Kede Numerical Control Co.Ltd(688305)
Notes to the financial statements of 2021
(unless otherwise specified, the monetary unit is RMB)
1、 Basic information of the company (I) overview of the company
Kede Numerical Control Co.Ltd(688305) (hereinafter referred to as “the company”) formerly known as Dalian Kede Numerical Control Co.Ltd(688305) Co., Ltd., was established on January 28, 2008, with the approval of Dalian Administration for Industry and Commerce and invested by Dalian Guangyang Technology Group Co., Ltd., with a monetary contribution of 30 million yuan.
Unified social credit code of the company: 91210200669220902m.
Legal representative: Yu benhong.
Enterprise type: other joint stock limited companies (listed).
Business scope: CNC system, five axis CNC machine tools and accessories, industry Siasun Robot&Automation Co.Ltd(300024) , motor R & D, production, sales, technology development, technology transfer, technical service and technical consultation; Software development; R & D and design of industrial production line; Import and export of goods and technology. (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments.)
As of December 31, 2021, the registered capital of the company is 90.72 million yuan.
Registered address: floor 1, No. 1-2-1, Tianfu street, Dalian Economic and Technological Development Zone, Liaoning Province
Business term: from January 28, 2008 to no fixed term
The financial statements were approved by the board of directors of the company on April 7, 2022.
（2） Scope of consolidated financial statements
For the relevant information of the company’s subsidiaries, see “VI. interests in other entities” in this note.
2、 Preparation basis of financial statements (I) preparation basis
The financial statements are prepared in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance (hereinafter collectively referred to as “accounting standards for business enterprises”), And the relevant provisions of the rules for the preparation of information disclosure of companies offering securities to the public No. 15 – General Provisions on financial reports issued by the China Securities Regulatory Commission.
（2） Going concern
The financial statements are prepared on the basis of going concern. During the reporting period and at least 12 months from the end of the reporting period, the company has stable production and operation, reasonable asset liability structure, sustainable operation ability and no major risks affecting the sustainable operation ability.
3、 Important accounting policies and accounting estimates
Tips on specific accounting policies and accounting estimates:
The following disclosure has covered the specific accounting policies and accounting estimates formulated by the company according to the actual production and operation characteristics. See “III. (XIV) fixed assets”, “III. (XVII) intangible assets” and “III. (XXIV) income” in this note for details.
（1） Statement of compliance with accounting standards for business enterprises
The financial statements comply with the requirements of the accounting standards for business enterprises issued by the Ministry of finance, and truly and completely reflect the consolidated and parent company’s financial position as of December 31, 2021 and the consolidated and parent company’s operating results and cash flow in 2021.
（2） Accounting period
The fiscal year is from January 1 to December 31 of the Gregorian calendar.
（3） Business cycle
The business cycle of the company is 12 months.
（4） Recording currency
The company adopts RMB as the bookkeeping base currency.
（5） Accounting treatment methods for business combinations under the same control and not under the same control
Business combination under the same control: the assets and liabilities acquired by the combining party in the business combination (including the goodwill formed by the final controller’s acquisition of the combined party) are measured on the basis of the book value of the combined party’s assets and liabilities in the final controller’s consolidated financial statements on the combination date. For the difference between the book value of the net assets obtained in the merger and the book value of the merger consideration paid (or the total face value of the issued shares), the capital stock premium in the capital reserve shall be adjusted. If the capital stock premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
Business combination not under the same control: the combination cost refers to the fair value of assets paid, liabilities incurred or assumed and equity securities issued by the acquirer to obtain the control of the acquiree on the acquisition date. The difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination is recognized as goodwill; The difference between the combination cost and the fair value of the identifiable net assets of the acquiree obtained in the combination shall be included in the current profits and losses. All identifiable assets, liabilities and contingent liabilities obtained from the acquiree in the merger that meet the recognition conditions shall be measured at fair value on the acquisition date.
The directly related expenses incurred for business combination shall be included in the current profit and loss when incurred; The transaction costs of issuing equity securities or debt securities for business combination shall be included in the initially recognized amount of equity securities or debt securities. （6） Preparation method of consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined on the basis of control. The consolidation scope includes the company and all subsidiaries. Control means that the company has the power over the investee, enjoys variable returns through participating in relevant activities of the investee, and is able to use the power over the investee to affect its return amount.
2. Merger procedure
The company regards the whole enterprise group as an accounting entity and prepares consolidated financial statements in accordance with unified accounting policies to reflect the overall financial status, operating results and cash flow of the enterprise group. The impact of internal transactions between the company and its subsidiaries and between subsidiaries shall be offset. If the internal transaction indicates the impairment loss of relevant assets, the loss shall be recognized in full. If the accounting policies and accounting periods adopted by subsidiaries are inconsistent with those of the company, necessary adjustments shall be made according to the accounting policies and accounting periods of the company when preparing the consolidated financial statements.
