Shenzhen China Bicycle Company (Holdings) Limited
SEMI-ANNUAL REPORT 2018
August 2018
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafterreferred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.Li Hai, Principal of the Company, Sun Longlong, person in charge of accountingworks and Zhong Xiaojin, person in charge of accounting organ (accountingprincipal) hereby confirm that the Financial Report of 2018 Semi-AnnualReport is authentic, accurate and complete.All directors are attended the Board Meeting for report deliberation.The Company has no plan of cash bonus, dividends and capitalizing of reserveseither.
Content
Section I. Important Notice, Contents and Paraphrase .......................................... 2
Section II. Company Profile and Main Finnaical Indexes ...................................... 5
Section III. Summary of Company Business ............................................................ 8
Section IV. Discussion and Analysis of the Business .............................................. 10
Section V. Important Events ..................................................................................... 16
Section VI. Changes in Shares and Shareholders .................................................. 23
Section VII. Preferred Stock ..................................................................................... 29
Section VIII. Directors, Supervisors and Senior Executives ................................. 30
Section IX. Corporate Bonds .................................................................................... 31
Section X. Financial Report ...................................................................................... 32
Section XI. Documents available for reference ..................................................... 145
Paraphrase
| Items | Refers to | Definition |
Section II. Company Profile and Main Finnaical Indexes
I. Company Profile
| Short form of the stock | Zhonghua – A, Zhonghua -B | Code for share | 000017, 200017 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳中华自行车(集团)股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深中华 | ||
| Foreign name of the Company (if applicable) | Shenzhen China Bicycle Company (Holdings) Limited | ||
| Short form of foreign name of the Company (if applicable) | CBC | ||
| Legal representative | Li Hai | ||
II. Contact person and ways
| Secretary of the Board | Rep. of securities affairs | |
| Name | Sun Longlong | Cui Hongxia, Zhong Xiaojin |
| Contact adds. | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen |
| Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 |
| Fax. | 0755-28181009 | 0755-28181009 |
| dmc@szcbc.com | dmc@szcbc.com |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2017.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2017.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
| Current period | Same period of last year | Increase/decrease in this report y-o-y | |
| Operating revenue (RMB) | 67,734,899.35 | 48,929,676.27 | 38.43% |
| Net profit attributable to shareholders of the listed company (RMB) | 554,162.06 | -1,691,378.44 | -132.76% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 521,366.39 | -1,902,819.26 | -127.40% |
| Net cash flow arising from operating activities (RMB) | -3,362,971.19 | -8,806,042.23 | -61.81% |
| Basic earnings per share (RMB/Share) | 0.0010 | -0.0031 | -132.26% |
| Diluted earnings per share (RMB/Share) | 0.0010 | -0.0031 | -132.26% |
| Weighted average ROE | 3.43% | -12.51% | 15.94% |
| End of current period | End of last period | Increase/decrease in this report-end over that of last period-end | |
| Total assets (RMB) | 70,833,599.30 | 73,559,961.28 | -3.71% |
| Net assets attributable to shareholder of listed company (RMB) | 16,452,432.91 | 15,898,270.85 | 3.49% |
V. 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 (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | 41,986.28 | |
| Less: impact on income tax | 17,026.35 | |
| Impact on minority shareholders’ equity (post-tax) | -7,835.74 | |
| Total | 32,795.67 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirement of the special industryNoThe company is engaged in the main business for the bicycle business and lithium battery material business, including production,assembly, procurement, sales of bicycles and electric bicycles, etc.
II. Major changes in main assets
1. Major changes in main assets
| Major assets | Note of major changes |
| Equity assets | No major change |
| Fixed assets | No major change |
| Intangible assets | No major change |
| Construction in process | No major change |
| Monetary Fund | Decreased 43.49% over that of period-begin, mainly because the bank acceptance was paid on expiration in the period and the inventory increased |
| Notes receivable | Decreased 100.00% over that of period-begin, mainly because the note receivables in the period are endorsed for goods payment |
| Advance payment | Increased 144.81% over that of period-begin, mainly because the advance payment for purchasing lithium battery materials in the period increased |
| Inventory | Increased 73.21% over that of period-begin, mainly because inventory are increased from subsidiary for peak season |
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Does the Company need to comply with the disclosure requirements of the special industryNoDespite the fierce market competition in the bicycle industry as a conventional industry, the increased awareness of green commuting,
leisure and exercises as a result of the development of China’s social economy and the change of people’s living concept creates
structural development opportunity for the bicycle industry. The Company will continue to do better in various aspects of operation
such as market development, product development, quality management and sales of e-commerce, extended and expansion the
application of upstream & downstream industry for the industrial chain step by step, so as to maintain and improve the Company’s
ability to continue as a going concern before the restructuring. On the other side, the Company has set out the condition ofintroduction of investors in the restructuring plan with expectation to restore its ability to continue as a going concern and itscontinuous profitability through the restructuring of assets.Furthermore, we strive to planning the privately placement in the period and hope to improve the operation ability and developmentstrength of the Company. The Resolution Relating to Adjustment of the Non-public Offer of A Shares Plan and the ResolutionRelating to the Plan of Non-public Offer of A Shares (the 3rd Amendment) were considered and approved by the Company at the 4thextraordinary meeting of the 10th session of the board of directors and the 1st extraordinary general meeting for 2018 held in Januaryand February, respectively. The specific works are underway.
Section IV. Discussion and Analysis of the Business
I. Introduction
In first half of 2018, the international political and economical situation was complex and severe, structuralproblems and deep-seated contradictions in the domestic economic development were highlighted, economicdownturn pressure continued to increase, many unstable and uncertain factors still existed, which affected andimpacted the traditional manufacturing industries and the social consumption structure demand. Under theleadership of central government and governments at all levels, the whole nation strengthened their confidence,overcame difficulties, and forged ahead, and achieved steady progress in economic and social development, andthe economic fundamentals were continuously consolidated and developed. As a sector in the traditionalmanufacturing field, the bicycle industry continued the dilemma of rise in labor cost, manufacturing costs, cost ofcapital, and material costs. Due to the low entry barriers of the industry and the large number of manufacturers,the market competition was fierce and the industry reshuffle intensified. The shared bicycle brands like Mobike
were quickly promoted with financial advantages, further met the users’ needs, and squeezed the market space of
traditional bicycle enterprises. At the same time, as a traditional manufacturing industry, the bicycle industry also
ushered in the “Made in China 2025” strategy, under the guidance of the basic principles of “Innovation Driven,Quality First, Green Development, Structure Optimization, and Talent Based”, took the important opportunity to
speed up the transformation and upgrading, and also faced with the important challenges of e-commercedevelopment impacts on channels, channel integration and Internet+.
China has the world’s largest production and marketing of electric bicycles, after years of development, electric
bicycles have gradually become an important means of transportation for consumers on everyday short-distancetrips, at present, there are about 200 million bicycles in the entire society. Structural body, motor, power battery,and control system are the core components of electric bicycles, Shenzhen China Bicycle has been closelyfollowing up the research on their technological development, application development, and commercial value fora long period of time, and has determined the qualified suppliers for core components year by year. Thenon-public offering of shares for fund-raising investment project of Shenzhen China Bicycle being planned andprepared at present also covers the application researches on switched reluctance motors, super-capacitor batteries,new materials, electric car bus control systems, wearable devices, intelligent positioning lock systems, etc. As oneof the core components, electric bicycle power batteries have been mainly lead-acid batteries in the past decade ortwo, with the development and popularization of new energy technologies and new energy materials, it is
expected to be replaced by the lithium batteries in the future. According to the strategy guidelines of “Made inChina 2025” by the State Council and the spirit of standardization reform, the Ministry of Industry and
Information Technology, the Ministry of Public Security, the State Administration for Industry and Commerce,and the General Administration of Quality Supervision, Inspection and Quarantine have introduced a new nationalstandard for electric bicycles to comprehensively improve the safety performance of electric bicycles, adjust andimprove the speed limit, vehicle quality, pedaling and riding ability and other technical indicators. New standards
not only are close to people’s livelihood, but also improve the application space for lithium battery energy storage,
and lithium battery electric bicycles usher in a new stage of development.
Under this background, in first half 2018, the company combined with its actual situation of weak economicfoundation after restructuring, on the one hand, adhered to taking the traditional business model development asthe principle, strengthened the product research and development efforts, and constantly optimized and adjustedthe product structure and sales model transformation, according to the e-commerce transformation of businessteam and the cost control way of internal introduction and external connection, and actively expanded thee-commerce business model; on the one hand, correspondingly carried out the tracking study on industrial projectsand technology applications of upstream and downstream of industrial chain in the long-term process of electricbicycle business, strived to expand the lithium battery materials business based on the extensive businessconsultation and business opportunity sifting, and took it as an opportunity to gradually expand its main business;on the other hand, strived to promote the selection work of the company's restructuring, planned the non-publicoffering of shares, and started the business upgrades and connection work of the offline sales platform for sportsexperience and R & D center construction projects.In preparation for non-public offering of shares, in July 2016, the company initiated the planning and preparationfor non-public offering of shares and engaged securities companies, lawyers, accountants, and other intermediaryagencies to carry out various tasks. Since then, the nineteenth (temporary) meeting, the twenty-second (temporary)meeting, and the twenty-sixth (temporary) meeting of the ninth session of board of directors of the company, and
the second extraordinary shareholders’ meeting in 2017 reviewed and approved the relevant proposals on
non-public offering of shares. Combining the capital market with the actual situation of the company, fromJanuary to February, 2018, the fourth (temporary) meeting of the 10
th
session of board of directors and the first
extraordinary shareholders’ meeting of the company in 2018 reviewed and approved the Proposal on Adjustingthe Plan for the Company’s Non-Public Offering of A-Shares, and the Proposal on the Plan for the Company’s
Non-Public Offering of A-Shares (three revised versions) and other relevant proposals. According to the aboveproposals, the total amount of funds raised in this non-public offering of shares did not exceed 750 million Yuan,
and planned to invest 680 million Yuan for the “online and offline marketing network platform construction andupgrade project” and planned to invest 70 million Yuan for the “R&D center construction project after deducting
the issuance costs.Under the background that the traditional manufacturing industry at home was still sluggish, in accordance with
the guidelines of “Made in China 2025”, the company insisted on accelerating its professional transformation and
e-commercial transformation, striving to expand its main business, strengthening the structural adjustment,intensifying the quality management, strengthening cost control, improving the ability of traditional enterprises toadapt to economy new normal and participate in market competition. Through various efforts, the companyachieved operating revenue of 67,734,900 Yuan and net profit of 491,900 Yuan in first half of 2018, of which, the
net profit attributable to shareholders of listed companies was 554,200 Yuan. The company’s operations remained
stable and have injected new development potential.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Business”
Y-o-y changes of main financial data
In RMB
| Current period | Same period last year | y-o-y changes (+,-) | Reasons | |
| Operating revenue | 67,734,899.35 | 48,929,676.27 | 38.43% | New business of lithium battery increased in the period |
| Operating costs | 61,164,206.33 | 45,686,272.83 | 33.88% | New business of lithium battery increased in the period |
| Sales expenses | 2,755,927.53 | 2,468,701.87 | 11.63% | |
| Administration expenses | 3,309,720.24 | 3,339,531.50 | -0.89% | |
| Finance expenses | -260,975.81 | -201,564.91 | 29.47% | Income from bank interest declined |
| Income tax expenses | 233,133.98 | 11,629.41 | 1,904.69% | Total profit in the period growth |
| Net cash flow arising from operating activities | -3,362,971.19 | -8,806,042.23 | -61.81% | Current liability were paid in last period and inventory increased |
| Net cash flow arising from investment activities | -31,940.00 | -100.00% | ||
| Net increase of cash and cash equivalent | -3,362,971.19 | -8,837,982.23 | -61.95% | Current liability were paid in last period and inventory increased |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.Constitution of main business
In RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase or decrease of operating revenue over same period of last year | Increase or decrease of operating cost over same period of last year | Increase or decrease of gross profit ratio over same period of last year | |
| According to industries | ||||||
| Sales of bicycles and accessories and fittings | 43,534,007.87 | 39,127,940.50 | 10.12% | -11.03% | -14.36% | 3.49% |
| Lithium battery materials | 24,200,891.48 | 22,036,265.83 | 8.94% | 100.00% | 100.00% | 8.94% |
| According to products | ||||||
| Sales of bicycles and accessories and fittings | 43,534,007.87 | 39,127,940.50 | 10.12% | -11.03% | -14.36% | 3.49% |
| Lithium battery materials | 24,200,891.48 | 22,036,265.83 | 8.94% | 100.00% | 100.00% | 8.94% |
| According to region | ||||||
| Domestic | 67,734,899.35 | 61,164,206.33 | 9.70% | 38.43% | 33.88% | 3.07% |
III. Analysis of the non-main business
□Applicable √ Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
| End of the Period | End of same period of last year | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 15,814,304.99 | 22.33% | 15,177,305.48 | 31.00% | -8.67% | |
| Account receivable | 34,951,941.66 | 49.34% | 10,621,799.74 | 21.70% | 27.64% | Receivable from clients increased |
| Inventory | 4,810,375.32 | 6.79% | 6,085,173.94 | 12.43% | -5.64% | |
| Fix assets | 3,756,571.22 | 5.30% | 3,615,758.14 | 7.39% | -2.09% | |
| Advance payment | 6,076,785.42 | 8.58% | 1,496,894.88 | 3.06% | 5.52% | Advance payment for purchasing lithium battery materials increased |
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets rights restricted till end of the period
Purchasing six properties of Lianxin Garden with original value of 2,959,824.00 Yuan in 2016; the property purchasing refers to theindemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. Accordingto 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.
