611.25
Jiujiang Pinggang Iron and Steel Co., Ltd.
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2021 Annual Report
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. sells goods 6,867,588.27 Baofang Carbon Materials Technology Co., Ltd. sells 8,822,722.86
goods 27,583,509.12 Beijing Fangda Carbon Technology Co., Ltd. sells goods 4,956,887.80 Fangda
Technology Co., Sike Mo (Jiangsu)
Ltd. sells Needle Coke
goods 123,630,564.57 62,286,183.82
Fangda Sike Ink (Jiangsu) Needle Coke Technology Co., Ltd. Interest income Northern
Northeast
Heavy Industry
Pharmaceutical
Group Co.,
GroupLtd.
(Ningbo)
Co., Sales ofSales
goods
Ltd. Sales of 11,799,431.17
goods Northeast Pharmaceutical Group Shenyang No. 1 Pharmaceutical Co., Ltd. Sales of goods Dongxiang Autonomous County 8,268,243.18
Xiyuhang Clothing Co., Ltd. Goods Dongyao Group Chaoyang Pharmaceutical Co., Ltd. sells goods Shenyang Northeast Pharmacy
194,040.09
Chain Co., Ltd. sells goods Shenyang Fangdi Real Estate Co., Ltd. sells goods Shengjing
sells goods
Fangda
Group)
Real Estate
Co., Ltd.
Development
Sales5,530.97
of Commodities
Co., Ltd.
Total Purchase and Sale of Commodities, Provision and Acceptance of Labor Services Related Transaction Description3,128.44
884.96
119,175.22
5,830.28
79,633.03
4,424.78
32,221.24
3,617,415.49
190,788.67
222,947,771.68 133,615,285.93
(2) Affiliated entrusted management/contracting and entrusted management/outsourcing The
company's entrusted management/contracting situation table:
Description of related hosting/contracting
The company's entrusted management / outsourcing situation table
Description of Association Management/Outsourcing
(3) Related leases The
company as the lessor:
The company as a lessee:
Description of related leases
(4) Related-party guarantees
The company is the guarantor
The company as the guaranteed party
Guarantee Guarantee Amount Guarantee Start Date Guarantee Expiration Date Whether the Guarantee Has Been Completed
Fangda Special Steel Technology Co., Ltd.

