新时达(002527) - 2020 Q4 - 年度财报

Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's structure, and definitions of key terms used throughout Important Notice The board, supervisory board, and senior management affirm the report's accuracy and completeness, proposing a cash dividend of 0.4 Yuan per 10 shares - The 2020 profit distribution plan proposes a cash dividend of 0.4 Yuan per 10 shares (including tax) to all shareholders, with no bonus shares or capital reserve conversions[9] Definitions This section defines key terms used in the report, covering company entities, regulatory bodies, reporting period, and three core product categories, along with technical terms and subsidiary abbreviations - The report clarifies the product composition of three core business segments: - Elevator Control Products: Including complete elevator control systems, control boards, and operating panels - Energy-Saving and Industrial Drive Products: Including various inverters and integrated drive controllers - Robotics and Motion Control Products: Including industrial robots, motion controllers, servo drives, and system engineering[15] Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance metrics Company Information This chapter provides the company's basic registration, listing information, and contact details Company Basic Information | Item | Information | | :--- | :--- | | Stock Abbreviation | STEP | | Stock Code | 002527 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Ji Yi | | Company Website | www.stepelectric.com | Key Accounting Data and Financial Indicators In 2020, the company achieved significant growth with revenue up 11.97% to 3.96 billion Yuan and net profit attributable to shareholders increasing 61.96% to 86.80 million Yuan, notably turning a profit after non-recurring items Key Financial Indicators | Key Financial Indicator | 2020 (Yuan) | 2019 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,957,063,457.75 | 3,533,969,303.29 | 11.97% | | Net Profit Attributable to Shareholders | 86,797,716.53 | 53,590,455.47 | 61.96% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 27,245,079.54 | -10,448,132.50 | 360.77% | | Net Cash Flow from Operating Activities | 274,202,099.49 | 269,084,731.07 | 1.90% | | Basic Earnings Per Share (Yuan/share) | 0.14 | 0.09 | 55.56% | | Weighted Average Return on Net Assets | 3.22% | 2.01% | Increased by 1.21 percentage points | | Total Assets | 6,064,217,864.43 | 6,357,451,726.28 | -4.61% | | Net Assets Attributable to Shareholders | 2,709,325,640.37 | 2,662,874,225.37 | 1.74% | Quarterly Key Financial Indicators The company's performance in 2020 showed a trend of sequential improvement, with strong rebound and stable growth in revenue and net profit from Q2 onwards after a Q1 loss due to the pandemic Quarterly Key Financial Indicators | Indicator (Yuan) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 635,539,216.13 | 1,079,206,143.68 | 1,105,455,757.59 | 1,136,862,340.35 | | Net Profit Attributable to Shareholders | -15,182,780.07 | 58,518,641.81 | 33,186,863.66 | 10,274,991.13 | Non-recurring Gains and Losses and Amounts In 2020, non-recurring gains and losses totaled 59.55 million Yuan, significantly contributing to net profit, primarily from government subsidies (51.89 million Yuan) and wealth management income (19.90 million Yuan) Non-recurring Gains and Losses | Item | 2020 Amount (Yuan) | | :--- | :--- | | Government subsidies included in current profit/loss | 51,894,431.26 | | Gains/losses from entrusted investments or asset management | 19,899,043.24 | | Total | 59,552,636.99 | Company Business Overview This section outlines the company's core business activities, key asset changes, and competitive advantages Main Business Activities The company focuses on intelligent manufacturing equipment, with four main business segments: intelligent manufacturing and industrial robots, elevators, variable frequency drives, and motion control, benefiting from industry recovery and strategic market positioning - The company's business revolves around intelligent control and variable frequency drive, divided into four core segments: - Intelligent Manufacturing and Industrial Robots: Providing industrial robots, servo systems, and intelligent flexible welding production lines for automobiles - Elevators: Supplying core control system components and overall solutions to global elevator manufacturers - Variable Frequency Drives: Research, development, production, and sales of high and low voltage general and special inverters - Motion Control: Offering