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in Period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company has no sales of major assets in Period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
| Company name | Type | Main business | Register capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
| Shenzhen Emmelle Industry Co., Ltd. | Subsidiary | Sales of bicycles and accessories | 2000000 | 31,609,935.11 | 9,668,180.05 | 44,367,011.18 | -181,366.39 | -207,485.52 |
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of holding and shareholding companiesThe Company holds 70 percent equity of the Shenzhen Emmelle Industry Co., Ltd., the balance of minority equity at period-endamounting to 2900454.02 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
The tough international economic situation: The domestic economy is at the structural adjustment stage in the course of development,structural problems and deep-seated conflicts are highlighted. The economic downturn pressure continues to increase, many unstableand uncertain factors exist, which affect and impact the traditional manufacturing industries and the social consumption structuredemand. Since the domestic economy is at the structural adjustment stage, coupled with a difficult situation of continuously risinglabor cost, manufacturing cost, financing cost and material cost the bicycle industry as a conventional manufacturing field recorded adecline in the market turnover. Due to the low entry threshold and numerous manufacturers, the competition in the market isextremely fierce. The bicycle sharing brands such as Mobike have obtained large amount of financing and rapid promotion, but alsofurther digested the user's demand, and squeezed the market space of traditional bicycle enterprises.Faced with the above problems, combine actual condition of financially insecure after reorganization, on the one hand, we adhere totraditional business model development, strengthen R&D of the products, and continue to optimize the structure for products andsales mode. According to the electricity supplier transformation and inner lead of the cost controlling, the Company proactivelydevelop the electricity supplier business model; on the one hand, correspondingly carry out the tracking study on industrial projectsand technology applications of upstream and downstream of industrial chain in the long-term process of electric bicycle business,start getting involved in the lithium battery materials business based on the extensive business consultation and business opportunitysifting, and take it as an opportunity to gradually expand its main business; on the other hand, we strive to promote the selection forrecombinant party, planning a private placement of shares, and carry out a sport experience sales platform online and offline and theconstruction of R&D center, recently the business upgrade still in process.
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| First Extraordinary shareholders general meeting 2018 | Extraordinary shareholders general meeting | 12.59% | 2018-02-13 | 2018-02-13 | Notice of Resolution of First Extraordinary shareholders general meeting 2018 (No.: 2018006) |
| Annual General Meeting 2017 | Annual General Meeting | 12.45% | 2018-06-19 | 2018-06-19 | Notice of Resolution of Annual General Meeting 2017 (No.: 2018013) |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe semi-annual year.
III. Commitments that actual controller, shareholder, related parties, buyer and committedparty as the Company etc. have fulfilled during the reporting period and have not yet fulfilledby the end of reporting period
□ Applicable √ Not applicable
No commitments that actual controller, shareholders, related parties, buyer and committed party as the Company etc. have fulfilledduring the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Financial report has been audit or not
□ Yes √ No
Not been audited.
V. Explanation from Board of Directors, Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
√Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guocheng Energy Investment Development
Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company couldn’t pay off
the matured debts and was seriously insolvent. On 12
th
, Oct., 2012, Shenzhen Municipal Intermediate People's Court ruled to acceptthe application proposed by Guocheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On thelast ten-day of October 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25
th
, Oct., 2012according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons andShenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day, Shenzhen MunicipalIntermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Companyto manage property and business affairs by itself under the supervision of custodians according 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 thereorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closeddown.The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle isable to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombinationparty in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment. The Company will continues to carry out vary works proactively in order to
promoted the reorganization works.
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits and arbitrations occurred in the reporting period.Other lawsuits events
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in Period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
XII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned in Period.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
√Applicable □ Not applicable
Whether has non-operational contact of related liability and debts or not
√ Yes □ No
Claim receivable from related party:
| Related party | Relationship | Causes | Whether has non-business capital occupying or not | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| Influence on business performance and financial status of the Company from related liabilities | N/A | ||||||||
Debts payable to related party:
| Related party | Relationship | Causes | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The largest shareholder | Subsidiary Emmelle loan | 650 | 0 | 0 | 0.00% | 0 | 650 |
| Influence on business performance and financial status of the Company from related debts | N/A | |||||||
5. Other significant related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in Period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in Period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in Period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in Period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in Period.
XV. Social responsibility
1. Major environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection departmentNot applicableNil
2. Fulfill the precise social responsibility for poverty alleviation(1) Targeted poverty alleviation
Nil
(2) Summary of annual precision poverty alleviation
Nil
(3) Accuracy of poverty alleviation
| Target | Measurement units | Numbers/progress |
| I. general condition | —— | —— |
| II. Implemented by detail | —— | —— |
| 1. Industrial development poverty | —— | —— |
| 2.Transfer employment | —— | —— |
| 3. Anti-poverty by relocating in other places | —— | —— |
| 4. Education poverty | —— | —— |
| 5. Health poverty alleviation | —— | —— |
| 6. Ecological conservation | —— | —— |
| 7. Fallback protection | —— | —— |
| 8. Social poverty alleviation | —— | —— |
| 9. Other | —— | —— |
| III. Awards (content and level) | —— | —— |
(4) Subsequent precision poverty alleviation program
Nil
XVI. Other major events
√Applicable □ Not applicable
In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquirematerial assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board ofthe Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking intoaccount the conditions of capital market and actual conditions of the Company, the Board of the Companyconsidered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares, the Explanationon non-public of A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue ofA shares in 2016 (Third Amended) from February 2017 to February 2018. According to the three revised drafts,the number of non-public offering of shares should not exceed 110,269,586 shares, and the total amount of fundsraised should not exceed 750 million Yuan. The total amount of raised funds for this non-public offering shouldnot exceed RMB 750 million, will be used for the following projects after deducting the issuance expenses: 1.
RMB 680 million of funds for “online and offline marketing network platform construction and upgradingproject”; 2. RMB 70 million of funds for “R & D center construction project”. The issuing objects of this
non-public offering include four specific investors which are Ruian Information, Zhisheng High-tech, WanshengIndustry and Beier High-tech. The subscription amount of Ruian Information does not exceed 250 million Yuan,and the number of subscribed shares does not exceed 36,756,529 shares; the subscription amount of ZhishengHigh-tech does not exceed 200 million Yuan, and the number of subscribed shares does not exceed 29,405,223shares; the subscription amount of Wansheng Industry and Beier High-tech respectively does not exceed 150million Yuan, and the number of subscribed shares does not exceed 22,053,917 shares respectively. The companyconvened the first extraordinary general meeting of 2018 on February 13, 2018 which reviewed and passed theProposal on the Plan on Non-public Issue of A shares (Third Amended), etc. See details on the announcementissued by the board of directors of the company.
XVII. Major event of the subsidiaries
□ Applicable √ Not applicable
Section VI. Changes in Shares and Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 4,707 | 0.00% | -750 | -750 | 3,957 | 0.00% | |||
| 1. State-owned shares | 0 | 0.00% | 0 | 0.00% | |||||
| 2. State-owned legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
| 3. Other domestic shares | 4,707 | 0.00% | -750 | -750 | 3,957 | 0.00% | |||
| Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
| Domestic natural person’s shares | 4,707 | 0.00% | -750 | -750 | 3,957 | 0.00% | |||
| 4. Foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
| Including: Foreign legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
| Foreign natural person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
| II. Unrestricted shares | 551,343,240 | 100.00% | 750 | 750 | 551,343,990 | 100.00% | |||
| 1. RMB Ordinary shares | 302,980,258 | 54.95% | 750 | 750 | 302,981,008 | 54.95% | |||
| 2. Domestically listed foreign shares | 248,362,982 | 45.05% | 248,362,982 | 45.05% | |||||
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0.00% | |||||
| 4. Others | 0 | 0.00% | 0 | 0.00% | |||||
| III. Total shares | 551,347,947 | 100.00% | 0 | 0 | 551,347,947 | 100.00% | |||
Reasons for share changed
√Applicable □ Not applicable
In accordance with relevatn laws and regulations, the shares held by supervisor of the Company are released for trading counted as25%Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
In Share
| Shareholders | Opening shares restricted | Shares released in Period | Restricted Shares Increased In the Period | Ending shares restricted | Restricted reasons | Date for released |
| Zheng Zhonghuan | 4,707 | 750 | 0 | 3,957 | Shares held by supervisor | - |
| Total | 4,707 | 750 | 0 | 3,957 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shares and shares held
In Share
| Total common shareholders at period-end | 49,697 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (note8) | 0 |
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||
| Shareholders | Nature of shareholder | Proportion of shares held | Number of common shares held at period-end | Changes in reporting period | Amount of restricted common shares held | Amount of un-restricted common shares held | Number of share pledged/frozen | |
| State of share | Amount | |||||||
| Shenzhen Guocheng Energy Investment Development Co., Ltd. | Domestic non-State-owned legal person | 11.52% | 63,508,747 | 0 | 0 | 63,508,747 | 0 | |
| UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0 | 0 | 15,907,850 | 0 | |
| Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | -79000 | 0 | 13,909,425 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.33 single fund trust | Other | 1.35% | 7,435,165 | -4103345 | 0 | 7,435,165 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.15 single fund trust | Other | 1.29% | 7,114,435 | -65200 | 0 | 7,114,435 | 0 | |
| Shenwan Hongyuan Securities (Hongkong) Co., Ltd. | Foreign legal person | 1.22% | 6,707,257 | -130000 | 0 | 6,707,257 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.22 single fund trust | Other | 0.80% | 4,387,288 | 2753888 | 0 | 4,387,288 | 0 | |
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.13 structured portfolio investment trust plan | Other | 0.72% | 3,958,923 | -174900 | 0 | 3,958,923 | 0 | |||
| Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0 | 0 | 3,891,124 | 0 | |||
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.14structured portfolio investment trust plan | Other | 0.67% | 3,684,497 | -407600 | 0 | 3,684,497 | 0 | |||
| Strategy investors or general corporation comes top 10 common stock shareholders due to rights issue (if applicable) (see note 3) | N/A | |||||||||
| Explanation on associated relationship among the aforesaid shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guocheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | |||||||||
| Particular about top ten common shareholders with un-restrict shares held | ||||||||||
| Shareholders | Amount of un-restrict common shares held at period-end | Type of shares | ||||||||
| Type | Amount | |||||||||
| Shenzhen Guocheng Energy Investment Development Co., Ltd. | 63,508,747 | RMB ordinary shares | 63,508,747 | |||||||
| UOB Koy Hian (Hong Kong) Co., Ltd. | 15,907,850 | Domestically listed foreign shares | 15,907,850 | |||||||
| Guosen Securities (Hong Kong) brokerage Co., Ltd. | 13,909,425 | Domestically listed foreign shares | 13,909,425 | |||||||
| Huabao Trust Co., Ltd. – Huihuang No.33 single fund trust | 7,435,165 | RMB ordinary shares | 7,435,165 |
| Huabao Trust Co., Ltd. – Huihuang No.15 single fund trust | 7,114,435 | RMB ordinary shares | 7,114,435 |
| Shenwan Hongyuan Securities (Hongkong) Co., Ltd. | 6,707,257 | Domestically listed foreign shares | 6,707,257 |
| Huabao Trust Co., Ltd. – Huihuang No.22 single fund trust | 4,387,288 | RMB ordinary shares | 4,387,288 |
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.13 structured portfolio investment trust plan | 3,958,923 | RMB ordinary shares | 3,958,923 |
| Li Huili | 3,891,124 | Domestically listed foreign shares | 3,891,124 |
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.14structured portfolio investment trust plan | 3,684,497 | RMB ordinary shares | 3,684,497 |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guocheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | ||
| Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | N/A | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreementdealing in reporting period
□Yes √No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing inreporting period
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable √ Not applicable
Found more in annual report 2017 for the changes of shares held by directors, supervisors and senior executives
II. Resignation and dismissal of directors, supervisors and senior executives
√Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Li Xiang | Supervisor | Be elected | 2018-02-13 | General election |
| Zheng Zhonghuan | Supervisor | Be elected | 2018-02-13 | General election |
| Li Jialin | Supervisor | Be elected | 2018-02-13 | General election |