25,000.00 2020-12-22 2022-12-21 no
limited company
25,000.00
Explanation of total related guarantees
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2021 Annual Report
Note 1: On August 31, 2015, the company signed a mutual insurance agreement with Fangda Special Steel. The validity period of the agreement is 5 years. The content of the agreement is any one
If the party issues corporate bonds within a range of not more than 1.000 billion yuan or applies for comprehensive credit from the bank, it has the right to require the other party to provide irrevocable
The guarantee of joint and several liability can be used once or in installments within this limit. The credit period of mutual guarantee is 2 years, and the maximum period of liability shall not exceed
2 years from the bond (or loan) duration and the bond (or loan) maturity date. Renew the agreement in 2020, renew the mutual guarantee credit period
The limit is 2 years, and the maximum liability period shall not exceed 2 years from the duration of the bond (or loan) and the maturity date of the bond (or loan).
The agreement is valid for 5 years. As of December 31, 2021, Fangda Special Steel has not yet incurred the financing business under this mutual insurance agreement.
Note 2: On November 16, 2020, Fangda Special Steel signed a maximum guarantee contract with the Export-Import Bank of China Gansu Branch.
The same number is 2270001022020115201BZ01, the guaranteed person is the company, and the maximum guarantee amount is 250 million yuan (this guarantee
250 million yuan is included in the "Note 1" mutual insurance amount). As of December 31, 2021, the outstanding loan principal under the guarantee is
249,800,000 yuan
(5). Fund borrowing from related
parties ÿApplicable ÿNot applicable
(6) Asset transfer and debt restructuring of related parties
Unit: Currency: RMB
Content of related party transactions
35,529.08
Fangda Xikemo (Jiangsu) Needle Coke Technology Co., Ltd. vehicle transfer 600,061.94
Beijing Fangda Carbon Technology Co., Ltd. purchases vehicles 7,132,837.23
(7). Remuneration of key management
personnel ÿApplicable ÿNot applicable
Remuneration of key project management personnel 562.08 562.11
(8).Other related transactions
1) Bank deposits in Jiujiang Bank Co., Ltd.
Unit: Currency: RMB
deposit unit Ending balance Current deposit interest income
Jiangxi West Large Iron and Steel Group Co., Ltd. 5,362,686.32 371,410.88
Jiangxi West Large Iron and Steel Group Co., Ltd. 4,771.94 16.90
Jiangxi West Large Iron and Steel Group Co., Ltd. 1,435,413.14 9,893,976.81
Jiangxi West Large Iron and Steel Group Co., Ltd. 60,087.50
Jiangxi West Large Iron and Steel Group Co., Ltd. 2,237,239.30
Jiangxi West Large Iron and Steel Group Co., Ltd. 22,950,000.00
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2021 Annual Report
deposit unit Ending balance Current deposit interest income
Jiangxi Pinggang Industrial Co., Ltd. 6,901.88
Jiangxi Pinggang Industrial Co., Ltd. 6,929.68
Ningbo Pinggang Trading Co., Ltd. 102,081,565.14 5,483,885.83
Ningbo Pinggang Trading Co., Ltd. 513,800.82
Shenyang Pinggang Trading Co., Ltd. 18,000,000.00
Shenyang Pinggang Trading Co., Ltd. 6,824.90
Jiangxi West Large Iron and Steel International Trade Co., Ltd. 28,847.33
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. 111,475,722.04 22,059,941.17
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. 54,000,000.00
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. 3,600,000.00
Pingxiang Fangda Renewable Resources Development Co., Ltd. 5,015.13 6,519.25
Pingxiang Fangda Building Materials Distribution Co., Ltd. 2,301.22 1,470.99
Pingxiang Fangyuan Technology Co., Ltd. 2,245.55 87.12
Jiujiang Dahong Iron and Steel Co., Ltd. 52,575.37 1,584.13
Jiujiang Pinggang Steel Co., Ltd. 298,128,136.64 21,164,950.57
Jiujiang Pinggang Steel Co., Ltd. 20,632,922.04
Jiujiang Fangda Technology Co., Ltd. 4,031.18 252,181.62
Jiangxi Jinfang Industry and Trade Co., Ltd. 7,825.52 496.79
Sichuan Dazhou Iron and Steel Group Co., Ltd. 550,000,000.00 3,155,400.19
Sichuan Dagang Trading Co., Ltd. 9,131,945.36
Fangda Special Steel Technology Co., Ltd. 402,343,861.79 9,632,890.71
Fangda Special Steel Technology Co., Ltd. 3,505,794,944.00 19,075,249.83
Fangda Special Steel Technology Co., Ltd. 200,000,000.00
Ningbo Fanghaigull Trading Co., Ltd. 4,530.63 678.69
Liaoning Fangda Group Industrial Co., Ltd. 519,547,062.00 2,766,809.29
Hefei Carbon Co., Ltd. 59,304,475.50 617,110.10
Northeast Pharmaceutical Group Shenyang First Pharmaceutical Co., Ltd. 143,696.68
total 6,615,075,650.06 172,845,097.42
2) Notes payable at Jiujiang Bank Co., Ltd.
Unit: Currency: RMB
deposit unit Balance at the end of the period Billing amount in the current period Discount amount in the current period Discount interest in the current period
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2021 Annual Report
deposit unit Balance at the end of the period Billing amount in the current period Discount amount in the current period Discount interest in the current period
Jiangxi West Steel Group Co., Ltd. 1,652,618,549.69 3,366,593,057.47 22,579,375.00
Jiangxi West Steel Group Co., Ltd. 300,000,000.00 300,000,000.00
Shenyang Pinggang Trading Co., Ltd. 1,000,000,000.00 1,000,000,000.00 31,922,222.20
Jiangxi West Large Iron and Steel International Trade Co., Ltd.
300,000,000.00 11,526,666.60
company
Jiujiang Pinggang Steel Co., Ltd. 70,000,000.00 70,000,000.00 538,720,025.29 5,821,701.22
Jiujiang Fangda Technology Co., Ltd. 70,000,000.00
Jiangxi Jinfang Industry and Trade Co., Ltd. 400,000,000.00
Fangda Special Steel Technology Co., Ltd. 200,000,000.00 200,000,000.00 2,881,666.60
total 2,602,618,549.69 6,087,593,057.47 3,408,720,025.29 104,198,603.95
3) Guarantee matters in Bank of Jiujiang Co., Ltd.
Unit: Currency: RMB
guarantor beneficiary Guaranteed amount
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. Jiangxi West Large Iron and Steel Group Co., Ltd. 300,000,000.00
Jiujiang Pinggang Steel Co., Ltd. Jiangxi West Large Iron and Steel Group Co., Ltd. 200,000,000.00
Liaoning Fangda Group Industrial Co., Ltd. Jiangxi Fangda Steel Group Co., Ltd. 500,000,000.00
Jiangxi West Large Iron and Steel Group Co., Ltd. Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. 400,000,000.00
Jiangxi West Large Iron and Steel Group Co., Ltd. Jiujiang Pinggang Iron and Steel Co., Ltd. 300,000,000.00
Pingxiang Pinggang Anyuan Iron and Steel Co., Ltd. North Heavy Industry Group Co., Ltd. 500,000,000.00
Jiujiang Pinggang Steel Co., Ltd. Liaoning Fangda Group Industrial Co., Ltd. 600,000,000.00
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2021 Annual Report
guarantor beneficiary Guaranteed amount
total 6,600,000,000.00
4) Equity pledge of related parties
As of December 31, 2021, Fangda Group held 1,524,413,321.00 shares of the company, accounting for 10% of the company's total share capital
40.05%, of which the number of pledged shares is 903,354,000.00 shares, accounting for 59.26% of its total shares, accounting for 10% of the company's total share capital
23.74%ÿ
5) Other related transactions
With its own capital of 600 million yuan, the company jointly initiated the establishment of Haihe Fangda with the related party Tianjin Huxu Haihe and the non-related party Haihe Fund
fund. In October 2021, Haihe Fangda Fund completed the filing procedures with the Asset Management Association of China, with the filing number: SSW296,
And obtained the private investment fund record certificate. As of the end of the reporting period, the company has invested a total of 36 million yuan.
6. Accounts receivable and payable from related
parties (1). Receivable items ÿApplicable ÿNot
applicable
Unit: Currency: RMB

project name Related party
Book Balance Bad Debt Reserve Book Balance Bad Debt Reserve
Fangda Special Steel Technology Co., Ltd.

accounts receivable 10,810,615.32 52,972.02 9,866,700.08 46,373.49
manage
Accounts receivable Jiujiang Pinggang Iron and Steel Co., Ltd. 9,816,268.86 Pingxiang Pinggang Anyuan 130,005.90 6,399,950.77 33,548.93
Iron and Steel Co., Ltd.

accounts receivable 3,162,329.56 15,495.41 4,106,051.77 52,242.52
manage
Beijing Fangda Carbon Technology Co., Ltd.

accounts receivable 1,294,050.01 6,082.04
manage
Sichuan Dazhou Iron and Steel Group Co., Ltd.

accounts receivable 184,159.50 865.55
Responsible company
Accounts receivable Baofang Carbon Material Technology Co., Ltd. 5,090,445.18 Fangda Xikemo 24,943.19 4,035,229.88 18,965.58
(Jiangsu) Needle
accounts receivable 98,750.00 483.88
Liaoning Fangda Group International Trade Co., Ltd.

Prepayments 2,115,905.27
manage

Prepayments 279,657.10 2,902,625.62
Suifenhe Fangda International Trade Co., Ltd.

