Professional Documents
Culture Documents
修改备注:
2. 未确定事项包括:
① 权益法核算的氢能公司财务报表还未取得
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DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
To the Members of
DONGYUE GROUP Limited
(incorporated in Cayman Islands with limited liability)
OPINION
We have audited the consolidated financial statements of Dongyue Group Limited (the “Company”) and its
subsidiaries (collectively referred to as the “Group”) set out on pages […] to […], which comprise the
consolidated statement of financial position as at 31 December 2023, and the consolidated statement of profit
or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial
position of the Group as at 31 December 2023, and of its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with International Financial Reporting
Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”) and have been
properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.
BASIS OF OPINION
We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the
Hong Kong Institute of Certified Public Accountants (“HKICPA”). Our responsibilities under those
standards are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements” section of our report. We are independent of the Group in accordance with the HKICPA’s “Code
of Ethics for Professional Accountants” (the “Code”), and we have fulfilled our other ethical responsibilities
in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the consolidated financial statements for the year ended 31 December 2022. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT (continued)
Key audit matter How the key audit matter was addressed in our
audit
As at 31 December 2023, the Group had gross Our audit procedures in relation to management’s
trade receivables of approximately impairment assessment of the trade receivables as at
RMBXXX,XXX and provision for impairment 31 December 2023 included:
of approximately RMBXXX,XXX.
— Understanding the management’s estimation on the
In general, the credit terms granted by the Group allowance for credit losses on trade receivables, and
to the customers ranged between 30 to 90 days the key controls that the Group has implemented to
for trade receivables. Management performed manage and monitor the credit risk of the trade
periodic assessment on the recoverability of the receivables;
trade receivables and the sufficiency of
provision for impairment based on information — Checking, on a sample basis, the ageing profile of
including credit profile of different customers, the trade receivables as at 31 December 2023 to the
ageing of the trade receivables, historical underlying financial records and subsequent
settlement records, subsequent settlement status, settlements;
expected timing and amount of realisation of
outstanding balances, and ongoing trading — Inquiring of management for the status of each of
relationships with the relevant customers. the material trade receivables past due as at year end
Management also considered forward-looking and corroborating explanations from management with
information that may impact the customers’ supporting evidence, such as understanding on-going
ability to repay the outstanding balances in order business relationship with the customers based on
to estimate the expected credit losses for the trade records, checking historical and subsequent
impairment assessment. settlement records of and other correspondence with
the customers; and
We identified trade receivables as a key audit
matter due to the measurement of expected — Assessing the appropriateness of the expected
credit losses (“ECL”) requires significant credit loss provisioning methodology, examining the
estimates and judgements, including key data inputs on a sample basis to assess their
determination of whether there is significant accuracy and completeness, and challenging the
increase in credit risk, use of models and assumptions, including both historical and forward-
assumptions in determination of probability of looking information, used to determine the expected
default, incorporation of forward-looking credit losses.
information.
Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon
As The directors of the Company are responsible for the other information. The other information comprises
the information included in the annual report, but does not include the consolidated financial statements and
our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of the other information, we are required to report that fact. We have nothing to report in this
regard.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The directors of the Company are responsible for the preparation of consolidated financial statements that
give a true and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong
Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies
Ordinance, and for such internal control as the directors determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors of the Company are responsible for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors of the Company either intend to
liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. This report is made solely to you, as a body, in accordance with our agreed terms of
engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any
other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
— Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness accounting
estimates and related disclosures made by the directors.
— Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL
STATEMENTS (continued)
— Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
— Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
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 are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
The engagement director on the audit resulting in this independent auditor’s report is Mr. Yip Kai Yin with
Practising Certificate number P07854.
Year ended 31
December
Note 2023 2022
RMB’000 RMB’000
Revenue 14,493,323
Cost of sales (12,057,192) (13,513,617)
Gross profit
Other income and other net gains and losses
Distribution and selling expenses (503,038) (498,767)
Administrative and other expenses (642,758) (993,740)
Gain on deemed disposal of an associate
Other (10,672)
Research and development cost (935,098) (1,310,535)
Fair value changes on financial assets at fair value through
profit or loss (“FVTPL”) (37,669)
Share of results of an associate
Finance costs (1,659) (15,302)
The above consolidated statement of comprehensive income should be read in conjunction with the
accompanying notes.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As at 31 December
Note 2023 2022
RMB’000 RMB’000
ASSETS
Non-current assets
Property and equipment 12,193,145 11,531,543
Right-of-use-assets 866,630 923,163
Deposits paid for purchase of property,
Plant and equipment 247,935 409,027
Interest in associate 465,558 88,034
Intangible assets 17,345 23,815
Equity instruments at FVTOCI 118,623 152,849
Financial asst at FVTPL - -
Deferred tax assets 128,467 85,877
Deposit paid for acquisition of subsidiary - -
Goodwill 299,024 299,024
14,336,727 13,513,332
Current assets
Inventories 1,550,634 1,441,712
Properties for sale 917,316 1,202,341
Trade and other receivables 2,468,144 3,040,268
Pledged bank deposits 143,859 131,302
Bank balances and cash 2,547,297 5,315,994
7,627,250 11,131,617
Current liabilities
Trade and other payables 4,495,629 5,409,088
dividend payable 4,355 -
Tax Liabilities 11,168 75,167
Lease liabilities 5,198 4,894
Deferred income 42,858 83,813
4,559,208 5,572,962
As at 31 December
Note 2023 2022
RMB’000 RMB’000
EQUITY
Capital and reserves
Share capital 212,196 212,196
Reserves 14,598,369 15,869,822
Non-current liabilities
Deferred tax liability 128,609 251,921
Borrowings - -
Lease Liability 26,850 38,740
Deferred income 294,215 287,849
449,674 578,510
17,404,769 19,071,987
The consolidated financial statements on pages 【***】 to 【***】 were approved and authorised for
issue by the Board of Directors on 28 March 2024 and are signed on its behalf by
Director Director
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 1 January 2022 212,338 3,952,498 (1,674,624) (32,210) 195,790 5,289 1,583,712 - (270,503) 9,151,291 13,123,581 2,515,04215,638,623
3,855,53
Profit for the year - - - - - - - - - 9 3,855,539 320,578 4,176,117
Fair value loss on equity
Instruments at
FVTOCOCI - - (5,830) - - - - - - - (5,830) - (5,830)
Total comprehensive 3,855,53
income for the year - - (5,830) - - - - - 9 3,849,709 320,578 4,170,287
Transfer - - - - - 954 366,630 - - (366,630) 954 111 1,065
Purchase of shares under
Employee option (204,347
scheme ) (204,347)
Capitalisation from Non-
controlling interests 3,500 3,500
Acquisition of additional
Interest in a subsidiary
from non-controlling
interest - - - - - - - - - (45,875) (45,875) (62,671) (108,545)
Share repurchased and
cancelled (142) (16,633) - - - - - - - - (16,775) - (16,775)
Dividends paid - - - - - - - - - (625,229) (625,229) - (625,229)
Dividends paid by
Subsidiaries of the group (365,101) (365,101)
At 31st December 2022
and 3,935,86 (32,210 1,950,34 (474,850 11,969,0 16,082,01 18,493,47
1 January 2023 212,196 5 (1,680,454) ) 195,790 6,243 2 - ) 96 8 2,411,459 7
Profit for the year 710,346 710,346 (96,366) 613,980
Fair value loss on equity
Instruments at
FVTOCOCI (10,672) (10,672) (10,672)
Total comprehensive
income for the year
Transfer 274 683,823 (683,823) 274 107 381
Purchase of shares
under Employee (196,816
option scheme ) (196,816) (196,816)
Capitalisation from
Non-controlling interests
Share repurchased and
cancelled
(1,196,61 (1,196,613 (1,196,61
Dividends paid 3) ) 3)
Dividends paid by
Subsidiaries of the
group (55,055) (55,055)
其他综合收益结转留存 (1,569,32
收益 1,569,328 8)
Acquisition of additional
Interest in a subsidiary
from non-controlling
interest (542,909) (542,909) (115,615) (658,524)
translation of foreign
currency statements (45,735) (45,735) (45,735)
3,935,86 (32,210 2,634,16 (671,666 8,641,03 14,810,56 16,955,09
At 31 December 2023 212,196 5 (111,126) ) 195,790 6,517 5 ) 4 5 5
The above consolidated statement of changes in equity should be read in conjunction with the accompanying
notes.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes:
a) Share premium
Under the Companies Law (Revised) of the Cayman Islands, the share premium of the Company is
distributable to the owners of the Company provided that immediately following the date on which
the dividend is proposed to be distributed, the Company will be in a position to pay off its debts as
they fall due in the ordinary course of business.
c) Merger reserve
Merger reserve arose in group reorganisation completed in 2006.
d) Capital reserve
On 16 November 2007, the Company repurchased all of the 275,000,000 previously issued ordinary
share of US$0.1 each and these repurchased ordinary shares were cancelled with all of the authorised
but unissued share capital as of that date. On the same date, the authorised share capital was increased
to HK$400,000,000 by the creation of 4,000,000,000 new ordinary shares of HK$0.1 each.
275,000,000 new ordinary shares of HK$0.1 each were then issued to the shareholders existing on 15
November 2007. The excess of the repurchased amount over the nominal number of new shares
issued was credited directly to the capital reserve.
e) Safety reserve
Pursuant to certain regulations issued by the Ministry of Finance and the State Administration of
Work Safety of the People’s Republic of China (“PRC”), some of the Group’s PRC subsidiaries are
required to set aside an amount of safety reserve at progressive rates from 0.5% to 4% of the total
revenue from the sales of hazardous chemical. The reserve can be utilised for the spending in
improvements and maintenances of work safety on the Group’s daily operations, which are
considered expenses in nature and charged to the profit and loss as incurred.
Statutory surplus reserve is part of shareholders’ equity and when its balance reaches an amount equal
to 50% of the registered capital, further appropriation is not required. According to the Company Law
of the PRC, statutory surplus reserve may be used to make up past losses, to increase production and
business operations or to increase capital by means of conversion.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 General information
Dongyue Group Limited (the “Company”) was incorporated in the Cayman Islands on 24 July 2006 as an
exempted company with limited liability. The address of its registered office is P.O. Box 31119, Grand
Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman Islands. The shares of the
Company have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 10
December 2007.
The Company is an investment holding company. The Company and its subsidiaries (collectively referred to
as the “Group”) are principally engaged in the manufacture, distribution and sale of polymers, organic
silicon, refrigerants and dichloromethane, polyvinyl chloride (“PVC”) and liquid alkali and others.
The consolidated financial statements are presented in Renminbi (“RMB”), which is also the functional
currency of the Company and its subsidiaries.
Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards issued by International Accounting Standards Board. In addition, the consolidated financial statements
include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited and by the Hong Kong Companies Ordinance.
The consolidated financial statements have been prepared on the historical cost basis except for financial
instruments that are measured at fair value through profit or loss and fair value through other comprehensive income
at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure
purposes in these consolidated financial statements is determined on such a basis, except for share-based payment
transactions that are within the scope of IFRS 2 Share-based Payment, leasing transactions that are accounted for in
accordance with IFRS 16, and measurements that have some similarities to fair value but are not fair value, such as
net realisable value in IAS 2 Inventories or value in use in IAS 36 Impairment of Assets.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the
fair value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date; Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs for the
asset or liability.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by
the Company and its subsidiaries. Control is achieved when the Company:
— is exposed, or has rights, to variable returns from its involvement with the investee; and
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group
loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the
year are included in the consolidated statement of profit or loss and other comprehensive income from the date the
Group gains control until the date when the Group ceases to control the subsidiary.
Profit or loss and each item of other comprehensive income are attributed to the owners of the Company and to the
noncontrolling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and
to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement
of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated
statement of financial position respectively.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Changes in the Group’s interests in subsidiaries that do not result in the Group losing control over the subsidiaries
are accounted for as equity transactions. The carrying amounts of the Group’s relevant components of equity and the
noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries including re-
attribution of relevant reserves between the Group and the non-controlling interests according to the Group’s and the
non-controlling interests’ proportionate interests.