The shares belonging to minority shareholders in the owner’s equity, current net profit and loss and current comprehensive income of subsidiaries are separately listed under the owner’s equity item in the consolidated balance sheet, the net profit item and the total comprehensive income item in the consolidated income statement.
If the current loss shared by the minority shareholders of a subsidiary exceeds the share of the minority shareholders in the owner’s equity of the subsidiary at the beginning of the period, the balance shall be offset against the minority shareholders’ equity.
(1) Increase subsidiaries or businesses
During the reporting period, if subsidiaries or businesses are added due to business combination under the same control, the operating results and cash flows of subsidiaries or businesses from the beginning of the current period to the end of the reporting period shall be included in the consolidated financial statements, and the opening amount of the consolidated financial statements and relevant items of the comparative statements shall be adjusted. It is deemed that the consolidated reporting entity has existed since the time point when the final controller began to control.
If the investee under the same control can be controlled due to additional investment and other reasons, the equity investment held before obtaining the control of the combined party has recognized the relevant profits and losses, other comprehensive income and other changes in net assets from the later of the date of obtaining the original equity and the date when the combined party and the combined party are under the same control to the date of combination, Offset the beginning retained earnings or current profit and loss during the comparative statement period respectively.
During the reporting period, if subsidiaries or businesses are increased due to business combinations not under the same control, they shall be included in the consolidated financial statements on the basis of the fair value of all identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
If the investee not under the same control can be controlled due to additional investment and other reasons, the equity of the acquiree held before the acquisition date shall be re measured according to the fair value of the equity on the acquisition date, and the difference between the fair value and its book value shall be included in the current investment income. Other comprehensive income related to the equity of the acquiree held before the acquisition date that can be reclassified into profit and loss in the future and other changes in owner’s equity accounted by the equity method are transferred to the current investment income on the acquisition date.
(2) Disposal of subsidiaries
① General treatment method
When the control over the investee is lost due to the disposal of part of the equity investment or other reasons, the remaining equity investment after disposal shall be re measured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the sum of the share of net assets and goodwill of the original subsidiary continuously calculated from the purchase date or merger date according to the original shareholding ratio shall be included in the investment income of the current period when the control right is lost. Other comprehensive income related to the equity investment of the original subsidiary that can be reclassified into profit and loss in the future and other changes in owner’s equity accounted by the equity method are transferred to the current investment income when the control right is lost.
② Step by step disposal of subsidiaries
If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the control right is lost, the terms, conditions and economic impact of various transactions for the disposal of equity investment in a subsidiary meet one or more of the following conditions, which usually indicates that the multiple transactions are a package deal:
I. these transactions are concluded at the same time or under the consideration of mutual influence;
II. These transactions as a whole can achieve a complete business result;
III. The occurrence of one transaction depends on the occurrence of at least one other transaction;
IV. a transaction is uneconomic alone, but it is economical when considered together with other transactions.
If each transaction is a package deal, it shall be treated as a transaction for disposal of subsidiaries and loss of control; Before the loss of control, the difference between each disposal price and the share of net assets of the subsidiary corresponding to the disposal of investment is recognized as other comprehensive income in the consolidated financial statements and transferred to the profit and loss of the current period when the control is lost.
If each transaction is not a package deal, the equity investment of the subsidiary shall be subject to accounting treatment according to partial disposal without losing the control right before losing the control right; In case of loss of control, accounting treatment shall be carried out according to the general treatment method for disposal of subsidiaries.
(3) Purchase of minority interests in subsidiaries
For the difference between the long-term equity investment newly obtained due to the purchase of minority equity and the share of net assets of the subsidiary continuously calculated from the purchase date or the merger date according to the newly increased shareholding ratio, the equity premium in the capital reserve in the consolidated balance sheet shall be adjusted. If the equity premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without losing control
For the difference between the disposal price and the share of net assets of the subsidiary continuously calculated from the purchase date or the merger date corresponding to the disposal of long-term equity investment, adjust the capital stock premium in the capital reserve in the consolidated balance sheet. If the capital stock premium in the capital reserve is insufficient to be offset, adjust the retained earnings.
（7） Criteria for determining cash and cash equivalents
Cash refers to the company’s cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to the short-term, highly liquid investments held by the company, which are easy to be converted into known amounts of cash and have little risk of value change.
（8） Foreign currency transactions and translation of foreign currency statements
1. Foreign currency business
For foreign currency business, the spot exchange rate on the transaction date is used as the conversion exchange rate to convert the foreign currency amount into RMB for bookkeeping.
The balance of foreign currency monetary items on the balance sheet date is translated according to the spot exchange rate on the balance sheet date. The exchange differences arising therefrom are included in the current profits and losses, except for the exchange differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which are treated in accordance with the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
The assets and liability items in the balance sheet shall be translated at the spot exchange rate on the balance sheet date; Except for the “undistributed profit” item, other items of owner’s equity adopt