Prepayments 70,558.43
CompanyBeijing Fangda Carbon Technology Co., Ltd.

Prepayments 13,691,447.10 358,300.00
manage
Jingfang University (Tianjin) International Trade

Prepayments 10,838,097.70
Co., Ltd. Sichuan
Daxing Baohua Chemical Co., Ltd.

Prepayments 2,085,429.31 2,701,056.72
manage
Prepayment Tianjin Department Store Business and Trade Corporation 418,350.00
Fangda Xikemo (Jiangsu) Needle

Other receivables 3,934,813.59 160,284.13 758,374.73
Other receivables Shenyang Fangdi Real Estate Co., Ltd. 166,651.67 8,332.58 41,438.95 2,071.95
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2021 Annual Report
Other receivables Baofang Carbon Material Technology Co., Ltd. 29,347.00 Pingxiang Pinggang 1,467.35
Anyuan Iron and Steel Co., Ltd.

Other receivables 10,000.00 500.00
manage
Contract assets Jiujiang Pinggang Iron and Steel Co., Ltd. 655,107.20 Other non-current 3,210.03 655,107.20 3,079.00

10,272,052.22 10,272,052.22
assets Jiao Technology Co., Ltd.
Total 60,102,914.11 397,694.49 57,018,008.85 163,229.06
(2). Items payable
Unit: Currency: RMB
project name A related Closing book balance Opening book balance
party, Dasi Kemo (Jiangsu) Needle Coke Technology Co., Ltd.

Co., Ltd.
Accounts Payable Sichuan DaxingChemical

Baohua Co., Ltd. Accounts Payable Gansu 4,519,781.99 377,579.92
Fangdatong Special New Materials Co., Ltd.

Zhanyao NewAccounts Payable
Materials Gansu
Packaging Fangda
Co., Ltd. 199,300.35
Accounts Payable Heavy IndustryMaterials

Group Co., Ltd. Accounts
Technology Payable
Co., Ltd. OtherBaofang Carbon
Payables North Heavy 87,800.00
Industry Group Co., Ltd. 116,127.53
693,650.00 394,150.00
1,701,092.99 721,238.53
60,000.00 30,000.00
Fangda Xikemo (Jiangsu) Needle Coke Technology Co., Ltd.

Other payables 135,038.02 102,922.62
Co., Ltd.
Contract Baofang Carbon Material Technology Co., 168,283.19 3,451.33
Liabilities Ltd. Jiujiang Pinggang Steel Co., Ltd. 849,481.86
Contract Liabilities Other Current Liabilities Baofang Carbon Materials 21,876.81 448.67
Technology Co., Ltd. Other Current Liabilities Jiujiang Pinggang Iron and Steel Co., Ltd. 110,432.64
Fangda Xikemo (Jiangsu) Needle Coke Technology Co., Ltd.