| Li Hai | President | Appointment | 2018-05-28 | Re-engagement |
Section IX. Corporate Bonds
Whether the Company has corporate bonds that issuance publicly and listed on stock exchange and without due on the date whensemi-annual report approved for released or fail to cash in full on dueNo
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2018-06-30
In RMB
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary funds | 15,814,304.99 | 27,985,654.24 |
| Settlement provisions | ||
| Capital lent | ||
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes receivable | 1,500,000.00 | |
| Accounts receivable | 34,951,941.66 | 29,007,775.21 |
| Accounts paid in advance | 6,076,785.42 | 2,482,276.54 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 606,839.17 | 659,706.81 |
| Purchase restituted finance asset |
| Inventories | 4,810,375.32 | 2,777,174.63 |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 1,792,452.81 | 1,805,427.17 |
| Total current assets | 64,052,699.37 | 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 property | ||
| Fixed assets | 3,756,571.22 | 3,941,117.97 |
| Construction in progress | ||
| Engineering material | ||
| Disposal of fixed asset | ||
| Productive biological asset | ||
| Oil and gas asset | ||
| Intangible assets | 1,882,500.00 | 2,259,000.00 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | ||
| Deferred income tax asset | 741,828.71 | 741,828.71 |
| Other non-current asset | 400,000.00 | 400,000.00 |
| Total non-current asset | 6,780,899.93 | 7,341,946.68 |
| Total assets | 70,833,599.30 | 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 | ||
| Notes payable | 8,480,000.00 | |
| Accounts payable | 10,827,725.61 | 3,928,197.27 |
| Accounts received in advance | 1,718,541.33 | 1,268,479.32 |
| Selling financial asset of repurchase | ||
| Commission charge and commission payable | ||
| Wage payable | 859,708.64 | 706,703.40 |
| Taxes payable | 2,733,356.50 | 3,807,286.87 |
| Interest payable | ||
| Dividend payable | ||
| Other accounts payable | 35,341,380.29 | 36,508,323.90 |
| Reinsurance payables | ||
| Insurance contract reserve | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 51,480,712.37 | 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 | ||
| Special accounts payable | ||
| Projected liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 51,480,712.37 | 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 | -1,195,403,038.95 | -1,195,957,201.01 |
| Total owner’s equity attributable to parent company | 16,452,432.91 | 15,898,270.85 |
| Minority interests | 2,900,454.02 | 2,962,699.67 |
| Total owner’s equity | 19,352,886.93 | 18,860,970.52 |
| Total liabilities and owner’s equity | 70,833,599.30 | 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 | Closing balance | Opening balance |
| Current assets: | ||
| Monetary funds | 10,592,392.19 | 15,398,405.80 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes receivable | 300,000.00 | |
| Accounts receivable | 17,008,339.16 | 17,680,663.16 |
| Account paid in advance | 5,524,648.70 | 2,357,662.42 |
| Interest receivable |
| Dividends receivable | ||
| Other receivables | 255,580.95 | 280,576.37 |
| Inventories | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 1,792,452.81 | 1,792,452.81 |
| Total current assets | 35,173,413.81 | 37,809,760.56 |
| Non-current assets: | ||
| Available-for-sale financial assets | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 10,379.73 | 10,379.73 |
| Investment property | ||
| Fixed assets | 3,189,645.44 | 3,309,465.26 |
| Construction in progress | ||
| Project materials | ||
| Disposal of fixed assets | ||
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Intangible assets | 1,882,500.00 | 2,259,000.00 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | 400,000.00 | 400,000.00 |
| Total non-current assets | 5,482,525.17 | 5,978,844.99 |
| Total assets | 40,655,938.98 | 43,788,605.55 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
| Derivative financial liability | ||
| Notes payable |
| Accounts payable | ||
| Accounts received in advance | 111,111.10 | 1,086,506.70 |
| Wage payable | 437,700.34 | 112,896.71 |
| Taxes payable | 1,773,220.21 | 2,806,928.48 |
| Interest payable | ||
| Dividend payable | ||
| Other accounts payable | 28,638,820.72 | 30,786,588.98 |
| Liability held for sale | ||
| Non-current liabilities due within 1 year | ||
| Other current liabilities | ||
| Total current liabilities | 30,960,852.37 | 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 | ||
| Special accounts payable | ||
| Projected liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 30,960,852.37 | 34,792,920.87 |
| Owners’ equity: | ||
| Share capita | 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 reserve | 32,673,227.01 | 32,673,227.01 |
| Retained profit | -1,202,160,385.25 | -1,202,859,787.18 |
| Total owner’s equity | 9,695,086.61 | 8,995,684.68 |
| Total liabilities and owner’s equity | 40,655,938.98 | 43,788,605.55 |
3. Consolidated Profit Statement
In RMB
| Item | Current Period | Last Period |
| I. Total operating income | 67,734,899.35 | 48,929,676.27 |
| Including: Operating income | 67,734,899.35 | 48,929,676.27 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 67,051,835.24 | 51,337,023.25 |
| Including: Operating cost | 61,164,206.33 | 45,686,272.83 |
| 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 | ||
| Operating tax and extras | 75,737.75 | 91,353.05 |
| Sales expenses | 2,755,927.53 | 2,468,701.87 |
| Administration expenses | 3,309,720.24 | 3,339,531.50 |
| Financial expenses | -260,975.81 | -201,564.91 |
| Losses of devaluation of asset | 7,219.20 | -47,271.09 |
| Add: Changing income of fair value(Loss is listed with “-”) | ||
| Investment income (Loss is listed with “-”) |
| Including: Investment income on affiliated company and joint venture | ||
| Exchange income (Loss is listed with “-”) | ||
| Assets disposal income (Loss is listed with “-”) | ||
| Other income | ||
| III. Operating profit (Loss is listed with “-”) | 683,064.11 | -2,407,346.98 |
| Add: Non-operating income | 72,126.28 | 291,710.58 |
| Less: Non-operating expense | 30,140.00 | |
| IV. Total Profit (Loss is listed with “-”) | 725,050.39 | -2,115,636.40 |
| Less: Income tax expense | 233,133.98 | 11,629.41 |
| V. Net profit (Net loss is listed with “-”) | 491,916.41 | -2,127,265.81 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | 491,916.41 | -2,127,265.81 |
| (II) Discontinued operation net profit (Net loss is listed with “-”) | ||
| Net profit attributable to owner’s of parent company | 554,162.06 | -1,691,378.44 |
| Minority shareholders’ gains and losses | -62,245.65 | -435,887.37 |
| 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. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items |
| which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 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 | 491,916.41 | -2,127,265.81 |
| Total comprehensive income attributable to owners of parent Company | 554,162.06 | -1,691,378.44 |
| Total comprehensive income attributable to minority shareholders | -62,245.65 | -435,887.37 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0010 | -0.0031 |
| (ii) Diluted earnings per share | 0.0010 | -0.0031 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 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. Operating income | 24,023,518.68 | 3,228,905.96 |
| Less: Operating cost | 20,846,218.08 | 1,994,075.80 |
| Operating tax and extras | 13,741.20 | |
| Sales expenses | 276,827.75 | |
| Administration expenses | 2,107,312.50 | 2,165,755.45 |
| Financial expenses | -83,003.31 | 2,461.63 |
| Losses of devaluation of asset | -2,008.04 | |
| Add: Changing income of fair value(Loss is listed with “-”) | ||
| Investment income (Loss is listed with “-”) | ||
| Including: Investment income on affiliated company and joint venture | ||
| Assets disposal income (Loss is listed with “-”) | ||
| Other income | ||
| II. Operating profit (Loss is listed with “-”) | 864,430.50 | -933,386.92 |
| Add: Non-operating income | 68,105.41 | 259,079.00 |
| Less: Non-operating expense | ||
| III. Total Profit (Loss is listed with “-”) | 932,535.91 | -674,307.92 |
| Less: Income tax expense | 233,133.98 | |
| IV. Net profit (Net loss is listed with “-”) | 699,401.93 | -674,307.92 |
| (I) Continuous operation net profit (Net loss is listed with “-”) | 699,401.93 | -674,307.92 |
| (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. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
| 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 | 699,401.93 | -674,307.92 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0013 | -0.0012 |
| (ii) Diluted earnings per share | 0.0013 | -0.0012 |
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 | 15,792,549.13 | 23,451,451.79 |
| 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 | 5,306.26 | |
| Other cash received concerning operating activities | 2,529,012.36 | 2,324,298.02 |
| Subtotal of cash inflow arising from operating activities | 18,326,867.75 | 25,775,749.81 |
| Cash paid for purchasing commodities and receiving labor service | 12,448,466.83 | 23,835,363.39 |
| 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 | 3,190,388.60 | 3,517,233.68 |
| Taxes paid | 1,336,400.97 | 1,649,135.49 |
| Other cash paid concerning operating activities | 4,714,582.54 | 5,580,059.48 |
| Subtotal of cash outflow arising from operating activities | 21,689,838.94 | 34,581,792.04 |
| Net cash flows arising from operating activities | -3,362,971.19 | -8,806,042.23 |
| II. Cash flows arising from investing 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 investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 31,940.00 | |
| Cash paid for investment | ||
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 31,940.00 | |
| Net cash flows arising from investing activities | -31,940.00 |
| 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 | ||
| Subtotal of cash inflow from financing activities | ||
| 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 | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flows arising from financing activities | ||
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -3,362,971.19 | -8,837,982.23 |
| 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 | 15,814,304.99 | 15,177,305.48 |
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 | 6,974.00 | |
| Write-back of tax received | 5,306.26 | |
| Other cash received concerning operating activities | 1,963,467.24 | 4,981,778.23 |
| Subtotal of cash inflow arising from operating activities | 1,975,747.50 | 4,981,778.23 |
| Cash paid for purchasing commodities and receiving labor service | 17,278.04 | |
| Cash paid to/for staff and workers | 1,237,282.20 | 1,439,294.18 |
| Taxes paid | 733,058.03 | 186,158.39 |
| Other cash paid concerning operating activities | 4,794,142.84 | 3,108,206.34 |
| Subtotal of cash outflow arising from operating activities | 6,781,761.11 | 4,733,658.91 |
| Net cash flows arising from operating activities | -4,806,013.61 | 248,119.32 |
| II. Cash flows arising from investing 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 investing activities | ||
| Subtotal of cash inflow from investing activities | ||
| Cash paid for purchasing fixed, intangible and other long-term assets |
| Cash paid for investment | ||
| Net cash received from subsidiaries and other units | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | ||
| Net cash flows arising from investing activities | ||
| 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 | ||
| Subtotal of cash inflow from financing activities | ||
| Cash paid for settling debts | ||
| Cash paid for dividend and profit distributing or interest paying | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | ||
| Net cash flows arising from financing activities | ||
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | ||
| V. Net increase of cash and cash equivalents | -4,806,013.61 | 248,119.32 |
| 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 | 10,592,392.19 | 1,391,537.61 |
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | This Period | ||||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||
| I. Balance at the end of the last 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 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the last 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 “-”) | 554,162.06 | -62,245.65 | 491,916.41 | ||||||||||
| (i) Total comprehensive income | 554,162.06 | -62,245.65 | 491,916.41 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||
| 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. Other | |||||||||||||
| (V) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (VI)Others | |||||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,195,403,038.95 | 2,900,454.02 | 19,352,886.93 |
Last Period
In RMB
| Item | Last Period | ||||||||||
| Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||
| Share | Other equity instrument | Capital reserve | Less: Invento | Other compre | Reasonable | Surplus reserve | Provision of | Retained profit | |||
| capital | Preferred stock | Perpetual capital securities | Other | ry shares | hensive income | reserve | general risk | ||||||
| I. Balance at the end of the last 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 | |||||||
| Add: Changes of accounting policy | |||||||||||||
| Error correction of the last 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 shareholders | |||||||||||||
| 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. Other | |||||||||||||
| (V) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (VI)Others | |||||||||||||
| 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)
This Period
In RMB
| Item | This Period | ||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||
| I. Balance at the end of the last year | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,859,787. | 8,995,684.68 | ||||||
| 18 | |||||||||||
| Add: Changes of accounting policy | |||||||||||
| Error correction of the last 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 “-”) | 699,401.93 | 699,401.93 | |||||||||
| (i) Total comprehensive income | 699,401.93 | 699,401.93 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by shareholders | |||||||||||
| 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. Other | |||||||||||
| (V) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period | |||||||||||
| (VI)Others | |||||||||||
| IV. Balance at the end of the report period | 551,347,947.00 | 627,834,297.85 | 32,673,227.01 | -1,202,160,385.25 | 9,695,086.61 |
Last period
In RMB
| Item | Last period | ||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | |||||||||
| I. Balance at the end of the last year | 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 last 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 | 1,413,918.80 | 1,413,918.80 | |||||||||
| listed with “-”) | |||||||||||
| (i) Total comprehensive income | 1,413,918.80 | 1,413,918.80 | |||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||
| 1.Common shares invested by shareholders | |||||||||||
| 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. Other | |||||||||||
| (V) Reasonable reserve | |||||||||||
| 1. Withdrawal in the report period | |||||||||||
| 2. Usage in the report period |
| (VI)Others | |||||||||||
| 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 of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) wasreincorporated as the company limited by shares in November 1991. On 28 December 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 as551,347,947.00 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 electricalappliance and affiliated components (products management by license excluded).