core components and solutions such as motion controllers and servo systems[43][44][45] - The company holds a stable position in various sub-industries: - Robotics: Cumulative shipments rank first domestically and among the top ten globally - Elevators: One of the leading domestic elevator control system providers, maintaining long-term partnerships with the top four global elevator manufacturers - Variable Frequency Drives: Recognized by leading clients in smart water and HVAC markets - General Servo: Established a complete product line including servo drives, PLCs, and controllers, with significant brand influence[62][63][67] Significant Changes in Major Assets During the reporting period, the company's major asset structure changed primarily due to the implementation of new revenue standards and the reclassification of structured deposits Major Asset Changes | Major Asset | Explanation of Significant Change | | :--- | :--- | | Trading Financial Assets | Primarily due to reclassification of structured deposits | | Contract Assets | Due to reclassification of accounts under new revenue standards | | Other Current Assets | Primarily due to reclassification of structured deposits | | Other Non-current Assets | Primarily due to recovery of investment in Revo Financial Leasing (preparatory) and reclassification of contract assets | Core Competitiveness Analysis The company's core competitiveness stems from its strong technological innovation, established brand reputation, extensive marketing network, and comprehensive talent development system - The company is committed to technological innovation, demonstrating significant R&D advantages, with 920 R&D personnel (36.62% of total staff), 642 national authorized patents (including 206 invention patents), 290 software copyrights, and participation in 37 national and industry technical standards as of the end of 2020[74] - The company has established an extensive domestic and international marketing network, with products sold in over 110 countries and regions globally, and overseas subsidiaries in Germany, Japan, Brazil, and Malaysia; its subsidiary Huitong Technology is one of the largest domestic servo system channel distributors, creating strong synergy with other business segments[78] Discussion and Analysis of Operations This section provides a detailed analysis of the company's operational performance, financial position, and investment activities during the reporting period Overview In 2020, the company achieved strong operating results, with revenue growing 11.97% to 3.96 billion Yuan and net profit attributable to the parent increasing 61.96% to 86.80 million Yuan, driven by progress across all business segments and ongoing management reforms Key Performance Indicators | Indicator | 2020 Amount (10,000 Yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 395,700 | 11.97% | | Operating Profit | 14,732 | 44.71% | | Net Profit | 9,285 | 53.32% | | Net Profit Attributable to Parent Company Owners | 8,680 | 61.96% | | Net Profit Attributable to Parent Company Owners (Excluding Non-recurring Items) | 2,725 | 360.77% | - The company achieved significant progress across all business segments: - Intelligent Manufacturing and Robotics: Delivered the first domestic robot intelligent production line for Haier's "Lighthouse Factory" and commissioned a robot factory with a capacity of 10,000 units[84][86] - Elevator Business: Actively promoted a contactless elevator calling system based on "Elevator Cloud" and commissioned a new generation G9000 control cabinet automatic assembly line[90] - Variable Frequency Drives: Maintained a leading position in the water industry and HVAC market, and commenced production of integrated drive and control intelligent production lines[92] - Motion Control: Launched the new generation servo product platform Ω6 series, expanding its industry applications[84][86][90][92] Main Business Analysis Robotics and motion control products were the largest revenue source, accounting for 63.66% of total revenue with an 11.26% increase, while domestic revenue dominated at 95.76% with a 14.00% growth, despite a 1.24 percentage point decline in overall gross margin to 19.49% Revenue Composition (2020) | Revenue Composition (2020) | Amount (Yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | By Product | | | | | Elevator Control Products | 675,177,485.09 | 17.06% | 8.89% | | Energy-Saving and Industrial Drive Products | 253,681,820.38 | 6.41% | 1.17% | | Robotics and Motion Control Products | 2,518,822,881.43 | 63.66% | 