Our Annual Report Model
（for non-public companies in manufacture industry)
Contents
Section 1 Accounting responsibilities and commitment
Section 2 Organizational structure and structure alteration
Section 3 Accounting data and report of objectives accomplishment
Difference of net profit and net assets disclosed in financial report
Operating income
Net income
Cash flows from operating activities
Return on equity (ROE)
Gain or loss on disposal of non-current assets
Government subsidy
Ratio
Section 4 Accounting statistics and financial analysis
Analysis of primary business activities
1) Sales Revenue
Change in revenue
Major clients measured by sales revenue
Total top five clients measured by sales revenue (RMB)
Proportion in annual total sales revenue for the top five clients (%)
2) Ratio analysis
3) Cost
Analysis of production cost
Quantities of products produced
Quantities of inventory
Ratio in operation
Cost of raw materials, employee’s salary, depreciation and other expenses
4) Expenses
Change of expenses and their respective proportion in annual total revenue
Sales expenses
Administrative expenses
Financial expenses
5) Research and development expenditure
6) Performance analysis
Analysis of employees’ salaries
Proportion of salaries in annual total revenue
7) Cash flow
Difference of proportion in annual total revenue
Cash-in from operating activities
Cash-out from operating activities
Net Cash generated from operations
Cash-in from investing activities
Cash-out from investing activities
Net Cash used in investing activities
Cash-in from financing activities
Cash-out from financing activities
Net Cash from financing activities
Cash and cash equivalents at end of the year
Explanation for difference more than 30%
8) Analysis of primary business activities by:
Operating revenue
Gross profit ratio
Increase/decrease of operating revenue y-o-y
9) Analysis of assets and liabilities
a) Major changes of assets
Ratio change in total assets y-o-y
Monetary fund
Accounts receivable
Inventory
Assets investment
Long-term equity investment
Fixed assets
Construction in progress
b) Major changes of liabilities
Ratio change in total assets y-o-y
Short-term loans
Long-term loans
c) Assets and liabilities measured by fair value
10) Analysis of investment
a) Foreign equity investment
Ratio difference y-o-y
Gain/loss from investment
b) Analysis of the subsidiary companies invested
Section 5 External factors
(I) Industrial policy
(II) Law and regulations
(III) Competitors
(IV) Upstream and downstream industries
Section 6 Internal financial factors
(I) Major lawsuit and arbitrations
(II) Situation of non-business capital occupied by controlling shareholders
(III)Assets transaction/merger
(IV)Execution of equity incentive
(V) Guarantee
(VI) Alternation of shareholders and share controlled
(VII) Employee turnover
Section 7 Internal control
Analysis of internal control
(I) Internal control regulations of monetary currency
(II) Internal control regulations of suppliers management
(III) Internal control regulations of sales and credit policies
(IV)Property management system
(V) Products management system
(VI) Regulations of enhancing cost control and management
Section 8 Financial management suggestions and measures
Strategies of risk management
(I) Market risk caution and corresponding strategy
(II) Operational risk caution and corresponding strategy
(III) Tax risk caution and corresponding strategy
(IV) Assets management risk caution and corresponding strategy
(V) Liabilities management risk caution and corresponding strategy
(VI) Cash management risk caution and corresponding strategy
Section 9 Financial statement
Consolidated balance sheet
Balance sheet
Consolidated income statement
Income statement
Cash flow statement
Other supporting statements in details
Section 10 References