The majority of its products were previously exported, however, the sales volume sharply declined in recent yearsbecause of the antidumping litigation. Hence, the Company commences on the debt reorganization and thereorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,makes greater efforts to develop and research the new products, and creates a range of electrical bicycles tooccupy the domestic market.
Main products and services provided so far: EMMELLE bicycles, electrical bicycles and lithium battery material3. Release of the financial reportThe Financial Report released on 21 August 2018 after approved by 8th session of 10th BOD of the Company
One subsidairy included in consolidate scope in the period, and no changes in the period, found more in Note VIIIand IX
IV. Compilation Basis of Financial Statement
1. Compilation BasisThe financial statement is prepared based on continuing operation assumptions, and according to actual
occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.2. Going concernOn 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the
Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energyaccording to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the sameday, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1written decision, and approved the Company to manage property and business affairs by itself under the
supervision of custodians according 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 of the
Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen
Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Tips 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 comply with the
requirement of new accounting standards for business enterprise issued by Ministry of Finance and its applicationguide, commentate as well as other regulations (collectively referred to as Accounting Standards for BusinessEnterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cashflow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing theDisclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014
Revised) (hereinafter referred to as NO. 15 (2014 Revised) document)2. Accounting periodCalendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cyclesThe business period for the Company, which is the Gregorian calendar starting from 1 January to 31 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 not under the samecontrol
①The business combination under the same control
For a business merger that is under the same control and is achieved by the Company through one singletransaction or multiple transactions, assets and liabilities obtained from that business combination shall bemeasured at their book value at the combination date as recorded by the party being absorbed in the consolidatedfinancial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference betweenthe book value of obtained net assets and the book value of paid consolidated consideration (or the nominal valueof the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient foroffset.
The asset or liability items of consolidated party are measured at their carrying value in the consolidated balancesheet as of the consolidation date. Consolidated Profit and Loss include all items of income, expenditures andprofit from beginning till end of the period of the consolidated party(ies). Net profit made by the consolidatedcompany should be listed exclusively in the consolidated Profit and Loss. Cash flows from beginning till end ofthe period of all consolidated parties are taken into the consolidated Cash Flow.
②The business combinations not involving enterprises under common control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiableassets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fairvalue of net identifiable assets gained from the acquiree during business combination, the fair value and combinedcost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Wherethe combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from theacquiree during business combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactions and by steps,the Company shall make accounting treatment as follows:
A. 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 carried out according to the fairvalue of the equity on the acquisition date. The balance between the fair value and the book value is included
in the current investment income. If the acquiree’s stock equities held before the acquisition date involves
changes of other comprehensive incomes and other owner's equities under accounting with the equity method,the balance between the fair value and the book value is included in the current investment income on theacquisition date, excluding other comprehensive incomes incurred by changes due to re-measurement of netliabilities or net assets of the defined benefit plan.
B. 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 net identifiable assets of the subsidiaryshared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; ifthe former is less than the latter, the balance is included in the current profits and losses.
(2)Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary instages
①In 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 ofthe following may indicate that the parent should account for the multiple arrangements as a single transaction:
A. Arrangements are entered into at the same time or in contemplation of each other;B. Arrangements work together to achieve an overall commercial effect;C. The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;D. One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
②Accounting 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 its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of controlthe subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidatedfinancial statements, the difference between the consideration received and the corresponding percentage of the
subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive
income and transferred to the profit 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 financial statements at
the date when control is lost. The difference between the total amount of consideration received from thetransaction that resulted in the loss of control and the fair value of the remaining equity investment and the shareof net assets of the former subsidiary calculated continuously from the acquisition date or combination date basedon the previous shareholding proportion, shall be recognized as investment income for the current period whencontrol is lost. The amount previously recognized in other comprehensive income in relation to the former
subsidiary’s equity investment should be transferred to investment income for the current period when control is
lost
③Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stagesIf the Company doesn't lose control of investee, the difference between the amount of the consideration received
and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capitalpremium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value inthe consolidated financial statements 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 of the remainingequity investment and the share of net assets of the former subsidiary calculated continuously from the acquisitiondate or combination date based on the previous shareholding percentage, shall be recognized as investmentincome for the current period when control is lost. The amount previously recognized in other comprehensive
income in relation to the former subsidiary’s equity investment should be transferred to investment income 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 Accounting Standard for
Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parentcompany 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 profit distribution of subsidiaries, internal
transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parentcompany.
7. Classification of joint venture arrangement and accounting treatment for joint control(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venturearrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or moreparticipants carry out joint control on implementation of the arrangement. Any participant cannot control thearrangement independently. Any participant for joint control can stop other participants or participantcombinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and relatedactivities of the arrangement must be determined only when obtaining the unanimous consent of the partiessharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to anarrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to thearrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets ofthe arrangement.
(2) Accounting treatment of joint venture arrangementJoint venture participants should confirm the following items related to interest shares in joint venture and carry
out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilitiesborne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred afterselling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based onshares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based onshares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to
provisions of Accounting Standards for Business Enterprises No.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 investmentsthat are readily convertible into known amounts of cash and that are subject to an insignificant risk of change invalue.
9. Foreign currency transaction and financial statement conversion(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount accordingto the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must bebased on the spot exchange rate on the balance sheet date and the exchange difference incurred from differentexchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loanrelated to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits andlosses; foreign currency non-monetary items measured with historical cost are still converted as per the spotexchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary itemsmeasured with fair value shall be converted as per the spot exchange rate on the date of determining the fair valueand the difference shall be charged to current profits and losses 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 on the 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 expenditure items in the profit statement shall be convertedat the spot exchange rate on the transaction date. The translation difference of foreign financial statementsconducted as above is recognized as other comprehensive incomes.
10. Financial instruments(1) Classification of financial instruments
Financial assets can be divided into four types while initially recognized: financial assets at fair value throughprofit or loss (including transactional financial assets and those financial assets designated as at fair value throughprofit 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 fair value throughprofit or loss (including transactional financial liability and those financial liabilities designated as at fair valuethrough 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 the contractualprovisions of the instrument. Financial assets or financial liabilities are initially measured at fair value. Forfinancial assets and financial liabilities at fair value through profit or loss, transaction costs are immediatelyrecognized to profit or loss. For other financial assets or financial liabilities, transaction costs are included in theirinitial recognized amounts.
Financial assets are subsequently measured at fair value without considering of the possible transaction costs upon
the disposal thereof in the future, except that: (1) Held-to-maturity investments and loans and receivables aresubsequently measured at amortized cost using the effective interest method; and (2) Investments in equityinstruments that do not have a quoted price in an active market and whose fair value cannot be reliably measured,and derivative financial 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 amortized cost using the effective interest method, except that:
(1) Financial liabilities at fair value through profit are subsequently measured at fair value without considering ofthe possible transaction costs upon the settlement thereof in the future; (2) Derivative financial liabilities that arelinked to and must be settled by delivery of an unquoted equity instrument without a quoted price in an activemarket whose fair value cannot be reliably measured, they are subsequently measured at cost; and (3) Financialguarantee contracts 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 fair value throughprofit 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 amount initially recognized less cumulativeamortization recognized in accordance with the principles set out in ASBE No. 14 “Revenue”.
Any gains or losses arising from changes in the fair value on financial assets or financial liabilities, other thanthose hedging instrument, are accounted for as follows: (1) Gains or losses arising from the change in fair valueon financial assets or financial liabilities at fair value through profit or loss are recorded as gains or losses fromchange in fair value; Any interest or dividend income earned during the holding on such financial assets arerecognized to profit or loss. On disposal, the differences between the consideration received and initial recognizedamount are recognized as investment income and adjust to the gains or losses from change in fair valueaccordingly; and (2) Changes in fair value of available-for-sale financial assets are recorded in the othercomprehensive income. Interest calculated using the effective interest method for the periods, in which the assetsare held, are recognized as investment income. Cash dividends from available-for-sale equity investments arerecognized as investment income when the dividends are declared by the investee. On disposal, the differencesbetween the considerations received and the carrying amounts of financial assets after deducting the accumulatedfair values adjustments previously recorded in the other comprehensive income are recognized as investmentincome.
A financial asset is derecognized when the contractual rights to the cash flows from the financial asset terminate,or when it transfers substantially all the risks and rewards of ownership of the asset to another entity. A financialliability (or part of it) is derecognized only when the underlying present 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 financial asset to thetransferee, the financial asset should be derecognized; If the Group retains substantially all the risks and rewards
of ownership of a financial asset, the transferred financial asset should be recognized and the considerationreceived should be recognized as a financial liability; If the Group neither transfers nor retains substantially all therisks and rewards of ownership of a financial asset, it shall be accounted for as follows: (1)the financial assetshould be derecognized if the Group waives control over the asset; (2)it recognizes the financial asset to the extentof its continuing involvement in the transferred financial asset and recognizes an associated liability if the Groupdoes not waives control over the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference of thefollowing is recognized to profit or loss: (1) The carrying amount of the financial asset transferred; and (2) Thesum of the consideration received from the transfer and any cumulative change of fair value that has beenpreviously recognized in other comprehensive income directly. If a part of the transferred financial asset qualifiesfor derecognition, the carrying amount of the transferred financial asset is allocated between the part thatcontinues to be recognized 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 the partderecognized; and (ii) The sum of the consideration received for the part derecognized and any cumulative changeof fair value allocated to the part derecognized which has been previously recognized in other comprehensiveincome 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 the quoted price in theactive market to determine its fair value. For a financial assets or financial liability 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 issubstantially the same, discounted cash flow analysis and option pricing models) to determine its fair value. For afinancial asset acquired 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 other than thosefinancial assets at fair value through profit or loss. If there is objective evidence that a financial 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 individually for impairment.For a financial asset that is not individually significant, the Company assesses the asset individually forimpairment or includes the asset in a group of financial assets with similar credit risk characteristics andcollectively assesses them for impairment. If the Company determines that no objective evidence of impairmentexists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of
financial assets with similar credit 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 a financial assetcarried at amortized cost has occurred, an impairment loss is recognized as the excess of the carrying amount ofthe financial asset over its present value of estimated future cash flows to profit or loss. If an impairment loss hasbeen incurred on an investment in unquoted equity instrument without a quoted price in an active market whosefair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled bydelivery of such equity instrument, an impairment loss is recognized as the excess of the carrying amount of theunquoted equity investment or a derivative financial asset over its present value of estimated future cash flowsdiscounted at the current market rate of return for a similar financial asset to profit or loss.
An impairment is recognized where there is a significant decrease in the fair value of available for sale financialassets, or taken into account all factors, the decrease trend is not temporary to profit or loss. The cumulative lossarising from decline in fair value previously recognized directly in the other comprehensive income is reclassifiedfrom the capital reserve to profit or loss.
(6)There is no reclassification of held-to-maturity investment which is not due into financial assets available forsale during the period.
11. Account receivable(1) Account receivable with single significant amount and withdrawal single item bad debt provision
| Account with single significant amount | Over RMB 5 million |
| Withdrawal method for bad debt provision of account receivable with single significant amount | Conducted impairment testing separately, balance between the present value of future cash flow and its carrying value, bad debt provision withdrawal and reckoned into current gains/losses. For those without impairment being found after test, collected into relevant combination for accrual. |
(2) Accounts receivable whose bad debts provision was accrued by combination based on credit riskcharacteristics portfolio
| Combination | Bad debt provision accrual |
| Bad debt provision of receivables | Age analysis method |
Accrual bad debt provision by age analysis in combination:
√ Applicable □ Not applicable
| 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 applicable
In 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 for single item
| Reasons for provision of bad debt reserve | If any objective evidence shows that it may has impaired, such as the debtor revoke, bankruptcy or death, and after liquidate with bankrupt’s estates or heritage, the money still un-collectable, and in sufficient of cash flow |
| Provision method of bad debt reserve | As for the receivable with objective evidence shows that it might be impaired, an independent impairment test may be carried out for impairment losses recognized |
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 in process, goodson hand, wrap page, low value consumables, materials for consigned processing and 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 average method when they are delivered.(3) Provision for inventory impairmentWhen a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable valueof stock in inventory (including finished products, inventory merchandize and materials for sale) that can be solddirectly is determined using the estimated saleable price of such inventory deducted by the cost of sales andrelevant taxation over the course of ordinary production and operation. The net realizable value of material ininventory that 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 of ordinaryproduction and operation. The net realizable value of inventory held for performance of sales contract or laborservice contract is determined based on the contractual price; in case the amount of inventory held exceeds the
contractual amount, the net realizable value of the excess portion of inventory is calculated using the normalsaleable price.Provision for impairment is made according to individual items of inventories at the end of the period; however,for inventories with large quantity and low unit price, the provision is made by categories; inventories of productsthat are produced and sold in the same region or with the same or similar purpose or usage and are difficult to bemeasured separately are combined for provision for impairment.If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversedand the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.(4)Inventory system
Perpetual inventory system is adopted.13. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria asheld-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals ofsuch assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a planfor disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a bindingpurchase agreement entered into by the Company and other parties, which contains transaction price, time andadequately strict punishments 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 be completedwithin a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained asrequired by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value lessselling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case thatthe original value is higher than the adjusted expected net residual value, the difference shall be recorded in profitor loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying valueof the goodwill in the disposal group, and then offset the carrying value of the non-current assets within thedisposal group 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 the selling expensesincreased as at the subsequent balance date, the reduced amount before will be recovered and reversed in theassets impairment loss amount recognized after being classified as held for sale, and the reversed amount will berecorded in the current profits or loss. The impairment loss on assets recognized before being classified as held forsale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value lessthe selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered andreversed in the assets impairment loss amount recognized in non-current assets after being classified as held for
sale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of thegoodwill as well as the impairment loss on assets recognized before the non-current assets are classified as heldfor sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assetsrecognized in the disposal group held for sale will increase the book value in proportion of the book value of eachnon-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, theinvestment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement ofthe parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in theconsolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies suchconditions as required for being classified as held for sale notwithstanding part equity investment will be retainedby the Company after such disposal.
