Company Overview - Jiangsu Southern Precision Engineering Co., Ltd. was established in December 2007 with an initial registered capital of RMB 65 million [1] - The company publicly issued 22 million shares of RMB ordinary shares (A shares) in February 2011, increasing the registered capital to RMB 87 million [1] - As of December 31, 2023, the total share capital of the company is 348 million shares [1] Business Operations - The company and its subsidiaries primarily engage in the production and sales of precision bearings, one-way clutches, and one-way pulley assemblies [2] Financial Reporting Basis - The financial statements are prepared based on the assumption of going concern, following the accounting standards issued by the Ministry of Finance [2][3] - The financial statements reflect the company's financial position, operating results, and cash flows accurately and completely [2] Accounting Policies and Estimates - The company has established specific accounting policies and estimates for revenue recognition and other transactions based on its operational characteristics [2] - The financial statements comply with the requirements of the accounting standards for enterprises [2] Accounting for Business Combinations - Business combinations under common control are accounted for based on the carrying amounts of the assets and liabilities of the acquired entity [3][4] - Non-common control business combinations are accounted for at fair value, with any excess of the purchase price over the fair value of identifiable net assets recognized as goodwill [5][6] Financial Instruments - Financial instruments are recognized when the company becomes a party to the financial instrument contract [11] - Financial assets are classified and measured based on the business model for managing the assets and the contractual cash flow characteristics [12][16] Inventory Management - The company’s inventory includes raw materials, finished goods, and work in progress, with inventory valuation based on the weighted average method [20][21] - Inventory write-downs are recognized when the cost exceeds the net realizable value [21] Investment Accounting - Long-term equity investments are accounted for based on the method of control, with different treatments for investments under common control and non-common control [26][27] - The company assesses its influence over investees based on various factors, including representation on the board and participation in policy-making [28]