Financial Report
I. Audit report
| Type of audit opinion | Unqualified opinions with major uncertainty paragraphs of continuous operations |
| Signing date of audit report | 2019-04-18 |
| Name of audit institute | Baker Tilly China CPA (LLP) |
| Number of audit report | Baker Tilly Zi[2019]No.: 3850 |
| Name of CPA | Chen Zhigang, Zhang Lei |
Text of auditor’s Report
To all shareholders of Shenzhen China Bicycle Company (Holdings) LimitedI. Auditing opinionsWe have audited the financial statement under the name of Shenzhen China Bicycle Company(Holdings) Limited (hereinafter referred to as CBC), including the consolidated and parentCompany’s balance sheet of 31 December 2018 and profit statement, and cash flow statement, andstatement on changes of shareholders’ equity for the year ended, and notes to the financialstatements for the year ended.In our opinion, the Company’s financial statements have been prepared in accordance with theEnterprises Accounting Standards and Enterprises Accounting System, and they fairly present thefinancial status of the Company and of its parent company as of 31 December 2018 and itsoperation results and cash flows for the year ended.II. Basis of opinionWe conducted our audit in accordance with the Auditing Standards for Certified PublicAccountants of China. Our responsibilities under those standards are further described in the“Auditor’s Responsibilities for the Audit of the Financial Statements” section of the auditor’sreport. We are independent of the Company in accordance with the Certified Public Accountantsof China’s Code of Ethics for Professional Accountants, and we have fulfilled our other ethicalresponsibilities in accordance with the Code. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.III. Major uncertainty with continuous operation concernedWe bring to the attention of the users of the financial statements, as stated in note XV of thefinancial statements under the name of CBC, China Bicycle Company has completed
implementation of the restructuring plan dated 27 December 2013 and terminate the bankruptcyproceedings, in which the condition of introduction of investors has been set out with a view torestoring its ability to continue as a going concern and its sustainable profitability through assetrestructuring. Up to the reporting date of auditing, the Company has not introduced any investor,but retained the business of bicycles so as to maintain its ability to continue as a going concernbefore the injection of assets by investors. These events or circumstances indicate that there aresignificant uncertainties that may cause significant doubts about the sustainable operation abilityof China Bicycle Company. This matter does not affect the published audit opinion.
IV. Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significancein our audit of the financial statements of the current period. These matters were addressed in thecontext of our audit of the financial statements as a whole, and in forming our opinion thereon,and we do not provide a separate opinion on these matters. The key audit matter we identified is asfollows:
| Key audit matters | Audit address |
| 1. Revenue recognized | |
| CBC mainly engages in the sales of bicycles, electric vehicles and relevant materials. In 2018, the main business income of Shenzhen China Bicycle Company was RMB 119,906,950.34, all of which were generated from domestic sales. Shenzhen China Bicycle Company took the receipt of products as the time point for confirming the sales revenue. Due to the significant amount of operating income, the authenticity of the revenue and whether it should be included in the appropriate accounting period had a significant impact on the operating results of the company in 2018, and there might be potential misstatements. Therefore, we took the recognition of income as a key audit matter. Please refer to the accounting policies said in “23. Income” of “Note III Significant Accounting Policies and Accounting Estimate”, “20. Operation Revenue and Cost” of “Note VI Combined Financial Statement Annotation and “4. Operating Income and Costs” of “Note XVI Financial Statement Annotation of Parent Company” of the financial statements annotation. | 1. Understand, test and evaluate the effectiveness of the internal control design and operation related to the company’s sales and collections. 2. Check the relevant provisions of customer contracts, and pay attention to the changes in pricing methods, acceptance methods, delivery locations and deadlines, settlement methods, etc., and assess whether the company’s recognition of income meets the requirements of the accounting standards and whether it is consistent with the disclosed accounting policies. 3. Inquire and understand the background information of major customers through open channels, such as business registration data, etc., confirm whether there are potential unrecognized related party relationships between the customer and the company and related parties. 4. Check the customer information (such as contact information, contact address, order time, etc.) of online marketing and evaluate the authenticity and rationality of online marketing; examine the market price of main materials and analyze the rationality of gross profit rate fluctuation. 5.Inform the main customers of the current transaction |
| amount and fund balance by confirmation letters, and visit important customers to verify the authenticity of the company’s revenue recognition. 6. Check the contracts, warehouse receipts, delivery notes and delivery receipt records of major customers 7. Check the delivery note within a certain period before and after the balance sheet date, pay attention to the date of receipt, and confirm whether the revenue recognition is included in the correct accounting period. | |
| Key audit matters | Audit address |
| 2. Impairment of account receivable | |
| As of December 31, 2018, the balance of accounts receivable of Shenzhen China Bicycle Company was RMB 32,337,707.54, and the balance of bad debt provisions was RMB 2,518,500, and the bad-debt provision transferred back was RMB 3,330,198.52. As the balance of accounts receivable was significant and the assessment of bad debt provision involved the significant judgment of management, we regarded the impairment of accounts receivable as a key audit matter. Please refer to the accounting policies said in “11. Accounts Receivables” of Note III Significant Accounting Policies and Accounting Estimate, “2. Note receivable and accounts Receivables” of “Note VI Combined Financial Statement Annotation”, and “1. Note receivable and accounts Receivables” of “Note XVI Financial Statement Annotation of Parent Company” of the financial statements annotation. | 1. Understand and test the effectiveness of the internal control design and operation related to the accounts receivable management 2. Review the rationality and consistency of accounting policies of the bad debt provision for accounts receivable of the management, and review the rationality of major standards of single amount determined by the management. 3. For the accounts receivable with separate provision for bad debts, select samples to obtain management’s basis for estimating the estimated future recoverable amount, including customer credit record, default or delayed payment records, and actual repayment after date, and review its rationality. For the accounts receivable with provision for bad debts according to the aging analysis method, analyze the rationality of the accounting estimates for the bad-debt provision of the accounts receivable of China Bicycle Company, and select samples to test the accuracy of the ageing. |
V. Other informationThe management of CBC (the “Management”) is responsible for other information which includesthe information covered in the Company’s 2018 annual report excluding the financial statementand our audit report.The audit opinion issued by us for the financial statement has not covered other information, forwhich we do not issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, duringwhich, we shall consider whether other information differs materially from the financialstatements or that we understand during our audit, or whether there is any material misstatement.Based on the works executed by us, we should report the fact if we find any material misstatementin other information. In this regards, we have nothing to report.VI. Responsibilities of management and those charged with governance for the financialstatementsThe management is responsible for the preparation of the financial statements in accordance withthe Accounting Standards for Enterprise to secure a fair presentation, and for the design,establishment and maintenance of the internal control necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’sability to continue as a going concern, disclosing matters related to going concern and using thegoing concern assumption unless the management either intends to liquidate the Company or tocease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reportingprocess.VII. Responsibilities of the auditor for the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditreport that includes our audit opinion. Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with the CAS will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of the financial statements.As part of an audit in accordance with the CAS, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for audit opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.(2) Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.(4) Conclude on the appropriateness of the management’s use of the going concern assumptionand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the Company’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required by the CAS to drawusers’ attention in audit report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify audit opinion. Our conclusions are based on the informationobtained up to the date of audit report. However, future events or conditions may cause theCompany to cease to continue as a going concern.(5) Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entitiesor business activities within the Company to express audit opinion on the financial statements. Weare responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for audit opinion.We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, related safeguard measures.From the matters communicated with those charged with governance, we determine those mattersthat were of most significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in the 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 the auditor’s report because of theadverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
| Beijing·China 18 April 2019 | Chinese CPA: (Partner) | Chen Zhigang |
| Chinese CPA: | Zhang Lei |
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2018-12-31
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Current assets: | ||
| Monetary fund | 18,488,886.26 | 27,985,654.24 |
| Settlement provisions | ||
| Capital lent | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets | ||
| Note receivable and account receivable | 29,007,509.02 | 30,507,775.21 |
| Including: Note receivable | 1,500,000.00 | |
| Account receivable | 29,007,509.02 | 29,007,775.21 |
| Account paid in advance | 13,799,753.60 | 2,482,276.54 |
| Insurance receivable | ||
| Reinsurance receivables |
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 844,537.19 | 659,706.81 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventory | 2,386,603.94 | 2,777,174.63 |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 2,266,241.66 | 1,805,427.17 |
| Total current assets | 66,793,531.67 | 66,218,014.60 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Finance asset available for sales | ||
| Held-to-maturity investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment real estate | ||
| Fixed assets | 3,502,807.32 | 3,941,117.97 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Intangible assets | 1,506,000.00 | 2,259,000.00 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax assets | 1,040,621.18 | 741,828.71 |
| Other non-current assets | 400,000.00 | 400,000.00 |
| Total non-current asset | 6,449,428.50 | 7,341,946.68 |
| Total assets | 73,242,960.17 | 73,559,961.28 |
| Current liabilities: | ||
| Short-term loans | ||
| Loan from central bank |
| Absorbing deposit and interbank deposit | ||
| Capital borrowed | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Note payable and account payable | 11,979,010.69 | 12,408,197.27 |
| Account received in advance | 405,779.88 | 1,268,479.32 |
| Selling financial asset of repurchase | ||
| Commission charge and commission payable | ||
| Wage payable | 435,736.16 | 706,703.40 |
| Taxes payable | 6,297,096.28 | 3,807,286.87 |
| Other account payable | 37,144,872.42 | 36,508,323.90 |
| Including: Interest payable | ||
| Dividend payable | ||
| Reinsurance payable | ||
| Insurance contract reserve | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 56,262,495.43 | 54,698,990.76 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities |
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 56,262,495.43 | 54,698,990.76 |
| Owner’s equity: | ||
| Share capital | 551,347,947.00 | 551,347,947.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 627,834,297.85 | 627,834,297.85 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Provision of general risk | ||
| Retained profit | -1,197,549,169.92 | -1,195,957,201.01 |
| Total owner’s equity attributable to parent company | 14,306,301.94 | 15,898,270.85 |
| Minority interests | 2,674,162.80 | 2,962,699.67 |
| Total owner’s equity | 16,980,464.74 | 18,860,970.52 |
| Total liabilities and owner’s equity | 73,242,960.17 | 73,559,961.28 |
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Current assets: | ||
| Monetary fund | 8,889,572.73 | 15,398,405.80 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial assets |
| Note receivable及Account receivable | 12,827,954.16 | 17,980,663.16 |
| Including: Note receivable | 300,000.00 | |
| Account receivable | 12,827,954.16 | 17,680,663.16 |
| Account paid in advance | 13,798,452.48 | 2,357,662.42 |
| Other account receivable | 380,925.78 | 280,576.37 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventory | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 2,130,677.11 | 1,792,452.81 |
| Total current assets | 38,027,582.26 | 37,809,760.56 |
| Non-current assets: | ||
| Finance asset available for sales | ||
| Held-to-maturity investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 10,379.73 | 10,379.73 |
| Investment real estate | ||
| Fixed assets | 2,995,407.48 | 3,309,465.26 |
| Construction in progress | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Intangible assets | 1,506,000.00 | 2,259,000.00 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax assets | ||
| Other non-current assets | 400,000.00 | 400,000.00 |
| Total non-current asset | 4,911,787.21 | 5,978,844.99 |
| Total assets | 42,939,369.47 | 43,788,605.55 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses |
| Derivative financial liability | ||
| Note payable and account payable | ||
| Account received in advance | 327,632.18 | 1,086,506.70 |
| Wage payable | 151,598.60 | 112,896.71 |
| Taxes payable | 5,416,117.27 | 2,806,928.48 |
| Other account payable | 28,967,052.96 | 30,786,588.98 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 34,862,401.01 | 34,792,920.87 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 34,862,401.01 | 34,792,920.87 |
| Owner’s equity: | ||
| Share capital | 551,347,947.00 | 551,347,947.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 627,834,297.85 | 627,834,297.85 |
| Less: Inventory shares | ||
| Other comprehensive income |
| Reasonable reserve | ||
| Surplus public reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,203,778,503.40 | -1,202,859,787.18 |
| Total owner’s equity | 8,076,968.46 | 8,995,684.68 |
| Total liabilities and owner’s equity | 42,939,369.47 | 43,788,605.55 |
3. Consolidated Profit Statement
In RMB
| Item | Current Period | Last Period |
| I. Total operation revenue | 119,906,950.34 | 137,490,597.69 |
| Including: Operation revenue | 119,906,950.34 | 137,490,597.69 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operation cost | 122,211,426.75 | 135,674,815.04 |
| Including: Operation cost | 108,071,430.05 | 124,027,332.26 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 727,636.82 | 197,163.09 |
| Sales expenses | 5,933,231.41 | 5,462,581.21 |
| Administrative expenses | 6,627,286.22 | 5,743,265.84 |
| R&D expenses | ||
| Financial expenses | -348,684.16 | -209,569.66 |
| Including: Interest expenses | ||
| Interest income | -369,745.70 | -233,170.32 |
| Losses of devaluation of asset | 1,200,526.41 | 454,042.30 |
| Add: Other income | ||
| Investment income(Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Assets disposal income (Loss is listed with “-”) | -2,464.81 | |
| III. Operating profit(Loss is listed with “-”) | -2,304,476.41 | 1,813,317.84 |
| Add: Non-operation revenue | 4,634,304.77 | 4,629,029.13 |
| Less: Non-operation expenditure | 4,458,892.86 | 4,347,483.24 |
| IV. Total Profit (Loss is listed with “-”) | -2,129,064.50 | 2,094,863.73 |
| Less: Income tax expenses | -248,558.72 | 515,704.26 |
| V. Net profit (Net loss is listed with “-”) | -1,880,505.78 | 1,579,159.47 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | -1,880,505.78 | 1,579,159.47 |
| (ii) Discontinued operation net profit (Net loss is listed with “-”) | ||
| Net profit attributable to owner’s of parent company | -1,591,968.91 | 1,529,587.27 |
| Minority shareholders’ gains and losses | -288,536.87 | 49,572.20 |
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes as a result of |
| re-measurement of net defined benefit plan liability or asset | ||
| 2.Other comprehensive income unable transfer to gain/loss under equity method | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income able to transfer to gain/loss under equity method | ||
| 2.Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3.Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4.The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5.Translation differences arising on translation of foreign currency financial statements | ||
| 6.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -1,880,505.78 | 1,579,159.47 |
| Total comprehensive income attributable to owners of parent Company | -1,591,968.91 | 1,529,587.27 |
| Total comprehensive income attributable to minority shareholders | -288,536.87 | 49,572.20 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | -0.0029 | 0.0028 |
| (ii) Diluted earnings per share | -0.0029 | 0.0028 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan beforecombination, and realized 0 Yuan at last period for combined party
Legal Representative: Li HaiPerson in charge of Accounting Works: Sun LonglongPerson in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
| Item | Current Period | Last Period |
| I. Operation revenue | 33,859,463.41 | 24,505,590.30 |
| Less: Operation cost | 29,856,342.44 | 20,012,376.09 |
| Tax and extras | 572,884.38 | 720.00 |
| Sales expenses | 872,164.08 | |
| Administrative expenses | 3,801,648.55 | 2,833,306.05 |
| R&D expenses | ||
| Financial expenses | -138,128.50 | -2,696.71 |
| Including: Interest expenses | ||
| Interest income | -146,307.16 | -8,881.57 |
| Losses of devaluation of asset | -14,209.76 | 53,202.19 |
| Add: Other income | ||
| Investment income(Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| Changing income of fair value(Loss is listed with “-”) | ||
| Assets disposal income (Loss is listed with “-”) | ||
| II. Operating profit(Loss is listed with “-”) | -1,091,237.78 | 1,608,682.68 |
| Add: Non-operation revenue | 4,601,274.42 | 4,541,594.86 |
| Less: Non-operation expenditure | 4,428,752.86 | 4,332,392.64 |
| III. Total Profit (Loss is listed with “-”) | -918,716.22 | 1,817,884.90 |
| Less: Income tax expenses | 403,966.10 | |
| IV. Net profit (Net loss is listed with “-”) | -918,716.22 | 1,413,918.80 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | -918,716.22 | 1,413,918.80 |
| (ii) Discontinued operation net profit (Net loss is listed with “-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
| 2.Other comprehensive income unable transfer to gain/loss under equity method | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income able to transfer to gain/loss under equity method | ||
| 2.Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
| 3.Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
| 4.The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
| 5.Translation differences arising on translation of foreign currency financial statements | ||
| 6.Other | ||
| VI. Total comprehensive income | -918,716.22 | 1,413,918.80 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 36,129,289.85 | 47,815,380.56 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Write-back of tax received | ||
| Other cash received concerning operating activities | 4,438,556.57 | 14,948,547.89 |
| Subtotal of cash in-flow from operation activity | 40,567,846.42 | 62,763,928.45 |
| Cash paid for purchasing commodities and receiving labor service | 30,870,252.63 | 42,234,146.49 |
| Net increase of customer loans and |
| advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 7,034,174.47 | 7,032,925.15 |
| Taxes paid | 2,508,051.27 | 2,108,578.13 |
| Other cash paid concerning operating activities | 9,634,842.21 | 14,819,857.08 |
| Subtotal of cash out-flow from operation activity | 50,047,320.58 | 66,195,506.85 |
| Net cash flow from operation activities | -9,479,474.16 | -3,431,578.40 |
| II. Cash flows arising from investment activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | 60,000.00 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investment activities | ||
| Subtotal of cash in-flow from investment activity | 60,000.00 | |
| Cash paid for purchasing fixed, intangible and other long-term assets | 17,293.82 | 658,054.98 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning |
| investment activities | ||
| Subtotal of cash out-flow from investment activity | 17,293.82 | 658,054.98 |
| Net cash flow from investment activities | -17,293.82 | -598,054.98 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | ||
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | 8,808,378.06 | 8,000,000.00 |
| Subtotal of cash in-flow from financing activity | 8,808,378.06 | 8,000,000.00 |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Including:Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 2,000,000.00 | 8,808,378.06 |