14. Long-term equity investments(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cashpayment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date ofcombination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial
investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost forlong-term equity investment and the book value of paid consolidation consideration or the total face value ofissued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earningsshall be adjusted.
As for business combination under the common control realized by the Company through several transactions, theinitial investment cost of the investment shall be determined based on the share of the carrying value of the
owners’ equity of the consolidated party as calculated according to the shareholding proportion on the
consolidation date. Difference between initial investment cost and the carrying value of long-term equityinvestment before combination and the sum of carrying value of newly paid consideration for additional sharesacquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If thebalance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fairvalue 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 cash payment,actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuanceof equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. Forthose ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
initial investment cost, provided that the 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, the long-term
investment is accounted for using the cost method in the Company’s financial statements. The equity method is
adopted when the Group has joint control, or exercises significant influence on the investee.Under cost method, long term equity investment is measured at initial investment cost. Except for the price
actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which isincluded in the consideration, the Company recognizes cash dividends or profits declared by the investee ascurrent investment gains, and determine whether there is impairment on long term investment according torelevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fairvalue in the net identifiable assets in the investee, the difference shall be included in initial investment cost of thelong-term equity investment. When the initial investment cost is lower than the share of fair value in the netidentifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment ofcost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with itsattributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and
adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses aftermaking appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating the
portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributableto the investing entity according to its shareholding proportion (but impairment losses for assets arising frominternal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the
Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net
losses of the investee is recognized to the extent the carrying amount of the investment together with anylong-term interests that in substance form part of its net investment in the investee is reduced to zero, except thatthe Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term
equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includesthe 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 returns from its
involvement with the investee, and the ability to use its power over the investee to affect the amount of the
investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control with other parties over those policies(4)Disposal of long-term equity investment
1) 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, the difference
between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profitor 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 value of the long term
invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceedsshould be recognized as profit or loss. The residual part should be treated as long term investment or otherfinancial assets according to their carrying amount. After partial disposal, if the company is able to exertsignificant influence or common control over the investee, the investment should be measured according to costmethod or equity method, in compliance 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 the difference between the carrying amountand the recoverable amount of the investment.
15. Investment property
Measurement modeMeasured by cost methodDepreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held fortransfer 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, andrelevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixedassets and intangible assets. As of the balance sheet date, where there is any indication that an investment propertyexperiences impairment, the relevant impairment provision shall be provided for based on the difference betweenthe carrying value and the recoverable amount.
16. Fixed assets(1) Confirmation conditionsFixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with
a service life in excess of 1 financial year.
(2) Depreciation methods
| Categories | 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% |
(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 has the option to purchasethe leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lesseewill 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 presentvalue of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% orhigher of its fair value 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 assetsare of such a specialized nature that only the lessee can use them without major modifications. Fixed assetsrented-in under finance lease are recorded at the lower of fair value and the present value of the minimum leasepayment at the inception of the lease, and are depreciated following the depreciation policy for self-owned fixedassets.
17. Construction in process(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets
as per the actual construction cost. If the construction in progress has reached the intended condition for use butcompletion accounting is not carried out, the construction in progress should be first treated as fixed assets as perthe estimated value. After completion accounting is carried out, the original estimated value should be adjusted asper the actual cost, but the provision for depreciation withdrawn should not be adjusted.(2)As of the balance sheet date, where there is any indication that a construction in process experiencesimpairment, the relevant impairment provision shall be provided for based on the difference between the carryingvalue and the recoverable amount.18. Borrowing expenses
19. Biological assets
Nil
20. Oil-and-gas assets
Nil
21. Intangible assets(1) Valuation method, service life and impairment testa.Intangible assets include land use right, patent right and non-patent technology, which should be initially
measured at cost.b.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 said intangible assets. If the form ofrealization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
c. At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may beimpaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets overtheir recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying thecondition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2)Accounting policies for expenditures for internal research and development activitiesExpenditures for internal research and development activities are expensed in the period as incurred. The expenses
of internal research and development projects during the development stage are recognized as intangible assetswhen all of the following conditions are satisfied: (1) The completion of such intangible assets for use or sale istechnically feasible; (2) The Company has the intention to use or sell the intangible assets upon completion; (3)The way in which the intangible assets bring economic benefits shows that there exists consumption market forthe products with use of these intangible assets or the intangible assets themselves, or that they are useful in caseof internal utilization; (4) The Company has sufficient technological, financial and other resources to complete thedevelopment of the intangible assets and the ability to make them available for use or sale; (5) The expensesattributable to such intangible assets can be measured reliably at the development stage.
22. Impairment of long-term assets23. Long-term deferred expenses
23. Long-term prepaid expenses
Long-term prepaid expenses are recorded with actual cost, and evenly amortized within its beneficiary period orstipulated period. If items of long-term prepaid expenses fail to be beneficial to the following accounting periods,residual values of such items are included in profit or loss.
24. Employee compensation(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensationoccurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. Thenon-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit(3) Accounting for retirement benefitsWhen the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier.
(4) Accounting for other long-term employee benefits25. Accrued liabilities26. Share-based payment(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-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 the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference 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, discounted cash 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 exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes1)Equity-settled share-based paymentFor equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserveaccordingly. For equity-settled share-based payment made in return for the rendering of employee services thatcannot be exercised until the services are fully rendered during vesting period or specified performance targets aremet, on each balance sheet date within the vesting period, the services acquired in the current period shall, basedon the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and thecapital 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, such payment shall bemeasured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And ifthe fair value of the service cannot be measured reliably while the fair value of the equity instrument can bemeasured reliably, it shall be measure at the fair value of the instrument as of the date on which the service is
acquired, which shall be recorded 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 in exchange for renderof service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, berecognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settledshare-based payment made in return for the rendering of employee services that cannot be exercised until theservices are fully provided 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 best estimate of thenumber of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities atthe 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, the Company shallrecognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. Ifthe revision results in an increase in the number of equity instruments granted, the Company will recognize theincrease in the services rendered accordingly at the fair value of the increased number of equity instruments. If the
Company revises the vesting conditions on terms favorable to the employees, the Company will take intoconsideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continuerecognize the amount of services rendered accordingly at the fair value of the equity instruments on the date ofgrant without considering the decrease in the fair value of the equity instruments. If the revision results in adecrease in the number of equity instruments granted, the Company will account for such decrease by reducingpart of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms notfavorable to the employees, 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 granted during the vestingperiod (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation orsettlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting periodwill be recognized immediately.
27. Other financial instruments including senior shares and perpetual bonds28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNo
(1) Goods salesIncome from sale of goods is recognized when the following conditions are met: (1)the Company has transferredthe key risks and return on the ownership of the merchandize to the buyer; (2)the Company has not retainedcontinued management rights associated with ownership and no longer exercises effective control on themerchandize sold; (3)the amount of income can be reliably measured; (4)the relevant economic benefits are verylikely to flow to the enterprise; (5)the costs incurred or to be incurred can be reliably measured.
Timing for recognition of revenue of the Company from products sales: revenue is recognized upon delivery ofproducts 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 services is recognizedusing the percentage of completion method. When the outcome of the transaction cannot be estimated reliably atthe balance sheet date, revenue is recognized based on the amount of the costs incurred and the costs incurred arecharged off at the same amount when the costs incurred are expected to be recoverable; and no revenue isrecognized and the costs incurred are charged off as an expense of the period when the costs incurred are notexpected to be recovered.
(3)Transfer of asset use right revenue
When the economic benefits related to the transaction is likely to flow to the Company and the income
amount can be reliably calculated, the Company shall recognize income arising from transfer 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 whichis utilized by other persons.The income of royalties is determined on basis of the chargeable time and method
fixed under relevant agreement or contract.
29. Government Grants(1) Determination basis and accounting for government grants related to assets(1)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 not be determined reliably, theyshall be measured at nominal value.
(2)Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded in profit or lossby installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributedshall be transferred to profit or loss for the period in which the assets are disposed.
(3)Net method for government grants1) Government grants relating to assets are used to write off the carrying value of the relevant assets;
(4)The Company adopts aggregated accounting method for the government grants received.
(5)As for the government grants comprising both portions relating to assets and income, separate accounting shallbe made for different portion; in case it is hard to differentiate the portions, the grants will be recorded as relatedto income in general.
(6)The Company realizes government grants relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.
(7)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank thenprovides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevantborrowing 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 cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidyagainst the relevant borrowing expenses.
(2)Judgment criteria and accounting treatment for government grants related to income(1)government grant, if granted as monetary assets, are measured at the amount received or receivable, andmeasured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, theyshall be measured at nominal value.(2)Aggregate method for government grants:
1) 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 for the period in which therelevant costs are recognized. If government grants relating to income are used to compensate for the relevantcosts or loss occurred, they shall be recorded in profit or loss for the period directly.
(3)Net method for government grants
1) 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 for the period in which offsetagainst the relevant costs. If government grants relating to income are used to compensate for the relevant costs orloss occurred, they shall be offset against the relevant costs for the period directly.
(4)The Company adopts aggregated accounting method for the government grants received.(5)As for the government grants comprising both portions relating to assets and income, separate accountingshall be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded asrelated to income in general.(6)The Company realizes government grants relating to its normal activities as other income based on thesubstance of economic business, and if not related to its normal activities, realized as non-operating income andexpenditure.(7)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidyfunds are paid to the loaning bank or directly to the Company by the competent financial authorities and aretreated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then
provides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates 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 cost under effectiveinterest method, and recognizes the difference between the actual amount received and the fair value of the loan asdeferred income. Deferred income is amortized over the term of the loan under effective interest method andoffset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidyagainst the relevant borrowing expenses.
30. Deferred 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 the difference of the carrying amount and tax baseof items not recognized as assets and liabilities but with their tax base being able to be determined accordingto tax laws) and in accordance with the tax rate applicable to the period during which the assets are expectedto be recovered or 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. At the balance sheet date, if thereis any exact evidence that it is probable that future taxable profits will be available against which deductibletemporary differences can be utilized, the deferred tax 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 that sufficient taxable profits will beavailable to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed tothe extent that it becomes probable that sufficient 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 business combination; and ② the
transactions or items directly recognized in equity.
31. Lease(1)Accounting for operating lease(2)Accounting for financing lease
32. Other important accounting policy and estimation33. Major accounting policy and changes(1) Main accounting policy changes
□ Applicable √ Not applicable
(2) Changes of important accounting estimate
□ Applicable √ Not applicable
34. Other
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 | 17%, 16%, 6%, 5% |
| Tax for maintaining and building cities | Turnover tax payable | 7% |
| Business income tax | Taxable income | 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
| Property tax | Turnover tax payable | 1.2% |
Disclose reasons for different taxpaying body
| Taxpaying body | Income tax rate |
2. Tax preference
Nil
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 55,753.64 | 100,034.87 |
| Cash in bank | 15,758,551.35 | 18,837,402.11 |
| Other monetary fund | 9,048,217.26 | |
| Total | 15,814,304.99 | 27,985,654.24 |
Other explanation
There were no restrited monetary fund at end of the period. No deposited overseas and of potential recovery risksat period-end
2. Financial assets measured by fair value and reckoned into current gains/losses with its variation
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
3. Derivative financial assets
□ Applicable √ Not applicable
4. Note receivables(1) Classification of notes receivable
In RMB
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 1,500,000.00 | |
| Total | 1,500,000.00 |
(2) Pledge at period-end
In RMB
| Item | Amount pledge at period-end |
| Bank acceptance bill | 0.00 |
| Trade acceptance | 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 bill | 48,320,333.38 | 0.00 |
| Trade acceptance | 0.00 | 0.00 |
| Total | 48,320,333.38 | 0.00 |
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
| Item | Amount transfer to account receivable at period-end |
| Trade acceptance | 0.00 |
| Total | 0.00 |
Other explanation
There was no notes that converted to receivables due to the inability of the drawer to performance the contrat。
5. Accounts receivable(1) Accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Receivables with bad debt provision accrual by credit portfolio | 36,199,337.45 | 96.59% | 1,247,395.79 | 3.45% | 34,951,941.66 | 30,247,962.05 | 95.95% | 1,240,186.84 | 4.10% | 29,007,775.21 |
| Accounts with single significant amount and bad debts provision accrued individually | 1,278,283.50 | 3.41% | 1,278,283.50 | 100.00% | 1,278,283.50 | 4.05% | 1,278,283.50 | 100.00% | ||
| Total | 37,477,620.95 | 100.00% | 2,525,679.29 | 6.74% | 34,951,941.66 | 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 applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Account receivable | Bad debt provision | Accrual ratio | |
| Within one year | |||
| Within 1 year | 34,155,123.80 | 102,465.37 | 0.30% |
| Subtotal within one year | 34,155,123.80 | 102,465.37 | 0.30% |
| 1-2 years | 901,989.20 | 2,705.97 | 0.30% |
| 2-3 years | 0.30% | ||
| Over 3 years | 1,142,224.45 | 1,142,224.45 | 100.00% |
| Total | 36,199,337.45 | 1,247,395.79 | 3.45% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single significant
amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and
the reserve for bad debt provision is withdrawn with age analysis method.