11.26% | | By Region | | | | | Domestic | 3,789,149,974.99 | 95.76% | 14.00% | | International | 167,913,482.76 | 4.24% | -20.13% | Expense Items | Expense Item (Yuan) | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 166,400,991.51 | 198,766,077.27 | -16.28% | | Administrative Expenses | 217,081,659.71 | 188,721,351.68 | 15.03% | | Financial Expenses | 66,240,884.44 | 80,932,668.07 | -18.15% | | R&D Expenses | 200,911,586.41 | 202,895,962.79 | -0.98% | R&D Investment | R&D Investment | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | R&D Investment Amount (Yuan) | 200,911,586.41 | 202,895,962.79 | -0.98% | | R&D Investment as % of Operating Revenue | 5.08% | 5.74% | -0.66% | | Number of R&D Personnel (people) | 920 | 893 | 3.02% | | R&D Personnel as % of Total Staff | 36.62% | 36.51% | 0.11% | Non-Main Business Analysis In 2020, non-main business activities significantly impacted the company's profit, with other income (government subsidies and tax refunds) contributing 74.12 million Yuan and investment income (wealth management) contributing 29.06 million Yuan, while asset and credit impairment losses had a combined negative impact of -39.68% on total profit Non-Main Business Items | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 29,064,823.04 | 19.43% | Primarily wealth management income from structured deposits | | Asset Impairment | -46,616,789.05 | -31.16% | Goodwill impairment provision for Xiaoaoxiangrong during the reporting period | | Credit Impairment | -12,752,717.09 | -8.52% | - | | Other Income | 74,123,895.80 | 49.55% | Primarily various government subsidies and tax refunds | Analysis of Assets and Liabilities As of year-end 2020, total assets decreased by 4.61% to 6.06 billion Yuan, with goodwill remaining a significant non-current asset at 18.76% of total assets, and the asset-liability ratio decreased to 45.96% due to the adoption of new revenue standards Asset Items | Asset Item | 2020 Year-end Amount (Yuan) | Proportion of Total Assets | 2020 Beginning-of-year Amount (Yuan) | Proportion of Total Assets | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,161,445,947.72 | 19.15% | 1,062,618,304.22 | 16.71% | | Accounts Receivable | 847,922,822.70 | 13.98% | 887,873,924.25 | 13.97% | | Inventories | 803,435,677.34 | 13.25% | 941,507,359.95 | 14.81% | | Fixed Assets | 604,489,153.63 | 9.97% | 531,226,340.91 | 8.36% | | Goodwill | 1,137,927,769.68 | 18.76% | 1,153,340,212.68 | 18.14% | - As of the end of the reporting period, 84.15 million Yuan of the company's assets were restricted in ownership or use, primarily comprising 22.81 million Yuan in margin deposits for bank acceptance bills, performance bonds, and letters of guarantee, and 61.34 million Yuan in pledged accounts receivable financing[136][139] Investment Status Analysis During the reporting period, the company's investment amounted to 194 million Yuan, a 29.66% increase, with 41.08 million Yuan utilized from the 2017 convertible bond proceeds, and remaining funds of 544.89 million Yuan later reallocated to permanent working capital Overall Use of Raised Funds | Overall Use of Raised Funds (10,000 Yuan) | | | :--- | :--- | | Total Raised Funds | 85,658.47 | | Total Raised Funds Used in Current Period | 4,107.62 | | Total Raised Funds Used Cumulatively | 36,803.05 | | Total Unused Raised Funds | 54,489.48 | - The company extended the implementation period for two projects funded by the 2017 convertible bonds, "Intelligent Manufacturing Project for Robotics and Key Components & Motion Control Systems" and "Automotive Intelligent Flexible Welding Production Line Project," and decided in early 2021 to change the use of the remaining 545 million Yuan in raised funds to permanently supplement working capital[155] Analysis of Major Holding and Participating Companies Among the company's major subsidiaries, Shanghai Huitong Automation Technology Development Co, Ltd, contributed the most profit at 81.06 million Yuan, while Shanghai STEP Robot Co, Ltd, incurred a loss of 48.00 million Yuan, impacting overall performance Major Subsidiaries' Performance | Major Subsidiary Name | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | | Shanghai Huitong Automation Technology Development Co., Ltd. | 1,051,122,364.65 | 81,058,409.21 | | Shenzhen Zowee Technology Co., Ltd. | 178,145,317.56 | 40,912,502.72 | | Shanghai Singlinna STEP Motor Co., Ltd. | 490,067,548.03 | 41,118,129.71 | | Hangzhou Zhishan Intelligent Control Technology Co., Ltd. | 155,496,483.68 | 28,395,168.43 | | Shanghai Xiaoaoxiangrong Automobile