| Subtotal of cash out-flow from financing activity | 2,000,000.00 | 8,808,378.06 |
| Net cash flow from financing activities | 6,808,378.06 | -808,378.06 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -0.09 | |
| VI. Net increased amount of cash and cash equivalent | -2,688,389.92 | -4,838,011.53 |
| Add: Balance of cash and cash equivalents at the period -begin | 19,177,276.18 | 24,015,287.71 |
| VI. Balance of cash and cash equivalents at the period -end | 16,488,886.26 | 19,177,276.18 |
6. Cash Flow Statement of Parent Company
In RMB
| Item | Current Period | Last Period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 191,824.00 | 1,965,727.01 |
| Write-back of tax received | ||
| Other cash received concerning operating activities | 5,803,118.03 | 18,392,380.58 |
| Subtotal of cash in-flow from operation activity | 5,994,942.03 | 20,358,107.59 |
| Cash paid for purchasing commodities and receiving labor service | 416,418.59 | 1,777,103.37 |
| Cash paid to/for staff and workers | 2,958,657.75 | 2,345,272.99 |
| Taxes paid | 1,101,894.37 | 341,557.38 |
| Other cash paid concerning operating activities | 8,014,959.57 | 9,620,841.25 |
| Subtotal of cash out-flow from operation activity | 12,491,930.28 | 14,084,774.99 |
| Net cash flow from operation activities | -6,496,988.25 | 6,273,332.60 |
| II. Cash flows arising from investment activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | ||
| Net cash received from disposal of fixed, intangible and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investment activities | ||
| Subtotal of cash in-flow from investment activity |
| Cash paid for purchasing fixed, intangible and other long-term assets | 11,844.82 | 18,345.00 |
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investment activities | ||
| Subtotal of cash out-flow from investment activity | 11,844.82 | 18,345.00 |
| Net cash flow from investment activities | -11,844.82 | -18,345.00 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | ||
| Cash received from issuing bonds | ||
| Other cash received concerning financing activities | 8,000,000.00 | |
| Subtotal of cash in-flow from financing activity | 8,000,000.00 | |
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash out-flow from financing activity | ||
| Net cash flow from financing activities | 8,000,000.00 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -0.09 | |
| 五. Net increased amount of cash and cash equivalent | -6,508,833.07 | 14,254,987.51 |
| Add: Balance of cash and cash equivalents at the period -begin | 15,398,405.80 | 1,143,418.29 |
| VI. Balance of cash and cash equivalents at the period -end | 8,889,572.73 | 15,398,405.80 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
| Item | Current period | ||||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owner’s equity | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | |||||
| preferred stock | Perpetual capital securities | Other | |||||||||||
| I. Balance at the end of the last yea | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the previous period | |||||||||||||
| Enterprise combine under the same control | |||||||||||||
| Other | |||||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -1,591,968.91 | -288,536.87 | -1,880,505.78 | ||||||||||
| (i) Total comprehensive income | -1,591,968.91 | -288,536.87 | -1,880,505.78 | ||||||||||
| (ii) Owners’ devoted and | |||||||||||||
| decreased capital | |||||||||||||
| 1.Common shares invested by owners | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (iii) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other | |||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||
| 4. Change amount of defined benefit |
| plans that carry forward retained earnings | |||||||||||||
| 5. Other | |||||||||||||
| (v) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (vi) Other | |||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,549,169.92 | 2,674,162.80 | 16,980,464.74 |
Last Period
In RMB
| Item | Last Period | ||||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owner’s equity | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Provision of general risk | Retained profit | |||||
| preferred stock | Perpetual capital securities | Other | |||||||||||
| I. Balance at the end of the last yea | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,486,788.28 | 2,913,127.47 | 17,281,811.05 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the previous period | |||||||||||||
| Enterprise combine under the same control | |||||||||||||
| Other | |||||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,197,486,788.28 | 2,913,127.47 | 17,281,811.05 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 1,529,587.27 | 49,572.20 | 1,579,159.47 | ||||||||||
| (i) Total comprehensive income | 1,529,587.27 | 49,572.20 | 1,579,159.47 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||
| 1.Common shares invested by owners | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (iii) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other | |||||||||||||
| (iv) Carrying forward internal owners’ equity |
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | |||||||||||||
| 5. Other | |||||||||||||
| (v) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (vi) Other | |||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,957,201.01 | 2,962,699.67 | 18,860,970.52 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
| Item | Current period | ||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Total owner’s equity | |||
| preferred stock | Perpetual capital securities | Other | |||||||||
| I. Balance at the | 551,347, | 627,834,2 | 32,673,22 | -1,202,8 | 8,995,684 | ||||||
| end of the last yea | 947.00 | 97.85 | 7.01 | 59,787.18 | .68 | ||||||
| Add: Changes of accounting policy | |||||||||||
| Error correction of the previous period | |||||||||||
| Other | |||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787.18 | 8,995,684.68 | ||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -918,716.22 | -918,716.22 | |||||||||
| (i) Total comprehensive income | -918,716.22 | -918,716.22 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by owners | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||
| 4. Other | |||||||||||
| (iii) Profit distribution | |||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||
| 2. Distribution for owners (or |
| shareholders) | |||||||||||
| 3. Other | |||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | |||||||||||
| 5. Other | |||||||||||
| (v) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period | |||||||||||
| (vi) Other | |||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,203,778,503.40 | 8,076,968.46 |
Last Period
In RMB
| Item | Last Period | ||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus public reserve | Retained profit | Total owner’s equity | |||
| preferred stock | Perpetual capital | Other | |||||||||
| securities | |||||||||||
| I. Balance at the end of the last yea | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,273,705.98 | 7,581,765.88 | ||||||
| Add: Changes of accounting policy | |||||||||||
| Error correction of the previous period | |||||||||||
| Other | |||||||||||
| II. Balance at the beginning of this year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,204,273,705.98 | 7,581,765.88 | ||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 1,413,918.80 | 1,413,918.80 | |||||||||
| (i) Total comprehensive income | 1,413,918.80 | 1,413,918.80 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by owners | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||
| 4. Other | |||||||||||
| (iii) Profit distribution | |||||||||||
| 1. Withdrawal of |
| surplus reserves | |||||||||||
| 2. Distribution for owners (or shareholders) | |||||||||||
| 3. Other | |||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | |||||||||||
| 5. Other | |||||||||||
| (v) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period | |||||||||||
| (vi) Other | |||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787.18 | 8,995,684.68 |
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government ofShenzhen, Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as theCompany) was reincorporated as the company limited by shares in November 1991. On 28December 1991, upon the Approval Document SRYFZ(1991) No. 119 issued by Shenzhen Special
Economic Zone Branch of the People’s Bank of China, the Company got listed on Shenzhen Stock
Exchange,Registered capital of the Company amounted as 551,347,947.00 Yuan.
Legal representative: Li HaiLocation: No. 3008, Buxin Road, Luohu District, ShenzhenCertificate for Uniform Social Credit Code: 9144030061883045242. Business nature and main operation activitiesThe Company's industry: machinery manufacturing industryMain operation activities: The production and assembly of various bicycles and spare parts,components, parts, mechanical product, sport machinery, fine chemicals, carbon fiber composites
material, household electrical appliance and affiliated components (products management by license excluded).
The majority of its products were previously exported, however, the sales volume sharply declinedin recent years because of the antidumping litigation. Hence, the Company commences on the debtreorganization and the reorganization plan was completed on 27 December 2013 with bankruptcyproceedings terminated. Meanwhile, makes greater efforts to develop and research the newproducts, and creates a range of electrical bicycles to occupy the domestic market.Main products and services provided so far: EMMELLE bicycles, electrical bicycles and lithiumbattery material3. Release of the financial reportThe Financial Report released on 18 April 2019 after approved by 11
th
session of 10
th
BOD of theCompanyOne subsidiary included in consolidate scope in the period, found more in Note IX- equity in otherentity and Note VIII Change of consolidate scope
IV. Compilation Basis of Financial Statement
1. Compilation BasisThe financial statement is prepared based on continuing operation assumptions, and according toactual occurrence, in line with relevant accounting rules and follow important accounting policyand estimation.
2. Going concernOn 11 May 2012, the largest shareholder and biggest creditor of the Company, ShenzhenGuosheng Energy Investment Development Co., Ltd. applied to Shenzhen Municipal IntermediatePeople's Court for reforming the Company as the Company couldn’t pay off the matured debts andwas seriously insolvent. On 12 October 2012, Shenzhen Municipal Intermediate People's Courtruled to accept the application proposed by Guosheng Energy according to (2012) ShenzhenIntermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012, ShenzhenMunicipal Intermediate People's Court ruled to reform the Company since 25 October 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King &Wood (Shenzhen) Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as thecustodians of the Company. On the same day, Shenzhen Municipal Intermediate People's Courtmade (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved theCompany to manage property and business affairs by itself under the supervision of custodiansaccording to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012)Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan ofthe Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’sCourt (2012) Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC wascompleted and bankruptcy procedures of the Company closed down.The Company has solved the debt problem by reforming, realized the net assets with positivevalue, the main business of bicycle is able to be maintained and realizes the stable development.The Company has set up the conditions for introducing the recombination party in the reformingplan, and expects to restore the abilities of sustainable operation and sustained profitability byreorganization. The conditions of introducing the recombination party includes: the assessed valueof net assets should be no less than 2 billion Yuan, the net assets in the same year forimplementing the major reorganization should be no less than 200 million Yuan. The Companydoesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Whether the company needs to comply with the disclosure requirements of the particular industryNoTips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standardsThe financial statement prepared by the Company, based on follow compilation basis, is complywith the requirement of new accounting standards for business enterprise issued by Ministry ofFinance and its application guide, commentate as well as other regulations (collectively referred to
as Accounting Standards for Business Enterprise), which is reflect a real and truth financial statusof the Company, as well as operation results and cash flow situations.Furthermore, the statement has reference to the listing and disclosure requirement from “RulesGoverning the Disclosure of Information for Enterprise with Stock Listed No.15-generalregulation of financial report” (2014 Revised) and “Notice on Implementation of New AccountingStandards for Listed Companies” (KJBH (2018) No. 453)
2. Accounting periodCalendar year is the accounting period for the Company, which is starting from 1 January to 31December.3. Business cyclesThe business period for the Company, which is the Gregorian calendar starting from 1 January to31 December
4. Recording currencyThe Company and its subsidiaries take RMB as the standard currency for bookkeeping.5. Accounting treatment for business combinations under the same control and those notunder the same control
(1) Accounting treatment for business combinations under the same control and those not under
the same controlFor a business merger that is under the same control and is achieved by the Company through onesingle transaction or multiple transactions, assets and liabilities obtained from that businesscombination shall be measured at their book value at the combination date as recorded by theparty being absorbed in the consolidated financial statement of ultimate controlling party. Capitalreserve shall be adjusted as per the difference between the book value of obtained net assets andthe book value of paid consolidated consideration (or the nominal value of the issued shares) ofthe Company; retained earnings shall be adjusted if the capital reserve is not sufficient for offset.(2) Accounting treatment for Enterprise combine not under the same controlThe Company will validate the difference that the combined cost is more than the fair value of thenet identifiable assets gained from the acquiree on the acquisition date as goodwill; where thecombined cost is less than the fair value of net identifiable assets gained from the acquiree duringbusiness combination, the fair value and combined cost of various identifiable assets, liabilities
and contingent liabilities from the acquiree must be rechecked. Where the combined cost is, afterthe recheck, still less than the fair value of net identifiable assets gained from the acquiree duringbusiness combination, the difference shall be charged to current profits and losses.As for business combination not under common control and realized through multiple transactionsand by steps, the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held
before the acquisition date accounted according to the equity method, re-measurement is carriedout according to the fair value of the equity on the acquisition date. The balance between the fairvalue and the book value is included in the current investment income. If the acquiree’s stockequities held before the acquisition date involves changes of other comprehensive incomes andother owner's equities under accounting with the equity method, the balance between the fair valueand the book value is included in the current investment income on the acquisition date, excludingother comprehensive incomes incurred by changes due to re-measurement of net liabilities or netassets of the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment
cost of long-term equity investments adjusted in step 1 is compared with the fair value of netidentifiable assets of the subsidiary shared on the acquisition date. If the former is greater than thelatter, the balance is confirmed as goodwill; if the former is less than the latter, the balance isincluded in the current profits and losses.Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of itssubsidiary in stages
(1)In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects.One or more of the following may indicate that the parent should account for the multiplearrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;2) Arrangements work together to achieve an overall commercial effect;3) The occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;4)One arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled
transactions which eventually results in loss of control the subsidiary during disposal of itssubsidiary in stagesIf each of the multiple transactions forms part of a bundled transactions which eventually resultsin loss of control the subsidiary, these multiple transactions should be accounted for as a single
transaction. In the consolidated financial statements, the difference between the considerationreceived and the corresponding percentage of the subsidiary’s net assets in each transaction priorto the loss of control shall be recognized in other comprehensive income and transferred to theprofit or loss when the parent eventually loses control of the subsidiary.The remaining equity investment shall be re-measured at its fair value in the consolidated financialstatements at the date when control is lost. The difference between the total amount ofconsideration received from the transaction that resulted in the loss of control and the fair value ofthe remaining equity investment and the share of net assets of the former subsidiary calculatedcontinuously from the acquisition date or combination date based on the previous shareholdingproportion, shall be recognized as investment income for the current period when control is lost.The amount previously recognized in other comprehensive income in relation to the formersubsidiary’s equity investment should be transferred to investment income for the current periodwhen control is lost③Accounting treatment for each of the multiple transactions NOT forming part of a bundledtransactions which eventually results in loss of control the subsidiary during disposal of itssubsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of theconsideration received and the corresponding portion of net assets of the subsidiary shall beadjusted to the capital reserve (capital /equity premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured atits fair value in the consolidated financial statements at the date when control is lost. Thedifference between the total amount of consideration received from the transaction that resulted inthe loss of control and the fair value of the remaining equity investment and the share of net assetsof the former subsidiary calculated continuously from the acquisition date or combination datebased on the previous shareholding percentage, shall be recognized as investment income for thecurrent period when control is lost. The amount previously recognized in other comprehensiveincome in relation to the former subsidiary’s equity investment should be transferred to investmentincome for the current period when control is lost.6. Compilation method of consolidated financial statementConsolidated financial statements are prepared by the Company in accordance with AccountingStandard for Business Enterprise No. 33-Consolidated Financial Statements and based on financialstatements of parent company and its subsidiaries and other related information.When consolidating the financial statements, the following items are eliminated: internal equity
investment and owners’ equity of subsidiaries, proceeds on internal investments and profitdistribution of subsidiaries, internal transactions, internal debts and claim. The accounting policiesadopted by subsidiaries are the same as parent company.7. Classification of joint venture arrangement and accounting treatment for joint control(1) Affirmation and classification of joint venture arrangementJoint arrangement refers to an arrangement controlled by two or more than two participants. Jointventure arrangement has the following characteristics: 1) Each participant is bound by thearrangement; 2) Two or more participants carry out joint control on implementation of thearrangement. Any participant cannot control the arrangement independently. Any participant forjoint control can stop other participants or participant combinations to independently control thearrangement.Joint control refers to the sharing of control over certain arrangement under related agreements,and related activities of the arrangement must be determined only when obtaining the unanimousconsent of the parties sharing control.Joint venture arrangement is classified in to joint operation and joint venture. Joint operationrefers to an arrangement that a joint party enjoys assets related to the arrangement and bearsliabilities related to the arrangement. Joint venture refers to an arrangement that a joint party onlyhas the power governing net assets of the arrangement.
(2) Accounting treatment of joint venture arrangementJoint venture participants should confirm the following items related to interest shares in jointventure and carry out accounting settlement according to relevant provisions of the AccountingStandards for Business Enterprises: 1) confirm the assets held separately and confirm the assetsheld jointly based on shares; 2) confirm the liabilities borne separately and confirm the liabilitiesborne jointly based on shares; 3) confirm the income incurred after selling its shares in jointventure output; 4) confirm the income after selling the joint venture outputs based on shares; 5)confirm the expenses incurred separately and confirm the expenses incurred in joint venture basedon shares.Joint venture participants should carry out accounting settlement for investments of the jointventure according to provisions of Accounting Standards for Business EnterprisesNo.2–Long-term Equity Investments.8. Recognition of cash and cash equivalentsCash in cash flow statement means the inventory cash and savings available for use anytime. Cash
equivalents refer to the short-term (generally due within three months since the date of purchase)highly liquid investments that are readily convertible into known amounts of cash and that aresubject to an insignificant risk of change in value.