In 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:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 9,231.99 Yuan; the amount collected or switches back amounting to 2,023.04 YuanImportant bad debt provision collected or switch back:
In RMB
| Company | Collected or switch back amount | Collection way |
| Total | 0.00 | -- |
(3) Account receivable actual charge off in the Period
In RMB
| Item | Amount written off |
Written-off for the major receivable:
In RMB
| Company | Nature | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil
(4) Top 5 receivables at ending balance by arrears party
| Item | Relationship with the company | Amount | Account age | Bad debt provision | Ratio in total receivables (%) | Nature |
| Jinan Yuxintai Sales Co., Ltd. | Unrelated party | 9,043,566.55 | Within 1 year | 27,130.70 | 24.13 | Payment for goods |
| Shenzhen WTR New Energy Technology Co., Ltd. | Unrelated party | 7,923,335.39 | Within 1 year | 23,770.00 | 21.14 | Payment for goods |
| Shenzhen BoYiN Technology Co., Ltd. | Unrelated party | 5,217,743.51 | Within 1 year | 15,653.23 | 13.92 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Unrelated party | 3,918,438.81 | Within 1 year | 11,755.32 | 10.46 | Payment for goods |
| Fu Qi | Unrelated party | 2,933,729.40 | Within 1 year | 8,801.19 | 7.83 | Payment for goods |
| Total | 29,036,813.66 | 87,110.44 | 77.48 |
(5) De-recognition for financial assets transfer
Nil
(6) Receivable transferred and the assets and liability resulted for continue to engagement
NilOther explanation
At end of the period, there was no account receivable from shareholder unit and other related parties that holds 5%(included) voting rights of the Company among Account Receivables
6. Advance payment(1) Listed by account age
In RMB
| Age | Ending balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within 1 year | 6,076,785.42 | 100.00% | 2,482,276.54 | 100.00% |
| Total | 6,076,785.42 | -- | 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
| Item | Relationship with the company | Amount | Account age | Nature | Ratio in total advance e payment (%) |
| Zhaoqing Kaisite Battery Material Co., Ltd. | Unrelated party | 5,064,187.12 | Within 1 year | Prepayments for materials | 83.34 |
| Sichuan Xingsheng Lithium Industry Co., Ltd. | Unrelated party | 660,000.00 | Within 1 year | Prepayments for materials | 10.86 |
| Guangshui Qilin New Mateiral Co., Ltd. | Unrelated party | 290,598.30 | Within 1 year | Prepayments for materials | 4.78 |
| Xinjiang Tebian Electrical Engineering Project Management Co., Ltd. | Unrelated party | 62,000.00 | Within 1 year | Project bid | 1.02 |
| Total | 6,076,785.42 | 100.00 |
Other explanation
At end of the period, there was no advance payment from shareholder unit and other related parties that holds5% (included) voting rights of the Company among Advance Payment
7. Interest receivable(1) interest receivable
In RMB
| Item | Ending balance | Opening balance |
(2) Important overdue interest
| Borrower | Ending balance | Overdue time Overdue time | Overdue reason | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
8. Dividend receivables(1) Dividend receivables
In RMB
| Item (or the invested entity) | Ending balance | Opening balance |
(2) Major dividend receivables with over one year age
In RMB
| Item or the invested entity) | Ending balance | Age | Reasons | Impairment (Y/N) and judgment basis |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
9. Other accounts receivable(1) Other accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables with bad debt provision accrual by credit portfolio | 1,077,734.01 | 100.00% | 470,894.84 | 43.69% | 606,839.17 | 1,130,591.40 | 100.00% | 470,884.59 | 41.65% | 659,706.81 |
| Total | 1,077,734.01 | 100.00% | 470,894.84 | 43.69% | 606,839.17 | 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 applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Other accounts receivable | Bad debt provision | Accrual ratio | |
| Within 1 year | |||
| Within 1 year | 251,572.17 | 754.72 | 0.30% |
| Subtotal within one year | 251,572.17 | 754.72 | 0.30% |
| 1-2 years | 148,388.00 | 445.16 | 0.30% |
| 2-3 years | 208,705.00 | 626.12 | 0.30% |
| Over 3 years | 469,068.84 | 469,068.84 | 100.00% |
| Total | 1,077,734.01 | 470,894.84 | 43.69% |
Explanations on combination determine:
Other receivable with single significant amount refers to the amount with over 5 million Yuan
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 15.00 Yuan; the amount collected or switches back amounting to 4.75Yuan
Important bad debt provision collected or switch back:
In RMB
| Company | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Company | 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:
Nil
(4) Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Margin or deposit | 496,750.00 | 628,997.24 |
| Equipment money | 311,400.00 | 311,400.00 |
| Staff personal loans | 113,701.00 | 49,098.50 |
| Other | 155,883.01 | 141,095.66 |
| Total | 1,077,734.01 | 1,130,591.40 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
| Company | Nature | Ending balance | Age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Luwei Mechatronic Equipment Co., Ltd. | Equipment money | 300,000.00 | Over 5 years | 27.84% | 300,000.00 |
| Shenzhen Anjinheng Industrial Co., Ltd. | Margin or deposit | 150,900.00 | Within 3 years | 14.00% | 452.70 |
| Shenzhen Material Group Co., Ltd. | Margin or deposit | 135,723.00 | Within 3 years | 12.59% | 407.17 |
| Alipay (China) Network Technology Co., Ltd. | Margin or deposit | 110,000.00 | Within 2 years | 10.21% | 330.00 |
| Zhao Zhuqing | Margin or deposit | 36,000.00 | Over 3 years | 3.34% | 36,000.00 |
| Total | -- | 732,623.00 | -- | 67.98% | 337,189.87 |
(6) Account receivable with government grants involved
In RMB
| Company | Item | Ending balance | Ending age | Time, amount and basis of amount collection estimated |
| Total | -- | 0.00 | -- | -- |
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuous involvement
NilOther explanation
At end of the period, there was no other account receivable from shareholder unit and other related parties thatholds 5% (included) voting rights of the Company among Other Account Receivables
10. Inventory(1) Inventory classification
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Raw materials | 442,413.52 | 27,465.37 | 414,948.15 | 566,193.56 | 27,465.37 | 538,728.19 |
| Finished goods | 4,399,877.37 | 4,450.20 | 4,395,427.17 | 2,233,386.81 | 4,450.20 | 2,228,936.61 |
| Goods shipped in transit | 9,509.83 | 9,509.83 | ||||
| Total | 4,842,290.89 | 31,915.57 | 4,810,375.32 | 2,809,090.20 | 31,915.57 | 2,777,174.63 |
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock ExchangeNo.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Accrual | Other | Switch back or write-off | Other | |||
| Raw materials | 27,465.37 | 27,465.37 | ||||
| Finished goods | 4,450.20 | 4,450.20 | ||||
| Total | 31,915.57 | 0.00 | 0.00 | 0.00 | 0.00 | 31,915.57 |
Nil
(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 explanationNil
11. Assets hold for sold
In RMB
| Item | Ending book value | Fair value | Expected disposal expenses | Expected disposal time |
| Total | 0.00 | 0.00 | 0.00 | -- |
Other explanationNil
12. Non-current assets due within one year
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
13. Other current assets
In RMB
| Item | Ending balance | Opening balance |
| Prepaid intermediary fee | 1,792,452.81 | 1,792,452.81 |
| Prepaid tax | 12,974.36 | |
| Total | 1,792,452.81 | 1,805,427.17 |
Other explanationNil
14. Financial assets available for sale(1) Financial assets available for sale
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | 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
| Type | 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 entity | Book balance | Depreciation reserves | Ratio of share-holding in invested entity | Cash dividend | ||||||
| Period-beginning | Increased | Decreased | Period-end | Period-beginning | Increased | 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
| Type | Equity instrument | Debt instrument | Total |
| available for sale | available for sale | |||
| Balance of impairment accrual at period-begin | 0.00 | |||
| Current accrual | 0.00 | |||
| Including: transfer-in from other comprehensive income | 0.00 | |||
| Current decrease | 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 or other-than-temporary declined atperiod-end without depreciation reserves accrual
In RMB
| Item | 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
15. Held-to-maturity investment(1) Held-to-maturity investment
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | 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
16. Long-term account receivable(1) Long-term account receivable
In RMB
| Item | Ending balance | Opening balance | Discount rate section | ||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt 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 continuous involvement
NilOther explanationNil
17. Long-term equity investment
In RMB
| The invested entity | Opening balance | v | Ending balance | 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. Associated 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
18. 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) Certificate of title un-completed
In RMB
| Item | Book value | Reasons for un-completed |
Other explanationNil
19. Fixed assets(1) Fixed assets
In RMB
| Item | Housing buildings | Machinery equipment | Means of transportation | Electronic equipment and other | Total |
| I. Original book value: | |||||
| 1.Opening balance | 2,959,824.00 | 416,629.06 | 958,593.21 | 684,394.50 | 5,019,440.77 |
| 2.Increase in the current period | |||||
| (1) Purchase | |||||
| (2) construction in process transfer-in | |||||
| (3) the increase in business combination | |||||
| 3.Decrease in the current period |
| (1) Disposal or scrap | |||||
| 4.Ending balance | 2,959,824.00 | 416,629.06 | 958,593.21 | 684,394.50 | 5,019,440.77 |
| II. accumulated depreciation | |||||
| 1.Opening balance | 199,788.12 | 109,246.12 | 269,780.13 | 499,508.43 | 1,078,322.80 |
| 2.Increase in the current period | 66,596.04 | 18,748.32 | 86,273.40 | 12,928.99 | 184,546.75 |
| (1) provision | 66,596.04 | 18,748.32 | 86,273.40 | 12,928.99 | 184,546.75 |
| 3.Decrease in the current period | |||||
| (1) Disposal or scrap | |||||
| 4.Ending balance | 266,384.16 | 127,994.44 | 356,053.53 | 512,437.42 | 1,262,869.55 |
| III. impairment of preparation | |||||
| 1.Opening balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2.Increase in the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) provision | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.Decrease in the current period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal or scrap | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4.Ending balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. book value | |||||
| 1.Ending book value | 2,693,439.84 | 288,634.62 | 602,539.68 | 171,957.08 | 3,756,571.22 |
| 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 | Depreciation reserves | Book value | Note |
(3) Fixed assets leased through operating lease
In RMB
| Item | Original book value | Accumulated depreciation | Depreciation reserves | Book value |
(4) Fixed assets leased through operating lease
In RMB
| Item | Ending book value |
(5) Certificate of title un-completed
In RMB
| Item | Book value | Reasons |
| Six properties in Lianxin Garden | 2,693,439.84 | Other explanation |
Other explanationThe six properties of Lianxin Garden have original value of 2,959,824.00 Yuan. The property purchasing refers to theindemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District. Accordingto 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.