Other non-current liabilities 30,774,241.00 30,774,241.00
limited company
total 39,591,963.68 36,140,006.66
7. Related party commitments
Fangda Group, the parent company of the company, promises: "(1) Accelerate the handling of land certificates, real estate certificates and other rights for various land, houses and other assets.
The documents are all completed before the end of 2007. (2) In the process of handling the land, house and other ownership documents to be injected
The costs and expenses incurred shall be borne by the Company according to the original shareholding ratio. (3) Due to the ownership of land, houses, etc. involved in this transaction,
If the problem affects the normal operation of Hailong Technology, the company will be liable for compensation, and will perform the compensation obligation within 1 month. "
Affected by local policies and government relocation plans and other factors, the company's subsidiaries Fushun Carbon, Hefei Carbon, and Rongguang Carbon failed to obtain similar results.
Warrants. According to relevant government documents, the subsidiaries Fushun Carbon, Hefei Carbon, and Rongguang Carbon will be relocated together after the relocation work is completed.
For land use right certificate and building ownership certificate ownership documents. Details are as follows:
(1) Hefei Carbon shares the same piece of land with its original shareholder, Hefei Aluminum Co., Ltd., and operates in the same area.
The right to use is still Hefei Aluminum Co., Ltd., which belongs to the state-allocated land. In 2002, according to the requirements of the Hefei Municipal Government, all state-owned land rights were
All certificates are recovered and managed by Hefei Industrial Investment Holding Co., Ltd. July 2004 Hefei Aluminum Co., Ltd. Policy
Sexual bankruptcy, the land used by Hefei Carbon is leased. In order to speed up the optimization of the layout of the central urban area, the government requires Hefei Carbon to be integrated as a whole.
193 / 207
2021 Annual Report
Relocated to the agglomeration area for business development, Hefei Carbon has also drawn up a relocation plan. The company has never had a dispute over ownership, nor has it affected the company
After the relocation work is completed, the land use right and building ownership certificate of Hefei Carbon will be processed. October 2017
In January, the company successfully acquired 47.89% equity of Hefei Carbon held by CITIC Investment Holdings Co., Ltd., and Hefei Carbon became the company's wholly-owned
subsidiary. According to the spirit of "Opinions on Accelerating the Transformation and Development of Industrial Optimization Layout in Hefei's Central City", in 2019, Hefei Carbon and
The People's Government of Xiatang Town, Changfeng County signed the "Changfeng County Investment Promotion Project Investment Cooperation Agreement", and Hefei Carbon was relocated to Xiatang County, Changfeng County
Tangzhen invested and constructed a carbon product project with an annual output of 50,000 tons, and the relocation work was carried out in an orderly manner as planned.
(2) Rongguang Carbon was established in 1992. In June 2011, the General Office of Chengdu Municipal Government issued the "Research Fangda Group in
Minutes of the meeting on issues related to technological transformation, capacity expansion and relocation of the Rongguang Project", Rongguang Carbon will be relocated as a whole, and after the relocation work is completed, unified
Apply for Rongguang Carbon's land use right certificate and building ownership certificate. So far, there has been no ownership dispute over the ownership of the company's land and houses.
Rongguang Carbon has signed a contract with the government on the relocation process and relocation compensation, and the relocation work is proceeding in an orderly manner as planned.
(3) Fushun Carbon is an enterprise restructured and established under the leadership of the local government in 2002. During the restructuring, part of the land use rights and housing
Ownership has never been transferred due to historical reasons. So far, there have been no disputes over the ownership of such land and housing use rights, nor have
Affect the normal production and operation of enterprises. Since 2006, Fushun Carbon has taken measures to actively promote the transfer of the above-mentioned land and real estate.
We have gone through the necessary pre-work for the transfer procedures, and communicated with the municipal government and the land management department many times, but due to the restriction of the policy, the result has not been achieved.
In 2008, the Liaoning Provincial Party Committee and the Provincial Government proposed the implementation of the Shen-Fu city integration strategy. Given that Fushun Carbon is located in the core area of the Shen-Fu city integration,
The Fushun Municipal Government has included the Fushun Carbon relocation and reconstruction plan into the government's work schedule. In 2010, the Fushun Municipal Government reorganized Fushun Carbon
The relocation was officially included in the "Outline of the Twelfth Five-Year Plan for Fushun's National Economic and Social Development", and Fushun Carbon also compiled the "Relocation".
Retrofit Technology Program. After the relocation and transformation of the enterprise is completed, the land use right certificate and the building ownership certificate shall be processed together. Fushun Carbon is
Negotiate with the government about relocation and renovation.
8. Others ÿApplicable
ÿNot applicable XIII. Share-based payment
1. General situation of share-based payment
ÿApplicable ÿNot applicable 2. Equity-settled share-
based payment ÿApplicable ÿNot applicable 3. Cash-
settled share-based payment ÿApplicable ÿ Not applicable 4. Modification and
termination of share-based payment ÿApplicable ÿNot applicable 5. Others
ÿApplicable ÿNot applicable XIV. Commitments and contingencies 1. Important
commitments ÿApplicable ÿNot applicable
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2021 Annual Report
2. Contingencies (1).
Important contingencies existing on the balance sheet date ÿApplicable
ÿNot applicable (2) The company has no important contingents that need
to be disclosed, which should also be explained: ÿApplicable ÿNot applicable 3. Others ÿApplicable ÿNot
applicable XV. Events after the balance sheet date 1. Important non-adjusting events ÿApplicable ÿNot
applicable 2. Profit distribution ÿApplicable ÿNot applicable
Unit: Currency: RMB
Profits or dividends to be distributed are 0
declared after deliberation and approval 0
According to the audit report issued by the Chartered International Certified Public Accountants (Special General Partnership), the company belongs to the listed company in 2021.
The net profit of shareholders of the company was RMB 1,084,595,183.21. The net profit realized by the parent company in 2021 is 431,740,006.95 yuan, accrual method
The fixed surplus reserve is RMB 43,174,000.70, plus the undistributed profit at the beginning of the year of RMB 5,844,585,975.76, minus the cash distributed in the previous year
The dividend is 1,902,985,184.00 yuan, and the distributable profit at the end of 2021 is 4,330,166,798.01 yuan.
Comprehensively consider the actual situation of the company's industry and the company's medium and long-term development strategic plan to ensure the company's production, operation and business expansion
the financial needs of the exhibition. In 2021, the company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share
capital. 3. Sales refund ÿApplicable ÿNot applicable 4. Other events after the balance sheet date ÿApplicable ÿNot applicable
The company held the seventh extraordinary meeting of the eighth board of directors on March 4, 2022 and March 21, 2022, respectively.
The first extraordinary general meeting of shareholders in 2022, the meeting reviewed and approved the "Proposal on Investment in Private Equity Funds and Related Party Transactions", the company
With its own capital of 4.5 billion yuan, Nanchang Huxu Iron and Steel Co., Ltd. was jointly established with related parties Shanghai Huxu, Fangda Special Steel and Jiangxi Trading.
Industrial Investment Partnership (Limited Partnership) (hereinafter referred to as Nanchang Huxu). In April 2022, Nanchang Huxu completed the fund filing,
Record number: SVJ470, and obtained the "Privacy Investment Fund Record Certificate". XVI. Other important
matters 1. Correction of previous accounting errors (1). Retrospective restatement method ÿ Applicable ÿ Not
applicable (2). Future application method ÿ Applicable ÿ Not applicable 2. Debt restructuring ÿ Applicable ÿ Not
applicable
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2021 Annual Report
3. Asset replacement
(1). Non-monetary asset exchange
(2). Replacement of other assets
4. Annuity plan
5. Termination of
operation ÿApplicable ÿNot applicable
6. Segment information
(1). Determination basis and accounting policy of reportable
segment ÿApplicable ÿNot applicable
According to the company's internal organizational structure, management requirements and internal reporting system, the company's business operations are divided into regions.
Segments, the management of the Company regularly evaluates the operating results of these segments to determine the allocation of resources to them and to evaluate their performance. Ben Gong
The Division has identified five reporting segments, namely Northwest China, Northeast China, Southwest China, East China, and Overseas. these newspapers
The reporting segment is determined on a regional basis.
Segment reporting information is disclosed in accordance with the accounting policies and measurement standards adopted by each segment when reporting to management.
The accounting and measurement bases used in preparing the financial statements are consistent.
(2). Financial information of reportable
segments ÿApplicable ÿNot applicable
Unit: Currency: RMB
Main business in the northwest area North-east area Southwest Region Total inter-segment eliminations in overseas regions in East China
of the project
2,292,956,784.74 1,172,012,039.92 897,470,039.90
main 519,047,201.49 516,274,325.91 4,365,211,740.14
business income
1,744,142,666.57 759,697,054.41 435,613,344.40
total cost 475,756,645.65 497,997,896.39 2,917,211,814.64
of assets
13,132,252,831.86 3,677,281,912.16 3,302,500,403.70 2,266,148,746.98 842,139.84 3,876,077,780.58 18,502,948,253.96
Forehead
total liabilities
2,458,233,889.10 710,942,824.85 915,286,127.63 1,295,645,109.49 53,708.30 2,628,058,139.88 2,752,103,519.49
Forehead
(3) If the company has no reporting segment, or cannot disclose the total assets and liabilities of each reporting segment, the reasons shall be explained ÿApplicable
ÿNot Applicable
(4).Other instructions
7. Other important transactions and matters affecting investors' decision-making
The company will hold the seventh extraordinary meeting of the eighth session of the Board of Directors on March 4, 2022 and March 21, 2022 and the 2022
The first extraordinary general meeting of shareholders in
With a capital of 4.5 billion yuan, Nanchang Huxu Iron and Steel Industry Investment was established jointly with related parties Shanghai Huxu, Fangda Special Steel and Jiangxi Trading
Partnership (Limited Partnership) (hereinafter referred to as Nanchang Huxu). In April 2022, Nanchang Huxu completed the fund filing, and the filing was compiled
No.: SVJ470, and obtained the "Privacy Investment Fund Recording Certificate". 196 / 207
2021 Annual Report
8. Other
The lessee shall disclose the following information related to the lease
Unit: Currency: RMB
project amount
Interest expense on lease liability 652,316.00
Short-term lease expenses included in current profit and loss 2,919,888.02
Low-value asset leasing expense included in current profit and loss 2,960,990.92
Variable lease payments not included in the measurement of the lease liability
Income from sublease of right-of-use assets
Total cash outflow related to lease 3,327,082.50
Gains and losses arising from sale and leaseback transactions
XVII. Notes to the main items of the parent company's financial
statements 1. Accounts receivable
(1). Disclosure by ageing
Unit: Currency: RMB
Within 1 year
Within 1 year 333,057,538.42
Subtotal 1 to 2 years 20,462,065.25
2 to 3 years Over 3 12,674,541.01
years 38,157,678.67
total 404,351,823.35
(2) Disclosure according to bad debt provision
method ÿApplicable ÿNot applicable
Unit: Currency: RMB
Book balance bad debt provision Book balance bad debt provision
category accrual book book