9. Foreign currency transaction and financial statement conversion(1)Conversion for foreign currency transactionWhen initially recognized, the foreign currency for the transaction shall be converted into CNYamount according to the spot exchange rate on the date of transaction. For the foreign currencymonetary items, conversion must be based on the spot exchange rate on the balance sheet date andthe exchange difference incurred from different exchange rates, except for the exchange differenceof principal and interest incurred due to foreign currency loan related to acquisition orconstruction of assets that qualify for capitalization, shall be charged to current profits and losses;foreign currency non-monetary items measured with historical cost are still converted as per thespot exchange rate on the transaction date and keep the RMB amount unchanged; foreign currencynon-monetary items measured with fair value shall be converted as per the spot exchange rate onthe date of determining the fair value and the difference shall be charged to current profits andlosses or other comprehensive income.(2)Conversion of financial statements presented in foreign currenciesThe asset and liability items in the balance sheet shall be converted at the spot exchange rate onthe balance sheet date; the owner’s equity items, except for the items of “undistributed profit”,shall be converted at the spot exchange rate on the transaction date; the income and expenditureitems in the profit statement shall be converted at the spot exchange rate on the transaction date.The translation difference of foreign financial statements conducted as above is recognized asother comprehensive incomes.10. Financial instrumentsFinancial instrument including the financial assets, financial liability and equity instrument(1) Classification of financial assets and financial liabilityFinancial assets can be divided into four types while initially recognized: financial assets at fairvalue through profit or loss (including transactional financial assets and those financial assetsdesignated as at fair value through profit or loss), held-to-maturity investments; loans &receivables; available-for-sale financial assets.Financial liability can be divided into two types while initially recognized: financial liability at fairvalue through profit or loss (including transactional financial liability and those financial liabilities
designated as at fair value through profit or loss) and other financial liability(2)Recognition, measurement and derecognition of financial assets and financial liabilitiesFinancial assets or financial liabilities are recognized when the Group becomes a party to thecontractual provisions of the instrument. Financial assets or financial liabilities are initiallymeasured at fair value. For financial assets and financial liabilities at fair value through profit orloss, transaction costs are immediately recognized to profit or loss. For other financial assets orfinancial liabilities, transaction costs are included in their initial recognized amounts.
Financial assets are subsequently measured at fair value without considering of the possibletransaction costs upon the disposal thereof in the future, except that: (1) Held-to-maturityinvestments and loans and receivables are subsequently measured at amortised cost using theeffective interest method; and (2) Investments in equity instruments that do not have a quotedprice in an active market and whose fair value cannot be reliably measured, and derivativefinancial assets that are linked to and must be settled by delivery of such unquoted equityinstruments, they are measured at cost.
Financial liabilities are subsequently measured at amortised cost using the effective interestmethod, except that: (1) Financial liabilities at fair value through profit are subsequently measuredat fair value without considering of the possible transaction costs upon the settlement thereof inthe future; (2) Derivative financial liabilities that are linked to and must be settled by delivery ofan unquoted equity instrument without a quoted price in an active market whose fair value cannotbe reliably measured, they are subsequently measured at cost; and (3) Financial guaranteecontracts that are not designated as financial liabilities at fair value through profit or loss, or loancommitments to provide a loan at a below-market interest rate, which are not designated at fairvalue through profit or loss, subsequent to initial recognition, they are measured at the higher of:
(1) the amount determined in accordance with ASBE No. 13 “Contingencies”; and (2) the amountinitially recognized less cumulative amortisation recognized in accordance with the principles setout in ASBE No. 14 “Revenue”.
Any gains or losses arising from changes in the fair value on financial assets or financial liabilities,other than those hedging instrument, are accounted for as follows: (1) Gains or losses arising fromthe change in fair value on financial assets or financial liabilities at fair value through profit or lossare recorded as gains or losses from change in fair value; Any interest or dividend income earnedduring the holding on such financial assets are recognized to profit or loss. On disposal, thedifferences between the consideration received and initial recognized amount are recognized asinvestment income and adjust to the gains or losses from change in fair value accordingly; and (2)Changes in fair value of available-for-sale financial assets are recorded in the other comprehensiveincome. Interest calculated using the effective interest method for the periods, in which the assets
are held, are recognized as investment income. Cash dividends from available-for-sale equityinvestments are recognized as investment income when the dividends are declared by the investee.On disposal, the differences between the considerations received and the carrying amounts offinancial assets after deducting the accumulated fair values adjustments previously recorded in theother comprehensive income are recognized as investment income.
A financial asset is derecognized when the contractual rights to the cash flows from the financialasset terminate, or when it transfers substantially all the risks and rewards of ownership of theasset to another entity. A financial liability (or part of it) is derecognized only when the underlyingpresent obligations (or part of it) are discharged.
(3)Recognition and measurement on transfer of financial assetsIf the Group has transferred substantially all the risks and rewards of ownership of the financialasset to the transferee, the financial asset should be derecognized; If the Group retainssubstantially all the risks and rewards of ownership of a financial asset, the transferred financialasset should be recognized and the consideration received should be recognized as a financialliability; If the Group neither transfers nor retains substantially all the risks and rewards ofownership of a financial asset, it shall be accounted for as follows: (1)the financial asset should bederecognized if the Group waives control over the asset; (2)it recognises the financial asset to theextent of its continuing involvement in the transferred financial asset and recognises an associatedliability if the Group does not waives control over the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, thedifference of the following is recognized to profit or loss: (1) The carrying amount of the financialasset transferred; and (2) The sum of the consideration received from the transfer and anycumulative change of fair value that has been previously recognized in other comprehensiveincome directly. If a part of the transferred financial asset qualifies for derecognition, the carryingamount of the transferred financial asset is allocated between the part that continues to berecognized and the part that is derecognized, based on the respective fair values of those parts. Thedifference of the following is recognized to profit or loss: (i) The carrying amount allocated to thepart derecognized; and (ii) The sum of the consideration received for the part derecognized andany cumulative change of fair value allocated to the part derecognized which has been previouslyrecognized in other comprehensive income directly.
(4)Determination of fair value of financial assets and financial liabilitiesFor a financial asset or financial liability which has an active market, the Group considers thequoted price in the active market to determine its fair value. For a financial assets or financialliability which has no active market, the Group uses a valuation technique (valuation techniques
include using recent arm’s length market transactions between knowledgeable, willing parties,reference to the current fair value of another instrument that is substantially the same, discountedcash flow analysis and option pricing models) to determine its fair value. For a financial assetacquired or a financial liability assumed initially, its fair value is based on the price of markettransactions.
(5) Provision for impairment on financial assets other than account receivablesAt each balance sheet date, the Group assesses the carrying amounts of its financial assets otherthan those financial assets at fair value through profit or loss. If there is objective evidence that afinancial asset is impaired, the Group determines the amount of any impairment loss.
For a financial asset that is individually significant, the Company assesses the asset individuallyfor impairment. For a financial asset that is not individually significant, the Company assesses theasset individually for impairment or includes the asset in a group of financial assets with similarcredit risk characteristics and collectively assesses them for impairment. If the Companydetermines that no objective evidence of impairment exists for an individually assessed financialasset (whether significant or not), it includes the asset in a group of financial assets with similarcredit risk characteristics and collectively reassesses them for impairment.
At the end of the reporting period, if there is objective evidence that an impairment loss on afinancial asset carried at amortized cost has occurred, an impairment loss is recognized as theexcess of the carrying amount of the financial asset over its present value of estimated future cashflows to profit or loss. If an impairment loss has been incurred on an investment in unquotedequity instrument without a quoted price in an active market whose fair value cannot be reliablymeasured, or on a derivative financial asset that is linked to and must be settled by delivery ofsuch equity instrument, an impairment loss is recognized as the excess of the carrying amount ofthe unquoted equity investment or a derivative financial asset over its present value of estimatedfuture cash flows discounted at the current market rate of return for a similar financial asset toprofit or loss.
An impairment is recognized where there is a significant decrease in the fair value of available forsale financial assets, or taken into account all factors, the decrease trend is not temporary to profitor loss. The cumulative loss arising from decline in fair value previously recognized directly in theother comprehensive income is reclassified from the capital reserve to profit or loss.
(6)There is no reclassification of held-to-maturity investment which is not due into financial assetsavailable for sale during the period.
11. Note receivable and account receivable(1) Account receivable with single significant amount and withdrawal single item bad debt provision
| Account with single significant amount | Single significant account: the single receivable has over 5 million yuan at end of the period |
| Withdrawal method for bad debt provision of account receivable with single significant amount | At the end of the period, the receivables with significant single amount are tested separately for impairment. If there is objective evidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts will be made based on the balance between the present value of future cash flows and its book value. |
(2) Accounts receivable whose bad debts provision was accrued by combination based oncredit risk characteristics portfolio
| Combination | Bad debt provision accrual |
| Credit risk portfolio | Age analysis method |
Accrual bad debt provision by age analysis in combination:
√ Applicable □ Not applicable
| Account age | Accrual ratio | Accrual ratio for other receivable |
| Within one year(one year included) | 0.30% | 0.30% |
| 1－2 years | 0.30% | 0.30% |
| 2－3 years | 0.30% | 0.30% |
| Over 3 years | 100.00% | 100.00% |
In combination, withdrawal proportion of bad debt provision based on balance proportion□ Applicable √ Not applicableIn combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision forsingle item
| Reasons for provision of bad debt reserve | The Company conducts impairment test separately for receivables that are not significant in single amount but have the following characteristics, if there is objective evidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts will be made based on the balance between the present value of future cash flows and its book value; receivables that are in dispute with the other party or |
| involving litigation or arbitration; there are clear signs indicating that the debtor is likely to be unable to fulfill the repayment obligations of the receivables. | |
| Provision method of bad debt reserve | If the impairment test is carried out separately and there is objective evidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will be made based on the balance between the present value of future cash flows and its book value. |
12. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Classification of inventoryThe inventory of the Company refers to such seven classifications as the raw materials, product inprocess, goods on hand, wrap page, low value consumables, materials for consigned processingand goods sold.
(2) Valuation of inventoriesInventories are initially measured at cost upon acquisition, which includes procurement costs,processing costs and other costs. The prices of inventories are calculated using weighted averagemethod when they are delivered.(3) Provision for inventory impairmentWhen a comprehensive count of inventories is done at the end of the period, provision forinventory impairment is allocated or adjusted using the lower of the cost of inventory and the netrealizable value. The net realizable value of stock in inventory (including finished products,inventory merchandize and materials for sale) that can be sold directly is determined using theestimated saleable price of such inventory deducted by the cost of sales and relevant taxation overthe course of ordinary production and operation. The net realizable value of material in inventorythat requires processing is determined using the estimated saleable price of the finished productdeducted by the cost to completion, estimated cost of sales and relevant taxation over the course ofordinary production and operation. The net realizable value of inventory held for performance ofsales contract or labor service contract is determined based on the contractual price; in case theamount of inventory held exceeds the contractual amount, the net realizable value of the excessportion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of theperiod; however, for inventories with large quantity and low unit price, the provision is made bycategories; inventories of products that are produced and sold in the same region or with the sameor similar purpose or usage and are difficult to be measured separately are combined for provisionfor impairment.If the factors causing a previous write-off of inventory value has disappeared, the amountwritten-off is reversed and the amount provided for inventory impairment is reversed andrecognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.13. Assets held for saleThe Company classifies such corporate components (or non-current assets) that meet thefollowing criteria as held-for-sale: (1) Disposable immediately under current conditions based onsimilar transactions for disposals of such assets or practices for the disposal group; (2) Probabledisposal; that is, a decision has been made on a plan for disposal and an undertaking to purchasehas been obtained (the undertaking to purchase means a binding purchase agreement entered intoby the Company and other parties, which contains transaction price, time and adequately strictpunishments for breach of contract provisions, which renders the possibility of materialadjustment or revocation of the agreement is extremely minor), and the disposal is expected to becompleted within a year. Besides, approval from relevant competent authorities or regulatoryauthorities has been obtained as required by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fairvalue less selling expense, provided that the net amount shall not exceed the original carryingvalue of the asset. In case that the original value is higher than the adjusted expected net residualvalue, the difference shall be recorded in profit or loss for the period as asset impairment loss, andallowance of impairment for the asset shall be provided. Impairment loss recognized in respect ofthe disposal group held for sale shall be used to offset the carrying value of the goodwill in thedisposal group, and then offset the carrying value of the non-current assets within the disposalgroup based on their respective proportion of their carrying value.In respect of the non-current assets held for sale, if the net amount after their fair value less theselling expenses increased as at the subsequent balance date, the reduced amount before will berecovered and reversed in the assets impairment loss amount recognized after being classified asheld for sale, and the reversed amount will be recorded in the current profits or loss. Theimpairment loss on assets recognized before being classified as held for sale will not be reversed.In respect of the disposal group held for sale, if the net amount after their fair value less the selling
expenses increased as at the subsequent balance date, the reduced amount before will be recoveredand reversed in the assets impairment loss amount recognized in non-current assets after beingclassified as held for sale, and the reversed amount will be recorded in the current profits or loss.The reduced book value of the goodwill as well as the impairment loss on assets recognized beforethe non-current assets are classified as held for sale will not be reversed. The subsequent reversedamount in respect of the impairment loss on assets recognized in the disposal group held for salewill increase the book value in proportion of the book value of each non-current assets (other thangoodwill) in the disposal group.In respect of loss of control in a subsidiary arising from disposal of the investment in suchsubsidiary, the investment in a subsidiary shall be classified as held for sale in its entirety in theindividual financial statement of the parent company, and all the assets and liabilities of thesubsidiary shall be classified as held for sale in the consolidated financial statement subject to thatthe proposed disposal of investment in the subsidiary satisfies such conditions as required forbeing classified as held for sale notwithstanding part equity investment will be retained by theCompany after such disposal.14. Long-term equity investment(1)Determination of investment costs1) If it is formed by the business combination under the common control, and that the combiningparty takes cash payment, transfer of non-cash assets, assumption of debts or issuance of equitysecurities as the consolidation consideration, the shares of the book value of the owner’s equityobtained from the combined party on the date of combination in the ultimate controlling party’sconsolidated financial statements shall be recognized as its initial investment cost. Capital reservesshall be adjusted according to the balance between the initial investment cost for long-term equityinvestment and the book value of paid consolidation consideration or the total face value of issuedshares (capital premium or equity premium). If capital reserves are insufficient for offset, retainedearnings shall be adjusted.As for business combination under the common control realized by the Company through severaltransactions, the initial investment cost of the investment shall be determined based on the share ofthe carrying value of the owners’ equity of the consolidated party as calculated according to theshareholding proportion on the consolidation date. Difference between initial investment cost andthe carrying value of long-term equity investment before combination and the sum of carryingvalue of newly paid consideration for additional shares acquired on the date of combination is toadjust capital reserve (capital premium or equity premium). If the balance of capital reserve isinsufficient, any excess is adjusted to retained earnings.2) As for long-term equity investment formed from business combination not under commoncontrol, the fair value of the consolidated consideration paid shall be deemed as the initial
investment cost on the acquisition date.3) Except those ones formed by the business combination, for all items obtained by means of cashpayment, actually paid acquisition costs shall be taken as the initial investment cost. For thoseones obtained by the issuance of equity securities, the fair value of the issued equity securitiesshall be taken as the initial investment cost. For those ones invested by investors, the value agreedin the investment contract or agreement shall be taken as the initial investment cost, provided thatthe value agreed in the contract or agreement shall be fair.(2)Subsequent measurement and profit or loss recognitionFor a long-term equity investment where the Company can exercise control over the investee, thelong-term investment is accounted for using the cost method in the Company’s financialstatements. The equity method is adopted when the Group has joint control, or exercisessignificant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except forthe price actually paid for obtaining the investment or the cash dividends or profits declared butnot yet distributed which is included in the consideration, the Company recognizes cash dividendsor profits declared by the investee as current investment gains, and determine whether there isimpairment on long term investment according to relevant assets impairment policies.Under equity method, when the initial investment cost of the long-term equity investment exceedsthe share of fair value in the net identifiable assets in the investee, the difference shall be includedin initial investment cost of the long-term equity investment. When the initial investment cost islower than the share of fair value in the net identifiable asset in the investee, such difference isrecognized in profit or loss for the period with adjustment of cost of the long-term equityinvestment.Under equity method, after the Company acquires a long-term equity investment, it shall, inaccordance with its attributable share of the net profit or loss realized by the investee, recognizethe investment profit or loss and adjust carrying value of the investment. The Group recognizes itsshare of the investee’s net profits or losses after making appropriate adjustments to the investee’snet profits and losses based on the fair value of the investee’s identifiable assets at the acquisitiondate, using the Group’s accounting policies and periods, and eliminating the portion of the profitsor losses arising from internal transactions with its joint ventures and associates, attributable to theinvesting entity according to its shareholding proportion (but impairment losses for assets arisingfrom internal transactions shall be recognized in full). The carrying amount of the investment isreduced based on the Group’s share of any profit distributions or cash dividends declared by theinvestee. The Group’s share of net losses of the investee is recognized to the extent the carryingamount of the investment together with any long-term interests that in substance form part of itsnet investment in the investee is reduced to zero, except that the Group has the obligations to
assume additional losses. The Group adjusts the carrying amount of the long-term equityinvestment for any changes in owners’ equity of the investee (other than net profits or losses) andincludes the corresponding adjustments in the owners’ equity of the Group.(3) Determination of control and significant influence on investeeControl is the power over an investee. An investor must have exposure or rights to variable returnsfrom its involvement with the investee, and the ability to use its power over the investee to affectthe amount of the investor’s returns. Significant influence is the power to participate in thefinancial and operating policy decisions of the investee but is not control or joint control withother parties over those policies(4)Disposal of long-term equity investment1) Partial disposal of long term investment in which control is retainedWhen long term investment is been partially disposed but control is retained by the company, thedifference between disposal proceeds and carrying amount of the proportion being disposed isaccounted for through profit or loss.2) Partial disposal of long term investment in which control is lostWhen long term investment is partially disposed and control is lost as a result, the carrying valueof the long term invest on the stock right, the difference between carrying amount of the part beingdisposed and disposal proceeds should be recognized as profit or loss. The residual part should betreated as long term investment or other financial assets according to their carrying amount. Afterpartial disposal, if the company is able to exert significant influence or common control over theinvestee, the investment should be measured according to cost method or equity method, incompliance with relevant accounting standards and regulations.(5)Impairment test and provision for impairmentIf there is objective evidence on the balance sheet date showing investment in subsidiaries,associates and joint ventures is impaired, provision of impairment shall be made against thedifference between the carrying amount and the recoverable amount of the investment.15. Investment real estate
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right whichis held for transfer upon appreciation and buildings which has been rented out.(2) Investment properties are initially measured at cost and subsequently measured as per the cost
pattern, and relevant withdrawal of provision for depreciation or amortization is carried out by thesame method for fixed assets and intangible assets. As of the balance sheet date, where there isany indication that an investment property experiences impairment, the relevant impairmentprovision shall be provided for based on the difference between the carrying value and therecoverable amount.16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and witha service life in excess of 1 financial year. Fixed assets may be recognized unless it simultaneously meets theconditions as follows: ①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;and ②The cost of the fixed assets can be measured reliably.