20. Construction in progress(1) Construction in progress
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Changes in significant construction in progress
In RMB
| Item | Budget | Opening balance | Increase in the current 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 | Accrual Amount | Reasons |
| Total | 0.00 | -- |
Other explanationNil
21. Engineering materials
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
22. Disposal of fixed assets
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
23. Productive biological assets(1) Productive biological assets measured by cost
□ Applicable √ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets(1) Intangible assets
In RMB
| Item | Land use right | Patent | Non-patent technology | Trademark | Total |
| I. original book value: | |||||
| 1.Opening balance | 5,271,000.00 | 5,271,000.00 | |||
| 2.Increase in the current period | |||||
| (1) Purchase | |||||
| (2) internal R & D | |||||
| (3) the increase in business combination | |||||
| 3.Decrease in the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | 5,271,000.00 | 5,271,000.00 | |||
| II. accumulated depreciation | |||||
| 1.Opening balance | 3,012,000.00 | 3,012,000.00 | |||
| 2.Increase in the current period | 376,500.00 | 376,500.00 | |||
| (1) provision | 376,500.00 | 376,500.00 | |||
| 3.Decrease in |
| the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | 3,388,500.00 | 3,388,500.00 | |||
| III. impairment of preparation | |||||
| 1.Opening balance | |||||
| 2.Increase in the current period | |||||
| (1) provision | |||||
| 3.Decrease in the current period | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. book value | |||||
| 1.Ending book value | 1,882,500.00 | 1,882,500.00 | |||
| 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 |
Other explanationNil
26. Development expense
In RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Ending balance |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other explanationNil
27. Goodwill(1) Original book value of goodwill
In RMB
| The invested entity or matters of goodwill | Opening balance | Increase during the year | Decreased during the year | Ending balance | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
(2) Depreciation reserves of goodwill
In RMB
| The invested entity or matters of goodwill | Opening balance | Increase during the year | Decreased during the year | Ending balance | ||
| Total | 0.00 | 0.00 | 0.00 | 0.00 | ||
Process of impairment testing, parameter and recognition method for impairment losses:
NilOther explanationNil
28. Long-term unamortized expenses
In RMB
| Item | Opening balance | Increase in the current period | Amortized in the Period | Other decrease | Ending balance |
| Total | 0.00 | 0.00 | 0.00 |
Other explanationNil
29. Deferred income tax assets and deferred income tax liabilities(1) Deferred income tax assets un-offset
In RMB
| Item | Ending balance | Opening balance |
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment | 2,967,314.86 | 741,828.71 | 2,967,314.86 | 741,828.71 |
| Total | 2,967,314.86 | 741,828.71 | 2,967,314.86 | 741,828.71 |
(2) Deferred income tax liabilities un-offset
In RMB
| Item | Ending balance | Opening balance | ||
| 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 | 0.00 | 741,828.71 | 0.00 | 741,828.71 |
| Deferred income tax liability | 0.00 | 0.00 |
(4) Details of unrecognized deferred income tax assets
In RMB
| Item | Ending balance | Opening balance |
| Total | 0.00 | 0.00 |
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
| Year | Ending amount | Opening amount | Note |
| Total | 0.00 | 0.00 | -- |
Other explanationNil
30. Other non-current assets
In RMB
| Item | Ending balance | Opening balance |
| Advance payment for house | 400,000.00 | 400,000.00 |
| Total | 400,000.00 | 400,000.00 |
Other explanation
Ended as 30 June 2018, the four houses for enterprise talent, located in Yinhu Lanshan, have not yet deliveredby Shenzhen Housing and Construction Bureau of Luohu District
31. Short-term loans
(1)Types of short-term loans
In RMB
| Item | Ending balance | Opening balance |
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
| Unit | Ending balance | Lending rate | Overdue time | Overdue rate |
| Total | 0.00 | -- | -- | -- |
Other explanationNil
32. Financial liability measured by fair value and with its variation reckoned into current gains/losses
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
In RMB
| Type | Ending balance | Opening balance |
| Trade acceptance | 8,480,000.00 | |
| Total | 8,480,000.00 |
Notes expired at year-end without paid was 0.00 Yuan
35. Account payable(1) Account payable
In RMB
| Item | Ending balance | Opening balance |
| Within one year (one year included) | 10,599,255.82 | 3,638,705.30 |
| 1-2 year (2 years included) | 76,401.23 | 137,423.41 |
| 2-3 years (3years included) | 3,084.95 | 3,084.95 |
| 4-5 years (5years included) | ||
| Over 5 years | 148,983.61 | 148,983.61 |
| Total | 10,827,725.61 | 3,928,197.27 |
(2) Account payable with over one year book age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Total | 0.00 | -- |
Other explanation
Top 5 payables at Period-end
| Item | Relationship with the company | Amount | Account age | Ratio in total payables in advance (%) | Nature |
| Baodao Car Industry Group Co., Ltd | Unrelated party | 5,790,643.76 | Within 1 year | 53.48 | Payment for goods |
| Jinda Intillence Technology Co., Ltd. | Unrelated party | 2,660,755.70 | Within 1 year | 24.57 | Payment for goods |
| Tianjin Luying Car Industry Co., Ltd. | Unrelated party | 1,196,170.33 | Within 1 year | 11.05 | Payment for goods |
| Tianjin Jianya Electronic Tech.Co., Ltd. | Unrelated party | 359,431.18 | Within 1 year | 3.32 | Payment for |
| goods | |||||
| Tianjin Tianrui Weisheng Sports Equipment Co., Ltd. | Unrelated party | 244,729.18 | Within 1 year | 2.26 | Payment for goods |
| Total | 10,251,730.15 | 94.68 |
36. Account received in advance(1) Account received in advance
In RMB
| Item | Ending balance | Opening balance |
| Within one year (one year included) | 1,661,866.45 | 1,211,804.44 |
| 1-2 years (2 years included) | 19,777.88 | 19,777.88 |
| 2-3 years (3 years included) | 36,897.00 | 36,897.00 |
| Total | 1,718,541.33 | 1,268,479.32 |
(2) Account received in advance with over one year book age
In RMB
| Item | Ending balance | 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 explanationNil
37. Wages payable(1) Wages payable
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| I. Short-term compensation | 706,703.40 | 3,033,554.78 | 2,880,549.54 | 859,708.64 |
| II. Post-employment | 160,367.77 | 160,367.77 |
| benefit – defined contribution plan | ||||
| Total | 706,703.40 | 3,193,922.55 | 3,040,917.31 | 859,708.64 |
(2) Short-term compensation
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| 1. Wages , bonuses, allowances and subsidies | 699,994.68 | 2,524,848.21 | 2,372,089.72 | 852,753.17 |
| 2. Welfare for workers and staff | 141,100.00 | 141,100.00 | ||
| 3. Social insurance | 137,430.26 | 137,430.26 | ||
| Including: Medical insurance | 124,611.52 | 124,611.52 | ||
| Work injury insurance | 5,932.78 | 5,932.78 | ||
| Maternity insurance | 6,885.96 | 6,885.96 | ||
| 4. Housing accumulation fund | 189,464.40 | 189,464.40 | ||
| 5. Labor union expenditure and personnel education expense | 6,708.72 | 40,711.91 | 40,465.16 | 6,955.47 |
| Total | 706,703.40 | 3,033,554.78 | 2,880,549.54 | 859,708.64 |
(3) Defined contribution plans
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| 1. Basic endowment insurance | 154,517.09 | 154,517.09 | ||
| 2. Unemployment insurance | 5,850.68 | 5,850.68 | ||
| Total | 160,367.77 | 160,367.77 |
Other explanation
No defaulted wages payable at end of the period38. Tax payable
In RMB
| Item | Ending balance | Opening balance |
| Value-added tax | 2,345,559.33 | 3,391,621.62 |
| Enterprise income tax | 129,074.09 | 339,193.85 |
| Individual income tax | 139,291.45 | 23,164.05 |
| Urban maintenance and construction tax | 7,238.49 | 7,615.81 |
| House property tax | 90,141.20 | 45,070.60 |
| Educational surtax & local educational surcharge | 351.36 | 620.94 |
| Land holding tax | 7,959.38 | |
| Stamp tax | 13,741.20 | |
| Total | 2,733,356.50 | 3,807,286.87 |
Other explanationNil
39. Interest payable
In RMB
| Item | Ending balance | Opening balance |
Interest overdue without paid:
In RMB
| Borrower | Amount overdue | Reasons |
| Total | 0.00 | -- |
Other explanationNil
40. Dividends payable
In RMB
| Item | Ending balance | Opening balance |
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
41. Other payable(1) Classification of other payable according to nature of account
In RMB
| Item | Ending balance | Opening balance |
| Custodian and common benefit debts | 18,639,499.20 | 18,919,942.85 |
| Current money | 6,500,000.00 | 6,500,000.00 |
| Warranty and guarantee money | 9,773,515.24 | 9,615,020.00 |
| Other payable service charge (intermediary services included) | 305,554.80 | 707,252.91 |
| Other | 122,811.05 | 766,108.14 |
| Total | 35,341,380.29 | 36,508,323.90 |
(2) Significant other payable with over one year age
In RMB
| Item | Ending balance | Reasons of un-paid or carry-over |
| Custodian and common benefit debts | 9,194,762.20 | |
| Shenzhen Guosheng Energy Investment Development Co., ltd. | 6,500,000.00 | Interest-free loans |
| Total | 15,694,762.20 | -- |
Other explanationNil
42. Liabilities hold for sale
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
43. Non-current liability due within one year
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
44. Other current liability
In RMB
| Item | Ending balance | Opening balance |
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 explanationNil
45. Long-term loans(1) Classification of long-term loans
In RMB
| Item | Ending balance | Opening balance |
Explanation:
NilOther explanation, including interest rate section:
Nil
46. Bonds payable(1) Bonds payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes of bonds payable (not including the other financial instrument of preferred stock andperpetual 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 | Increase during the year | Decrease during the year | 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 instrumentNilOther explanationNil
47. Long-term account payable(1) Listed by nature
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
48. Long-term employee payable(1) Long-term employee payable
In RMB
| Item | Ending balance | Opening balance |
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
| Item | Current amount | Last amount |
Scheme assets:
In RMB
| Item | Current amount | Last amount |
Net liability (assts) of the defined benefit plans
In RMB
| Item | Current amount | Last amount |
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
NilMajor actuarial assumption and sensitivity analysis:
NilOther explanationNil
49. Special payable
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance | Causes |
| Total | 0.00 | 0.00 | -- |
Other explanationNil
50. Accrued liability
In RMB
| Item | Ending balance | Opening balance | Causes |
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance | Causes |
| 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 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- |
Other explanationNil
52. Other non-current liability
In RMB
| Item | Ending balance | Opening balance |
Other explanationNil
53. Share capital
In RMB
| Opening balance | Change during the year(+,-) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 551,347,947.00 | 0.00 | 551,347,947.00 | ||||
Other explanationNo changes in the period
54. Other equity instrument(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
| Outstanding financial instrument | Period-begin | Increase during the year | Decrease during the year | 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 explanationNil
55. Capital reserve
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Other capital reserve | 627,834,297.85 | 627,834,297.85 | ||
| 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 from shares assignmentby whole shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
| Item | Opening balance | Current amount | Ending balance | ||||
| 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 initial recognization adjustment forthe arbitraged items:
Nil
58. Special reserves
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Total | 0.00 | 0.00 |
Other explanation, including changes and reasons for changes:
Nil
59. Surplus reserves
In RMB
| Item | Opening balance | Increase during the year | Decrease during the year | Ending balance |
| Statutory surplus reserve | 32,673,227.01 | 32,673,227.01 | ||
| Total | 32,673,227.01 | 0.00 | 0.00 | 32,673,227.01 |
Other explanation, including changes and reasons for changes:
Nil
60. 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 | 554,162.06 | 1,529,587.27 |
| Retained profit at period-end | -1,195,403,038.95 | -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 atperiod-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
61. Operating income and operating cost
In RMB
| Item | Current amount | Last amount | ||
| Income | Cost | Income | Cost | |
| Main business | 63,664,151.78 | 59,106,390.80 | 45,537,967.15 | 43,692,197.03 |
| Other business | 4,070,747.57 | 2,057,815.53 | 3,391,709.12 | 1,994,075.80 |
| Total | 67,734,899.35 | 61,164,206.33 | 48,929,676.27 | 45,686,272.83 |
62. Business tax and surcharge
In RMB
| Item | Current amount | Last amount |
| Urban maintenance and construction tax | 29,269.66 | 45,604.48 |
| Educational surtax | 20,906.89 | 32,574.63 |
| Stamp tax | 25,561.20 | 13,173.94 |
| Total | 75,737.75 | 91,353.05 |
Other explanationNil
63. Sales expense
In RMB
| Item | Current amount | Last amount |
| Remuneration & social public reserves | 1,532,803.51 | 1,126,682.80 |
| Business travel expenses | 192,454.31 | 218,695.40 |
| Leasing and property fee | 188,033.90 | 180,047.47 |
| Net sales fee | 535,515.52 | 476,089.26 |
| Other | 307,120.29 | 467,186.94 |
| Total | 2,755,927.53 | 2,468,701.87 |
Other explanationNil
64. Administration expense
In RMB
| Item | Current amount | Last amount |
| Remuneration & social public reserves | 1,828,693.52 | 2,079,149.94 |
| Leasing and property fee | 709,919.19 | 702,602.38 |
| Other | 771,107.53 | 557,779.18 |
| Total | 3,309,720.24 | 3,339,531.50 |
Other explanationNil
65. Financial expense
In RMB
| Item | Current amount | Last amount |
| Interest income | -272,686.20 | -213,713.97 |
| Commission charge etc. | 11,710.39 | 12,149.06 |
| Total | -260,975.81 | -201,564.91 |
Other explanationNil
66. Loss from Assets depreciation
In RMB
| Item | Current amount | Last amount |
| I. Bad debt losses | 7,219.20 | -47,271.09 |
| Total | 7,219.20 | -47,271.09 |
Other explanationNil
67. Changes in fair value gains
In RMB
| Changes resources | Current amount | Last amount |
Other explanationNil
68. Investment income
In RMB
| Item | Current amount | Last amount |
Other explanationNil
69. Gains from assets disposal
In RMB
| Sources | Current amount | Last amount |
70. Other income
In RMB
| Sources | Current amount | Last amount |
71. Non-operating revenue
In RMB
| Item | Current amount | Last amount | Amount reckoned into non-recurring gains/losses in the Year |
| Other | 72,126.28 | 291,710.58 | 72,126.28 |
| Total | 72,126.28 | 291,710.58 | 72,126.28 |
Government grants reckoned into current gains/losses:
In RMB
| Item | Granting | Cause of | Nature | Impact | Special | Amount in | Amount last | Assets |
| subject | distribution | current profit (Y/N) | benefit (Y/N) | the period | period | related/income related | ||
| Total | -- | -- | -- | -- | -- | 0.00 | 0.00 | -- |
Other explanationNil
72. Non-operating expenditure
In RMB
| Item | Current amount | Last amount | Amount reckoned into non-recurring gains/losses in the Year |
| Other | 30,140.00 | 30,140.00 | |
| Total | 30,140.00 | 30,140.00 |
Other explanationNil
73. Income tax expense(1) Income tax expense
In RMB
| Item | Current amount | Last amount |
| Current income tax | 233,133.98 | |
| Deferred income tax | 11,629.41 | |
| Total | 233,133.98 | 11,629.41 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current amount |
| Total profit | 725,050.39 |
| Income tax measured by statutory/applicable tax rate | 233,133.98 |
| Income tax expenses | 233,133.98 |
Other explanationTotal profit of the subsidiaries in consolidate statement was losses
74. Other comprehensive income
Found more in Note 57.