Proportion Proportion accrual ratio
amount amount Proportion value amount amount value
(%) (%) example(%)
(%)
Withdrawal by single item 23,371,437.3 23,371,437.3 23,373,939.6 23,373,939

5.78 100.00 7.43 100.00
bad debt provision 3 3 9 .69
in:
single item amount 13,048,276.6 4.15 13,048,276.6 100.00
8 8
Large and single item 13,048,276.6 13,048,276.6
3.23 100.00
Provision for bad debts 8 8
accounts receivable
197 / 207
2021 Annual Report
Although the single amount
unimportant
10,323,160.6 10,323,160.6 10,325,663.0 10,325,663.0
bad debt provision 2.55 100.00 3.28 100.00
5 5 1 1
Prepared receivables
Accounts
Withdrawal by combination 380,980,386. 22,242,888.2 358,737,497. 291,240,771. 21,591,805.4 269,648,966.

94.22 5.84 92.57 7.41
bad debt provision 02 0 82 75 7 28
in:
Accounts Receivable Group 370,513,279. 22,242,888.2 348,270,391. 290,470,880. 92.33 21,591,805 7.43 268,879,075.
91.63 6.00
Combine A 73 0 53 99 .47 52
Accounts Receivable Group 10,467,106.2 10,467,106.2 769,890.76 0.24 769,890.76

2.59
close B 9 9
404,351,823. 45,614,325.5 358,737,497. 314,614,711. 100.00 44,965,745 / 269,648,966.

total 100.00
35 3 82 44 .16 28
Bit: Yuan Currency: RMB
Percentage of
name
Book balance provision for bad debts in the balance at the end of the period (%) Reasons for provision
Provision for bad debts 13,048,276.68 13,048,276.68 100.00 Not expected to be recovered
accounts receivable
Although the single amount is not significant
However, the single-item allowance for bad debts 10,323,160.65 10,323,160.65 100.00 Not expected to be recovered
Prepared accounts receivable
The 23,371,437.33 23,371,437.33 100.00 /
description of the total provision for bad debts by individual items:
Portfolio accrual item: accounts receivable portfolio A
Unit: Currency: RMB
Ending balance
name
Accounts bad debt Provision ratio (%)
receivable within 1 year 322,590,432.13 1 to 2 to

years 20,462,065.25
3 years 12,674,541.01 provision 1,580,693.12 0.49
More than 3 years 14,786,241.34 Total 370,513,279.73

standards Recognition
and explanations 2,095,315.48 10.24
for bad debt provision by combination: 4,474,112.98 35.30
14,092,766.62 95.31
22,242,888.20 6.00
Portfolio accrual item: accounts receivable portfolio B
Unit: Currency: RMB
Ending balance
name
accounts receivable bad debt provision Provision ratio (%)
Receivables within the scope of consolidation

10,467,106.29
A total of
10,467,106.29 for joint party payments
Recognition standards and explanations for bad debt provision by combination:
198 / 207
2021 Annual Report
(3) Bad debt provision ÿApplicable
ÿNot applicable
Unit: Currency: RMB
category Opening Balance period is recovered or resell or nuclear Ending balance

accrual other changes
switchback pin
Provision for bad debts

13,048,276.68 13,048,276.68
Although the single
amount of accounts receivable is not significant
However, the single-item allowance for bad debts