(2) Depreciation methods
| Category | Method | Years of depreciation | Scrap value rate | Yearly depreciation rate |
| Housing buildings | Straight-line depreciation | 20 | 10% | 4.5% |
| Machinery equipment | Straight-line depreciation | 10 | 10% | 9% |
| Office equipment | Straight-line depreciation | 5 | 10% | 18% |
| Electronic equipment | Straight-line depreciation | 5 | 10% | 18% |
| Means of transportation | Straight-line depreciation | 5 | 10% | 18% |
| Other equipment | Straight-line depreciation | 5 | 10% | 18% |
Nil
(3) Recognization basis, valuation and depreciation method for financial lease assetsFinance lease is determined when one or a combination of the following conditions are satisfied:
(1) the ownership has been transferred to the lessee when the leasing term is due; (2) the lessee hasthe option to purchase the leasing asset at a price that is much lower than its fair value, so it can bereasonably determined that the lessee will take the option at the very beginning of the lease; (3)the leasing term accounts for most time of the useful life (ordinarily accounting for 75% or higher)even if the ownership does not transfer to the lessee; (4) the present value of the minimum amountof rent that the lessee has to pay at the first day of the lease amounts to 90% or higher of its fairvalue at the same date; or the present value of the minimum amount of rent that the lessor collectsat the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5)the leased assets are of such a specialized nature that only the lessee can use them without majormodifications. Fixed assets rented-in under finance lease are recorded at the lower of fair valueand the present value of the minimum lease payment at the inception of the lease, and are
depreciated following the depreciation policy for self-owned fixed assets.17. Construction in progressWhether the company needs to comply with the disclosure requirements of the particular industry
No
(1)When the construction in progress has reached the intended condition for use, it will be treatedas fixed assets as per the actual construction cost. If the construction in progress has reached theintended condition for use but completion accounting is not carried out, the construction inprogress should be first treated as fixed assets as per the estimated value. After completionaccounting is carried out, the original estimated value should be adjusted as per the actual cost, butthe provision for depreciation withdrawn should not be adjusted.(2)As of the balance sheet date, where there is any indication that a construction in processexperiences impairment, the relevant impairment provision shall be provided for based on thedifference between the carrying value and the recoverable amount.18. Borrowing expenses(1)Principles of recognizing capitalization of borrowing expensesThe borrowing expenses of the Company directly attributable to the construction or production ofan asset meeting capitalization conditions are capitalized and recognized in relevant asset costs;other borrowing expenses are recognized as expenses based on the amount incurred andrecognized in profit or loss for the period.An asset that meets the capitalization conditions refers to fixed assets, real estate investments andinventories that require a considerable amount of time for construction or production to reach theexpected usable or saleable condition.Borrowing expenses are capitalized when all of the following conditions are met:
①the asset expense has occurred, which includes expenses in the form of cash paid, nonmonetaryasset transferred or interest-bearing obligations assumed for the construction or product of an assetthat meets capitalization conditions;②the borrowing expenses have occurred;③the necessary construction or production activities for bringing the asset to the expected usableor saleable conditions have started.Capitalization of borrowing expenses is suspended when any abnormal interruption continues forover three months during the construction or production of an asset that meets capitalizationconditions.
When the construction or production of an asset meeting capitalization conditions has reachedexpected useful or saleable conditions, the capitalization of borrowing expenses is stopped.When the a portion of the construction or production of an asset meeting capitalization conditionshas completed and can be used individually, the capitalization of borrowing expenses of suchportion of asset is stopped.(2)Capitalization period of borrowing expensesCapitalization period refers to the time starting from the borrowing expenses are capitalized to thetime capitalization is stopped, except for the period which capitalization of borrowing expenses issuspended.(3) Calculation of capitalized amount of borrowing expensesInterest expenses of special loans (net of interest income from unutilized loans deposited in bankor investment gain earned from temporary investment) and supplementary expenses incurred forthe construction or production of asset that meets capitalization conditions before the asset reachesexpected useable or saleable condition are capitalized.The interest amount that should be capitalized on normal borrowings is calculated based on theweighted average of expenses of the aggregate asset exceeding the expenses of the portion ofspecial loan multiplied by the capitalization ratio of the normal borrowings utilized. Capitalizationratio is calculated based on normal weighted average interest rate.19. Biological assets
Nil
20. Oil and gas asset
Nil
21. Intangible assets(1) Valuation method, service life and impairment test
(1) Intangible assets include land use right, patent right and non-patent technology, which should
be initially measured at cost.
(2) Intangible assets with limited service life should be amortized systematically and reasonably in
their service lives as per the expected form of realization economic benefits relating to the saidintangible assets. If the form of realization cannot be reliably determined, the intangible assetsshould be amortized on a straight-line basis.
(3)At the balance sheet date, when there is any indication that the intangible assets with finite
useful lives may be impaired, a provision for impairment loss is recognized on the excess of thecarrying amounts of the assets over their recoverable amounts. Intangible assets with infiniteuseful lives and intangible assets not satisfying the condition for use yet are subject to impairmenttest each year notwithstanding whether the assets are impaired.(2) Internal accounting policies relating to research and development expendituresExpenditure incurred in the research phase of internal R&D shall be included in current gain/lossat the time of occurrence.Intangible assets recognized for expenditure in exploitation stage by satisfying the followed atsame time:
①it is technically feasible that the intangible asset can be used or sold upon completion;②there is intention to complete the intangible asset for use or sale;③the intangible asset can produce economic benefits, including there is evidence that the productsproduced using the intangible asset has a market or the intangible asset itself has a market; if theintangible asset is for internal use, there is evidence that there exists usage for the intangible asset;④there is sufficient support in terms of technology, financial resources and other resources inorder to complete the development of the intangible asset, and there is capability to use or sell theintangible asset;⑤the expenses attributable to the development phase of the intangible asset can be measuredreliably.
22. Impairment of long-term assetsThe Company makes a judgment on whether there is any sign of possible long-term assetsimpairment on the balance sheet date. Where there is a sign indicating potential impairment, theCompany will estimate the recoverable amount. And if the recoverable amount of an asset is lessthan its carrying value, the carrying value shall be written down to the recoverable amount, andthe amount written down shall be recognized as impairment loss and included in current profit orloss. Meanwhile, the Company shall make impairment provision for the asset accordingly.No matter whether there is any sign of possible assets impairment, the goodwill formed by themerger of enterprises and intangible assets with uncertain service lives shall be subject toimpairment test every year.The estimate of the recoverable amount of the assets are determined at the higher of the netamount of the fair value less the disposal expenses and the present value of the estimated futurecash flows.The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate
the recoverable amount of the individual asset, the Group determines the recoverable amount ofthe asset group to which the asset belongs.Once the asset impairment loss is recognized, it will not be reversed in the subsequent periodsAfter the loss of asset impairment has been recognized, the depreciation or amortization expensesof the impaired asset shall be adjusted accordingly in the future periods so as to amortize thepost-adjustment carrying value of the asset systematically (deducting the expected net residualvalue) within the residual service life of the asset.
23. Long-term expenses to be apportionedLong-term expenses to be apportioned are booked by actual amount occurred, and apportionedevenly during the benefit period or regulated period.In case that the long-term deferred expensesare not likely to benefit the subsequent accounting periods, the outstanding value of the item to beamortized shall be included in current profit or loss in full.
24. Employee compensation(1) Accounting treatment for short-term compensationDuring the accounting period when staff providing service to the Company, the actual short-termcompensation occurred shall recognized as liabilities and reckoned into current gains/losses orrelevant assets costs. The non-monetary welfare is measured by fair value.(2) Accounting treatment for post-employment benefitThe post-employment benefit including the defined contribution plans. And defined contributionplans including basic endowment insurance, unemployment insurance and annuity, correspondingpayable amount will reckoned into relevant assets costs or current gains/losses while occurred.
(3) Accounting for retirement benefitsWhen the Company terminates the employment relationship with employees before the end of theemployment contracts or provides compensation as an offer to encourage employees to acceptvoluntary redundancy, the Company shall recognize employee compensation liabilities arisingfrom compensation for staff dismissal and included in profit or loss for the current period, whenthe Company cannot revoke unilaterally compensation for dismissal due to the cancellation oflabor relationship plans and employee redundant proposals; and the Company recognize cost andexpenses related to payment of compensation for dismissal and restructuring, whichever is earlier.
(4) Accounting for other long-term employee benefitsThe employees of the Company have participated in the basic social endowment insuranceorganized and implemented by the local labor and social security department. The Company paysthe endowment insurance premium to the local basic social endowment insurance agency on amonthly basis based on the base and ratio of the local basic social endowment insurance payment.After the retirement of employees, the local labor and social security department has theresponsibility to pay the social basic pension to the retired employees. During the accountingperiod in which employees provide services, the Company recognizes the amount payablecalculated according to the above social security insurance regulations as the liabilities andincludes them in the current profit and loss or related asset costs.25. Accrual liability(1)When the obligations arising from provision of external guarantee, lawsuits, product qualityguarantee and contract loss and other contingent issues become the present obligations of thecompany, the performance of which is likely to result in outflow of benefit from the company andthe amount of which can be measured reliably, the company shall recognize such obligations asprojected liabilities.(2)Projected liabilities are initially measured at the best estimate on the expenses required toperform the relevant present obligation by the Company, and the carrying value of projectliabilities are reviewed on each balance sheet date.26. Share-based payment(1)Types of share-based paymentShare-based payment comprises of equity-settled share-based payment and cash-settledshare-based payment.(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for theinstrument.
2)determined by adoption of valuation technology if there exists no active market, including byreference to the recent arm’s length market transactions between knowledgeable, willing parties,reference to the current fair value of another instrument that is substantially the same, discountedcash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instrumentsTo be determined based on the subsequent information relating to latest change of exercisableemployees.
(4)Accounting relating to implementation, amendment and termination of share-based paymentschemes1)Equity-settled share-based paymentFor equity instruments that may be exercised immediately after the grant, the fair value of suchinstrument shall, on the date of the grant, be recognized in relevant costs or expenses with theincrease in the capital reserve accordingly. For equity-settled share-based payment made in returnfor the rendering of employee services that cannot be exercised until the services are fullyrendered during vesting period or specified performance targets are met, on each balance sheetdate within the vesting period, the services acquired in the current period shall, based on the bestestimate of the number of exercisable instruments, be recognized in relevant costs or expenses andthe capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, suchpayment shall be measured at the fair value of the service as of the acquisition date is the fairvalue can be measured reliably. And if the fair value of the service cannot be measured reliablywhile the fair value of the equity instrument can be measured reliably, it shall be measure at thefair value of the instrument as of the date on which the service is acquired, which shall berecorded in relevant cost or expense with increase in owners’ equity accordingly.2)Cash-settled share-based paymentFor the cash-settled share-based payment that may be exercised immediately after the grant inexchange for render of service by employees, the fair value of the liability incurred by theCompany shall, on the date of the grant, be recognized in relevant costs or expenses and theliabilities shall be increased accordingly. For cash-settled share-based payment made in return forthe rendering of employee services that cannot be exercised until the services are fully providedduring vesting period or specified performance targets are met, on each balance sheet date withinthe vesting period, the services acquired in the current period shall, based on the best estimate ofthe number of exercisable instruments, be recognized in relevant costs or expenses and thecorresponding liabilities at the fair value of the liability incurred by the Company.3)Revision and termination of share-based payment schemesIf the revision results in an increase in the fair value of the equity instruments granted, theCompany shall recognize the increase in the services rendered accordingly at the increased fairvalue of the equity instruments. If the revision results in an increase in the number of equityinstruments granted, the Company will recognize the increase in the services rendered accordinglyat the fair value of the increased number of equity instruments. If the Company revises the vestingconditions on terms favorable to the employees, the Company will take into consideration of therevised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, theCompany shall continue recognize the amount of services rendered accordingly at the fair value ofthe equity instruments on the date of grant without considering the decrease in the fair value of theequity instruments. If the revision results in a decrease in the number of equity instrumentsgranted, the Company will account for such decrease by reducing part of the cancellation of equityinstruments granted. If the Company revises the vesting conditions on terms not favorable to theemployees, the Company will not take into consideration of the revised vesting conditions whendealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments grantedduring the vesting period (other than cancellation as a result of failure to satisfy the vestingconditions), such cancellation or settlement will be treated as accelerated exercisable rights andthe original amount in the remaining vesting period will be recognized immediately.
27. Other financial instruments including senior shares and perpetual bonds(1) Distinguish of senior shares and perpetual bondsThe perpetual bonds and senior shares issued by the Company are treated as equity instrumentssubject to satisfaction of all the below conditions:
①the financial instrument excludes delivery of cash or other financial assets to others, orexchange for contractual obligations on financial assets or financial liabilities with others underpotential negative conditions;②if its own equity instruments are required or may be used to settle the financial instruments, itexcludes the contractual obligation to deliver varied numbers of own equity instruments forsettlement provided that the financial instruments are non-derivatives; if the financial instrumentsare derivatives, the Company can only settle the financial instruments by fixed number of ownequity instruments for exchange for fixed amount of cash or other financial assets.
Other than the financial instruments which can be classified as equity instruments under the aboveconditions, other financial instruments issued by the Company shall be classified as financialliabilities.
In case that financial instruments issued by the Company are compound financial instruments,they shall be recognized as liabilities at the fair value of liabilities portion. The actual amountreceived less fair value of the liabilities portion shall be recognized as other equity instrument.Transaction expenses occurred in issuance of compound financial instruments are allocated to theportions of liabilities and equities according to their respective proportion to the total issuance
price.(2) Accounting for perpetual bonds and senior sharesFor perpetual bonds and senior shares classified into financial liabilities, their relevant interest,dividends, gains or losses and gains or losses arising from redemption or refinancing are allincluded in current profit or loss other than those borrowing expenses which meet condition forcapitalization (please refer to Note V-18 “borrowing expenses”).For perpetual bonds and senior shares classified into equity instruments, their issuance (includingrefinancing), repurchase, sale or cancel are treated as change of equity, and relevant transactionfees are also deducted from equity. The Company accounts for allocation of holders of equityinstruments as profit distribution.
The Company dose not recognizes change of fair value of equity instruments.28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Sales of goods
Income from sale of goods is recognized when the following conditions are met: 1)the Companyhas transferred the key risks and return on the ownership of the merchandize to the buyer; 2)theCompany has not retained continued management rights associated with ownership and no longerexercises effective control on the merchandize sold; 3)the amount of income can be reliablymeasured; 4)the relevant economic benefits are very likely to flow to the enterprise; 5)the costsincurred or to be incurred can be reliably measured.Timing for recognition of revenue of the Company from products sales: revenue is recognizedupon delivery of products to and confirmed by purchaser with signature.