Industry Equipment Co., Ltd. | 467,372,280.57 | 2,210,334.17 | | Shanghai STEP Robot Co., Ltd. | 47,863,543.25 | -47,999,083.39 | Outlook for Company's Future Development The company aims to become an internationally renowned brand in intelligent manufacturing, focusing on five key segments, while addressing risks such as economic volatility, supply chain costs, management challenges from expansion, and M&A-related goodwill impairment - The company's development strategy focuses on the intelligent manufacturing equipment sector, with five major business segments collaborating to become an internationally renowned brand[165][168] - The company faces several key risks, including: - Operational Risks: Economic fluctuations due to the pandemic and trade conflicts - Procurement and Cost Risks: Tight supply of certain components and rising prices of bulk materials - Management Risks: Challenges arising from rapid scale expansion - M&A Risks: Uncertainties in business integration and goodwill impairment risks - Financial Risks: Gross margin fluctuations, accounts receivable bad debts, and changes in tax incentives[176][179][180] Significant Matters This section details important events and decisions during the reporting period, including profit distribution, accounting policy changes, related party transactions, and other significant corporate actions Profit Distribution and Capital Reserve Conversion to Share Capital The company proposed a 2020 profit distribution plan of 0.4 Yuan cash dividend per 10 shares (including tax), totaling an estimated 24.63 million Yuan, which combined with share repurchases, represents 53.61% of net profit attributable to the parent, demonstrating a stable dividend policy Dividend Distribution (2020 Proposed) | Dividend Year | Cash Dividend Amount (incl. tax, Yuan) | Net Profit Attributable to Parent (Yuan) | Cash Dividend as % of Net Profit Attributable to Parent | | :--- | :--- | :--- | :--- | | 2020 (Proposed) | 24,631,940.36 | 86,797,716.53 | 28.38% | | 2019 | 18,602,767.93 | 53,590,455.47 | 34.71% | | 2018 | 0.00 | -260,687,920.25 | 0.00% | - For the 2020 profit distribution plan, in addition to cash dividends, the company distributed 21.90 million Yuan in cash through share repurchases, bringing the total cash distribution (including other methods) to 46.53 million Yuan, representing 53.61% of the net profit attributable to the parent company[199][203] Explanation of Changes in Accounting Policies, Estimates, and Methods Compared to Prior Year The company adopted the newly revised "Accounting Standard for Business Enterprises No. 14 - Revenue" from January 1, 2020, leading to adjustments in initial financial statement items like accounts receivable and prepayments, and the introduction of contract assets and liabilities, without affecting retained earnings - The company adopted the new revenue standard from January 1, 2020, adjusting relevant items in the opening financial statements for 2020 to reflect the cumulative impact of contracts not yet completed at the initial adoption date, with no retrospective adjustment to comparative financial statements[241] Impact of Accounting Policy Change on 2020 Opening Balance | Affected Statement Item | Impact on January 1, 2020 Balance (Yuan) | | :--- | :--- | | Accounts Receivable | -13,191,429.89 | | Contract Assets | 3,937,118.89 | | Prepayments | -265,150,458.68 | | Contract Liabilities | 244,001,841.21 | | Other Current Liabilities | 3,612,687.00 | Significant Related Party Transactions During the reporting period, the company's related party transactions for daily operations were minor, primarily involving procurement of 0.15 million Yuan from Shanghai Beike Liangchen Automation Equipment Co, Ltd, and sales of 6.62 million Yuan to Singlinna Automation Malaysia Co, Ltd, with no significant asset acquisitions, disposals, or joint investments Related Party Transactions | Related Party | Related Transaction Type | Related Transaction Content | Related Transaction Amount (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Shanghai Beike Liangchen Automation Equipment Co., Ltd. | Purchase of Goods | Inverters, etc. | 14.78 | | Singlinna Automation Malaysia Co., Ltd. | Sale of Goods | Elevator control systems, etc. | 661.82 | Other Significant Matters During the reporting period, the company terminated its plan to invest in a financial leasing company, recovered 9.50 million Yuan in capital, increased capital in its German subsidiary by 2.5 million Euros, and initiated a share repurchase program of 15 million to 