10,325,663.01 2,502.36 10,323,160.65
Prepared accounts
receivable Accounts receivable 21,591,805.47 651,082.73 44,965,745.16 22,242,888.20
portfolio A Total 651,082.73 2,502.36 45,614,325.53
Among them, the amount of bad debt provision recovered or reversed in the current period is important:
(4) Accounts receivable actually written off in the current
Among them, the important accounts receivable write-off situation
(5) The accounts receivable of the top five ending balances collected by debtors
Unit: Currency: RMB
Accounts receivable ending balance

company name Ending balance Ending balance of bad debt provision
Proportion of total number (%)
1 27,851,926.60 6.89 136,474.44
2 15,185,891.82 3.76 74,410.87
3 14,571,013.42 3.60 137,207.11
4 13,792,810.92 3.41 67,584.77
5 13,149,292.23 3.25 64,431.53
total 84,550,934.99 20.91 480,108.72
(6). Accounts receivable derecognized due to transfer of financial assets
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing
involvement ÿApplicable ÿNot applicable
other instructions:
2. List of other receivables
Unit: Currency: RMB
Interest receivable
199 / 207
2021 Annual Report
Dividends 13,695,723.88 13,695,723.88
receivable and other receivables 1,467,014,277.26 1,851,803,424.57
total 1,480,710,001.14 1,865,499,148.45
other instructions:
Interest receivable
(1). Classification of interest
receivable ÿApplicable ÿNot applicable
(2). Important overdue interest
other instructions:
(1). Dividends receivable
Unit: Currency: RMB
Project (or investee) Total of Closing Opening
Fushun Fangda High-tech Materials Co., balance 13,695,723.88 balance 13,695,723.88
Ltd. 13,695,723.88 13,695,723.88
(2). Important dividends receivable aged over 1 year
other instructions:
Other receivables
(1). Disclosed by age
Unit: Currency: RMB
Within 1 year
Within 1 year 53,782,471.64
Subtotal 1 to 2 years 339,719,284.71
2 to 3 years Over 3 731,959,904.40
years 441,922,005.95
total 1,567,383,666.70
(2). Classification by nature of payment
Unit: Currency: RMB
nature of payment Closing book Opening book balance
balance 200 / 207

2021 Annual Report
Current 1,559,180,696.52 7,131,449.82 1,917,799,576.55
deposit 559,177.56 512,342.80 7,561,773.20
reserve 2,326,881.63
fund Others
total 1,567,383,666.70 1,927,688,231.38
(3). Provision for bad debts ÿApplicable
ÿNot applicable
Unit: Currency: RMB
The first stage second stage The third phase
Lifetime Expectation Letter Lifetime Expectation Letter total

bad debt provision Expected credit losses
With loss (not occurred letter With loss (occurred letter
over the next 12 months
use impairment) use impairment)

2,107,685.93 73,777,120.88 75,884,806.81
Forehead
amount in this issue
-- transfer to the second stage
-- transfer to the third stage
-- go back to the second stage
-- go back to the first stage
This period's accrual is 829,505.45 23,655,077.18 24,484,582.63
reversed in this period
Resale in this period
Write-off in this period
other changes
December 31, 2021

2,937,191.38 97,432,198.06 100,369,389.44
Explanation of the significant changes in the book balance of other receivables with changes in the loss provision in the current period:
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial instruments has increased significantly:
Unit: Currency: RMB
Category Beginning Balance period is recovered or resell or other changes Ending balance
accrual
reverse write-off verb: move
Phase 1 2,107,685.93 Phase 2 829,505.45 2,937,191.38
The third stage 73,777,120.88 23,655,077.18 Total 75,884,806.81 97,432,198.06
24,484,582.63 100,369,389.44
Among them, the amount of bad debt provision reversed or recovered in the current period is important:
(5) Other receivables actually written off in the current period
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2021 Annual Report
(6) Other receivables with top five closing balances collected by debtors ÿApplicable ÿNot applicable
Unit: Currency: RMB
account for other receivables
sex of payment Closing balance Ending balance of

company name Ending balance aging
quality ratio of total bad debt provision
example(%)
250,000,000.00 1 year to 2 years

1
current payment 474,356,569.60 1,720,744.10 2 years to 3 years 46.21
3,186,000.00 4,998,000.00 Within 1 year
current payment 339,236,964.24 ÿÿÿ 1 year to 2 years

2
200,000,000.00 2 to 3 years
22.28
3,957,468.35 67,609,280.25 over 3 years
3 51,366,234.79 48,939,325.40 30,299,171.50 2 years to 3 years 12.76
18,700,000.00 Within 1 year
1,494,369,758.23 1 year to 2 years

4
current payment 2 to 3 years 46,838,334.58
10.97
over 3 years
Within 1 year
5
current payment 1 year to 2 years 3.13
total / / / 46,838,334.58
(7) Receivables involving government subsidies
(8). Other receivables derecognized due to transfer of financial assets ÿApplicable
ÿNot applicable
(9) Amount of assets and liabilities formed by transferring other receivables and continuing to be
involved ÿApplicable ÿNot applicable
other instructions:
Unit: Currency: RMB

project
For subsidiaries
1,594,910,432.68 156,724,494.00 1,438,185,938.68 1,614,395,064.99 126,102,420.11 1,488,292,644.88
investment in associates,
Joint ventures 2,382,794,588.49 425,684,011.01 1,957,110,577.48 2,298,772,043.74 425,684,011.01 1,873,088,032.73

invest
Total 3,977,705,021.17 582,408,505.01 3,395,296,516.16 3,913,167,108.73 551,786,431.12 3,361,380,677.61
(1). Investment in subsidiaries
Unit: Currency: RMB
investee The opening balance increased in the current period and decreased in the current period Closing balance was withdrawn in the current period and decreased
202 / 207
2021 Annual Report
add end balance of value provision
Fushun Carbon Co., Ltd. 159,874,721.44 Hefei Carbon Co., Ltd. 159,874,721.44
150,650,328.77 Chengdu Rongguang Carbon Co., Ltd. 150,650,328.77
71,721,550.34 71,721,550.34
manage

52,008,530.00 52,008,530.00
As the
company Qingdao Longcheng Power Materials Co., Ltd. 1,360,000.0

1,360,000.00
manage
0
Fushun Laihe Mining Co., Ltd. 185,510,031.75 Fushun Fangda High-tech 185,510,031.75
Materials Co., Ltd.