Any difference between the amounts by which of the non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, the assets, and liabilities of that subsidiary and non-controlling
interests (if any) are derecognised. A gain or loss is recognised in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest
and (ii) the carrying amount of the assets (including goodwill), and liabilities of the subsidiary attributable to the
owners of the Company. All amounts previously recognised in other comprehensive income in relation to that
subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary
(i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable
IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded
as the fair value on initial recognition for subsequent accounting under IFRS 9 Financial Instruments or, when
applicable, the cost on initial recognition of an investment in an associate.
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
business (see the accounting policy above) less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups
of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is tested for
impairment annually or more frequently when there is indication that the unit may be impaired. For goodwill arising
on an acquisition in a reporting period, the cash-generating unit (or group of cash generating units) to which
goodwill has been allocated is tested for impairment before the end of that reporting period. If the recoverable
amount is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any
goodwill and then to the other assets of the unit on a pro-rata basis based on the carrying amount of each asset in the
unit (or group of cash-generating units). Any impairment loss for goodwill is recognised directly in profit or loss. An
impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination
of the amount of profit or loss on disposal.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Group recognises revenue when (or as) a performance obligation is satisfied, i.e. when “control” of the goods or
services underlying the particular performance obligation is transferred to the customer.
A performance obligation represents a good or service (or a bundle of goods or services) that is distinct or a series of
distinct goods or services that are substantially the same.
Control is transferred over time and revenue is recognised over time by reference to the progress towards complete
satisfaction of the relevant performance obligation if one of the following criteria is met:
— the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the
Group performs;
— the Group’s performance creates or enhances an asset that the customer controls as the Group performs; or
— the Group’s performance does not create an asset with an alternative use to the Group and the Group has an
enforceable right to payment for performance completed to date.
Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct good or service.
A contract liability represents the Group’s obligation to transfer goods or services to a customer for which the Group
has received consideration (or an amount of consideration is due) from the customer.
Leases
Definition of a lease
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.
For contracts entered into or modified on or after the date of initial application of IFRS 16 or arising from business
combinations, the Group assesses whether a contract is or contains a lease based on the definition under IFRS 16 at
inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed unless the terms
and conditions of the contract are subsequently changed.
As a practical expedient, leases with similar characteristics are accounted on a portfolio basis when the Group
reasonably expects that the effects on the consolidated financial statements would not differ materially from
individual leases within the portfolio.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Leases (continued)
Right-of-use assets
— any lease payments made at or before the commencement date, less any lease incentives received; — any initial
direct costs incurred by the Group; and
— an estimate of costs to be incurred by the Group in dismantling and removing the underlying assets, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of
the lease.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities.
Right-of-use assets in which the Group is reasonably certain to obtain ownership of the underlying leased assets at
the end of the lease term are depreciated from commencement date to the end of the useful life. Otherwise, right-of-
use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.
The Group presents right-of-use assets as a separate line item on the consolidated statement of financial position.
Lease liabilities
At the commencement date of a lease, the Group recognises and measures the lease liability at the present value of
lease payments that are unpaid at that date. In calculating the present value of lease payments, the Group uses the
incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily
determinable.
— fixed payments (including in-substance fixed payments) less any lease incentives receivable; and
— variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
Variable lease payments that reflect changes in market rental rates are initially measured using the market rental
rates as at the commencement date. Variable lease payments that do not depend on an index or a rate are not
included in the measurement of lease liabilities and right-of-use assets, and are recognised as expense in the period
in which the event or condition that triggers the payment occurs.
After the commencement date, lease liabilities are adjusted by interest accretion and lease payments. The Group
remeasures lease liabilities (and makes a corresponding adjustment to the related right-of-use assets) whenever:
— the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case
the related lease liability is remeasured by discounting the revised lease payments using a revised discount rate at the
date of reassessment.
— the lease payments change due to changes in market rental rates following a market rent review in which cases
the related lease liability is remeasured by discounting the revised lease payments using the initial discount rate .
The Group presents lease liabilities as a separate line item on the consolidated statement of financial position .
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Foreign currencies
In preparing the financial statements of each individual group entity, transactions in currencies other than the
functional currency of that entity (foreign currencies) are recognised at the rates of exchanges prevailing on the dates
of the transactions. At the end of the reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
recognised in profit or loss in the period in which they arise.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the
cost of those assets until such time as the assets are substantially ready for their intended use or sale. Any specific
borrowing that remains outstanding after the related asset is ready for its intended use or sale is included in the
general borrowing pool for calculation of capitalisation rate on general borrowings. Investment income earned on
the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the
conditions attaching to them and that the grants will be received.
Government grants related to income are recognised in profit or loss on a systematic basis over the periods in which
the Group recognises as expenses the related costs for which the grants are intended to compensate. Specifically,
government grants of which the primary condition is that the Group should purchase, construct or otherwise acquire
non-current assets are recognised as deferred income in the consolidated statement of financial position and
transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants related to income that are receivable as compensation for expenses or losses already incurred or
for the purpose of giving immediate financial support to the Group with no future related costs are recognised in
profit or loss in the period in which they become receivable.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as
reported in the consolidated statement of profit or loss and other comprehensive income because income or expense
that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax base used in the computation of taxable profit. Deferred
tax liabilities are generally recognised for all taxable temporary differences.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Taxation(continued)
Deferred tax assets are generally recognised for all deductible temporary difference to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries
and associates, except where the Group is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with such investments and interests are only recognised to the extent that it is
probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences
and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realised, based on tax rate (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities.
Current and deferred tax is recognised in profit or loss, except when it relates to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other
comprehensive income or directly in equity respectively. Where the current tax or deferred tax arises from the initial
accounting for a business combination, the tax effect is included in the accounting for business combination.
Property, plant and equipment are tangible assets that are held for use in the production or supply of goods or
services, or for administrative purposes (other than construction in progress as described below). Property, plant and
equipment are stated in the consolidated statement of financial position at cost less subsequent accumulated
depreciation and subsequent accumulated impairment losses, if any.
Buildings in the course of construction in progress for production, supply or administrative purposes are carried at
cost, less any recognised impairment loss. Costs include any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management and, for
qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation of
these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.
Depreciation is recognised so as to write off the cost of assets other than construction in progress less their residual
values over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values
and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis. An item of property, plant and equipment is derecognised upon disposal or
when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising
on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interest in an associate
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control over those
policies.
The results and assets and liabilities of associates are incorporated in these consolidated financial statements using
the equity method of accounting. The financial statements of associates used for equity accounting purposes are
prepared using uniform accounting policies as those of the Group for like transactions and events in similar
circumstances. Under the equity method, an investment in an associate is initially recognised in the consolidated
statement of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and
other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s
interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net
investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are
recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on
behalf of the associate.
An investment in an associate is accounted for using the equity method from the date on which the investee becomes
an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the
Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill,
which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair
value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the investment is acquired.
The Group assesses whether there is objective evidence that the interest in an associate may be impaired. When any
objective evidence exists, the entire carrying amount of the investment (including goodwill) is tested for impairment
in accordance with IAS 36 as a single asset by comparing its recoverable amount (higher of value in use and fair
value less costs of disposal) with it carrying amount. Any impairment loss recognised is not allocated to any asset,
including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is
recognised in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently
increases.
When the Group ceases to have significant influence over an associate, it is accounted for as a disposal of the entire
interest in the investee with a resulting gain or loss being recognised in profit or loss. When the Group retains an
interest in the former associate and the retained interest is a financial asset within the scope of IFRS 9, the Group
measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial
recognition. The difference between the carrying amount of the associate and the fair value of any retained interest
and any proceeds from disposing of the relevant interest in the associate is included in the determination of the gain
or loss on disposal of the associate. In addition, the Group accounts for all amounts previously recognised in other
comprehensive income in relation to that associate on the same basis as would be required if that associate had
directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognised in other
comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or
liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) upon
disposal/partial disposal of the relevant associate.
When the Group reduces its ownership interest in an associate but the Group continues to use the equity method, the
Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other
comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to
profit or loss on the disposal of the related assets or liabilities. When a group entity transacts with an associate of the
Group, profits and losses resulting from the transactions with the associate or joint venture are recognised in the
consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to
the Group.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at costs less accumulated
amortisation and any accumulated impairment losses. Amortisation for intangible assets with finite useful lives is
provided on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method
are reviewed at the end of each reporting period, with the effective of any changes in estimate being accounted for
on a prospective basis.
Intangible assets acquired in a business combination are recognised separately from goodwill and are initially
recognised at their fair value at the acquisition date (which is regarded as their cost). Intangible assets acquired in a
business combination (Continued) Subsequent to initial recognition, intangible assets acquired in a business
combination with finite useful lives are reported at costs less accumulated amortisation and any accumulated
impairment losses, on the same basis as intangible assets that are acquired separately.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or
disposal. Gains and losses arising from derecognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is
derecognised.
Exploration rights
Exploration rights are recognised at cost on initial recognition. Subsequent to initial recognition, exploration rights
are stated at cost less any accumulated impairment losses. Exploration rights include the cost of exploration rights
and the expenditures incurred in the search for natural resources as well as the determination of the technical
feasibility and commercial viability of extracting those resources. When the technical feasibility and commercial
viability of extracting natural resources become demonstrable, previously recognised exploration rights are
reclassified as either intangible or tangible assets. These assets are assessed for impairment before reclassification.
The carrying amount of the exploration rights is reviewed annually. When one of the following events or changes in
circumstances, which is not exhaustive, indicate that the carrying amount may not be recoverable has occurred,
impairment test is performed in accordance with IAS 36 “Impairment of assets”.
— the period for which the Group has the right to explore in the specific area has expire during the period or will
expire in the near future, and is not expected to be renewed.
— substantive expenditure on further exploration for and evaluation of natural resources in the specific area is
neither budgeted nor planned.
— exploration for and evaluation of natural resources in the specific area have not led to discovery of commercially
viable quantities of natural resources and the Group has decided to discontinue such activities in the specific area.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
— sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by
sale.
An impairment loss is recognised in profit or loss whenever the carrying amount of an asset exceeds its recoverable
amount.
Impairment on property, plant and equipment, right-o fuse assets, and intangible assets other than goodwill
At the end of the reporting period, the Group reviews the carrying amounts of its property, plant and equipment,
right-of use assets and intangible assets with finite useful lives to determine whether there is any indication that
these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the relevant
asset is estimated in order to determine the extent of the impairment loss (if any).
The recoverable amount of property, plant and equipment, right-of-use assets, and intangible assets are estimated
individually. When it is not possible to estimate the recoverable amount individually, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
In addition, the Group assesses whether there is indication that corporate assets may be impaired. If such indication
exists, corporate assets are also allocated to relevant cash-generating units, when a reasonable and consistent basis of
allocation can be established, or otherwise they are allocated to the smallest group of cash-generating units for
which a reasonable and consistent allocation basis can be established.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset (or a cash-generating unit) for
which the estimates of future cash flows have not been adjusted.
Impairment on property, plant and equipment, right-o fuse assets, and intangible assets other than goodwill
(continued)
If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or a cash-generating unit) is reduced to its recoverable amount. For corporate assets or
portion of corporate assets which cannot be allocated on a reasonable and consistent basis to a cash-generating unit,
the Group compares the carrying amount of a group of cash-generating units, including the carrying amounts of the
corporate assets or portion of corporate assets allocated to that group of cash generating units, with the recoverable
amount of the group of cash-generating units. In allocating the impairment loss, the impairment loss is allocated first
to reduce the carrying amount of any goodwill (if applicable) and then to the other assets on a pro-rata basis based
on the carrying amount of each asset in the unit or the group of cash-generating units. The carrying amount of an
asset is not reduced below the highest of its fair value less costs of disposal (if measurable), its value in use (if
determinable) and zero. The amount of the impairment loss that would otherwise have been allocated to the asset is
allocated pro rata to the other assets of the unit or the group of cash-generating units. An impairment loss is
recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit or a
group of cash generating units) is increased to the revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or a cash-generating unit or a group of cash-generating units) in prior
years. A reversal of an impairment loss is recognised immediately in profit or loss.