(2)Rendering of services
When the outcome of the transaction can be estimated reliably, revenue from rendering of servicesis recognized using the percentage of completion method. When the outcome of the transactioncannot be estimated reliably at the balance sheet date, revenue is recognized based on the amountof the costs incurred and the costs incurred are charged off at the same amount when the costsincurred are expected to be recoverable; and no revenue is recognized and the costs incurred arecharged off as an expense of the period when the costs incurred are not expected to be recovered.(3)Transfer of asset use right revenueWhen the economic benefits related to the transaction is likely to flow to the Company and theincome
amount can be reliably calculated, the Company shall recognize income arising fromtransfer of asset use right.The income of interests is determined on basis of the time and real
interest rate of the Company’s
cash funds which is utilized by other persons.The income ofroyalties is determined on basis of the chargeable time and method fixed under relevantagreement or contract.
29. Government Grants
(1) Government grants including those relating to assets and relating to income(2)government grant, if granted as monetary assets, are measured at the amount received or
receivable, and measured at fair value if granted as non-monetary assets. If the fair value can notbe determined reliably, they shall be measured at nominal value.
(3) Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded
in profit or loss by installment reasonably and systematically within the useful life of the assets. Ifassets are sold, transferred, discarded as useless or damaged prior to expiration of the useful life,the remaining deferred income undistributed shall be transferred to profit or loss for the period inwhich the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the
subsequent periods, they shall be recognized as deferred income, and recorded in profit or loss forthe period in which the relevant costs are recognized. If government grants relating to income areused to compensate for the relevant costs or loss occurred, they shall be recorded in profit or lossfor the period directly.(4)Net method for government grants
1) Government grants relating to assets are used to write off the carrying value of the relevant
assets;
2) If government grants relating to income are used to compensate for relevant costs or loss for the
subsequent periods, they shall be recognized as deferred income, and recorded in profit or loss forthe period in which offset against the relevant costs. If government grants relating to income areused to compensate for the relevant costs or loss occurred, they shall be offset against the relevantcosts for the period directly.(5)The Company adopts aggregated accounting method for the government grants received.(6)As for the government grants comprising both portions relating to assets and income, separateaccounting shall be made for different portion; in case it is hard to differentiate the portions, thegrants will be recorded as related to income in general.(7)The Company realizes government grants relating to its normal activities as other incomebased on the substance of economic business, and if not related to its normal activities, realized asnon-operating income and expenditure.(8)Subsidized loans from preferential policy obtained by the Company are classified based onwhether subsidy funds are paid to the loaning bank or directly to the Company by the competent
financial authorities and are treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and thebank then provides loans to the Company at a preferential policy rate, accounting shall be made bythe Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, andcalculates the relevant borrowing costs based on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing costunder effective interest method, and recognizes the difference between the actual amount receivedand the fair value of the loan as deferred income. Deferred income is amortized over the term ofthe loan under effective interest method and offset against the relevant borrowing costs.2)Where subsidy funds are paid directly to the Company, the Company will offset thecorresponding subsidy against the relevant borrowing expenses.30. Deferred income tax assets/Deferred income tax liabilities(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the
difference between the carrying amount and tax base of assets and liabilities (and thedifference of the carrying amount and tax base of items not recognized as assets and liabilitiesbut with their tax base being able to be determined according to tax laws) and in accordancewith the tax rate applicable to the period during which the assets are expected to be recoveredor the liabilities are expected to be settled.(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is
most likely to obtain and which can be deducted from the deductible temporary difference. Atthe balance sheet date, if there is any exact evidence that it is probable that future taxable profitswill be available against which deductible temporary differences can be utilized, the deferredtax assets unrecognized in prior periods are recognized.(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying
amount of a deferred tax asset is reduced to the extent that it is no longer probable thatsufficient taxable profits will be available to allow the benefit of the deferred tax asset to beutilized. Such reduction is subsequently reversed to the extent that it becomes probable thatsufficient taxable income will be available.(4)The income tax and deferred tax for the period are treated as income tax expenses or income
through profit or loss, excluding those arising from the following circumstances: ① businesscombination; and ② the transactions or items directly recognized in equity.
31. Lease(1)Accounting for operating leaseWhen the Company is the lessee, lease payments are recognized as cost or profit or loss withstraight-line method over the lease term. Initial expenses are recognized directly into profit or loss.Contingent rents are charged as profit or loss in the periods in which they are incurred.When the Company is the lessor, lease income is recognized as profit or loss with straight-linemethod over the lease term. Initial expenses, other than those with material amount and eligiblefor capitalization which are recognized as profit or loss by installments, are recognized directly asprofit or loss. Contingent rents are charged into profit or loss in the periods in which they areincurred.(2)Accounting for financing leaseWhen the company acts as lessee, at the inception of lease, the lower of fair value of leased assetsat the inception of lease and the present value of minimum lease payment is recognized as thevalue of leased assets. The minimum lease payment is recognized as the value of long-termpayable. Their difference is recorded as unrecognized finance costs with any initial direct expenseincurred recorded in the value of leased assets. For each period of the lease term, current financecost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income atthe inception of lease and the initial direct expense is recognized as the value of finance leasepayment receivable, with unsecured balance also recorded. The difference between the sum ofminimum lease income, initial direct expense and unsecured balance and the sum of their presentvalues is recognized as unrealized finance income. For each period of the lease term, currentfinance income is calculated using effective interest method.
32. Other important accounting policy and estimationDiscontinued operation refers to the operation disposed or classified as held-for-sale by theCompany and presented separately under operation segments and financial statements, which hasfulfilled one of the following criteria:
(1) it represents an independent key operation or key operating region;(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal inkey operating region; or(3) it only establishes for acquisition of subsidiary through disposal.
Accounting for discontinued operation is set out in note V-13 “classified as assets held for sale”.
33. Major accounting policy and changes(1) Main accounting policy changes
√ Applicable □ Not applicable
| The contents and reasons of accounting policy changes | Examination and approval procedures | Note |
| Account receivable and Note receivable are merged into “Note receivable and account receivable” | In consolidate balance sheet, the Note receivable and Account receivable has ending amount of 29,007,509.02 yuan, while amount at beginning of the period was 30,507,775.21 yuan. | |
| Note payable and Account payable are merged into “Note payable and account payable” | In consolidate balance sheet, the Note payable and account payable has ending amount of 11,979,010.69 yuan, while amount at beginning of the period was 12,408,197.27 yuan |
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
34. Other
Nil
VI. Taxes
1. Main tax category and tax rate
| Tax category | Tax calculation evidence | Tax rate |
| Value added tax | Sales of goods, taxable labor service revenue, taxable income, intangible assets income and income from property leasing | 5%. 6%. 16%. 17% |
| Tax for maintaining and building cities | Turnover tax payable | 7% |
| Enterprise income tax | Taxable income | 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
| Property tax | 70% of the original value for property | 1.2% |
| Stamp tax | Amount of the contract for purchasing and sales | 0.03% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
2. Tax preference
Nil
3. OtherAccording to the Notice of the Ministry of Finance and the State Administration of Taxation onAdjusting the Value-Added Tax Rate “CS [2018] No. 32”, from May 1, 2018, taxpayers havingVAT taxable sales or importing goods, which was originally applicable to 17% and 11% tax rate,the tax rate is adjusted to 16% and 10%. The rate of value-added tax of the Company and itssubsidiaries has been adjusted to 16% since May 1, 2018.
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Cash on hand | 126,486.63 | 100,034.87 |
| Cash in bank | 16,305,989.07 | 18,837,402.11 |
| OtherMonetary fund | 2,056,410.56 | 9,048,217.26 |
| Total | 18,488,886.26 | 27,985,654.24 |
| Including: total payments deposited abroad | 0.00 | 0.00 |
Other explanationOther monetary fund with restricted application purposes at period-end amounted as 2,000,000.00 Yuan, refers tothe cash deposit for bank acceptance.
2. Financial assets measured by fair value and with variation reckoned into currentgains/losses
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
3. Derivative financial assets
□ Applicable √ Not applicable
4. Note receivable and account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Note receivable | 1,500,000.00 | |
| Account receivable | 29,007,509.02 | 29,007,775.21 |
| Total | 29,007,509.02 | 30,507,775.21 |
(1) Note receivable
1) Category of note receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Bank acceptance | 1,500,000.00 | |
| Total | 1,500,000.00 |
2)Notes receivable already pledged by the Company at the end of the period
In RMB
| Item | Amount pledge at period-end |
| Bank acceptance | 0.00 |
| Bank acceptance bill | 0.00 |
| Total | 0.00 |
3)Notes endorsement or discount and undue on balance sheet date
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Bank acceptance | 46,548,529.37 | |
| Total | 46,548,529.37 | 0.00 |
4)Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
| Item | Amount transfer to receivable at period-end |
| Total | 0.00 |
Other explanationNil
(2) Account receivable
1)Category of account receivable
In RMB
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debts provision | Book value | Book balance | Bad debts provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics | 29,860,222.34 | 92.34% | 1,230,837.51 | 4.12% | 28,629,384.83 | 30,247,962.05 | 95.95% | 1,240,186.84 | 4.10% | 29,007,775.21 |
| Accounts with single minor amount but with bad debts provision accrued individually | 2,477,485.20 | 7.66% | 2,099,361.01 | 84.74% | 378,124.19 | 1,278,283.50 | 4.05% | 1,278,283.50 | 100.00% | |
| Total | 32,337,707.54 | 100.00% | 3,330,198.52 | 10.30% | 29,007,509.02 | 31,526,245.55 | 100.00% | 2,518,470.34 | 7.99% | 29,007,775.21 |
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicableIn combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Account age | Balance at period-end | ||
| Account receivable | Bad debts provision | Accrual ratio | |
| Within one year | |||
| Within one year | 28,226,004.53 | 84,678.01 | 0.30% |
| Subtotal within one year | 28,226,004.53 | 84,678.01 | 0.30% |
| 1-2 years | 488,301.90 | 1,464.91 | 0.30% |
| 2-3 years | 1,225.00 | 3.68 | 0.30% |
| Over 5 years | 1,144,690.91 | 1,144,690.91 | 100.00% |
| Total | 29,860,222.34 | 1,230,837.51 | 4.12% |
Explanations on combination determine:
NilIn combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil2) Bad debt provision accrual collected or switch backBad debt provision accrual was 1,030,846.18 Yuan; the amount collected or switches back amounting to219,118.00 Yuan
Important bad debt provision collected or switch back:
In RMB
| Enterprise | Collected or switch back amount | Collection way |
| Shijiazhuang Dasong Tech. Co., Ltd | 219,118.00 | Returned money |
| Total | 219,118.00 | -- |
3)Account receivable actual charge off in the Period
In RMB
| Item | Amount written off |
| 实际核销的Account receivable | 8,210.75 |
Written-off for the major receivable:
In RMB
| Enterprise | Nature of account receivable | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil4)Top 5 receivables at ending balance by arrears party
| Enterprise | Relationship with the company | Amount | Account age | Bad debts provision | Ratio in total receivables (%) | Nature |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | Non-related party | 5,772,755.17 | Within one year | 17,318.27 | 17.85 | Payment for goods |
| Zhengzhou Guiguan Tech. Trade. Co., Ltd | Non-related party | 5,333,141.05 | Within one year | 15,999.42 | 16.49 | Payment for goods |
| Jinan Yuxintai Sales Co., Ltd. | Non-related party | 5,280,959.55 | Within one year | 15,842.88 | 16.33 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Non-related party | 4,056,480.65 | Within one year | 12,169.44 | 12.54 | Payment for goods |
| Fu Qi | Non-related | 2,457,269.40 | Within two | 7,371.81 | 7.60 | Paymen |
| party | years | t for goods | ||||
| Total | 22,900,605.82 | 68,701.82 | 70.81 |
5)Receivable derecognition due to transfer of financial assetsNil6)Assets and liability resulted by receivable transfer and continuous involvementNilOther explanation:
Nil
5. Account paid in advance
(1) Listed by account age
In RMB
| Account age | Balance at period-end | Balance at period-begin | ||
| Amount | Ratio | Amount | Ratio | |
| Within one year | 13,799,753.60 | 100.00% | 2,482,276.54 | 100.00% |
| Total | 13,799,753.60 | -- | 2,482,276.54 | -- |
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
| Enterprise | Relationship with the company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
| Zhaoqing Kaisite Battery Material Co., Ltd. | Non-related party | 13,798,452.48 | Within one year | Prepayments for raw materials | 99.99 |
| Shenzhen JFM Package Material Co., Ltd. | Non-related party | 1,301.12 | Within one year | Prepayments for raw materials | 0.01 |
| Total | 13,799,753.60 | 100.00 |
Other explanation:
Nil
6. Other account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Other account receivable | 844,537.19 | 659,706.81 |
| Total | 844,537.19 | 659,706.81 |
(1) Interest receivable
1)Category of interest receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
2)2)Major overdue interest
In RMB
| Borrower | Balance at period-end | Overdue time | Overdue cause | Whether the impairment occurs and its judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
(2) Dividend receivable
1)Dividend receivable
In RMB
| Item(或The invested enterprise) | Balance at period-end | Balance at period-begin |
2)Important dividends payable with account age over one year
In RMB
| Item(或The invested enterprise) | Balance at period-end | Account age | Un-recovered reasons | Whether the impairment occurs and its judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
(3) Other account receivable
1)Other accounts receivable by category
In RMB
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debts provision | Book value | Book balance | Bad debts provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables with bad debt provision accrual by credit portfolio | 1,331,920.95 | 100.00% | 487,383.76 | 36.59% | 844,537.19 | 1,130,591.40 | 100.00% | 470,884.59 | 41.65% | 659,706.81 |
| Total | 1,331,920.95 | 100.00% | 487,383.76 | 36.59% | 844,537.19 | 1,130,591.40 | 100.00% | 470,884.59 | 41.65% | 659,706.81 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period□ Applicable √ Not applicableIn combination, other accounts receivable whose bad debts provision was accrued by age analysis√ Applicable □ Not applicable
In RMB
| Account age | Balance at period-end | ||
| Other account receivable | Bad debts provision | Accrual ratio | |
| Within one year | |||
| Within one year | 624,378.43 | 1,873.14 | 0.30% |
| Subtotal within one year | 624,378.43 | 1,873.14 | 0.30% |
| 1-2 years | 181,000.00 | 543.00 | 0.30% |
| 2-3 years | 41,700.00 | 125.10 | 0.30% |
| Over 3 years | 484,842.52 | 484,842.52 | 100.00% |
| 3-4 years | 15,943.00 | 15,943.00 | 100.00% |
| 4-5 years | 20,164.00 | 20,164.00 | 100.00% |
| Over 5 years | 448,735.52 | 448,735.52 | 100.00% |
| Total | 1,331,920.95 | 487,383.76 | 36.59% |
Explanations on combination determine:
NilIn combination, withdrawal proportion of bad debt provision based on balance proportion for other accountreceivable:
□ Applicable √ Not applicableIn combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable2) Bad debt provision accrual collected or switch backBad debt provision accrual was 16,499.17 Yuan; the amount collected or switches back amounting to 0.00 Yuan
Important bad debt provision collected or switch back:
In RMB
| Enterprise | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Enterprise | Nature of other receivables | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of other receivables:
Nil4)Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Deposit or margin | 783,672.00 | 628,997.24 |
| Equipment fund | 311,400.00 | 311,400.00 |
| Staff personal loans | 31,098.50 | 49,098.50 |
| Other | 205,750.45 | 141,095.66 |
| Total | 1,331,920.95 | 1,130,591.40 |
5)Top 5 other receivables at ending balance by arrears party
In RMB
| Enterprise | Nature | Balance at period-end | Account age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd. | Equipment fund | 300,000.00 | Over 5 years | 22.52% | 300,000.00 |
| Shenzhen Anjingheng Industrial Co., Ltd. | Deposit and margin | 266,000.00 | Within one year | 19.97% | 798.00 |
| Shenzhen Material Group Co., Ltd. | Deposit and margin | 181,918.00 | Within one year | 13.66% | 545.75 |
| Alipay (China) Network Technology Co., Ltd. | Deposit and margin | 170,000.00 | Within two years | 12.76% | 510.00 |
| Tianjin Lvchi E-Business Co., Ltd. | Service charge | 79,850.93 | Within one year | 6.00% | 239.55 |
| Total | -- | 997,768.93 | -- | 74.91% | 302,093.30 |
6)Account receivable with government grants involved
In RMB
| Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
Nil7)Other account receivable derecognition due to financial assets transferNil8)Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
7. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Category of inventory
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Raw materials | 388,818.51 | 23,015.17 | 365,803.34 | 566,193.56 | 27,465.37 | 538,728.19 |
| Finished goods | 2,382,433.75 | 361,633.15 | 2,020,800.60 | 2,233,386.81 | 4,450.20 | 2,228,936.61 |
| Goods shipped in transit | 9,509.83 | 9,509.83 | ||||
| Total | 2,771,252.26 | 384,648.32 | 2,386,603.94 | 2,809,090.20 | 31,915.57 | 2,777,174.63 |
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of ShenzhenStock Exchange No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or notNoDoes the Company comply with the disclosure requirement of “Information Disclosure Guidelines of ShenzhenStock Exchange No.11 – Listed Companies Engaged in Jewelry Related Business” or notNo
(2) Inventory depreciation reserve
In RMB
| Item | Balance at period-begin | Current period increased Amount | Current period decreased Amount | Balance at period-end | ||
| Accrual | Other | Switch back or write-off | Other | |||
| Raw materials | 27,465.37 | 4,450.20 | 23,015.17 | |||
| Finished goods | 4,450.20 | 364,088.31 | 6,905.36 | 361,633.15 | ||
| Total | 31,915.57 | 364,088.31 | 11,355.56 | 384,648.32 | ||
During normal production, the cash realizable value of inventories directly for sale, such as merchants andmaterials for sale is accounted according to the estimated price less the estimated sales expenses and taxes. Duringnormal production, the cash realizable value of materials to be processed is accounted according to the estimatedprice of finished product less the estimated cost, sales expenses and taxes. For inventories with purpose ofimplementing sales contract or labor contract, the cash realizable value is based on the contract price; if theinventories held exceed the ordered amount specified in the contract, the cash realizable value of surplus part isaccounted based on the market price.