30,000,000.00 30,000,000.00
manage
Chengdu Carbon Co., Ltd. 451,330,069.59 Fushun Fangtai Precision Carbon 451,330,069.59
Materials Co., Ltd.

160,392,852.19 160,392,852.19 30,622,073.89 156,724,494.00
The
company's Gansu Classical Shengdong Construction Poverty Alleviation

10,000,000.00 10,000,000.00
Development Co.,
Ltd. Gansu Benju Handicraft Development Co., Ltd.

600,000.00 600,000.00
Company
Dongxiang Autonomous County Fangda Tengda Service

3,460,000.00 700,000.00 2,760,000.00
Decoration Co., Ltd.
Gansu Fangda Jiuxing Template Co., Ltd. 750,000.0

1,500,000.00 2,250,000.00
manage
0
Fangda (Jiangsu) Carbon Chemical Co., Ltd. 18,938,948.

335,306,473.00 316,367,524.69
Co., Ltd. 31
Fangda (South Korea) International Trade Co., Ltd. 764,316.0

589,082.80 1,353,398.80
Co., Ltd. 0
Fangda (Moscow) International Trade

91,425.11 91,425.11
limited company
1,614,395,064.9 1,514,316 20,998,948.

total 1,594,910,432.68 30,622,073.89 156,724,494.00
9 .00 31
(2). Investment in associates and joint ventures
Unit: Currency: RMB
Changes in this period
rights and interests declare

impairment
under the law other issue
invest Beginning of the period other accrual end of period Prepare
addition reduce confirm comprehensive cash
unit balance rights and interests impairment other balance end of period
invest invest cast income dividend
change Prepare balance
Asset loss Adjustment or profit
beneficial Run
1. Joint ventures
Fangda
Siveco -
220,83 187,68
ink 33,175 27,75
7,555. 9,988.
( Jiang ,326.0 9.06
68 69
5
Su)
acicular
203 / 207
2021 Annual Report
Jiao
Technology
Co., Ltd.
220,83 187,68
33,175 27,75
Subtotal 7,555. 9,988.
,326.0 9.06
68 69
5
2. Associated
enterprise Baofang
Carbon Material
609,63 615,86
Technology Co., Ltd. 6,238,
1,196. 9,199.
Jiujiang Bank Co., 003.24
18 42
Ltd. Tianjin Haihe
Fangda Industrial
Investment Fund
Partnership Enterprise
1,468, 97,699 13,31
-
40,821 1,537, 425,6
(Limited Partnership)
303,29 ,523.3 4,954. 758,6 ,000.0 738,07 84,01
1.88 0 99 99.22 0 0.95 1.01
36,000 41,497
5,497,
,000.0 ,329.4
329.43
0 3
-
2,077, 36,000 109,43 13,31 40,821 2,195, 425,6
Subtotal 934,48 ,000.0 4,855. 4,954. 758,6 ,000.0 104,59 84,01
8.06 0 97 99 99.22 0 9.80 1.01
-
2,298, 36,000 76,259 13,31 40,821 2,382, 425,6
total 772,04 ,000.0 ,529.9 4,954. 730,9 ,000.0 794,58 84,01
3.74 0 2 99 40.16 0 8.49 1.01
4. Operating income and operating costs
(1). Operating income and operating costs
Amount for this period in the previous period

project
Revenue cost Main business 2,267,883,731.96 income cost
1,724,366,544.03 2,073,320,891.81 1,600,196,146.10 Other business 136,995,816.87
56,335,124.35 65,746,090.48 19,817,149.70
Total 2,404,879,548.83 1,780,701,668.38 2,139,066,982.29 1,620,013,295.80
204 / 207
2021 Annual Report
(2). Income from contracts ÿApplicable ÿNot
applicable
(3). Description of performance
(4). Explanation of apportionment to remaining performance
5. Investment income
Unit: Currency: RMB
Long- Amount for this period Amount in the previous period
term equity investment income accounted for by project cost 11,999,596.40
method Long-term equity investment income accounted for by 76,259,529.92 -56,017,991.18
equity method Investment income from disposal of long-term equity -606,069.65 1.00
investment Investment income from trading financial assets during the holding period
1,560,202.84
beneficial
Other equity instrument investments obtained during the holding period
dividend income
Interest income from debt investment during the holding period
Interest obtained from other debt investments during the holding period
income
Investment income from disposal of held-for-trading financial assets 765,682.95 7,048,204.41
Investment income from disposal of other equity instrument investments