Inventories
Inventories are stated at the lower of cost and net realisable value at the end of each reporting date. Cost is
calculated using the weighted average method. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Completed properties for sale and properties under development for sale are classified as current assets and carried
at the lower of cost and net realisable value. Cost comprises both the prepaid lease payments for land and
development costs for the properties. Development costs of properties comprise construction costs, borrowing costs
capitalised according to the Group’s accounting policy and directly attributable costs incurred during the
development period. Costs necessary to make the sale include incremental costs directly attributable to sale and non-
incremental costs which the Group must incur to make the sale. Cost of each unit in each phase of development is
determined using the weighted average method.
Properties for/under development for sale are transferred to properties for sale upon completion.
Financial instruments
Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual
provisions of the instrument. All regular way purchases or sales of financial assets are recognised and derecognised
on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the market place.
Financial assets and financial liabilities are initially measured at fair value except for trade receivables which are
initially measured in accordance with IFRS 15. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial assets or financial liabilities at fair value
through profit or loss (“FVTPL”) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial
assets or financial liabilities at FVTPL are recognised immediately in profit or loss.
The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability
and of allocating interest income and interest expense over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts and payments (including all fees and points paid or received
that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through
the expected life of the financial asset or financial liability, or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.
Financial assets that meet the following conditions are subsequently measured at amortised cost:
— the financial asset is held within a business model whose objective is to collect contractual cash flows; and
— the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Financial assets that meet the following conditions are subsequently measured at fair value through other
comprehensive income (“FVTOCI”):
— the financial asset is held within a business model whose objective is achieved by both selling and collecting
contractual cash flows; and
— the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
All other financial assets are subsequently measured at FVTPL, except that at the date of initial recognition of a
financial asset the Group may irrevocably elect to present subsequent changes in fair value of an equity investment
in other comprehensive income if that equity investment is neither held for trading nor contingent consideration
recognised by an acquirer in a business combination to which IFRS 3 “Business Combinations” applies.
— it has been acquired principally for the purpose of selling in the near term; or — on initial recognition it is a part
of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of
short-term profitmaking; or
— it is a derivative that is not designated and effective as a hedging instrument. In addition, the Group may
irrevocably designate a financial asset that are required to be measured at the amortised cost or FVTOCI as
measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
Interest income is recognised using the effective interest method for financial assets measured subsequently at
amortised cost and calculated by applying the effective interest rate to the gross carrying amount of a financial asset
except for financial assets that have subsequently become credit-impaired (see below) invest income are included in
the “other income” line item.
For financial assets that have subsequently become credit impaired, interest income is recognised by applying the
effective interest rate to the amortised cost of the financial asset from the next reporting period.
If the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-
impaired, interest income is recognised by applying the effective interest rate to the gross carrying amount of the
financial asset from the beginning of the reporting period following the determination that the asset is no longer
credit impaired.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising
from changes in fair value recognised in other comprehensive income and accumulated in the equity instruments at
FVTOCI reserve; and are not subject to impairment assessment. The cumulative gain or loss will not be reclassified
to profit or loss on disposal of the equity investments, and will continue to be held in the equity instruments at
FVTOCI reserve.
Dividends from these investments in equity instruments are recognised in profit or loss when the Group’s right to
receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the
investment. Dividends are included in the “other income” line item in profit or loss.
Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI or designated as
FVTOCI are measured at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains
or losses recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or
interest earned on the financial asset.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Group performs impairment assessment under expected credit loss (“ECL”) model on financial assets
(including trade and other receivables, pledged bank deposits, and bank balances and cash) which are subject to
impairment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk
since initial recognition.
Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the
relevant instrument. In contrast, 12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected
to result from default events that are possible within 12 months after the reporting date. Assessments are done based
on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of
future conditions.
For all other instruments, the Group measures the loss allowance equal to 12m ECL, unless there has been a
significant increase in credit risk since initial recognition, in which case the Group recognises lifetime ECL. The
assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk
of a default occurring since initial recognition.
In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk
of a default occurring on the financial instrument as at each reporting date with the risk of a default occurring on the
financial instrument as at the date of initial recognition.
In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and
supportable, including historical experience and forward-looking information that is available without undue cost or
effort. In particular, the following information is taken into account when assessing whether credit risk has increased
significantly:
— an actual or expected significant deterioration in the financial instrument’s external (if available) or internal
credit rating;
— significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit
spread;
— existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a
significant decrease in the debtor’s ability to meet its debt obligations;
— an actual or expected significant deterioration in the operating results of the debtor; and — an actual or expected
significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a
significant decrease in the debtor’s ability to meet its debt obligations.
Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased
significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group
has reasonable and supportable information that demonstrates otherwise. The Group regularly monitors the
effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises
them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the
amount becomes past due.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For internal credit risk management, the Group considers an event of default occurs when information developed
internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the
Group, in full (without taking into account any collaterals held by the Group).
Irrespective of the above, the Group considers that default has occurred when a financial asset is more than 1 year
past due unless the Group has reasonable and supportable information to demonstrate that a more lagging default
criterion is more appropriate.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future
cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes
observable data about the following events:
— the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
— it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
— the disappearance of an active market for that financial asset because of financial difficulties.
The Group writes off a financial asset when there is information indicating that the counterparty is in severe
financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed
under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be subject to
enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A
write-off constitutes a derecognition event. Any subsequent recoveries are recognised in profit or loss.
The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss
if there is a default) and the exposure at default. The assessment of the probability of default and loss given default
is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased and
probability-weighted amount that is determined with the respective risks of default occurring as the weights.
Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with
the contract and the cash flows that the Group expects to receive, discounted at the effective interest rate determined
at initial recognition.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Where ECL is measured on a collective basis or cater for cases where evidence at the individual instrument level
may not yet be available, the financial instruments are grouped on the following basis:
The grouping is regularly reviewed by management to ensure the constituents of each group continue to share
similar credit risk characteristics. Interest income is calculated based on the gross carrying amount of the financial
asset unless the financial asset is credit impaired, in which case interest income is calculated based on amortized cost
of the financial asset.
The Group recognises an impairment gain or loss in profit or loss for all financial instruments by adjusting their
carrying amount, with the exception of trade and other receivables and other financial assets measured at amortised
cost, where the corresponding adjustment is recognised through a loss allowance account .
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of an investment in equity instrument which the Group has elected on initial recognition to
measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is
not reclassified to profit or loss, but is transferred to retained earnings.
Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definition of a financial liability and an
equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all
of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue
costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss
is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
All financial liabilities (including trade and other payables and borrowings) are subsequently measured at amortised
cost, using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments through the expected life of the financial liability, or where appropriate, a shorter period, to the net
carrying amount on initial recognition.
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled
or have expired. The difference between the carrying amount of the financial liability derecognised and the
consideration paid and payable, is recognised in profit or loss.
Employee benefit
The Group contributes to a defined contribution Mandatory Provident Fund retirement benefits scheme (the “MPF
Scheme”) under the Mandatory Provident Fund Scheme Ordinance for all employees in Hong Kong. Contributions
are made based on a percentage of the employee’s relevant income and are charged to profit or loss as they become
payable in accordance with the rules of the MPF Scheme. The assets of the MPF Scheme are held separately from
those of the Group in an independently administered fund. The Group’s employer contributions vest fully with the
employees when contributed in the MPF Scheme. Under the MPF Scheme, the employer and its employees are each
required to make contribution to the MPF Scheme at 5% of the employees’ relevant income subject to a cap of
monthly relevant income of HK$30,000. Contributions to the MPF Scheme vest immediately.
The employees of the Company’s subsidiaries which operate in the PRC are required to participate in a central
pension scheme operated by the local municipal government. These subsidiaries are required to contribute a certain
percentage of its payroll costs to the central pension scheme. The contributions are charged to profit or loss as they
become payable in accordance with the rules of the central pension scheme. The Group’s employer contributions
vest fully with the employees when contributed in the central pension scheme. The Group has no forfeiture of
pension scheme contributions (i.e. contributions processed by the employer on behalf of the employee who has
exited the scheme prior to vesting of such contributions). As at 31 December 2022, no forfeited contribution under
the pension scheme of the Group is available for deduction of contribution payable in coming years.
Short-term employee benefits are recognised at the undiscounted amount of the benefits expected to be paid as and
when employees rendered the services. All short-term employee benefits are recognised as an expense unless
another IFRS requires or permits the inclusion of the benefit in the cost of an asset.
A liability is recognised for benefits accruing to employees (such as wages and salaries, annual leave and sick leave)
after deducting any amount already paid.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Employee benefit(continued)
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the
estimated future cash outflows expected to be made by the Group in respect of services provided by employees up to
the reporting date. Any changes in the liabilities’ carrying amounts resulting from service cost, interest and
remeasurements are recognised in profit or loss except to the extent that another IFRS requires or permits their
inclusion in the cost of an asset.
Equity-settled share-based payments to employees and others providing similar services are measured at the fair
value of the equity instruments at the grant date.
The fair value of the equity-settled share-based payments determined at the grant date without taking into
consideration all non-market vesting conditions is expensed on a straight-line basis over the vesting period, based on
the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity (share
options reserve). At the end of each reporting period, the Group revises its estimate of the number of equity
instruments expected to vest based on assessment of all relevant non-market vesting conditions. The impact of the
revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the
revised estimate, with a corresponding adjustment to the share options reserve. For share options that vest
immediately at the date of grant, the fair value of the share options granted is expensed immediately to profit or loss.
When share options are exercised, the amount previously recognised in share options reserve will be transferred to
share premium. When the share options are forfeited after the vesting date or are still not exercised at the expiry
date, the amount previously recognised in share options reserve will continue to be held in share options reserve.
When shares granted are vested, the amount previously recognised in share options reserve will be transferred to
share premium.
When the Company’s shares are purchased from the open market for employee option scheme, the consideration
paid, including any directly attributable incremental costs, is presented as shares held for employee option scheme
and deducted from total equity.
The fair value of services received from employees determined by reference to the fair value of shares granted at the
grant date is expenses on a straight-line basis over the vesting period, with a corresponding increase in share option
reserve.
At the time when the shares vested, the difference on the amounts previously recognised in shares held for employee
option scheme and the amount recognised in share option reserve is transferred to retained earnings .
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both current and future periods.
The following are the key assumptions concurring the future, and other key sources of estimation uncertainty at the
end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.
The Group’s management determines the provision for impairment on trade receivables based on the expected
credit losses which uses a related loss allowance for all trade receivables. The loss allowances for financial assets are
based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history, existing
market conditions as well as forward looking estimates at the end of each reporting period. Management reassesses
the provision at each balance sheet date.
As at 31 December 2023, certain of the Group’s financial assets, unquoted equity instruments and unlisted Put
Option, amounting to RMB118,623,000 (2022: RMB152,849,000) and RMBnil (2022: RMB 0) respectively are
measured at fair value with fair value being determined based on significant unobservable inputs using valuation
techniques. Judgment and estimation are required in establishing the relevant valuation techniques and the relevant
inputs thereof. Changes in assumptions relating to these factors could result in material adjustments to the fair value
of these instruments
As at 31 December 2023, a deferred tax asset of RMB134,260,000 (2022: RMB85,877,000) in relation to certain
deductible temporary differences and unused tax losses has been recognised in the Group’s consolidated statement
of financial position. The realisability of the deferred tax asset mainly depends on whether sufficient future profits or
taxable temporary differences will be available in the future. In cases where the actual future taxable profits
generated are less or more than expected, or change in facts and circumstances which result in revision of future
taxable profits estimation, a material reversal or further recognition of deferred tax assets may arise, which would be
recognised in profit or loss for the period in which such a reversal or further recognition takes place.
Determining whether goodwill is impaired requires an estimation of the recoverable amount of the cash-generating
unit (or group of cash-generating units) to which goodwill has been allocated, which is the higher of the value in use
or fair value less costs of disposal. The value in use calculation requires the Group to estimate the future cash flows
expected to arise from the cash-generating unit (or a group of cash-generating units) and a suitable discount rate in
order to calculate the present value. Where the actual future cash flows are less than expected, or change in facts and
circumstances which results in downward revision of future cash flows, a material impairment loss/further
impairment loss may arise.
The capital structure of the Group consists of borrowings as disclosed in note 30, pledged bank deposits, bank
balances and cash and equity attributable to owners of the Company, comprising share capital, share premium,
reserves and retained earnings.