30 million Yuan for equity incentives, with 21.90 million Yuan repurchased by year-end - The company initiated a share repurchase plan, intending to use 15 million to 30 million Yuan of its own funds to repurchase shares; as of December 31, 2020, a total of 3,578,179 shares had been repurchased, with a total transaction value of 21.90 million Yuan[297] Changes in Share Capital and Shareholder Information This section details changes in the company's share capital structure and provides information on its shareholders and actual controllers Changes in Share Capital At the end of the reporting period, the company's total share capital was 620.21 million shares, slightly increased due to convertible bond conversions and reclassification of restricted shares, alongside ongoing share repurchases - The total number of shares increased by 17,755 shares during the reporting period due to convertible bond conversions[304][307] - The company implemented a share repurchase, accumulating 3,578,179 shares repurchased as of December 31, 2020, representing 0.58% of the total share capital, with a total transaction value of 21.90 million Yuan[308] Shareholders and Actual Controller Information As of the reporting period end, the company had 36,921 shareholders, with the controlling shareholder and actual controller being the Ji Defa, Liu Liping, and Ji Yi family, who collectively hold 29.98% of shares as a concerted party Top Five Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | | :--- | :--- | :--- | :--- | | Ji Defa | Domestic Natural Person | 17.88% | 110,915,804 | | Liu Liping | Domestic Natural Person | 6.32% | 39,221,160 | | Ji Yi | Domestic Natural Person | 5.78% | 35,872,939 | | Yuan Zhongmin | Domestic Natural Person | 4.49% | 27,827,926 | | Zhu Qianghua | Domestic Natural Person | 4.19% | 25,978,953 | - The company's controlling shareholder, Ji Defa, and the second largest shareholder, Liu Liping, are spouses, and the third largest shareholder, Ji Yi, is their daughter, forming a concerted action party[317][318] Preferred Shares Information This section confirms the absence of preferred shares during the reporting period Preferred Shares Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[337] Convertible Corporate Bonds Information This section provides an overview of the company's convertible corporate bonds, including their status and conversion details Overall Convertible Bond Situation The company's "STEP Convertible Bond" (code 128018) remained outstanding during the reporting period, with its conversion price adjusted to 7.42 Yuan/share due to the 2019 equity distribution, and a minimal conversion rate of 0.04% of the total issuance - Due to the implementation of the 2019 equity distribution, the conversion price of STEP Convertible Bond was adjusted from 7.45 Yuan/share to 7.42 Yuan/share on June 19, 2020[341] Convertible Bond Metrics | Indicator | Data | | :--- | :--- | | Bond Abbreviation | STEP Convertible Bond | | Total Issue Amount (Yuan) | 882,505,700.00 | | Cumulative Converted Shares (shares) | 37,892 | | Unconverted Amount (Yuan) | 882,155,800.00 | | Proportion of Unconverted Amount to Total Issue Amount | 99.96% | Directors, Supervisors, Senior Management, and Employees This section details changes in the company's board, supervisory board, and senior management, as well as an overview of its employee structure Changes in Directors, Supervisors, and Senior Management During the reporting period, the company completed the re-election of its board and supervisory board, with new members appointed and some senior management changes, including the appointment of Mr Wu Yuhui as the new General Manager - The company completed the re-election of its board of directors and supervisory board in June 2020[355] - Mr Wu Yuhui was appointed as the company's General Manager in October 2020, succeeding Mr Ji Defa, who resigned from the position but remains a company director[355] Employee Information As of year-end 2020, the company had 2,512 employees, with technical personnel comprising the largest proportion at 36.62%, and over 40% of employees holding a bachelor's degree or higher, underscoring its technology-driven nature and strong talent base Employee Professional Composition | Professional Composition | Number of People | Proportion | | :--- | :--- | :--- | | Production Personnel | 686 | 27.31% | | Sales Personnel | 400 | 15.92% | | Technical Personnel | 920 | 36.62% | | Financial Personnel | 72 | 2.87% | | Administrative Personnel | 434 | 17.28% | | Total | 2,512 | 