3,063,222.00
beneficial
Investment income from disposal of debt investment
Investment income from disposal of other debt investments
Debt restructuring income 11,257.80 144,902.43
Wealth management 63,951,080.13 64,462,641.69
product income Investment income from holding other non-current assets 485,000.00
total 152,866,077.55 20,261,183.19
6. Other
XVIII. Supplementary information
1. Details of non-recurring profit and loss for the current
Unit: Currency: RMB
project Amount Description
Unauthorized approval of gains and losses from 216,019,424.42
disposal of non-current assets or tax refunds, reductions and exemptions without formal approval documents
Government subsidies included in the current profit and loss (closely related to the business of the enterprise, according to the
37,460,558.89
(except for government subsidies that enjoy a fixed or quantitative national standard) Fund
occupation fees charged to non-financial enterprises that are included in the current profit and loss
205 / 207
2021 Annual Report
The investment cost of acquiring subsidiaries, associates and joint ventures is less than
When the investment is obtained, it shall enjoy the fair value of the identifiable net assets of the investee.
generated income
Gains and losses on exchange of non-monetary assets
The profit and loss of entrusting others to invest or manage 92,762,470.34
assets due to force majeure factors, such as the reduction of various assets accrued due to natural disasters
value preparation
Debt restructuring gains 1,516,867.61
and losses Enterprise restructuring costs, such as staff placement expenses, integration costs, etc.
Losses in excess of fair value arising from transactions where the transaction price is obviously unfair
beneficial
The current period from the beginning of the period to the date of merger of subsidiaries arising from business combination under the same control
net profit and loss
Profits and losses arising from contingent events unrelated to the normal operation of the company
Except for the effective hedging business related to the normal operation of the company, holding
There are trading financial assets, derivative financial assets, trading financial liabilities,
Gains and losses on changes in fair value arising from derivative financial liabilities, and disposal transactions 72,384,136.72
financial assets, derivative financial assets, held-for-trading financial liabilities, derivatives
Investment income from financial liabilities and other debt investments
Receivables and contract assets depreciation reserves that have been individually tested for impairment are reversed 225,187.25
Profits and losses from external entrusted loans
Fair value of investment real estate for subsequent measurement using the fair value model
Profit and loss from changes in value
According to the requirements of tax, accounting and other laws and regulations
The impact of one-off adjustments on current profit and loss
Custody fee income from entrusted operations
Other non-operating income and expenses other than the above items Other -20,338,285.18
profit and loss items that meet the definition of non-recurring profit and loss 6,877,062.94
Less: Income tax impact 91,182,097.55
Amount of influence of minority shareholders' equity 5,217,968.68
total 310,507,356.76
For the company's non-tradable income as defined in the "Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profits and Losses"
Items of recurring profit and loss, and listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring Profits and Losses"
The mentioned non-recurring profit and loss items are defined as recurring profit and loss items, and the reasons shall be explained.
2. Return on Equity and Earnings per Share
weighted average net worth EPS Basic EPS

Profit during the reporting period
rate of return(%) Diluted EPS
Net attributable to common stockholders of the company

7.15 0.29 0.29
Profits
after deducting non-recurring gains and losses are attributable to

5.10 0.20 0.20
Net profit for common stockholders of the company
206 / 207
2021 Annual Report
Note: Basic earnings per share is calculated by dividing the consolidated net profit attributable to ordinary shareholders of the parent company by the addition of ordinary shares issued by the parent company.
Calculated as a weighted average, diluted earnings per share to be consolidated attributable to ordinary shareholders of the parent company adjusted for dilutive potential ordinary shares
Net income is calculated by dividing the adjusted weighted average number of parent company ordinary shares outstanding.
3. Differences in accounting data under domestic and foreign accounting
standards ÿApplicable ÿNot applicable
4. Other
Chairman: Dang Xijiang
Board approval filing date: April 22, 2022
Revision
information ÿApplicable ÿNot applicable
207 / 207

FangDa Carbon New Material Co., Ltd.

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FangDa Carbon New Material Co., Ltd.

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Machine Translated by Google

2021 Annual Report

Company code: 600516 Company abbreviation: Fangda Carbon

Fangda Carbon New Material Technology Co.,

2021 Annual Report

2. All directors of the company attended the board meeting.

VI. RISK STATEMENT OF FORWARD-LOOKING STATEMENTS

ÿApplicable ÿNot applicable

X. Significant Risk Warning

ÿApplicable ÿNot applicable

2021 Annual Report

Section 1 Interpretation ................................................ ...................................................... ......................................3

Section 3 Management Discussion and Analysis ..................................................................... ...................................................... ................9

Section 4 Corporate Governance ................................................ ...................................................... ...........................twenty four

Section 5 Environmental and Social Responsibility ................................................ ...................................................... .................40

SECTION VI IMPORTANT ................................................... ...................................................... .................................47

Section 7 Changes in Shares and Shareholders ............................................... ...................................................... ..........58

Section VIII Preference Shares Related Information ................................................ ...................................................... .................63

Section IX Bonds Related Information ................................................ ...................................................... .................63

Section 10 Financial Statements ................................................ ...................................................... .................................63

the China Securities Regulatory Commission during the reporting period.

2021 Annual Report

Definition of common words

International "Articles of Association" Refers to Jilin Chemical Fiber Co., Ltd.

Refers to Northeast Pharmaceutical Group Co., Ltd.

Refers to ZTE-Shenyang Commercial Building (Group) Co., Ltd.

Refers to Beijing Fangda Carbon Technology Co., Ltd.

Refers to Beijing Fangda (Tianjin) International Trade Co., Ltd.

Refers to Jiangsu Fangda Carbon Chemical Co., Ltd.

Refers to Hefei Carbon Co., Ltd.

Refers to Fushun Fangda High-tech Materials Co., Ltd.

Refers to Chengdu Carbon Co., Ltd.

Refers to Fushun Carbon Co., Ltd.

Refers to Meishan Fangda Rongguang Co., Ltd.

Refers to Shanghai Fangda Investment Management Co., Ltd.

Refers to Tianjin Huxu Haihe Investment Management Co., Ltd.

Refers to Tianjin Haihe Industrial Fund Partnership (Limited Partnership)

Refers to BOC International Certified Public Accountants (Special General Partnership)

China Securities Refers to China Securities Regulatory Commission

Regulatory Commission Exchange, Shanghai Refers to the Shanghai Stock Exchange

million during the reporting period Finger 2021

Section 2 Company Profile and Main Financial Indicators

The Chinese abbreviation of the company Fangda Carbon

2021 Annual Report

company The legal representative of the company Dang Xijiang

2. Contact and contact information

board secretary Securities Affairs Representative

name Anmin Zhang Aiyan

Telephone fax e-mail fdts730084@fangdacarbon.com fdts730084@fangdacarbon.com

3. Introduction to the basic situation

Get a new business license.

Zip Code of Company Office Address Company 730084

Website Email http://www.fdtsgs.com

4. Information disclosure and storage location

China Securities Journal (http://www.cs.com.cn/) Shanghai Securities

V. Company stock profile

Company stock profile

A crotch Carbon 600516 ST Fangda

6. Other relevant information

name BOC International Certified Public Accountants (Special General Partnership)

Names of signed accountants Liu Dan, Yang Jian, Li Yaxiong

Name Credit Suisse Founder Securities Co., Ltd.

2021 Annual Report