The directors review the capital structure on a semi-annual basis. As a part of this review, the directors consider the
cost of capital and the risks associated with each class of capital. Based on recommendations of the directors, the
Group will balance its overall capital structure through the payment of dividends, new share issues as well as the
issue of new debt or the redemption of existing debt.
2023 2022
RMB’000 RMB’000
Financial assets
Financial assets at amortised cost 8,392,053
Equity investments at FVTOCI 118,623 152,849
Financial asset at FVTPL -
8,544,902
Financial liabilities
Amortised cost 4,719,389
The Group’s major financial instruments include trade and other receivables, financial asset at FVTPL, equity
instruments at FVTOCI, deposit paid for acquisition of subsidiary, pledged bank deposits, bank balances and cash,
trade and other payables and borrowings. Details of these financial instruments are disclosed in respective notes.
The risks associated with these financial instruments include market risk (currency risk and interest rate risk), credit
risk and liquidity risk. The policies on how to mitigate these risks are set out below. The Group’s management
manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective
manner.
Market risks
The functional currencies of the PRC subsidiaries are RMB with most of the transactions settled in RMB. However,
foreign currency (mainly the United States dollar “US$”) were received when the Group earned revenue from
overseas customers and when settling payables for purchases of machinery and equipment from the overseas
suppliers.
The Group does not have any hedging policy to manage the risk arising from foreign currency transactions. In order
to reduce the risk of holding foreign currencies, the Group normally converts the foreign currencies into RMB upon
receipt while taking into account its foreign currencies payment schedule in the near future.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. CAPITAL RISK AND FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES (continued)
Market risks(continued)
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the
reporting date are as follows:
ASSETS LIABILITIES
2023 2022 2023 2022
RMB’000 RMB’000 RMB’000 RMB’000
US$ 767,421 25,566
At 31 December 2023, if RMB had strengthened/ weakened by 10% against US$ with all other variables held
constant, post-tax profit for the year would have been RMB74,185,000 higher/lower (2022: RMB74,185,000
lower/higher), mainly as a result of foreign exchange gains/losses on translation of US$ denominated bank balances
and cash and trade and other receivables.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the
year end exposure does not reflect the exposure during the year.
The Group is exposed to fair value interest rate risk in relation to fixed-rate borrowings (see note 30 for details of
these borrowings). At 31 December 2021, 14.26% of the Group’s borrowings bear fixed interest rates.
The Group is also exposed to cash flow interest rate risk in relation to bank deposits, and variable-rate borrowings.
The Group’s cash flow interest rate risk is mainly concentrated on the fluctuation of the market deposit rate and the
PRC official lending rate arising from the Group’s RMB borrowings. The Group aims at keeping borrowings at
variable rates. The Group manages its interest rate exposures by assessing the potential impact arising from any
interest rate movements based on interest rate level and outlook. The management will review the proportion of
borrowings in fixed and floating rates and ensure they are within reasonable range.
The sensitivity analyses below have been determined based on the exposure to interest rates for variablerate
borrowings. The analysis is prepared on the financial balance at the end of reporting period. 10 and 25 basis points
increase or decrease is used which represents management’s assessment of the reasonably possible change in interest
rate.
In relation to the Group’s exposure to interest rates risk on bank deposits, if interest rates had been 10 basis points
higher/lower and all other variables were held constant, the Group’s post-tax profit for the year ended 31 December
2021 would increase/ decrease by RMB401,000.
Furthermore, in relation to the Group’s exposure to interest rates risk on variable-rate borrowings, if interest rates
had been 25 basis points higher/lower and all other variables held constant, the Group’s post-tax profit for the year
ended 31 December 2021 would decrease/increase by RMB1,003,000, mainly as a result of higher/lower interest
expenses on floating rate borrowings.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent interest rate risk as the year end
exposure does not reflect the exposure during the year.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. CAPITAL RISK AND FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES (continued)
Credit risk refers to the risk that the Group’s counterparties default on their contractual obligations resulting in
financial losses to the Group. The Group’s credit risk exposures are primarily attributable to trade and other
receivables, pledged bank deposits and bank balances. The Group does not hold any collateral or other credit
enhancements to cover its credit risks associated with its financial assets.
Trade receivables arising from contracts with customers The Group trades only with recognised and creditworthy
parties. Receivable balances are monitored on an ongoing basis and the Group’s exposure to bad debts is not
significant. The credit quality of customers is assessed after taking into account the customers’ financial position and
past experience with the customers.
The Group’s concentration of credit risk by geographical locations is mainly in PRC, which accounted for 54.18%
(2022: 54.18%) of the total trade receivables as at 31 December 2023. As at 31 December 2023, the Group had
concentration of credit risk, 15.05% (2022: 15.05%) of its total trade receivables were due from its largest customer
and 42.21% (2022: 42.21%) of its total trade receivables were due from its top five customers respectively. In order
to minimise the credit risk, the management of the Group has delegated a team responsible for determination of
credit limits and credit approvals.
In addition, the Group performs impairment assessment under ECL model on trade balances based on provision
matrix, except for the trade receivables with significant trade balances and credit impaired which are assessed
individually. The provision rates are based on days past due for groupings of various customer segments with
similar loss patterns (i.e., by geographic region and internal credit rating).
The calculation reflects the probability weighted outcome, the time value of money and reasonable and supportable
information that is available at the end of reporting period about past events, current conditions and forecasts of
future economic conditions.
Credit risk on pledged bank deposits and bank balances is limited because the counterparties are reputable banks
with high credit ratings assigned by international credit agencies. Management does not expect any losses from non-
performance by these counterparties. The Group assessed 12m ECL for pledged bank deposits and bank balances by
reference to information relating to probability of default and loss given default of the respective credit rating grades
published by external credit rating agencies. Based on the average loss rates, the 12m ECL on pledged bank deposits
and bank balances is considered to be insignificant.
For other receivables and deposits excluding prepayment, the management makes periodic individual assessment on
the recoverability of other receivables based on historical settlement records, past experience, and also quantitative
and qualitative information that is reasonable and supportive forward-looking information. The management
believes that there is no significant increase in credit risk of these amounts since initial recognition and the Group
provided impairment based on 12m ECL. For the years ended 31 December 2023 and 2022, the Group assessed the
ECL for other receivables and deposits are insignificant and thus no loss allowance is recognised.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. CAPITAL RISK AND FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES (continued)
The Group’s internal credit risk grading assessment comprises the following categories :
Internal
credit Other financial
rating Description Trade receivables assets/other items
Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents
deemed adequate by management to finance the Group’s operations and mitigate the effects of fluctuations in cash
flows. Management monitors the utilisation of borrowings. The Group relies on borrowings as a significant source
of liquidity. As at 31 December 2023, the Group had available undrawn borrowing facilities of RMB1,157,000,000
(2022: RMB1,157,000,000). Details of which are set out in note 30.
31 December 2023
Trade and other
payables
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. CAPITAL RISK AND FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES (continued)
Weighted Carrying
average 1–3 Over 1 Total amount at 31
interest Less than months 3 months year undiscounted December
rate 1 month Over to 1 year to 5 years cash flows 2022
RMB’000
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
31 December 2022
Trade and other
payables - 2,516,277 814,263 1,332,990 55,859 4,719,389 4,719,389
Some of the Group’s financial instruments are measured at fair value for financial reporting purposes.
In estimating the fair value, the Group uses market observable data to the extent it is available. For instruments with
significant unobservable inputs under level 3, the Group engages third party qualified valuers to perform the
valuation. The following table gives information about how the fair values of these financial assets are determined.
Fair Sensitivity/relationship
Financial value Valuation technique and of unobservable inputs
assets Fair value as at hierarchy key inputs Significant unobservable inputs to fair value
2023 2022
RMB’000 RMB’000
Income approach —
discounted
cash flow method was
used to capture the
present Discount rate, taking into account the cost
value of the expected of equity (COE)/weighted average cost of
future capital (WACC) determined using a Capital
economic benefits to be Asset Pricing Model, ranging from 7% to
derived from the 10.15% (2022: 17.6% to 10%).
Unlisted Unlisted ownership Discount for lack of marketability, The lower the COE/
equity equity of this investee, based determined WACC or discount for
Equity instruments instruments on an by a number of research studies including lack of marketability,
instruments — — appropriate discount restricted stock studies by an independent the higher the fair
at FVTOCI 67,835 82,254 Level 3 rate. valuer, of 20% (2022: 20%). value, and vice versa
The higher the recent
Market approach — transaction price,
based on Recent transaction price of the comparable the higher the
trading multiples public companies fair value and vice
Unlisted Unlisted derived Discount for lack of marketability, versa. The lower the
equity equity from publicly traded determined discount for lack of
instruments instruments companies that are by a number of research studies including marketability, the
— — similar restricted stock studies by an independent higher the fair value,
85,014 308,325 Level 3 to the subject company. valuer, of 20% (2022: 20%). and vice versa.
Interest rate, based on the yield curve of
China
Sovereign Curve as of valuation dates, of
2.44%
Black-Scholes model — for the year ended 31 December 2022;
mathematical Volatility, estimated based on annualised
model for the dynamics standard
of deviation of daily stock price return of The lower the interest
Derivative Derivative a financial market comparable rate, the higher the
financial financial containing companies for the period before valuation fair value and vice
instruments instruments derivative investment date versa;
— unlisted — unlisted instruments, and with similar time span as time to The higher the
Financial Put Put based on an appropriate expiration, volatility,
asset at Option — Option — interest rate and the of 50.72% for the year ended 31 December the higher the fair
FVTPL 37,669 37,669 Level 3 volatility. 2022 value and vice versa.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5. CAPITAL RISK AND FINANCIAL RISK MANGEMENT OBJECTIVES AND POLICIES (continued)
Financial Equity
asset of instruments
FVTPL at FVTOCI
RMB’000 RMB’000
Total losses:
— in other comprehensive income (5,830)
— in profit or loss (37,669)
Purchases 6,500
Refund (238,400)
Total losses:
— in other comprehensive income
— in profit or loss
Purchases
Refund
At 31 December 2023 -
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.1 Revenue
Revenue Disaggregation of revenue from contracts with customers:
13,606,748 19,121,197
The Group’s operations are organised based on the different types of products. Information reported to the
board of directors of the Company, being the chief operating decision maker (“CODM”), for the purposes of
resource allocation and assessment of segment performance focuses on types of products and property
development. This is the basis upon which the Group is organised.
The following is an analysis of the Group’s revenue and results by reportable and operating segment.
Dichloromethane PVC
Organic and Other
Polymers Refrigerants Silicon liquid alkali operations Eliminations Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’00
RMB’000 0
External sales 4,552,407 3,006,758 4,862,426 1,185,157 1,031,497 - 14,638,245
Inter segment
sales
2,608,866 29,559 1,182,577 (3,821,002)
Total revenue-
segment revenue 4,552,407 5,615,624 4,862,426 1,214,716 2,214,074 (3,821,002) 14,638,245
SEGMENT
RESULTS 336,766 310,574 (332,288) 248,359 85,465 - 648,876
Unallocated
corporate
expenses
(18,450)
Fair value
changes on
financial assets at
FVTPL [*]
Gain on deemed
disposal of an
associate [*]
Share of results
of an associate 29,150
Finance costs (1,659)
Profit before
taxation 657,917
Dichloromethane PVC
Refrigera Organic and Other Elimination
Polymers nts Silicon liquid alkali operations s Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
External sales
Inter segment 6,487,010 4,361,050 6,648,326 1,624,811 906,791 - 20,027,988
sales - 3,034,179 - 13,560 1,229,607 (4,277,346) -
Total revenue-
segment revenue 6,487,010 7,395,229 6,648,326 1,638,371 2,136,398 (4,277,346) 20,027,988
SEGMENT
RESULTS 1,989,578 1,021,356 463,465 460,302 32,627 - 3,967,328
Unallocated
corporate expenses
(26,993)
Fair value changes
on financial assets
at FVTPL (37,669)
Gain on deemed
disposal of an
associate 1,212,290
Share of results of
an associate 25,401
Finance costs (15,302)
Profit before
taxation 5,125,055
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Segment results represent the results of each segment without allocation of unallocated expenses and central
administration costs, equity-settled share-based payments, directors’ salaries, share of results of an associate, fair
value changes on financial asset at FVTPL, loss on disposal of a subsidiary and finance costs. This is the measure
reported to the CODM for the purposes of resource allocation and performance assessment. No segment
information on assets and liabilities is presented as such information is not reported to the CODM for the purposes
of resource allocation and performance assessment.