100.00% | Employee Education Level | Education Level | Number of People | Proportion | | :--- | :--- | :--- | | Master's Degree or Above | 211 | 8.40% | | Bachelor's Degree | 867 | 34.51% | | Associate Degree | 636 | 25.32% | | Below Associate Degree | 798 | 31.77% | | Total | 2,512 | 100.00% | Corporate Governance This section details the company's corporate governance structure, its compliance with regulations, and the effectiveness of its internal control systems Basic Corporate Governance Status During the reporting period, the company operated in strict compliance with relevant laws and regulations, maintaining a sound corporate governance structure and ensuring independence from its controlling shareholder in all operational aspects - The company's actual corporate governance situation complies with the normative documents issued by the China Securities Regulatory Commission regarding listed company governance, with no significant discrepancies[397][403] Internal Control Evaluation Report The board of directors affirmed that as of December 31, 2020, the company maintained effective internal controls over financial reporting in all material aspects, with no significant deficiencies identified, and the accounting firm issued an unqualified internal control attestation report - Based on the company's internal control self-evaluation report, no material or significant deficiencies were found in financial or non-financial reporting during the reporting period[422][426] - The accounting firm issued a standard unqualified attestation report on the company's 2020 internal controls, consistent with the board's self-evaluation report[427] Corporate Bonds Information This section confirms the company's status regarding corporate bonds Corporate Bonds Information As of the approval date of the annual report, the company had no publicly issued corporate bonds (excluding convertible corporate bonds) that were unexpired or not fully redeemed - The company has no publicly issued corporate bonds listed on a stock exchange that are unexpired or have not been fully redeemed as of the approval date of the annual report[431] Financial Report This section presents the company's audited financial statements for the reporting period, including the audit report and detailed financial tables Audit Report Lixin Zhonglian Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2020 financial statements, with key audit matters identified as goodwill impairment testing and revenue recognition - The audit opinion type is a standard unqualified opinion[434] - Key audit matters include: - Goodwill Impairment Testing: Considered a key audit matter due to the significant net book value of goodwill (1.14 billion Yuan) and the substantial judgments and estimates involved in its impairment assessment[436] - Revenue Recognition: Identified as a key audit matter due to revenue being a critical performance indicator and the inherent risk of management manipulating revenue recognition timing to achieve specific targets[439] Financial Statements This section includes the company's 2020 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, with detailed financial data summarized in previous sections Consolidated Balance Sheet As of year-end 2020, the company's total assets were 6.06 billion Yuan, total liabilities were 2.79 billion Yuan, and equity attributable to parent company owners was 2.71 billion Yuan, resulting in an asset-liability ratio of 45.96% Consolidated Income Statement In 2020, the company achieved total operating revenue of 3.96 billion Yuan, operating profit of 147 million Yuan, total profit of 150 million Yuan, and net profit of 92.85 million Yuan, with 86.80 million Yuan attributable to parent company shareholders Consolidated Cash Flow Statement In 2020, net cash flow from operating activities was 274 million Yuan, from investing activities was 89.64 million Yuan, and from financing activities was -274 million Yuan, with cash and cash equivalents totaling 1.14 billion Yuan at period-end Catalogue of Reference Documents This section lists the documents available for reference, including signed financial statements, original audit reports, and all publicly disclosed company documents and announcements from the reporting period, kept at the company's board office Reference Documents This chapter lists the reference documents available for inspection - Reference documents include: - Signed financial statements - Original audit report - All company documents and announcements disclosed during the reporting period[1074]