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
| Item | Amount |
Other explanation:
Nil
8. Assets held for sale
In RMB
| Item | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
| Total | 0.00 | 0.00 | 0.00 | -- |
Other explanation:
Nil
9. Non-current asset due within one year
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
10. Other current assets
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Prepaid intermediary fee | 1,792,452.81 | 1,792,452.81 |
| Prepaid tax | 473,788.85 | 12,974.36 |
| Total | 2,266,241.66 | 1,805,427.17 |
Other explanation:
Prepaid intermediary fee refers to the prepaid, which paid to the intermediary organ as securities, auditing andevaluation (according to the service contract), for preparation of privately placement, and the money is notincluded in current gains/losses yet.
11. Finance asset available for sales(1) Finance asset available for sales
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Financial assets available for sale measured by fair value at period-end
In RMB
| Finance asset available for sales | Equity instrument available for sale | Debt instrument available for sale | Total | |
| Cost /liability of equity instrument/ amortization cost of debt instrument | 0.00 | |||
| Fair value | 0.00 | |||
| Amount of fair value changes that accumulatively reckoned in other comprehensive gains | 0.00 | |||
| Amount with impairment accrual | 0.00 |
(3) Financial assets available for sale measured by cost at period-end
In RMB
| The invested enterprise | Book balance | Impairment | Ratio of share-holding in invested entity | Current cash dividend | ||||||
| Period-beginning | Current period increased | Current period decreased | Period-end | Period-beginning | Current period increased | Current period decreased | Period-end | |||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | 0.00 |
(4) Changes of impairment in Period
In RMB
| Finance asset available for sales | Equity instrument available for sale | Debt instrument available for sale | Total | |
| Balance of impairment accrual at period-begin | 0.00 | |||
| Current accrual | 0.00 | |||
| Including: transfer-in from other comprehensive income | 0.00 | |||
| Current period decreased | 0.00 | |||
| Including: switch back due to fair value rebound at period-end | 0.00 | |||
| Balance of impairment accrual at period-end | 0.00 |
(5) Fair value of equity instrument available for sale sharply declined orother-than-temporary declined at period-end without depreciation reserves accrual
In RMB
| Equity instrument available for sale | Investment cost | Ending fair value | Fair value declined relative to cost | Time of drops persistently (month) | Amount with impairment accrual | Reasons for un-accrual |
| Total | 0.00 | 0.00 | -- | -- | 0.00 | -- |
Other explanationNil
12. Held-to-maturity investment(1) Held-to-maturity investment
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Important held-to-maturity investment at period-end
In RMB
| Bond | Face value | Coupon value | Actual rate | Maturity date |
| Total | 0.00 | -- | -- | -- |
(3) Held-to-maturity investment reclassify in the Period
NilOther explanationNil
13. Long-term account receivable(1) Long-term account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin | Discount rate section | ||||
| Book balance | Bad debts provision | Book value | Book balance | Bad debts provision | Book value | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | -- | ||
(2) Long-term account receivable derecognition due to transfer of financial assets
Nil
(3) Assets and liability resulted by long-term account receivable transfer and continuousinvolvement
NilOther explanationNil
14. Long-term equity investment
In RMB
| The invested enterprise | Balance at period-begin | Current period changes +,- | Balance at period-end | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Affiliated enterprise | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
15. Investment real estate(1) Investment real estate measured at cost
□ Applicable √ Not applicable
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property rights certificate
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanationNil
16. Fixed assets
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Fixed assets | 3,502,807.32 | 3,941,117.97 |
| Total | 3,502,807.32 | 3,941,117.97 |
(1) Fixed assets
In RMB
| Item | Housing buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
| I. original book value: | |||||
| 1.Balance at period-begin | 2,959,824.00 | 416,629.06 | 958,593.21 | 684,394.50 | 5,019,440.77 |
| 2.Current period increased Amount | 17,293.82 | 17,293.82 | |||
| (1) Purchase | 17,293.82 | 17,293.82 | |||
| (2) construction in process transfer-in | |||||
| (3) the increase in business combination | |||||
| 3.Current period decreased Amount | 475,800.00 | 475,800.00 | |||
| (1)Disposal or scrap | 475,800.00 | 475,800.00 | |||
| 4.Balance at period-end | 2,959,824.00 | 416,629.06 | 958,593.21 | 225,888.32 | 4,560,934.59 |
| II. accumulated depreciation | |||||
| 1.Balance at period-begin | 199,788.12 | 109,246.12 | 269,780.13 | 499,508.43 | 1,078,322.80 |
| 2.Current period increased Amount | 133,192.08 | 37,496.64 | 172,546.80 | 26,638.90 | 369,874.42 |
| (1) provision | 133,192.08 | 37,496.64 | 172,546.80 | 26,638.90 | 369,874.42 |
| 3.Current period decreased Amount | 390,069.95 | 390,069.95 | |||
| (1)Disposal or | 390,069.95 | 390,069.95 |
| scrap | |||||
| 4.Balance at period-end | 332,980.20 | 146,742.76 | 442,326.93 | 136,077.38 | 1,058,127.27 |
| III. Impairment | |||||
| 1.Balance at period-begin | |||||
| 2.Current period increased Amount | |||||
| (1) provision | |||||
| 3.Current period decreased Amount | |||||
| (1)Disposal or scrap | |||||
| 4.Balance at period-end | |||||
| IV. Book value | |||||
| 1.Ending book value | 2,626,843.80 | 269,886.30 | 516,266.28 | 89,810.94 | 3,502,807.32 |
| 2.Opening book value | 2,760,035.88 | 307,382.94 | 688,813.08 | 184,886.07 | 3,941,117.97 |
(2) Fixed assets temporary idle
In RMB
| Item | original book value: | Accumulated depreciation | Impairment | Book value | Note |
(3) Fixed assets leased through operating lease
In RMB
| Item | original book value: | Accumulated depreciation | Impairment | Book value |
(4) Fixed assets leased through operating lease
In RMB
| Item | Ending book value |
(5) Fixed assets without property rights certificate
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Six properties in Lianxin Garden | 2,626,843.80 | The six properties of Lianxin Garden with original value of 2,959,824.00 Yuan. The property purchasing refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. According to the agreement, the enterprise shall not carrying any kind of property trading with any units or individuals except the government, and the company has no property certification on the above mentioned properties. |
Other explanation
No accrual for impairment provision due to there was no evidence of impairment being found infixed assets at period-end
(6) Fixed assets disposal
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanationNil
17. Construction in progress
In RMB
| Item | Balance at period-end | Balance at period-begin |
(1) Construction in progress
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Changes in significant construction in progress
In RMB
| Item | Budget | Opening balance | increased in the Period | Fixed assets transfer-in in the Period | Other decreased in the Period | Ending balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | 0.00 | 0.00 | 0.00% | -- |
(3) Depreciation reserves accrual
In RMB
| Item | Current accrual amount | Reasons for accrual |
| Total | 0.00 | -- |
Other explanationNil
(4) Engineering materials
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
Other explanation:
Nil
18. Productive biological asset(1) Productive biological assets measured by cost
□ Applicable √ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
19. Oil and gas asset
□ Applicable √ Not applicable
20. Intangible assets
(1) Intangible assets
In RMB
| Item | Land use right | Patent | Non-patent technology | Trademark | Total |
| I. original book value: | |||||
| 1.Balance at period-begin | 5,271,000.00 | 5,271,000.00 | |||
| 2.Current period increased Amount | |||||
| (1) Purchase | |||||
| (2) internal R & D | |||||
| (3) the increase in business combination | |||||
| 3.Current period decreased Amount | |||||
| (1) Disposal | |||||
| 4.Balance at period-end | 5,271,000.00 | 5,271,000.00 | |||
| II. accumulated depreciation | |||||
| 1.Balance at period-begin | 3,012,000.00 | 3,012,000.00 | |||
| 2.Current period increased Amount | 753,000.00 | 753,000.00 | |||
| (1) provision | 753,000.00 | 753,000.00 |
| 3.Current period decreased Amount | |||||
| (1) Disposal | |||||
| 4.Balance at period-end | 3,765,000.00 | 3,765,000.00 | |||
| III. Impairment | |||||
| 1.Balance at period-begin | |||||
| 2.Current period increased Amount | |||||
| (1) provision | |||||
| 3.Current period decreased Amount | |||||
| (1) Disposal | |||||
| 4.Balance at period-end | |||||
| IV. Book value | |||||
| 1.Ending book value | 1,506,000.00 | 1,506,000.00 | |||
| 2. Opening book value | 2,259,000.00 | 2,259,000.00 |
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
Other explanation:
Nil
21. Expense on Research and Development
In RMB
| Item | Balance at period-begin | Current period increased Amount | Current period decreased Amount | Balance at period-end | ||||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
22. Goodwill(1) Original book value of goodwill
In RMB
| The invested entity or items | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(2) Goodwill Impairment
In RMB
| The invested entity or items | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Information about the asset group or asset group combination in which the goodwill is locatedNilExplain the method of confirming the goodwill impairment test process, key parameters (such as the forecastperiod growth rate, stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating thepresent value of future cash flow), and the impairment loss of goodwill :
NilImpact of impairment test for goodwillNilOther explanationNil
23. Long-term expenses to be apportioned
In RMB
| Item | Balance at period-begin | Current period increased Amount | Amortized in the Period | Other decrease | Balance at period-end |
| Total | 0.00 | 0.00 | 0.00 |
Other explanationNil
24. Deferred income tax assets/Deferred income tax liabilities(1) Deferred income tax assets un-offset
In RMB
| Item | Balance at period-end | Balance at period-begin | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debts provision | 944,459.10 | 3,777,836.40 | 733,849.82 | 2,935,399.29 |
| Inventory falling price reserves | 96,162.08 | 384,648.32 | 7,978.89 | 31,915.57 |
| Total | 1,040,621.18 | 4,162,484.72 | 741,828.71 | 2,967,314.86 |
(2) Deferred income tax liabilities un-offset
In RMB
| Item | Balance at period-end | Balance at period-begin | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 1,040,621.18 | 741,828.71 |
(4) Details of unrecognized deferred income tax assets
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Total | 0.00 | 0.00 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followedyear
In RMB
| Year | Ending amount | Opening amount | Note |
| Total | 0.00 | 0.00 | -- |
Other explanation:
As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assetsand deferred income tax liabilities shall be measured at the tax rate applicable in the period in which the assets areexpected to be recovered or liabilities are expected to be settled according to relevant tax laws on the balance sheetdate. The tax rate adopted by the Company in calculating deferred income tax assets is 25% for both parentcompany and subsidiaries.
25. Other non-current assets
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Advance payment for house | 400,000.00 | 400,000.00 |
| Total | 400,000.00 | 400,000.00 |
Other explanation:
In 2016, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to ShenzhenHousing and Construction Bureau of Luohu District, up to 31
st
December 2018, payment are not paid by ShenzhenHousing and Construction Bureau of Luohu District yet
26. Short-term loans
(1) Short-term loans
In RMB
| Item | Balance at period-end | Balance at period-begin |
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
| Borrower | Balance at period-end | Lending rate | Overdue time | Overdue rate |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
27. Financial liability measured by fair value and with variation reckoned into currentgains/losses
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
28. Derivative financial liability
□ Applicable √ Not applicable
29. Note payable and account payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Note payable | 2,000,000.00 | 8,480,000.00 |
| Account payable | 9,979,010.69 | 3,928,197.27 |
| Total | 11,979,010.69 | 12,408,197.27 |
(1) Category of note payable
In RMB
| Category | Balance at period-end | Balance at period-begin |
| Bank acceptance | 2,000,000.00 | 8,480,000.00 |
| Total | 2,000,000.00 | 8,480,000.00 |
Notes expired at period-end without paid was Yuan.
(2) Account payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Within one year(one year included) | 9,713,137.52 | 3,638,705.30 |
| 1-2 years(2 years included) | 7,099.50 | 137,423.41 |
| 2-3 years (3 years included) | 137,423.41 | 3,084.95 |
| 3-4 years (4 years included) | 2,366.00 | |
| Over 5 years | 118,984.26 | 148,983.61 |
| Total | 9,979,010.69 | 3,928,197.27 |
(3) Important account payable with account age over one year
In RMB
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
Other explanation:
No important account payable with account age over one year at end of the Period30. Account received in advance(1) Account received in advance
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Within one year(one year included) | 371,039.28 | 1,211,804.44 |
| 1-2 years(2 years included) | 3,469.60 | 19,777.88 |
| 2-3 years (3 years included) | 2,080.00 | 36,897.00 |
| Over 3 years | 29,191.00 | |
| Total | 405,779.88 | 1,268,479.32 |
(2) Account received in advance with over one year book age
In RMB
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
(3) Projects that settle without completed from construction contract at period-end
In RMB
| Item | Amount |
Other explanation:
Nil
31. Wage payable
(1) Wage payable
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| I. Short-term compensation | 706,703.40 | 6,292,582.05 | 6,563,549.29 | 435,736.16 |
| II. Post-employment benefit – defined contribution plan | 410,459.99 | 410,459.99 | ||
| Total | 706,703.40 | 6,703,042.04 | 6,974,009.28 | 435,736.16 |
(2) Short-term compensation
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| 1. Wages , bonuses, allowances and subsidies | 699,994.68 | 5,425,458.24 | 5,696,710.60 | 428,742.32 |
| 2. Welfare for workers and staff | 230,198.50 | 230,198.50 | ||
| 3. Social insurance | 186,647.70 | 186,647.70 | ||
| Including: Medical insurance | 162,830.82 | 162,830.82 | ||
| Work injury insurance | 10,749.72 | 10,749.72 | ||
| Maternity insurance | 13,067.16 | 13,067.16 | ||
| 4. Housing accumulation fund | 360,199.04 | 360,199.04 | ||
| 5. Labor union expenditure and personnel education expense | 6,708.72 | 78,333.33 | 78,048.21 | 6,993.84 |
| Other short term pay absenteeism | 11,745.24 | 11,745.24 | ||
| Total | 706,703.40 | 6,292,582.05 | 6,563,549.29 | 435,736.16 |
(3) Defined contribution plans
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| 1. Basic endowment insurance | 399,118.96 | 399,118.96 | ||
| 2. Unemployment insurance | 11,341.03 | 11,341.03 | ||
| Total | 410,459.99 | 410,459.99 |
Other explanation:
Nil
32. Taxes payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Value-added tax | 5,716,531.88 | 3,391,621.62 |
| Enterprise income tax | 339,193.85 | |
| Individual income tax | 25,288.27 | 23,164.05 |
| Urban maintenance and construction tax | 325,396.78 | 7,615.81 |
| House property tax | 45,070.60 | |
| Educational surtax | 227,569.65 | 620.94 |
| Stamp tax | 2,309.70 | |
| Total | 6,297,096.28 | 3,807,286.87 |
Other explanation:
Nil
33. Other account payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Other account payable | 37,144,872.42 | 36,508,323.90 |
| Total | 37,144,872.42 | 36,508,323.90 |
(1) Interest payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
Interest overdue without paid:
In RMB
| Borrower | Amount overdue | Overdue cause |
| Total | 0.00 | -- |
Other explanation:
Nil
(2) Dividend payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1)Classification of other payable according to nature of account
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Custodian and common benefit debts | 18,853,692.84 | 18,919,942.85 |
| Intercourse funds | 6,500,000.00 | 6,500,000.00 |
| Warranty and guarantee money | 9,767,553.26 | 9,615,020.00 |
| Other payable service charge (intermediary services included) | 801,237.74 | 707,252.91 |
| Other | 1,222,388.58 | 766,108.14 |
| Total | 37,144,872.42 | 36,508,323.90 |
2)Significant other payable with over one year age
In RMB
| Item | Balance at period-end | Reasons of un-paid or carry-over |
| Custodian and common benefit debts | 18,853,692.84 | |
| Margin and quality deposit | 8,000,000.00 | Performance bond |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | Interest-free loans |
| Total | 33,353,692.84 | -- |
Other explanation
Top 5 other receivables at period-end
| Enterprise | Relationship with the | Amount | Ratio in total other receivables (%) | Nature |
| company | ||||
| Custodian and common benefit debts | Non-related party | 18,853,692.84 | 50.76 | Obligatory right of common benefit |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | Related party | 6,500,000.00 | 17.50 | Interest-free loans |
| Shenzhen Ruian Information Technology Enterprise (LP) | Non-related party | 2,500,000.00 | 6.73 | Cash deposit |
| Wansheng Industrial Holdings (Shenzhen) Co., Ltd. | Non-related party | 2,000,000.00 | 5.38 | Cash deposit |
| Shenzhen Zhisheng Hi-Tech Enterprise (LP) | Non-related party | 2,000,000.00 | 5.38 | Cash deposit |
| Total | 31,853,692.84 | 85.75 |
34. Liability held for sale
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
35. Non-current liabilities due within one year
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
36. Other current liabilities
In RMB
| Item | Balance at period-end | Balance at period-begin |
Changes of short-term bond payable:
In RMB
| Bond | Face value | Release date | Bond period | Issuing amount | Opening balance | Issued in the Period | Accrual interest by face value | Premium/discount amortization | Paid in the Period | Ending balance | |
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanation:
Nil
37. Long-term loans(1) Classification of long-term loans
In RMB
| Item | Balance at period-end | Balance at period-begin |
Explanation:
NilOther explanation, including interest rate section:
Nil
38. Bonds payable
(1) Bonds payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
(2) Changes of bonds payable (not including the other financial instrument of preferredstock and perpetual capital securities that classify as financial liability)
In RMB
| Total | -- | -- | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-endNilChanges of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | Current period increased | Current period decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Total | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 | 0 | 0.00 |
Basis for financial liability classification for other financial instrumentNil
Other explanationNil
39. Long-term account payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
(1) Nature of long-term account payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
(2) Special payments
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end | Causes of formation |
| Total | 0.00 | 0.00 | -- |
Other explanation:
Nil
40. Long-term wages payable
(1) Long-term wages payable
In RMB
| Item | Balance at period-end | Balance at period-begin |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
| Item | Current Period | Last Period |
Scheme assets:
In RMB
| Item | Current Period | Last Period |
Net liability (assets) of the defined benefit plans
In RMB
| Item | Current Period | Last Period |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as timesand uncertainty:
NilMajor actuarial assumption and sensitivity analysis:
NilOther explanation:
Nil
41. Accrual liability
In RMB
| Item | Balance at period-end | Balance at period-begin | Causes of formation |
Other explanation, including relevant important assumptions and estimation:
Nil
42. Deferred income
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end | Causes of formation |
| Total | 0.00 | 0.00 | -- |
Item with government grants involved:
In RMB
| Item | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned in other income | Cost reduction in the period | Other changes | Ending balance | Assets-related/income related |
Other explanation:
Nil
43. Other non-current liabilities
In RMB
| Item | Balance at period-end | Balance at period-begin |
Other explanation:
Nil
44. Share capital
In RMB
| Balance at period-begin | Change during the year(+,-) | Balance at period-end | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 551,347,947.00 | 551,347,947.00 | |||||
Other explanation:
Nil
45. Other equity instrument(1) Basic information of the outstanding preferred stock and perpetual capital securities atperiod-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | Current period increased | Current period decreased | Period-end | ||||
| Amount | Book value | Amount | Book value | Amount | Book value | Amount | Book value | |
| Total | 0 | 0 | 0.00 | 0 | 0.00 | 0 | ||
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
NilOther explanation:
Nil
46. Capital public reserve
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
| 1.Debt restructuring income | 482,580,588.23 | 482,580,588.23 | ||
| 2.Other | 145,253,709.62 | 145,253,709.62 | ||
| Total | 627,834,297.85 | 627,834,297.85 |
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor fromshares assignment by whole shareholders; majority shareholder Guosheng Energy donated5,390,399.74 Yuan.