Information about revenue from polymers segment by products from external customers
2023 2022
RMB’000 RMB’000
4,552,407 6,487,010
Information about revenue from refrigerants segment by products from external customers
2023 2022
RMB’000 RMB’000
3,006,758 4,361,050
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Information about revenue from organic silicon segment by products from external customers
2023 2022
RMB’000 RMB’000
4,862,426 6,648,326
Information about revenue from Dichloromethane, PVC, and liquid alkali by-products segment from external
customers
2023 2022
RMB’000 RMB’000
1,185,157 1,624,811
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Information about revenue from other operations segment by products from external customers.
2023 2022
RMB’000 RMB’000
1,031,497 906,895
Geographical information
The Group’s revenue from external customers by geographical location of customers is detailed below:
2023 2022
RMB’000 RMB’000
2023 2022
RMB’000 RMB’000
America
--United States of America 212,715 599,880
--Brazil 109,761 136,900
--Chile - 2,358
--Argentina 255 4,158
--Mexico 10,300 15,764
--Panama 3,293 3,202
--Canada 4,859 6,184
--Other countries 20,748 7,187
2023 2022
RMB’00 RMB’000
0
Europe
--Italy 146,221 212,462
--England 16,216 19,419
--Russia 6,292 31,659
--Germany 84,799 121,943
--France 38,320 39,966
--Spain 4,584 19,413
--Belgium 87,548 99,870
--Poland 7,341 17,158
--Finland - 18,935
--Other countries 128 7,755
2023 2022
RMB’000 RMB’000
Africa
--South Africa 18,087 21,724
--Egypt 9,592 5,589
--Nigeria 51,686 45,639
--Other countries 373 4,446
14,638,245 20,027,988
Over 95% of the Group’s non-current assets other than financial instruments and deferred tax assets (2022:
95%) are in the PRC as at 31 December 2023. Accordingly, no information about its non-current assets by
geographical location is presented.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’00 RMB’00
0 0
Other income
Government grants (Note (i)) 124,521 55,520
Bank deposits interest income 89,509 80,255
Dividend income received from equity Instruments at FVTOCI - -
Other interest income (Note (ii)) 5,420 9,136
Others 61,341 8,120
280,791 153,031
282,098 229,006
Notes:
(i) During the year ended 31 December 2023, the Group recognised government grants of RMB18,584,000
(2022: RMB18,584,000) in the consolidated statement of profit or loss. Government grants mainly
represent the expenditure on research activities which are recognised as expense in the period in which
they are incurred by the Group. The Group recognised these government grants as other income when
there were no unfulfilled conditions or contingencies.
During the year ended 31 December 2023, in addition, the Group recognised government grant of
RMB79,878,000 (2022: RMB36,936,000), which was released from deferred income, in the
consolidated statement of profit or loss. The Group received subsidies from government in respect of
the acquisition of property, plant and equipment for manufacturing of chemical products. Such subsidies
are classified as deferred income in the consolidated statement of financial position and will be
recognised in the consolidated statement of profit or loss over the estimated useful lives of the related
assets.
(ii) Included in other interest income was bills receivable of RMB5,420,000 (2022: RMB9,136,000) for the
year ended 31 December 2023.
8 FINANCE COSTS
2023 2022
RMB’000 RMB’000
Interests on:
Bank loans wholly repayable within five years - 13,046
Lease liabilities 1,659 2,256
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’000 RMB’000
Current tax:
179,430 828,430
Deferred tax
---Withholding tax for distributable profits of PRC subsidiaries
---Others (154,000) 91,543
(18,749) 28,965
(172,749) 120,508
Tax charge mainly consists of income tax in the PRC attributable to the assessable profits of the Company’s
subsidiaries established in the PRC. Under the law of the PRC on Enterprise Income Tax (the “EIT Law”) and
Implementation Regulation of the EIT Law, the tax rate of the PRC subsidiaries is 25% (2022: 25%), except for
certain PRC subsidiaries being awarded the Advanced-Technology Enterprise Certificate and entitled for a tax
reduction from 25% to 15%.
The Company’s subsidiaries incorporated in Hong Kong is under the two-tiered profits tax rates regime, the first
HK$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million
will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will
continue to be taxed at a flat rate of 16.5%.
Pursuant to the local rules and regulations of the Cayman Islands, the Group is not subject to any income tax in
the Cayman Islands.
Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.
2023 2022
RMB’00 RMB’000
0
Tax charge at enterprise income tax rate of (25%) (Note a) 151,626 1,281,263
Effect of income taxed on concessionary rate 267,111 (331,930)
Tax effect of income not taxable for tax purpose 380 (5,280)
Tax effect of expenses not deductible for tax purpose 51,420 3,266
Tax effect of utilisation of tax losses previously not recognised 1,694 -
Under/(Over) provision in respect of prior years -115,020 4,528
Deferred tax on distribution earnings of PRC subsidiaries (Note b) -154,000 91,543
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(b) According to a joint circular of Ministry of Finance and State Administration of Taxation, Cai Shui [2008]
No. 1, dividend distributed out of the profits generated since 1 January 2008 held by the PRC entity shall be
subject to EIT pursuant to Articles 3 and 27 of the Income Tax Law Concerning Foreign Investment
Enterprises and Foreign Enterprises and Article 91 of the Detailed Rules for the Implementation of the
Income Tax Law for Enterprises with Foreign Investment and Foreign Enterprises. Deferred tax
asset/liability of RMB -154,000,000.00 (2022: RMB91,543,000) on the undistributed earnings of subsidiaries
has been charged to profit or loss for the year.
(c) LAT is levied at progressive rates ranging from 30% to 60% on the appreciation of land value, being the
proceeds of sales of properties less deductible expenditures including cost of land use rights and all
property
development expenditures.
2023 2022
RMB’000 RMB’000
(a) Staff costs (including directors’
emoluments):
Wages and salaries [*] 1,528,692
Discretionary bonus [*] 15,629
Pension scheme contributions [*] 213,755
Equity-settled share-based payments [*] -
Other staff welfare [*] 122,327
The emoluments paid or payable to the directors and the chief executive were as follows:
2023
Equity-
Salary Discretionary Pension settled Other Total
Schemed share-based benefits
Fees payment
Independent Non-executive
Directors
Mr. Ting Leung [*] [*] [*] [*] [*] [*] [*]
Huel, Stephen [*] [*] [*] [*] [*] [*] [*]
Mr. Yang Xiaoyong
Mr. Ma Zhizhong [*] [*] [*] [*] [*] [*] [*]
2022
Equity-
Salary Discretionary Pension settled Other Total
Schemed share-based benefits
Fees payment
Independent Non-executive
Directors
Mr. Ting Leung 429 - - - - - 429
Huel, Stephen - - - - - - -
Mr. Yue Run Dong (resigned
on 11/03/2021)
204 - - - - - 204
Mr. Yang Xiaoyong
Mr. Ma Zhizhong (appointed
11/03/2021) 120 - - - - - 120
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Mr. Zhang Jianhong, the Chairman of the board of the directors, is also the Chief Executive Officer of the
Company. His emoluments disclosed above include those for services rendered by him as the Chief Executive.
The executive directors’ emoluments shown above were for their services in connection with the management of
the affairs of the Company and the Group. The independent non-executive directors’ emoluments shown above
were for their services as directors of the Company.
During the year, no remuneration was paid by the Group to the directors or the five highest paid individuals as an
inducement to join or upon joining the Group or as compensation for loss of office. Neither the Chief Executive
Officer nor any of the directors waived any emoluments for the years ended 31 December 2023 and 2022.
Note: Discretionary bonus is determined based on the individual performance of the directors.
The five highest paid employees of the Group during the year included four directors (2022: four directors),
details of whose remuneration are set out in note 11 above. Details of the remuneration for the year of the
remaining one (2022: one) highest paid employees who are neither a director nor chief executive of the Company
are as follows:
2023 2022
RMB’000 RMB’000
[*] 8,640
The number of the highest paid employees who are not the directors of the Company whose remuneration fell
within the following bands is as follows:
2023 2022
RMB’000 RMB’000
The calculations of basic and diluted earnings per share attributable to the owners of the Company are based on
the following data:
2023 2022
RMB’000 RMB’000
Number of shares
2023 2022
’000 ’000
Weighted average number of ordinary shares for the purpose of
basic earnings per share [*] 2,234,416
Effect of dilutive potential ordinary shares:
Adjustment in relation to share options issued by the company [*] -
During the year ended 31 December 2023, [*] (2022: 25,974,000) ordinary shares were purchased under
employee option scheme.
The Company repurchased and cancelled [*] shares of its own ordinary shares of the Company during the year
ended 31 December 2023 (2022: 1,051,000).
The weighted average number of ordinary shares for the purpose of basic and diluted earnings per share for the
years ended 31 December 2023 and 2022 has been arrived at after
deducting the shares held in trust for the Company.
14 DIVIDENDS
2023 2022
RMB’000 RMB’000
Dividends paid during the year 2023: 2022 final dividend of HK$[*]
(2022:2021 final dividend of HK$ 0.34 per share)
1,196,613 625,229
Subsequent to the end of the reporting period, a final dividend HK$0.60 per share (2022: HK$0.60 per share),
amounting to HK$1,352,213,000 (2022: HK$1,352,213,000) in respect of the year ended 31 December 2023,
equivalent to RMB1,196,613,000 (2022: MB1,196,613,000) has been proposed by the directors and is subject to
approval by the shareholders in the forthcoming general meeting.
COST
At 1 January 2022 2,959,307 7,452,293 56,592 1,083,707 3,275,884 14,827,783
Additions 416,861 579,090 7,243 117,655 2,786,890 3,907,739
Transfer 1,256,714 2,913,584 - 1,034,295 (5,204,593) -
Acquisition of subsidiaries 178,103 350,963 3,633 13,527 17,717 563,943
Disposals (34,185) (440,351) (4,836) (57,888) - (537,260)
ACCUMULATED
DEPRECIATION
AND IMPAIRMENT
At 1 January 2022 1,003684 4,717,608 36,672 771,750 - 6,529,714
Charge for the year 168,908 528,924 6,515 199,966 - 904,313
Acquisition of subsidiaries 48,820 193,431 1,519 8,063 - 251,833
Eliminated on disposals (21,341) (398,927) (4,129) (39,801) - (455,198)
CARRYING VALUES
At 31 December 2023 3,705,104 5,915,769 20,993 1,256,228 1,294,925 12,193,019
As at 31 December 2023, the Group had not obtained the building ownership certificates for certain buildings
with carrying values of RMB [*] (2022: RMB283,057,000).
Depreciation of property, plant and equipment is calculated using the straight-line method to allocate their cost
less their residual values over their estimated useful lives as follows:
As at 31 December 2023 and 2022, the Group has no pledged buildings and plant and machinery to secure bank
loans of the Group. The buildings are situated on land in the PRC and held under medium-term lease.
16 RIGHT-OF-USE-OF-ASSETS
As at 31 December 2023, the Group had not obtained the leasehold lands ownership certificates for certain
leasehold lands with carrying values of RMB7,919,000 (2022: RMB7,919,000).
As at 31 December 2022, the Group has pledged right-of-use assets with carrying values of approximately
RMB61,037,000 to secure bank loans of the Group.
During the year ended 31 December 2023, the total cash out flows for leases was RMB 85,269,000 (2022:
RMB85,269,000). For both years, the Group leases various offices for its operations. Lease contracts are entered
into for fixed term of 2 years (2021: 2 years). Lease terms are negotiated on an individual basis and contain
different terms and conditions. In determining the lease term and assessing the length of the noncancellable
period, the Group applies the definition of a contract and determines the period for which the contract is
enforceable.
The Group is the registered owner of the underlying leasehold lands. Lump sum payments were made upfront to
acquire these property interests. The leasehold land components of these owned properties are presented
separately only if the payments made can be allocated reliably.
17 INTEREST IN ASSOCIATE
2023 2022
RMB’000 RMB’000
The details of the Group’s associates at 31 December 2023 and 2022 is as follows:
2023 2022
Productio
Dongyue Future
n and
Hydrogen
Limited liability Registered sales of
Energy Material Co., PRC PRC 13.26% 13.26%
company capital hydrogen
Ltd.
energy
(“Future Hydrogen”)
material
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2020
22 MAY
RMB’000
Property, plant and equipment 231,151
Right-of-use assets 43,854
Intangible assets 10,872
Equity instruments at FVTOCI 3,000
Tax recoverable 2,592
Inventories 14,286
Trade and bill receivables 12,596
Prepayment and other receivables 77,607
Bank balances and cash 94,858
Bank borrowings (116,845)
Trade and bill payables (84,230)
Other payables (106,363)
Contract liabilities (1,207)
Deferred tax liabilities (6,389)
Deferred income (9,399)
(94,858)
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
On 24 June 2020, Dongyue Organosilicon and several new shareholders (“Guaranteed Shareholders”) entered into
capital injection agreement (“Injection Agreement”) with Future Hydrogen to inject RMB300,000,000, comprising
RMB21,000,000 registered capital and RMB279,000,000 capital reserve into Future Hydrogen. Dongyue
Organosilicon contributed RMB100,000,000, comprising RMB7,000,000 as registered capital and RMB93,000,000
as capital reserve. Upon the increase in registered capital, the equity interest held by the Group was diluted to
34.95%.
In the Injection Agreement, there is a protective clause in which Dongyue Organosilicon and several new
shareholders can request Future Hydrogen to repurchase all the equity interest when certain conditions occur (“Put
Option”). Pursuant to the terms of the Injection Agreement, Future Hydrogen has irrevocable and unconditionally
guaranteed the Guaranteed Shareholders that Future Hydrogen initial public offer, listed and trading of its shares in
the PRC market on or before 31 December 2023. In the event that the certain conditions are occur, the Guaranteed
Shareholders can exercise the Put Option in the period between 1 January 2024 and 31 December 2024 and Future
Hydrogen will repurchase the equity interest from the Guaranteed Shareholders.
On 18 August 2020, Future Hydrogen enlarged its registered capital from RMB126,000,000 to RMB128,160,000
through capital injection from several new shareholders and the equity interest held by the Group was diluted to
34.37%.
On 29 October 2020, Future Hydrogen granted right issue to its existing shareholders on the basis of 2.25 right
shares per every 1 existing share capital held at that date and the consideration was contributed out of its capital
reserve. Upon the completion of the right issue, the registered capital of Future Hydrogen was enlarged from
RMB128,160,000 to RMB416,520,000 and the equity interest held by the Group remain unchanged at 34.37%.
On 30 December 2020, Future Hydrogen enlarged its registered capital from RMB416,520,000 to RMB419,019,120
through capital injection from a new shareholder and the equity interest held by the Group was diluted from 34.37%
to 34.16%.
On 30 September 2021, Future Hydrogen enlarged its registered capital from RMB419,019,120 to RMB434,289,120
through capital injection from a new shareholder and the equity interest held by the Group was diluted from 34.16%
to 32.96%.
The associate is accounted for using the equity method in these consolidated financial statements. Summarised
financial information is set out below and is prepared in accordance with IFRSs.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
[*] 352,864
In the prior year, the Group held a 32.96% interest in Future Hydrogen and accounted for the investment as an
associate.
During the year ended 31 December 2022, the Group disposed of a 7.90% interest in Future Hydrogen to a
connected person for proceed of approximately RMB537,608,000 and 11.80% interest in Future Hydrogen to two
independent third parties for proceeds of HK$802,737,000. The Group remains 13.26% interest of Future Hydrogen
as at the year ended 31 December 2022. This transaction has resulted in the recognition of a gain in profit or loss,
calculated as follows:
RMB’000
The gain recognised in the current year comprises a realised profit of approximately RMB […] (being the proceeds
of approximately RMB[…] less approximately RMB[…] carrying amount of the interest disposed of).
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18 INTANGIBLE ASSETS
Proprietary Exploration
technologies Software rights Total
RMB’000 RMB’000 RMB’000 RMB’000
COST
At 1 January 2022 134,883 29,034 - 163,917
Additions 3,500 5,178 - 8,678
Disposal of a subsidiary (note 40) - - - -
AMORTISATION AND
IMPAIRMENT
At 1 January 2022 115,216 17,344 - 132,560
Charge for the year 11,321 4,899 - 16,220
Impairment - - - -
Eliminated on disposal of
a subsidiary (note 40) - - - -
CARRYING VALUES
At 31 December 2023 9,162 8,183 - 17,345
Proprietary technologies and computer software licences have finite useful lives and are amortised on a straight-
line basis over 5 to 10 years and 3 to 5 years respectively.
During 2012, the Group acquired exploration rights of two mines from third parties in Inner Mongolia
Autonomous Region in the PRC for a total consideration of RMB80 million. The directors of the Company
expected that the mines are abundant with fluorspar resources, which is a major raw material for the refrigerant
business of the Group. The acquisition of the mines will enable the Group to secure a reliable supply of high-
quality fluorspar resources at a reasonable cost.
According to the regulations on exploration and mining rights in the PRC, the Group can extend the exploration
rights as long as the survey is in process and the application fee is submitted.
In October 2017, the Group extended the exploration rights for a period of two years till October 2019 and
further extended for a period of two years till October 2021. The exploration rights were disposed through
disposal of a subsidiary during the year ended 31 December 2021.
19 PLEDGE OF ASSETS
At the end of the reporting period, the Group has the following pledge of assets:
As described in notes […], the Group’s pledged bank deposits amounting to RMB […] and RMB[…]have been
pledged to secure the bills payable and deposits from presale of properties, respectively for the year ended 31
December 2023.
The Group’s pledged bank deposits amounting to RMB 466,000, RMB12,145,000 and RMB8,988,000 have been
pledged to secure the bills payable and deposits from presale of properties respectively for the year ended 31
December 2022.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
152,849
The above unlisted equity instruments represent the Group’s equity interest in several private entities established
in the PRC. The directors of the Company have elected to designate these investments in equity instruments at
FVTOCI as they are held for long-term strategic purposes.
In determining the fair value of unlisted equity instruments, the Group engages an independent professional
valuer to perform such valuation. The amount is determined based on the cash flow projection for the estimated
future cash flow discounted to its present value and requires the use of key assumptions, including the discount
rate, terminal growth rate, budgeted revenue and gross margin taking into account the relevant industry growth
forecasts and financial budgets approved management’s expectation for the market development and the market
approach, based on trading multiples derived from publicly traded companies that are similar to the subject
company.
Notes:
a) CMIC, a private enterprise initiated by the All-China Federation of Industry and Commerce and approved
by the State Council of the PRC, is principally engaged in equity investment and assets management. The
Group held […] shares in CMIC at a consideration of RMB […], and the equity interest in CMIC held by
the Group was […]% as at 31 December 2023 and 2022. Based on CMIC’s financial statements for the
years ended 31 December 2023 and 2022, and having considered the macroeconomic downturn, and the
continuous deleveraging as well as the dual pressure on high level of corporate debts, the funding situation
and cash flow of CMIC were very tight, and the financial position has remained sluggish. As a result, the
directors of the Company considered, and as agreed by the independent professional valuer engaged by the
Group, the fair value of the Group’s investment in CMIC was approximately RMB […] as at 31 December
2023 (2022: RMB10,671,000). Accordingly, a fair value loss of approximately RMB […] (2022:
RMB1,052,000) was recognised for the year ended 31 December 2023 which had been included in other
comprehensive expense of the Group.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20. Equity instruments at fair value through other comprehensive income (continued)
b) Taihe is a private entity and was established in the PRC. Taihe was principally engaged in inter alia, asset
management and bulk transfer of non-performing assets of financial enterprises in Shandong Province, the
PRC. The Group and other partners established Taihe and the registered capital amount of Taihe was
RMB10,000 million, of which the register capital amount contributable by the Group was RMB600 million,
representing 6% of the total registered capital of Taihe. Up to 31 December 2023, the Group has paid
RMB[…]. As at 31 December 2023 the directors of the Company considered the fair value of the investment
of Taihe was approximately RMB […] (2022: 57,163,000) and a fair value loss of approximately
RMB13,368,000 (2022: RMB13,368,000) which had been recognised in other comprehensive expense of
the Group for the year ended 31 December 2023. No dividend has been received by the Company (2022:
RMB[…]) from Taihe during the year ended 31 December 2023.
c) Hainan Guji is a limited partnership established in the PRC. It has through its subsidiary committed to
contribute an aggregate of approximately RMB182,000,000 to the registered capital of two industrial silicon
companies.
During the year ended 31 December 202, the Group made capital contribution of RMB278,500,000 to
Hainan Guji, representing 89.73% of equity interest of Hainan Guji. As the Hainan Guji was managed and
controlled by a general partner which was not a company controlled by the Company, in the opinion of the
directors of the Company, the Company was not in a position to exercise control over this company. The
directors of the Company have elected to designate this investment in equity instruments at FVTOCI as they
are held for long-term strategic purposes.
During the year ended 31 December 2022, the Group received refund from Hainan Guji of
RMB238,400,000, and the Group also acquired the subsidiary, Sichuan Southwest Sunshine Silicon
Technology Co., Ltd (“Sunshine Silicon”) from Hainan Guji with a consideration of RMB322,000,000.
As at 31 December 2022, the directors of the Company considered, and as agreed by the independent
professional valuer engaged by the Group, the fair value of the investment in Hainan Guji was
approximately RMB32,321,000, and a fair gain of approximately RMB16,122,000 which had been received
in other comprehensive expense of the Group for the year ended 31 December 2022.
d) Zibo Runxin is a limited partnership fund established in the PRC, which is expected to primarily invest in
fluoro-chemical, organic silicon, membrane materials and hydrogen-related industries.
On 12 January 2021, Dongyue Fluorosilicone Science and Technology Group Co., Ltd. (“Dongyue
Fluorosilicone Technology”) and Shangdong Dongyue Organosilicon Co., Ltd. (“Dongyue Organosilicon”),
both subsidiaries of the Company, entered into a partnership agreement with Huantai Province Jinhai
Kongyou Capital Operation Co., Ltd. (“Huantai Jinhai”), China Capital Management Co., Ltd. (“China
Capital”) and Zibo Juqiang Trading Co., Ltd. (“Zibo Juqiang”) in relation to the establishment of the fund.
Pursuant to the partnership agreement, the initial capital contribution to the fund is in total
RMB500,000,000, comprising RMB125,000,000, RMB75,000,000, RMB125,000,000 and RMB75,000,000
to be contributed to the fund by Dongyue Fluorosilicone Technology, Dongyue Organosilicon, Huantai
Jinhai and Zibo Juqiang, respectively, as limited partners, and RMB100,000,000 by China Capital as the
general partner. The capital contribution to the fund will be made in stages in accordance with the
partnership agreement.
During the year ended 31 December 2021, the Group made capital contribution of RMB60,000,000 to Zibo
Runxin, representing 33.66% of equity interest of Zibo Runxin. As the Zibo Runxin was managed and
controlled by a general partner which was not a company controlled by the Company, in the opinion of the
directors of the Company, the Company was not in a position to exercise control over this company. The
directors of the Company have elected to designate this investment in equity instruments at FVTOCI as they
are held for long-term strategic purposes.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20. Equity instruments at fair value through other comprehensive income (continued)
d) Continued
During the year ended 31 December 2023, the Group made further capital contribution of RMB[…] to Zibo
RunXin, and the equity interest in Zibo RunXin held by the Group was […]% as at 31 December 2023.
As at 31 December 2023, the directors of the Company considered, and as agreed by the independent
professional valuer engaged by the Group, the fair value of the investment in Zibo Runxin was approximately
RMB[…], and a fair value loss of approximately […] which had been recognised in other comprehensive
expense of the Group for the year ended 31 December 2023.