47. Treasury stock
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
48. Other comprehensive income
In RMB
| Item | Balance at period-begin | Current Period | Balance at period-end | ||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Total other comprehensive income | 0.00 | 0.00 | 0.00 | ||||
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initialrecognization adjustment for the arbitraged items:
Nil
49. Reasonable reserve
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
50. Surplus public reserve
In RMB
| Item | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end |
| 法定Surplus public reserve | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 32,673,227.01 |
Other explanation, including changes and reasons for changes:
Nil
51. Retained profit
In RMB
| Item | Current period | Last Period |
| Retained profit at period-end before adjustment | -1,195,957,201.01 | -1,197,486,788.28 |
| Retained profit at period-begin after adjustment | -1,195,957,201.01 | -1,197,486,788.28 |
| Add: net profit attributable to shareholders of parent company for this year | -1,591,968.91 | 1,529,587.27 |
| Retained profit at period-end | -1,197,549,169.92 | -1,195,957,201.01 |
Adjustment for retained profit at period-begin:
1). Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations,retained profit at period-begin has 0.00 Yuan affected;2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
52. Operation revenue和Operation cost
In RMB
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 115,698,679.57 | 107,318,430.05 | 134,756,413.50 | 123,273,702.49 |
| Other business | 4,208,270.77 | 753,000.00 | 2,734,184.19 | 753,629.77 |
| Total | 119,906,950.34 | 108,071,430.05 | 137,490,597.69 | 124,027,332.26 |
53. Tax and extras
In RMB
| Item | Current Period | Last Period |
| Urban maintenance and construction tax | 391,013.39 | 57,572.84 |
| Educational surtax | 279,295.29 | 41,123.44 |
| Stamp tax | 54,238.30 | 95,767.77 |
| Other | 3,089.84 | 2,699.04 |
| Total | 727,636.82 | 197,163.09 |
Other explanation:
Nil
54. Sales expenses
In RMB
| Item | Current Period | Last Period |
| Employee compensation | 2,954,021.25 | 2,658,168.80 |
| Market promotion costs | 1,052,618.98 | 1,328,116.44 |
| Business travel expenses | 812,392.85 | 664,419.38 |
| Lease fee | 441,316.59 | 365,319.95 |
| Business entertainment | 336,219.12 | 161,991.56 |
| Other | 336,662.62 | 284,565.08 |
| Total | 5,933,231.41 | 5,462,581.21 |
Other explanation:
Nil
55. Administrative expenses
In RMB
| Item | Current Period | Last Period |
| Salary | 3,298,560.81 | 3,766,752.91 |
| Intermediary services charge | 1,102,426.83 | 1,081,232.97 |
| Daily management cost | 1,856,424.16 | 592,685.47 |
| Depreciation and amortization charges | 369,874.42 | 302,594.49 |
| Total | 6,627,286.22 | 5,743,265.84 |
Other explanation:
Nil
56. R&D expenses
In RMB
| Item | Current Period | Last Period |
Other explanation:
Nil
57. Financial expenses
In RMB
| Item | Current Period | Last Period |
| Interest income | -369,745.70 | -233,170.32 |
| Exchange loss | 0.09 | |
| Commission charge etc. | 21,061.54 | 23,600.57 |
| Total | -348,684.16 | -209,569.66 |
Other explanation:
Nil
58. Losses of devaluation of asset
In RMB
| Item | Current Period | Last Period |
| I. Bad debt losses | 836,438.10 | 454,042.30 |
| II. Inventory falling price loss | 364,088.31 | |
| Total | 1,200,526.41 | 454,042.30 |
Other explanation:
Nil
59. Other income
In RMB
| Income sources | Current Period | Last Period |
60. Investment income
In RMB
| Item | Current Period | Last Period |
Other explanation:
Nil
61. Changing income of fair value
In RMB
| Changes resources | Current Period | Last Period |
Other explanation:
Nil
62. Assets disposal income
In RMB
| Sources of assets disposal income | Current Period | Last Period |
| Income from disposal of fixed assets | -2,464.81 |
63. Non-operation revenue
In RMB
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in the Year |
| Other | 4,634,304.77 | 4,629,029.13 | 4,634,304.77 |
| Total | 4,634,304.77 | 4,629,029.13 | 4,634,304.77 |
Government grants reckoned into current gains/losses:
In RMB
| Item | Granting subject | Cause of distribution | Nature | Impact current profit (Y/N) | Special benefit (Y/N) | Amount in the period | Amount last period | Assets related/income related |
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is2,866,994.16 Yuan and compensation of 1,086,507.70 Yuan;Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is3,256,516.11 Yuan and compensation of 1,086,507.70 Yuan;
64. Non-operation expenditure
In RMB
| Item | Current Period | Last Period | Amount reckoned into non-recurring gains/losses in the Year |
| Amercement outlay | 800.00 | 0 | |
| Damage and scrap loss for non-current assets | 85,730.05 | 85,730.05 | |
| Other | 4,373,162.81 | 4,346,683.24 | 4,373,162.81 |
| Total | 4,458,892.86 | 4,347,483.24 | 4,458,892.86 |
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management,
relevant maintenance and management costs are paid by the revenue and loss compensation income from assetsleasing (the assets to be disposed), reckoned into non-operating expenditure
65. Income tax expenses
(1) Income tax expenses
In RMB
| Item | Current Period | Last Period |
| Current income tax expenses | 50,233.75 | 612,336.68 |
| Deferred income tax expenses | -298,792.47 | -96,632.42 |
| Total | -248,558.72 | 515,704.26 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current Period |
| Total Profit | -2,129,064.50 |
| Income tax measured by statutory/applicable tax rate | -532,266.13 |
| Impact on cost, expenses and losses that unable to deducted | 80,637.96 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 203,069.45 |
| Income tax expenses | -248,558.72 |
Other explanationNil
66. Other comprehensive income
Found more in Note 48
67. Items of cash flow statement(1) Other cash received in relation to operation activities
In RMB
| Item | Current Period | Last Period |
| Interest and Rent and utilities etc. | 4,406,556.57 | 4,994,903.73 |
| Restitution of judicial auction | 9,444,737.00 | |
| Other intercourse funds | 32,000.00 | 508,907.16 |
| Total | 4,438,556.57 | 14,948,547.89 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
| Item | Current Period | Last Period |
| Expense in management for cash payment | 2,496,549.86 | 7,955,537.16 |
| Rent and property fee and maintenance fee | 3,394,536.88 | 4,122,077.60 |
| Expense in sales for cash payment | 2,775,796.71 | 1,886,340.09 |
| Deposit and Margin paid | 285,712.13 | 219,550.24 |
| Utilities | 652,106.63 | 636,351.99 |
| Non-operation expenditure- compensation | 30,140.00 | |
| Total | 9,634,842.21 | 14,819,857.08 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
In RMB
| Item | Current Period | Last Period |
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
| Item | Current Period | Last Period |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
In RMB
| Item | Current Period | Last Period |
| Performance bond for privately placement | 8,000,000.00 | |
| Bill margin received | 8,808,378.06 | |
| Total | 8,808,378.06 | 8,000,000.00 |
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
| Item | Current Period | Last Period |
| Payment of bill margin | 2,000,000.00 | 8,808,378.06 |
| Total | 2,000,000.00 | 8,808,378.06 |
Explanation on cash paid related with financing activities:
Nil
68. Supplementary information to statement of cash flow(1) Supplementary information to statement of cash flow
In RMB
| Supplementary information | Current period | Last Period |
| 1． Net profit adjusted to cash flow of operation activities: | -- | -- |
| Net profit | -1,880,505.78 | 1,579,159.47 |
| Add: Assets impairment provision | 1,200,526.41 | 454,042.30 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 369,874.42 | 302,594.49 |
| Amortization of intangible assets | 753,000.00 | 753,000.00 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets(gain is listed with “-”) | 85,730.05 | 2,464.81 |
| Financial expense(gain listed with “-”) | 0.09 | |
| Decrease of deferred income tax asset( (increase is listed with “-”) | -298,792.47 | -96,632.42 |
| Decrease of inventory (increase is listed with “-”) | 26,482.38 | 341,265.63 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -11,299,293.84 | -16,740,831.68 |
| Increase of operating payable accounts (decrease is listed with “-”) | 1,563,504.67 | 9,973,358.91 |
| Net cash flow from operation activities | -9,479,474.16 | -3,431,578.40 |
| 2. Material investment and financing not | -- | -- |
| involved in cash flow | ||
| 3. Net change of cash and cash equivalents: | -- | -- |
| Add: Balance of cash equivalent at period-end | 16,488,886.26 | 19,177,276.18 |
| Less: Balance of cash equivalent Balance at period-begin | 19,177,276.18 | 24,015,287.71 |
| Net increased amount of cash and cash equivalent | -2,688,389.92 | -4,838,011.53 |
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanation:
Nil
(4) Constitution of cash and cash equivalent
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Including: Cash on hand | 126,486.63 | 100,034.87 |
| Bank deposit available for payment at any time | 16,305,989.07 | 18,837,402.11 |
| Other monetary fund available for payment at any time | 56,410.56 | 239,839.20 |
| II. Cash equivalent | 16,488,886.26 | 19,177,276.18 |
| Ⅲ. Balance of cash and cash equivalent at period-end | 16,488,886.26 | 19,177,276.18 |
Other explanation:
Nil
69. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
70. Assets with ownership or use right restricted
In RMB
| Item | Closing book value | Restriction reasons |
| Monetary fund | 2,000,000.00 | Margin of 2,000,000.00 yuan for bank acceptance bill |
| Total | 2,000,000.00 | -- |
Other explanation:
Nil
71. Foreign currency monetary items(1) Foreign currency monetary items
In RMB
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
| Monetary fund | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Account receivable | -- | -- | |
| Including: USD | |||
| EURO | |||
| HKD | |||
| Long-term loans | -- | -- |
| Including: USD | |||
| EURO | |||
| HKD | |||
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operationalentity, disclosed main operation place, book-keeping currency and basis for selection; if thebook-keeping currency changed, explain reasons
□ Applicable √ Not applicable
72. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative andquantitative information for the arbitrage risks:
Nil
73. Government grants
(1) Government grants
In RMB
| Category | Amount | Item | Amount booked in current gain/loss |
(2) Government grants rebate
□ Applicable √ Not applicableOther explanation:
Nil
74. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control(1) Enterprise combined under different control in the Period
In RMB
| Acquiree | Time point for equity obtained | Cost of equity obtained | Ratio of equity obtained | Acquired way Equity obtained way | Purchasing date | Standard to determine the purchasing date | Income of acquiree from purchasing date to period-end | Net profit of acquiree from purchasing date to period-end |
Other explanation:
(2) Combination cost and goodwill
In RMB
| Combination cost |
Determination method for fair value of the combination cost and contingent consideration and changes:
NilMain reasons for large goodwill resulted:
NilOther explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
| Fair value on purchasing date | Book value on purchasing date | |
Determination method for fair value of the identifiable assets and liabilities:
NilContingent liability of the acquiree bear during combination:
NilOther explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held beforepurchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction ofobtained control rights in the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fairvalue of identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise combine under the same control(1) Enterprise combined under the same control in the Period
In RMB
| Acquiree | Equity ratio obtained in combination | Basis of combined under the same control | Combination date | Standard to determine the combination date | Income of the combined party from period-begin of combination to the combination date | Net profit of the combined party from period-begin of combination to the combination date | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Other explanation:
Nil
(2) Combination cost
In RMB
| Combination cost |
Explanation on contingent consideration and its changes:
NilOther explanation:
Nil
(3) Assets and liability of the combined party on combination date
In RMB
| On purchasing date | At end of last period | |
Contingent liability of the combined party bear during combination:
NilOther explanation:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets andliability reserved by listed company and basis, determination of combination cost, amount and calculation onadjusted equity by equity transactionNil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not□ Yes √ NoWhether lost controlling rights in the Period while dispose subsidiary on two or more steps or not□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)Andrelevant informationNil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Emmelle Industry Co., Ltd. | Shenzhen | Shenzhen | Sales of bicycles and spare parts | 70.00% | Investment | |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling investedentity but with over half and over voting rightsNilControlling basis for the structuring entity included in consolidated rangeNilBasis on determining to be an agent or consignor:
NilOther explanation:
Nil
(2)Important non-wholly-owned subsidiary
In RMB
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Shenzhen Emmelle Industry Co., Ltd. | 30.00% | -288,536.87 | 2,674,162.80 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsidiary | Balance at period-end | Balance at period-begin | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liabilities | |
| Shenzhen Emmelle Industry Co., Ltd. | 29,791,525.49 | 1,548,021.02 | 31,339,546.51 | 22,425,670.50 | 0.00 | 22,425,670.50 | 31,672,252.96 | 1,373,481.42 | 33,045,734.38 | 23,170,068.81 | 0.00 | 23,170,068.81 |
In RMB
| Subsidiary | Current Period | Last Period | ||||||
| Operation revenue | Net profit | Total comprehensive income | Cash flow from operation | Operation revenue | Net profit | Total comprehensive income | Cash flow from operation | |
| activity | activity | |||||||
| Shenzhen Emmelle Industry Co., Ltd. | 88,175,813.90 | -961,789.56 | -961,789.56 | -2,982,485.91 | 116,393,660.87 | 165,240.67 | 165,240.67 | -9,704,911.00 |
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included inconsolidated financial statement
NilOther explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controllingrights(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanationNil
3. Equity in joint venture and cooperative enterprise(1) Important joint venture and cooperative enterprise
| Name | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | |||||
Share-holding ratio or shares enjoyed different from voting right ratio:
NilBasis of the voting rights with 20% below but with major influence, or without major influence but with over 20%(20% included) voting rights hold:
Nil
(2) Main financial information of the important joint venture
In RMB
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
Other explanationNil
(3) Main financial information of the important cooperative enterprise
In RMB
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
Other explanationNil
(4) Financial summary for un-important joint venture or cooperative enterprise
In RMB
| Balance at period-end/Current Period | Balance at period-begin/Last Period | |
| Joint venture： | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Cooperative enterprise | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
Other explanationNil
(5)Assets transfer ability has major restriction from joint venture or cooperative enterprise
Nil
(6) Excess losses from joint venture or cooperative enterprise
In RMB
| Name | Cumulative un-confirmed losses | Un-confirmed losses not recognized in the Period (or net profit enjoyed in the Period) | Cumulative un-confirmed losses at period-end |
Other explanationNil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or cooperativeenterprise
Nil
4. Co-runs operation
| Name | Main operation place | Registered place | Business nature | Share-holding ratio/ share enjoyed | |
| Directly | Indirectly | ||||
Share-holding ratio or shares enjoyed different from voting right ratio:
NilIf the co-runs entity is the separate entity, basis of the co-runs classificationNilOther explanationNil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanationNil
6. Other
Nil
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary fund, account receivable,other account receivable, account payable and other account payable, etc. details of these financial
instruments are disclosed in the relevant notes. Risks relating to these financial instruments andrisk management policies adopted by the Company to minimize these risks are detailed as follows.Management of the Company manages and monitors the risk exposures, to make sure they areunder control.1. Risk management targets and policiesThe objectives of the Company’s risk management is to balance the risk and income, reduce thenegative risk impact of operating performance to the lowest level, maximize the interests ofshareholders and other equity investors. Based on these objectives, the Company has establishedrisk management policies to identify and analyze the risks faced by the Company, set adequaterisk acceptable level and designed relevant internal control system to monitor the level of risks.The Company regularly reviews these policies and related internal control system to adapt tomarket development and change of operating activities of the Company. The major risks arisingfrom the Company’s financial instruments are credit risk and liquidity risk.
(1)Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due tofailure of performance obligation of another party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank depositsand trade receivables. Since the bank deposits of the Company are mainly placed with those banksof high credit rating, the Company expects no significant credit risk on bank deposits.As for trade receivables, the Company establishes relevant policies to control credit risk exposure.The Company, based on financial position of debtors, their credit records, market conditions andother factors, makes assessment on debtors’ credit quality and sets relevant limit on amount ofdebt and credit term. The maximum credit risk exposure assumed by the Company equals to thesum of carrying value of every financial asset in the balance sheet. The Company provides noguarantee that may lead it to be exposed to credit risks.
(2)Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlementobligation via delivery of cash or other financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cashequivalents as deemed adequate by the management, so as to satisfy its operation needs andminimize influence of fluctuation of cash flow. Management of the Company monitors applicationof bank borrowings to make sure it complies with relevant borrowing agreements.2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of theCompany so as to bring shareholders return and benefit other stakeholders, and to minimizecapital cost by maintaining optimal capital structure.In order to maintain and adjust capital structure, the Company may adjust share dividend paid toshareholders or issue new shares.The Company monitors capital structure based on gearing ratio (total liabilities divided by totalassets). As at 31 December 2018, the gearing ratio of the Company was 76.82% (31 December2017: 74.36%)
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
| Item | Ending fair value | |||
| First-order | Second-order | Third-order | Total | |
| I. Sustaining measured by fair value | -- | -- | -- | -- |
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
2.Recognized basis for the market price sustaining and non-persistent measured by fairvalue on first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parametersfor the fair value measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parametersfor the fair value measure sustaining and non-persistent on third-order
Nil
5.Adjustment information and sensitivity analysis of unobservable parameters for the fairvalue measure sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels,reasons for conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
| Parent company | Registration place | Business nature | Registered capital | Share-holding ratio on the enterprise for parent company | Voting right ratio on the enterprise |
Explanation on parent company of the enterpriseThe Company has no parent company so far
Ultimate controller of the Company: nilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed,the first majority shareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd.,actual controller was Mr. Ji Hanfei; the Company has no actual controller and controlling shareholder afterchanged. Found more in the Annual Report 2016 released on 27 April 2017 and “Reply on Surveillance AttentionLetter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Cooperative enterprise and joint venture
Found more in Note IX-3
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period oroccurred in pervious period
| Name | Relationship |
Other explanationNil
4. Other related party
| Other related party | Relationship with the Enterprise |
| Shenzhen Huahui Tongda Industrial Co., Ltd. | Supervisor of the Company Li Jialin is the legal person of the enterprise |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanation11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Transaction content | Current Period | Approved transaction amount | Whether more than the transaction amount | Last amount |
Goods sold/labor service providing
In RMB
| Related party | Transaction content | Current Period | Last Period |
| Shenzhen Huahui Tongda Industrial Co., Ltd. | Sales of goods | 234,790.09 | 0.00 |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Yield pricing basis | Income from trusteeship/contract |
Explanation on related trusteeship/contractNil
Delegated administration/outsourcing
In RMB
| Client/ contract-out party | Entrusting party/ contractor | Assets type | Starting date | Maturity date | Pricing basis of trustee fee/outsourcing fee | trustee fee/outsourcing fee recognized in the Period |
Explanation on related administration/outsourcingNil
(3) Related lease
As a lessor for the Company:
In RMB
| Lessee | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
As a lessee for the Company:
In RMB
| Lessor | Assets type | Lease income in recognized in the Period | Lease income in recognized last the Period |
Explanation on related leaseNil
(4) Related guarantee
As a guarantor for the Company
In RMB
| Secured party | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
As a secured party for the Company
In RMB
| Guarantor | Amount guarantee | Starting date | Maturity date | Guarantee completed (Y/N) |
Explanation on related guarantee
(5) Borrowed funds of related party
In RMB
| Related party | Borrowed funds | Starting date | Maturity date | Note |
| Borrowing | ||||
| Lending | ||||
(6) Assets transfer and debt restructuring of related party
In RMB
| Related party | Transaction content | Current Period | Last Period |
(7) Remuneration of key manager
In RMB
| Item | Current Period | Last Period |
| Remuneration of key manager | 1,950,178.00 | 1,880,143.00 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
| Item | Related party | Balance at period-end | Balance at period-begin | ||
| Book balance | Bad debts provision | Book balance | Bad debts provision | ||
(2) Payable item
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| Account received in advance | Shenzhen Huahui Tongda Industrial Co., Ltd. | 5,439.00 | 0.00 |
| Other account payable | Shenzhen Guosheng Energy Investment Development Co., Ltd. | 6,500,000.00 | 6,500,000.00 |
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet dateNil
2. Contingency(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explainedreasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
| Item | Content | Impact on financial status and operation results | Reasons on un-able to estimated the impact number |
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection(1) Retrospective restatement
In RMB
| Correction content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
| Correction content | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring
Nil
3. Assets replacement(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
| Item | Revenue | Expenses | Total Profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other explanationNil
6. Segment(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
In RMB
| Item | Offset between segments | Total |
(3)The Company has no reportable segments, or unable to disclose total assts and totalliability for reportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
XVII. Principle notes of financial statements of parent company
1. Note receivable and account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Note receivable | 300,000.00 | |
| Account receivable | 12,827,954.16 | 17,680,663.16 |
| Total | 12,827,954.16 | 17,980,663.16 |
(1) Note receivable
1)Classification
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Bank acceptance | 300,000.00 | |
| Total | 300,000.00 |
2)Notes receivable already pledged by the Company at the end of the period
In RMB
| Item | Amount pledge at period-end |
| Total | 0.00 |
3)Notes endorsement or discount and undue on balance sheet date
In RMB
| Item | Amount derecognition at period-end | Amount not derecognition at period-end |
| Bank acceptance | 15,498,304.72 | |
| Total | 15,498,304.72 |
4)Notes transfer to account receivable due for failure implementation by drawer atperiod-end
In RMB
| Item | Amount transfer to receivable at period-end |
| Total | 0.00 |
Other explanationNil
(2) Account receivable
1)Category of account receivable
In RMB
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debts provision | Book value | Book balance | Bad debts provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Account receivable withdrawal bad debt provision by group of credit risk characteristics | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 | 17,733,864.75 | 100.00% | 53,201.59 | 0.30% | 17,680,663.16 |
| Total | 12,866,553.82 | 100.00% | 38,599.66 | 0.30% | 12,827,954.16 | 17,733,864.75 | 100.00% | 53,201.59 | 0.30% | 17,680,663.16 |
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicableIn combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Account age | Balance at period-end | ||
| Account receivable | Bad debts provision | Accrual ratio | |
| Within one year | |||
| Within one year(one year included) | 12,866,553.82 | 38,599.66 | 0.30% |
| Subtotal within one year | 12,866,553.82 | 38,599.66 | 0.30% |
| Total | 12,866,553.82 | 38,599.66 | 0.30% |
Explanations on combination determine:
NilIn combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicableIn combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil2) Bad debt provision accrual collected or switch backBad debt provision accrual was -14,601.93 Yuan; the amount collected or switches back amounting to 0.00 Yuan.
Important bad debt provision collected or switch back:
In RMB
| Enterprise | Collected or switch back amount | Collection way |
| Total | 0.00 | -- |
Nil
3)Account receivable actual charge off in the Period
In RMB
| Item | Amount written off |
Written-off for the major receivable:
In RMB
| Enterprise | Nature of account receivable | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil4)Top 5 receivables at ending balance by arrears party
| Enterprise | Relationship with the company | Amount | Account age | Bad debts provision | Ratio in total receivables (%) | Nature |
| Shenzhen Boyineng Technology Co., Ltd. | Non-related party | 5,772,755.17 | Within one year | 17,318.27 | 44.86 | Payment for goods |
| Shenzhen Weiterui New Energy Technology Co., Ltd. | Non-related party | 4,056,480.65 | Within one year | 12,169.44 | 31.53 | Payment for goods |
| Guangdong Xinlingjia New Energy Co., Ltd. | Non-related party | 1,953,000.00 | Within one year | 5,859.00 | 15.18 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Non-related party | 1,084,318.00 | Within one year | 3,252.95 | 8.43 | Payment for goods |
| Total | 12,866,553.82 | 38,599.66 | 100.00 |
5)Receivable derecognition due to transfer of financial assetsNil6)Assets and liability resulted by receivable transfer and continuous involvementNilOther explanation:
Nil
2. Other account receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
| Other account receivable | 380,925.78 | 280,576.37 |
| Total | 380,925.78 | 280,576.37 |
(1) Interest receivable
1)Category of interest receivable
In RMB
| Item | Balance at period-end | Balance at period-begin |
2)2)Major overdue interest
In RMB
| Borrower | Balance at period-end | Overdue time | Overdue cause | Whether the impairment occurs and its judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
(2) Dividend receivable
1)Dividend receivable
In RMB
| Item(或The invested enterprise) | Balance at period-end | Balance at period-begin |
2)Important dividends payable with account age over one year
In RMB
| Item( or The invested enterprise) | Balance at period-end | Account age | Un-recovered reasons | Whether the impairment occurs and its judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanation:
Nil
(3) Other account receivable
1)Other accounts receivable by category
In RMB
| Category | Balance at period-end | Balance at period-begin | ||||||||
| Book balance | Bad debts provision | Book value | Book balance | Bad debts provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables with bad debt provision accrual by credit portfolio | 382,072.00 | 100.00% | 1,146.22 | 0.30% | 380,925.78 | 251,350.00 | 89.34% | 754.05 | 0.30% | 250,595.95 |
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 29,980.42 | 10.66% | 29,980.42 | |||||||
| Total | 382,072.00 | 100.00% | 1,146.22 | 0.30% | 380,925.78 | 281,330.42 | 100.00% | 754.05 | 0.27% | 280,576.37 |
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period□ Applicable √ Not applicableIn combination, other accounts receivable whose bad debts provision was accrued by age analysis√ Applicable □ Not applicable
In RMB
| Account age | Balance at period-end | ||
| Other account receivable | Bad debts provision | Accrual ratio | |
| Within one year | |||
| Within one year(one year included) | 370,172.00 | 1,110.52 | 0.30% |
| Subtotal within one year | 370,172.00 | 1,110.52 | 0.30% |
| 1-2 years | 200.00 | 0.60 | 0.30% |
| 2-3 years | 11,700.00 | 35.10 | 0.30% |
| Total | 382,072.00 | 1,146.22 | 0.30% |
Explanations on combination determine:
NilIn combination, withdrawal proportion of bad debt provision based on balance proportion for other accountreceivable:
□ Applicable √ Not applicableIn combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 392.17 Yuan; the amount collected or switches back amounting to 0.00 Yuan.Important bad debt provision collected or switch back:
In RMB
| Enterprise | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Enterprise | Nature of other receivables | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of other receivables:
Nil4)Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Intercourse funds | 29,980.42 | |
| Deposit or margin | 370,672.00 | 239,950.00 |
| Equipment fund | 11,400.00 | 11,400.00 |
| Total | 382,072.00 | 281,330.42 |
5)Top 5 other receivables at ending balance by arrears party
In RMB
| Enterprise | Nature | Balance at period-end | Account age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Material Group Co., Ltd. | Deposit or margin | 181,918.00 | Within one year | 47.61% | 545.75 |
| Shenzhen Anjingheng Industrial Co., Ltd. | Deposit or margin | 161,000.00 | Within one year | 42.14% | 483.00 |
| Shenzhen Jintaiyuan Investment Management Co., Ltd. | Deposit or margin | 27,254.00 | Within one year | 7.13% | 81.76 |
| Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment fund | 11,400.00 | 2-3 years | 2.98% | 34.20 |
| Lianxin Jiayuan Branch of Shenzhen Color Life Property Management Co., Ltd. | Deposit and margin | 300.00 | 2-3 years | 0.08% | 0.90 |
| Total | -- | 381,872.00 | -- | 99.94% | 1,145.61 |
6)Account receivable with government grants involved
In RMB
| Enterprise | Government grants | Balance at period-end | Ending account age | Time, amount and basis of amount collection estimated |
Nil7)Other account receivable derecognition due to financial assets transferNil8)Assets and liability resulted by other account receivable transfer and continuous involvementNilOther explanation:
Nil
3. Long-term equity investment
In RMB
| Item | Balance at period-end | Balance at period-begin | ||||
| Book balance | Impairment | Book value | Book balance | Impairment | Book value | |
| Investment for subsidiary | 1,400,000.00 | 1,389,620.27 | 10,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
| Total | 1,400,000.00 | 1,389,620.27 | 10,379.73 | 1,400,000.00 | 1,389,620.27 | 10,379.73 |
(1) Investment for subsidiary
In RMB
| The invested enterprise | Balance at period-begin | Current period increased | Current period decreased | Balance at period-end | Current impairment accrual | Ending balance of impairment provision |
| Shenzhen Emmelle Industry Co., Ltd. | 1,400,000.00 | 1,400,000.00 | 1,389,620.27 | |||
| Total | 1,400,000.00 | 0.00 | 0.00 | 1,400,000.00 | 0.00 | 1,389,620.27 |
(2) Investment for associates and joint venture
In RMB
| Funded enterprise | Balance at period-begin | Current period changes +,- | Balance at period-end | Ending balance of impairment provision | |||||||
| Additional investment | Capital reduction | Investment gains recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Affiliated enterprise | |||||||||||
| Subtotal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
(3) Other explanation
Nil
4. Operation revenue and operation cost
In RMB
| Item | Current Period | Last Period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 31,732,088.16 | 29,103,342.44 | 22,338,842.47 | 19,253,017.11 |
| Other business | 2,127,375.25 | 753,000.00 | 2,166,747.83 | 759,358.98 |
| Total | 33,859,463.41 | 29,856,342.44 | 24,505,590.30 | 20,012,376.09 |
Other explanation:
Nil
5. Investment income
In RMB
| Item | Current Period | Last Period |
6. Other
Nil
XVIII. Supplementary Information1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset | -85,730.05 | |
| Switch-back of the impairment for receivables which have impairment test independently | 219,118.00 | |
| Other non-operating income and expenditure except for the aforementioned items | 261,141.96 | |
| Less: Impact on income tax | 98,632.48 | |
| Impact on minority shareholders’ equity | 49,951.88 | |
| Total | 245,945.55 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurringprofit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 onInformation Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explainreasons□ Applicable √ Not applicable
2. 净资产收益率及每股收益
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic earnings per share(RMB/Share) | Diluted earnings per share(RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | -10.54% | -0.0029 | -0.0029 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -12.17% | -0.0033 | -0.0033 |
3. Difference of the accounting data under accounting rules in and out of China(1) Difference of the net profit and net assets disclosed in financial report, under both IAS(International Accounting Standards) and Chinese GAAP (Generally Accepted AccountingPrinciples)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under bothforeign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for thedifference adjustment for data audited by foreign auditing organ, noted the name of suchforeign organ
Nil
4. Other
Nil