21 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS( 2023 和 2022 期末已没有余
额)
2023 2022
RMB’000 RMB’000
Derivative financial instrument
— Unlisted Put Option [*] -
As stated in note […] to the consolidated financial statements, in the Injection Agreement, there is a protective
clause in which Dongyue Organosilicon and several new shareholders can request Future Hydrogen to
repurchase all the equity interest when certain conditions occur (“Put Option”). Pursuant to the terms of the
Injection Agreement, Future Hydrogen has irrevocable and unconditionally guaranteed the Guaranteed
Shareholders that Future Hydrogen initial public offer, listed and trading of its shares in the PRC market on or
before 31 December 2023. In the event that the certain conditions are occur, the Guaranteed Shareholders can
exercise the Put Option in the period between 1 January 2024 and 31 December 2024 and Future Hydrogen will
repurchase the equity interest from the Guaranteed Shareholders.
The Put Option resulted in a derivative financial asset of RMB19,777,000, and was initially recognised at fair
value through profit or loss on the date when such derivative contract entered into and subsequently re-
measured to its fair value at the end of the reporting period.
During the year ended 31 December 2022, gain on a derivative financial asset from Put Option of
RMB21,870,000
was recognised. The Put option has been cancelled during the year ended 31 December 2023.
22 DEFFERED TAXATION
The following is an analysis of the deferred tax balances for financial reporting purpose:
2023 2022
RMB’000 RMB’000
At 31
December
2022 and 1
January 2023 (132,442) (269,999) 111,261 30,940 - (13,352)- 107,548 (166,044)
Dividend
withholding
tax paid
Acquisition of
subsidiaries
(Charge) credit
recognised in
profit or loss 154,000 (17,593) (38,902) (5,883) 75,067 1,853 34,183 202,725
At 31
December
2023 21,558 (287,592) 72,359 25,057 75,067 - (11,499) 141,731 36,681
24 GOODWILL
Acquisitio Other
Acquisition n Acquisition immaterial
of Sunshine of of acquisition
Silicon Tangshan Shenzhou of business Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
COST
At 1 January 2022 and 31 December 2022 159,519 52,952 84,540 2,013 299,024
Arising on acquisition of subsidiaries (Note 40) [*] [*] [*] [*] [*]
Impairment [*] [*] [*] [*] [*]
During the year ended 31 December 2023, the Group acquired the entire issued share capital of Sunshine Silicon
and Tangshan and there is goodwill of approximately RMB159,519,000 and
RMB52,952,000 was recognised upon completion of the acquisition respectively.
For the purpose of impairment testing, goodwill of RMB[*] (2022: RMB84,540,000) have been allocated
to the cash generating units (CGUs), Huaxia Shenzhou in the polymers segment. During the year ended 31
December 2023, management of the Group determines that there was no impairment of goodwill (2022: nil).
Sunshine Silicon
The recoverable amounts of Sunshine Silicon have been determined based on a value in use calculation. That
calculation uses cash flow projections based on financial budgets approved by management covering a five-year
period and a discount rate of 11.84%. Cash flows beyond the five-year period are extrapolated using a steady 3%
growth rate. This growth rate is based on the relevant industry growth forecasts and does not exceed the average
long-term growth rate for the relevant industry. Other key assumptions for the value in use calculations relate to
the estimation of cash flows which include budgeted sales and gross margins. Such estimation is based on past
performance of Sunshine Silicon and management’s expectations for the market development. Management
believes that any reasonably possible change in any of these assumptions would not cause the aggregate carrying
amount of related subsidiaries to exceed the aggregate recoverable amount.
Tangshan
The recoverable amounts of Tangshan have been determined based on a value in use calculation. That
calculation uses cash flow projections based on financial budgets approved by management covering a five-year
period and a discount rate of 8.80%. Cash flows beyond the five-year period are extrapolated using a steady 3%
growth rate. This growth rate is based on the relevant industry growth forecasts and does not exceed the average
long-term growth rate for the relevant industry. Other key assumptions for the value in use calculations relate to
the
estimation of cash flows which include budgeted sales and gross margins. Such estimation is based on past
performance of Tangshan and management’s expectations for the market development. Management believes
that any reasonably possible change in any of these assumptions would not cause the aggregate carrying amount
of related subsidiaries to exceed the aggregate recoverable amount.
Polymers segment
The recoverable amount of Huaxia Shenzhou has been determined based on value in use calculation. This
calculation uses cash flow projections based on financial budgets approved by management covering a five-year
period and a discount rate of […] (2022: 15%). Cash flows beyond the five-year period are extrapolated using a
steady […]% (2022: 3%) growth rate. This growth rate is based on the relevant industry growth forecasts and
does not exceed the average long-term growth rate for the relevant industry. Other key assumptions for the value
in use calculations relate to the estimation of cash flows which include budgeted sales and gross margins. Such
estimation is based on past performance of Huaxia Shenzhou and management’s expectations for the market
development. Management believes that any reasonably possible change in any of these assumptions would not
cause the aggregate carrying amount of Huaxia Shenzhou to exceed the aggregate recoverable amount of Huaxia
Shenzhou.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25 INVENTORIES
2023 2022
RMB’000 RMB’000
1,555,079.71 1,441,712
2023 2022
RMB’000 RMB’000
917,316 1,202,341
Residential
(21,178m2),
Liuquan North Road, Commercial 1
Dongyue Huantai Residential, (7,023m2) 0
Engineering R&D County, Zibo City, Commercial and and car park 0
Center — Phase V Shandong Province 100% Completed car parks (28,979m2) %
Residential
(230,480m2),
North of Hanhuai Street Commercial
Shengjing Yuyuan and West of Tongqu Residential, (10,463m2) and
— Zhongyang Road, Yucheng City, Commercial and car car park
Gongguan Dezhou, Shandong [*] 100% December 2022 parks (38,614m2) 100%
Residential
North of Pengnan Road (174,654m2),
Extension, East of Yuji Commercial
Road, Yucheng City, Residential, (10,854m2) and
Dezhou, Shandong Commercial and car car park
Hanlinyuan Province [*] 97% May 2023 parks (40,632m2) 100%
Pengjia Lane
Neighborhood Residential
Committee, Yongding Residential, (102,660m2),
Xiaoxiang Huafu District, Zhangjiajie Commercial and car Commercial
Phase I Part 1 City, Hunan Province [*] 100% Completed parks (8,795m2) 100%
Residential
Pengjia Lane (108,092m2),
Neighborhood Commercial
Committee, Yongding Residential, (10,194m2) and
Xiaoxiang Huafu District, Zhangjiajie Commercial and car car park
Phase I Part 2 City, Hunan Province [*] 100% Completed parks (31,524m2) 100%
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Pengjia Lane
Neighborhood 80% Residential
Committee, Yongding Residential, (75,140m2),
Jiangyuan project District, zhangjiajie City, Commercial and car Commercial
Phase I Hunan Province [*] May 2023 parks (413m2) 100%
At 31 December 2023, the carrying amount of properties under development for sale of approximately
RMB[…] (2022: RMB567,032,000) are expected to be completed within twelve months from the end of
reporting period.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’000 RMB’000
1,564,186 2,133,318
Prepayments for raw materials 84,699 95,511
Tax recoverables 267,129 245,596
Deposit paid for property development 21,000 21,000
Receivable for disposal of associate - 406,474
Deposits and other receivables 586,652 138,369
2,523,666 3,040,268
Note: Included in the trade receivables are bills receivables amounting to RMB 1,365,292,974 at 31 December 2023 (2022: RMB1,779,458,000).
Customers are generally granted with credit period ranged between 30–90 days for trade receivables. Bills
receivables are generally due in 90 days or 180 days. The following is an aging analysis of trade and bills
receivables, net of allowance for credit losses presented based on the invoice date.
2023 2022
RMB’000 RMB’000
1,568,484 2,133,318
Before accepting any new customer, the Group conducts research on the creditworthiness of the new customer
and assesses the potential customer’s credit quality and defines credit limits by customer. Limits and scoring
attributed to customers are reviewed twice a year. 99% (2022: 99%) of the trade and bills receivables that are
neither past due nor impaired have the high-ranking record attributable under the research on the
creditworthiness. The Group offers various settlement terms which vary depending on the size of contract
credibility and reputation of the customers.
Included in the trade and bills receivable with the aggregate carrying amount of RMB14,180,000 (2022:
RMB14,982,000 ) which are past due as at the reporting date for which the Group has not provided for
impairment loss. The Group does not hold any collateral or credit enhancements over these balances.
2023 2022
RMB’000 RMB’000
14,180 14,982
Allowance of the above amount has not been made by the Group as there has not been a significant change in
the credit quality and the amounts are still considered recoverable. The directors of the Company consider they
are in good credit quality.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’000 RMB’000
The Group’s trade receivables that are denominated in currencies other the functional currencies of the relevant
group entities are set out below:
US$000 RMB’000
Details of impairment assessment of trade and other receivables are set out in note 5.
2023 2022
RMB’000 RMB’000
US$000 RMB’000
Details of impairment assessment of pledged bank deposits and bank balances are set out in note 5.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’000 RMB’000
Notes:
i. As at 31 December 2023, included in the payroll payable is a provision for social insurance fund for
employees of the PRC subsidiaries amounting to RMB[…] (2022: RMB41,123,000). The amount of
the provision represents the Group’s entire obligation for social insurance fund for employees of PRC
subsidiaries and is determined based on the relevant national regulations on social insurance and
calculated based on the basic counting unit multiplied by the social insurance rate. The basic counting
unit for social insurance shall be the average wages of an employee in the preceding year and shall not
be less than the minimum limit promulgated by the local social insurance bureau each year.
ii. The payable for acquisition of property, plant and equipment will be settled three months after the
completion of installation of the plant and machinery which is recorded in the addition of construction
in progress during the year.
The following table shows how much of the revenue recognised relates to carried-forward contract liabilities in
relation to sale of properties and how much relates to performance obligations that were satisfied in prior
periods.
2023 2022
RMB’000 RMB’000
Included in the trade payables are bills payable amounting to RMB76,540,425 (2022: RMB41,637,000). Bills
payable are secured by the Group’s pledged bank deposits.
The average credit period on purchase of goods is 90 days. The Group has financial risk management policies in
place to ensure that all payables are settled within the credit timeframe. The following is an aging analysis of
trade payables, presented based on invoice date:
2023 2022
RMB’000 RMB’000
The Group’s trade and other payables that are denominated in currencies other the functional currencies of the
relevant group entities are set out below:
US$000 RMB’000
2023 2022
RMB’000 RMB’000
Less: amounts due within one year shown under current liabilities [*] -
As at 31 December [*] -
The exposures of the Group’s fixed-rate borrowings and the contractual maturity dates (or repricing dates) are
as follows:
2023 2022
RMB’000 RMB’000
Fixed-rate borrowings:
Within one year [*] -
[*] -
RMB [*]
Loan amount as at 31 December 2022 Interest rate
Standard
lending rate
plus 0% to
15% (current
year applied
rate: 3.85%
RMB535,100,000 to 4.75%
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
During the year ended 31 December 2022, the Group raise new unsecured short-term bank loans of […] and
unsecured long-term bank loans in the amount of RMB[…].
As at the end of the reporting period, the Group has the following undrawn borrowing facilities:
2023 2022
RMB’000 RMB’000
[*] 1,157,000
31 LEASE LIABILITIES
2023 2022
RMB’000 RMB’000
Lease liabilities payables:
Within one year 5,198 4,894
Within a period of more than one year, but not exceeding two years [*] 4,883
Within a period of more than two years, but not more than five years [*] 33,857
Within a period of more than five years [*] -
[*] 43,634
Less: amounts due within one year shown
under current liabilities (5,198) (4,894)
The weighted average incremental borrowing rates applied to lease liabilities range from 4.51% to 5.13%
(2022: 4.51% to 5.13%).
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
32 DEFFERED INCOME
Deferred income mainly represents government grants received in respect of acquisition of property, plant and
equipment for manufacturing of chemical products.
2023 2022
RMB’000 RMB’000
33 SHARE CAPITAL
Number
of Share
shares capital
’000 RMB’000
Ordinary share of HK$0.1 each
Authorised:
At 1 January 2022, 31 December 2022, 1 January 2023, and 31
December 2023
i. On 31 August 2021, the Company and the placing agents entered into the placing agreement, pursuant to
which the Company has conditionally agreed to place through the placing agents 145,000,000 placing
shares (“Placing Shares”) to not less than six places at the HK$23 per Placing Share. The placing was
completed on 8 September 2021. An aggregate of 145,000,000 Placing Shares have been placed to not less
than six places at HK$23.00 per Placing Share pursuant to the terms and conditions of the placing
agreement.
The gross proceeds and the net proceeds (after deduction of the relevant expenses and fees) from the
placing amounted to HK$3.335 billion and approximately HK$3.31 billion, respectively. The Company
intends to allocate the net proceeds i) enhancing the Group’s production capacity of PVDF and its raw
material; ii) enhancing the Group’s production capacity of PTFE and its raw material; and iii) replenishing
the general working capital of the Group.
ii. Pursuant to the repurchase mandate granted at the annual general meeting of the Company held on 10 June
2021, the Company repurchased, on Stock Exchange, 1,501,000 shares during the year ended31 December
2022 (2021: 1,499,000 shares). Details of the Company repurchased its own shares through The Stock
Exchange of Hong Kong Limited are as follows:
34 NON-CONTOLLING INTERESTS
Share of net
assets of
subsidiaries
RMB’000
35 CAPITAL COMMITMENTS
2023 2022
RMB’000 RMB’000
Capital Commitment
Capital expenditure in respect of acquisition of property, plant and equipment
contracted for but not provided in the consolidated financial statements [*] 433,935
Capital expenditure in respect of equity instruments at FVTOCI contracted for
but not provided in the consolidated financial statements [*] 740,140
[*] 1,174,075
Other commitment
Construction commitment contracted in respect of properties under
development for sale contracted for but not provided in the consolidated
financial statements [*] -
[*] 1,174,075
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2023 2022
RMB’000 RMB’000
Note: Dongyue Future Hydrogen Energy became an associate of the Group on 22 May 2020.
2023 2022
RMB’000 RMB’000
[*] 68,469
(c) Bank deposit placed to major shareholder and related interest income
2023 2022
RMB’000 RMB’000
Pursuant to the Employee Option Scheme, Dongyue Fluorosilicone Science and Technology Group Co., Ltd., a
wholly-owned subsidiary of the Company, as the trustee (the“Trustee”) will purchase existing Shares from the
market out of cash contributed by the Group of not more than HK$800,000,000 in total at all material times and
hold such Shares on trust for the relevant employees or consultants of the Group selected by the Board (the
“Selected Employees”).
The Board may, from time to time, at its absolute discretion grant to any Selected Employee the right to purchase
the relevant shares (the “Option”). The Selected Employee may, when exercising the Option, elect the number of
shares which he wishes to (i) be transferred and/or (ii) sell and receive the difference, if any, between the sale
price of the Shares and the exercise price of the Option.
On 9 July 2021, the Company granted an aggregate of 62,570,000 share options at the exercise price of HK$4.27
per option share, representing 3% of the issued share capital of the Company, to a total of 1,372 Selected
Employees, including executive directors and independent non-executive directors, which have been acquired by
the Trustee from the open market by utilizing the contributed amount made available to the Trustee by the
Company pursuant to the Employee Option Scheme. The share options are exercisable for a term of 5 years
commencing from 9 July 2021 and expiring on 8 July 2026, both dates inclusive. Details of the share options
granted are set out in the Company’s announcement dated 9 July 2021.
Outstanding
Outstanding Granted Exercised at 31
Date of at 1 January during the during the January Exercise
Grantee grant 2021 year year 2021 price Exercise period
HK$ per
share
Executive directors
9 July 2021–8
Mr. Zhang Jianhong 9 July 2021 - 7,000,000 (7,000,000) - 4.27 July 2026
9 July 2021–8
Mr. Fu Kwan 9 July 2021 - 1,000,000 (1,000,000) - 4.27 July 2026
9 July 2021–8
Mr. Wang Weidong 9 July 2021 - 7,000,000 (7,000,000) - 4.27 July 2026
9 July 2021–8
Mr. Zhang Zhefeng 9 July 2021 - 6,000,000 (6,000,000) - 4.27 July 2026
Mr. Zhang Bishu (passed away on 1 9 July 2021–8
June 2022) 9 July 2021 - 3,000,000 (3,000,000) - 4.27 July 2026
9 July 2021–8
Mr. Zhang Jian 9 July 2021 - 3,000,000 (3,000,000) - 4.27 July 2026
Independent non-executive
directors
(500,000) 9 July 2021–8
Mr. Ting Leung Huel, Stephen 9 July 2021 - 500,000 - 4.27 July 2026
(300,000) 9 July 2021–8
Mr. Yang Xiaoyong 9 July 2021 - 300,000 - 4.27 July 2026
(50,000) 9 July 2021–8
Mr. Ma Zhizhong 9 July 2021 - 50,000 - 4.27 July 2026
Other employees
9 July 2021–8
Other employees 9 July 2021 - 40,120,000 (40,120,000) - 4.27 July 2026
- 62,570,000 (62,570,000) -
The variables and assumptions used in computing the fair values of the share options are based on the directors’
best estimates. Expected volatility is based on the historical share price volatility of the Company over the most
recent period commensurate with the contractual life of the share options. Expected dividend
yield is based on the historical dividend payment of the Company. The risk-free interest rate is assumed with
reference to Hong Kong government bond yield with maturity matching the contractual life of the share options
as at the date of grant. The value of the share options calculated using the binomial option pricing model are
subject to certain fundamental limitations, due to the subjective nature of and uncertainty relating to the
assumptions regarding future performance on which the model is based, and certain inherent limitations of the
model itself.
During the year ended 31 December 2021, the Group recognised a share option expense of HK$362,684,000
(equivalent to RMB293,774,000).
During the year ended 31 December 2021, all of the share options granted on 9 July 2021 were exercised.
Following such grant and exercise of share options, the Trustee has no longer held any shares under the
Employee Option Scheme.
During the year ended 31 December 2022, the trustees purchased an aggregate of 25,974,000 (2021: 18,460,000)
shares of the Company from the market at a total consideration of approximately HK$230,541,000 (2021:
HK$307,084,000) (equivalent to approximately RMB204,347,000) (2021: RMB249,159,000) (including directly
attributable incremental costs).
At the date of approval of these consolidated financial statements, the Company had no share options outstanding
under the Employee Option Scheme.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Union Registered
Property PRC capital RMB265,000 [*] - 100 100 100 100 Property development
Shandong
Boda Real
Estate
Development Registered
Co., Ltd. PRC capital RMB50,000 [*] - 100 100 100 100 Property development
Zhangjiajie
Xinye Real
Estate
Development Registered
Co., Ltd. PRC capital RMB80,000 [*] - 100 100 100 100 Property development
Huangtai
Dongyue
International Registered Sale of chemical
Trade Co., Ltd. PRC capital RMB5,000 [*] - 100 100 100 100 products
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Country of Proportion of
incorporation Paid up issued/ voting power
Name of /registration/ Class of registered share Proportion ownership interest held held by the
subsidiary operation share held capital by the Company Company Principal Activities
2023 2022 2023 2022 2023 2022
% % % % % %
Manufacture and sale
Huaxia Registered of
Shenzhou PRC capital RMB10,000 [*] - 100 100 100 100 fluoropolymer
Investment and
Dongyue management
Fluorosilicone Registered of fluorosilicone new
Technology PRC capital RMB3,021,920 100 100 [*] - 100 100 material industry
Zibo Herun
Shuiwu Sewage disposal and
Company Registered environmental
Limited. PRC capital RMB25,000 [*] - 100 100 100 100 monitoring
Sichuan Smelt and sales of
Southwest Sun high
Shine Performance
Silicon non-tenuous
Technology Registered metal and alloy
Co. Ltd. PRC capital RMB 198,444.7 [*] - 100 100 100 100 materials
Shandong
Dongyue
Green Cool
Technology Registered Production and sales
Co., Ltd. PRC capital RMB100,000 100 100 of chemical products;
Inner
Mongolia
Mingyue New
Material Co., Registered Production and sales
Ltd. PRC capital RMB500,000 100 100 of chemical products;
Shandong Hotel management;
Taixi Hotel Registered Catering
Co., LTD PRC capital RMB6,000 100 100 management
Shandong
Dongyue Natural science
Research research and
Institute Co. Registered experimental
LTD PRC capital RMB50,000 100 100 development
Shanghai
Dongyue Tuo Natural science
new material research and
Technology Registered experimental
Co., LTD PRC capital RMB5,000 100 100 development
Huantai Kehui
environmental Manufacture, sales
protection new fly ash products,
building cement products,
materials Co., Registered sales of building
LTD PRC capital RMB8,800 100 100 decoration materials
Shandong
Times new
material New material
Technology Registered technology research
Co., LTD PRC capital RMB10,000 37.56 37.56 and development
Huantai
Country Electricity, heat, gas
Tongshan and
Thermoelectric Registered water production and
Co. Ltd. PRC capital RMB100,000,000 [*] - 100 83.22 100 83.22 supply industry
The above table lists the subsidiaries of the Company which, in the opinion of the directors, principally
affected
the results or assets of the Group. To give details of other subsidiaries would, in the opinion of the directors,
result in particulars of excessive length. None of the subsidiaries had issued any debt securities at the end of
the year. All the PRC subsidiaries are domestic enterprises.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(b) Details of non-wholly owned subsidiaries that have material non-controlling interests
The table below shows details of non-wholly-owned subsidiaries of the Group that have material
noncontrolling interests:
Country of
incorporation
and principal Proportion ownership Profit allocated to Accumulated
place of interest held by non- non-controlling non-controlling
Name of subsidiary business controlling interests interests interests
2023 2022 2023 2022 2023 2022
RMB’000 RMB’000 RMB’000 RMB’000
(Dongyue
Organosilicon) PRC 42.21% 42.25% [*] 215,890 [*] 2,152,446
Inner Mongolia
Dongyue Peak
Fluorine Chemicals Co.,
Ltd.
(“Inner Mongolia
Dongyue Peak”) PRC 49.00%
Chifeng HuaSheng
Mining Co., Ltd,
(“Chifeng HuaSheng”) PRC 20% 20%
Shandong Times new
material Technology
Co., LTD PRC
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Net cash inflow from operating activities [*] 154,518 [*] 974,659
Net cash outflow from investing activities [*] (577,910) [*] (313,738)
40 BUSINESS COMBINATION
During the previous year 31 December 2022, the Group acquired 100% interest in Sichuan Southwest Sunshine
Silicon Technology Co. LTD 四 川 西 南 陽 光 硅 業 科 技 有 限 公 司 (“Sunshine Silicon”). Sunshine Silicon is
principally engaged in the industrial silicone business and was acquired with the objective of improving the
Group’s product’s competitiveness of organic silicon industry. The acquisition has been accounted for as
acquisition of business using the acquisition method.
DONGYUE GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
41 DISPOSAL OF A SUBSIDIARY
There were no disposals in the year 2023. During the year ended 31 December 2021, the Group entered into a
sale and purchase agreement relating to the disposal of the entire issued share capital of Inner Mongolia Dongyue
Fluorine Chemicals Co. Ltd, ( 內 蒙 古 東 岳 氟 材 料 有 限 公 司 ) to an independent third party, at a cash
consideration of RMB2,950,000. The disposal was completed on 6 August 2021.
[*] 3,942,459
[*] 3,942,459
The statement of financial position of the Company was approved and authorised for issue by the board of
directors on 28 March 2023 and are signed on its behalf by:
43. Summarised statement of financial position of the Company and reserves (continued)
Note:
Other income and other net gains and losses 138,523 136,207 182,028 229,006 [*]
Distribution and selling expenses (366,263) (353,683) (336,451) (498,767) [*]
Administrative and other expenses (668,112) (356,845) (913,264) (993,740) [*]
Gain on deemed disposal of a subsidiary - 40,850 - 1,212,290 [*]
Loss on disposal of a subsidiary - - (27,377) - [*]
Research and development costs (329,242) (590,471) (838,893) (1,310,535) [*]
Share of results of associates - 4,505 20,291 25,401 [*]
Fair value change on financial asset at fair
value through profit or loss (“FVTPL”) - (3,978) 21,870 (37,669) [*]
Total comprehensive income for the year 622,989 623,325 2,447,447 4,170,287 [*]
Equity attributable to owners of the Company 7,880,019 8,542,306 13,123,581 16,082,018 [*]
Non-controlling interests 1,075,604 1,988,206 2,515,042 2,411,459 [*]