75. Items of cash flow statement(1) Other cash received in relation to operation activities
In RMB
| Item | Current amount | Last amount |
| Interest and Rent and utilities etc. | 1,673,601.27 | 1,603,116.82 |
| Other Current money | 855,411.09 | 721,181.20 |
| Total | 2,529,012.36 | 2,324,298.02 |
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
| Item | Current amount | Last amount |
| Payment of the period fee, operation expenditure & common debt | 4,714,582.54 | 5,580,059.48 |
| Total | 4,714,582.54 | 5,580,059.48 |
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash paid related with investment activitiesNil
(5) Other cash received in relation to financing activities
In RMB
| Item | Current amount | Last amount |
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
| Item | Current amount | Last amount |
Explanation on cash paid related with financing activities:
Nil
76. 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 | 491,916.41 | -2,127,265.81 |
| Add: Assets impairment provision | 7,219.20 | -47,271.09 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 184,546.75 | 145,136.97 |
| Amortization of intangible assets | 376,500.00 | 376,500.00 |
| Financial expense(gain listed with “-”) | -201,564.91 | |
| Decrease of deferred income tax asset( (increase is listed with “-”) | 11,629.41 | |
| Decrease of inventory (increase is listed with “-”) | -2,033,200.69 | -2,966,733.68 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -5,809,570.61 | 1,556,935.35 |
| Increase of operating payable accounts (decrease is listed with “-”) | 3,419,617.75 | -5,553,408.47 |
| Net cash flow arising from operating activities | -3,362,971.19 | -8,806,042.23 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 15,814,304.99 | 15,177,305.48 |
| Less: Balance of cash at year-begin | 19,177,276.18 | 24,015,287.71 |
| Net increasing of cash and cash equivalents | -3,362,971.19 | -8,837,982.23 |
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanationNil
(3) Net cash received by disposing subsidiary in the Period
In RMB
| Amount | |
| Including: | -- |
| Including: | -- |
| Including: | -- |
Other explanationNil
(4) Constitution of cash and cash equivalent:
In RMB
| Item | Ending balance | Opening balance |
| Ⅰ. Cash | 15,814,304.99 | 19,177,276.18 |
| Including: Cash on hand | 55,753.64 | 100,034.87 |
| Bank deposit available for payment at any time | 15,758,551.35 | 18,837,402.11 |
| Other monetary fund available for payment at any time | 239,839.20 | |
| Ⅲ. Balance of cash and cash equivalent at period-end | 15,814,304.99 | 19,177,276.18 |
Other explanationNil
77. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
78. Assets with ownership or use right restricted
In RMB
| Item | Ending book value | Restriction reasons |
| Total | 0.00 | -- |
Other explanationNil
79. Foreign currency monetary items(1) Foreign currency monetary items
In RMB
| Item | Ending foreign currency balance | Convert rate | Ending RMB balance converted |
Other explanationNil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √ Not applicable
80. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
81. 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 explanationNil
(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 explanationNil
(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 explanationNil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights inthe Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value ofidentifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise combined 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 explanationNil
(2) Combination cost
In RMB
| Combination cost |
Explanation on contingent consideration and its changes:
NilOther explanationNil
(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 explanationNil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listedcompany and basis, determination of combination cost, amount and calculation on adjusted equity by equity transactionNil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether 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.)And relevant 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 Industrial Co., Ltd. | Shenzhen | Shenzhen | Bicycle and spare parts distribution | 70.00% | Investment establishment | |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights
NilControlling basis for the structuring entity included in consolidated rangeNilBasis on determining to be an agent or consignor:
NilOther explanationNil
(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 Industrial Co., Ltd. | 30.00% | -62,245.65 | 0.00 | 2,900,454.02 |
Explanation on share-holding ratio of minority different from ratio of voting right:
NilOther explanationNil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsidiary | Ending balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Shenzhen Emmelle Industrial Co., Ltd. | 30,301,180.62 | 1,308,754.49 | 31,609,935.11 | 21,941,755.06 | 0.00 | 21,941,755.06 | 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 amount | Last amount | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shenzhen Emmelle Industrial Co., Ltd. | 44,367,011.18 | -207,485.52 | -207,485.52 | 1,114,664.36 | 46,225,592.77 | -1,452,957.89 | -1,452,957.89 | -9,054,161.55 |
Other explanationNil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financialstatement
NilOther explanationNil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
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:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)voting rights hold:
(2) Main financial information of the important joint venture
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
Other explanation
(3) Main financial information of the important cooperative enterprise
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
Other explanation
(4) Financial summary for un-important joint venture or cooperative enterprise
In RMB
| Ending balance /Current amount | Opening balance /Last amount | |
| Joint venture | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
| Cooperative enterprise | -- | -- |
| Total numbers measured by share-holding ratio | -- | -- |
Other explanation
(5) Assets transfer ability has major restriction from joint venture or cooperative enterprise(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 explanation
(7) Un-confirmed commitment with investment concerned with joint venture(8) Contingent liability with investment concerned with joint venture or cooperative enterprise4. 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:
If the co-runs entity is the separate entity, basis of the co-runs classificationOther explanation
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
6. Other
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary funds, trade receivables, other receivables,trade payables, other payables, etc. details of these financial instruments are disclosed in the relevant notes. Risksrelating to these financial instruments and risk management policies adopted by the Company to minimize theserisks are detailed as follows. Management of the Company manages and monitors the risk exposures, to make surethey are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk
impact of operating performance to the lowest level, maximize the interests of shareholders and other equityinvestors. Based on these objectives, the Company has established risk management policies to identify andanalyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal controlsystem to monitor the level of risks. The Company regularly reviews these policies and related internal controlsystem to adapt to market development and change of operating activities of the Company. The major risks arising
from the Company’s financial instruments are credit risk and liquidity risk.
(1)Credit riskCredit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of
performance obligation of another party.Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade
receivables. Since the bank deposits of the Company are mainly placed with those banks of 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 and other factors, makes assessment
on debtors’ credit quality and sets relevant limit on amount of debt and credit term. The maximum credit risk
exposure assumed by the Company equals to the sum of carrying value of every financial asset in the balancesheet. The Company provides no guarantee that may lead it to be exposed to credit risks.
(2)Liquidity riskLiquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via
delivery of cash or other financial assets.When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed
adequate by the management, so as to satisfy its operation needs and minimize influence of fluctuation of cashflow. Management of the Company monitors application of bank borrowings to make sure it complies withrelevant borrowing agreements.
2. Capital managementThe capital management policy of the Company is designed to ensure sustainable operation Of the Company so as
to bring shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimalcapital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders orissue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30June 2018, the gearing ratio of the Company was 72.68% (31 December 2017: 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 | -- | -- | -- | -- |
| (I) Financial assets measured at fair value and | 0.00 | |||
| changes accounted in the current profits and losses | ||||
| 1. Transaction financial assets | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (3) Derivative financial assets | 0.00 | |||
| 2. Financial assets appointed to measure at fair value and changes accounted in the current profits and losses | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (II) Financial assets available for sale | 0.00 | |||
| (1) Investment in debt instruments | 0.00 | |||
| (2) Investment in equity instruments | 0.00 | |||
| (3) Other | 0.00 | |||
| (III) Investment real estate | 0.00 | |||
| 1. Rental land use rights | 0.00 | |||
| 2. Rental buildings | 0.00 | |||
| 3. Land use rights holding and preparing to transfer after add value | 0.00 | |||
| (IV) Biological assets | 0.00 | |||
| 1. Consumption biological assets | 0.00 | |||
| 2. Productive biological assets | 0.00 | |||
| Total assets continuously measured by fair value | 0.00 |
| (V) Transaction financial liabilities | 0.00 | |||
| Among them: issue of transaction bonds | 0.00 | |||
| Derivative financial liabilities | 0.00 | |||
| Other | 0.00 | |||
| (VI) Financial liabilities appointed to measure at fair value and changes accounted in the current profits and losses | 0.00 | |||
| Total liabilities continuously measured by fair value | 0.00 | |||
| II. Non-sustaining measured by fair value | -- | -- | -- | -- |
| (I) Assets held for sale | 0.00 | |||
| Total assets non-continuously measured by fair value | 0.00 | |||
| Total liabilities non-continuously measured by fair value | 0.00 |
2. Recognized basis for the market price sustaining and non-persistent measured by fair value onfirst-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair valuemeasure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measuresustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons forconversion 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 enterpriseWe do not have parent company presentlyUltimate controlling party: NilOther explanation:
Controlling shareholder and actual controller of the Company have changed on 20 Feburary 2017. Before changed, the first majorityshareholder of the Company was Shenzhen Guosheng Energy Investment Developmetn Co., Ltd., actual controller was Mr. Ji Hanfei;the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on
27 April 2017 and “Reply on Surveillance Attention Letter 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-3Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in perviousperiod
| Name | Relationship |
Other explanationNil
4. Other related party
| Other related party | Relationship with the Enterprise |
| Shenzhen Guosheng Energy Investment Development Co., Ltd. | The first majority shareholder |
Other explanationShenzhen Guosheng Energy Investment Development Co., Ltd. holds 11.52% shares
5. Related transaction(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
| Related party | Content | Current amount | Approved transaction amount | Whether more than the transaction amount | Last amount |
Goods sold/labor service providing
In RMB
| Related party | Content | Current amount | Last amount |
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/contractNilDelegated 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 guaranteeNil
(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 amount | Last amount |
(7) Remuneration of key manager
In RMB
| Item | Current amount | Last amount |
| Remuneration of key manager | 1,258,900.00 | 1,091,420.00 |
(8) Other related transactions
Nil
6. Receivable/payable items of related parties(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
(2) Payable item
In RMB
| Item | Related party | Ending book balance | Opening book balance |
| 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, explained reasons
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
| Content | Treatment procedures | Impact items of statement during a comparison | Cumulative impacted number |
(2) Prospective application
| Accounting error correction | Approval procedures | Reasons for prospective application adopted |
2. Debt restructuring3. Assets replacement(1) Non-monetary assets replacement(2) Other assets replacement4. Pension plan5. Discontinued operations
In RMB
| Item | Revenue | Expenses | Total profit | Income tax expenses | Net profit | Discontinued operations profit attributable to owners of parent company |
Other explanation
6. Segment(1) Recognition basis and accounting policy for reportable segment(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 total liability forreportable segments, explain reasons
(4) Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other1. Instructions for continuing operationsOn 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming
the Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October
2012, Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by GuoshengEnergy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012,Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 accordingto (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company.Subsequently, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po ZiNo. 30-1 written decision, and approved the Company to manage property and business affairs by itself under the
supervision of custodians according 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 of the
Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen
Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures ofthe Company closed down.The Company has solved the debt problem by reforming, realized the net assets with positive value, the mainbusiness of bicycle is able to be maintained and realizes the stable development. The Company has set up theconditions for introducing the recombination party in the reforming plan, and expects to restore the abilities ofsustainable operation and sustained profitability by reorganization. The conditions of introducing therecombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assetsin the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment.
2. Non-public placement for year of 2016In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire
material assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board ofthe Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking intoaccount the conditions of capital market and actual conditions of the Company, the Board of the Companyconsidered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares, the Explanationon non-public of A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue ofA shares in 2016 (Third Amended) from February 2017 to February 2018. According to the three revised drafts,the number of non-public offering of shares should not exceed 110,269,586 shares, and the total amount of fundsraised should not exceed 750 million Yuan. The issuing objects of this non-public offering include four specificinvestors which are Ruian Information, Zhisheng High-tech, Wansheng Industry and Beier High-tech. Thesubscription amount of Ruian Information does not exceed 250 million Yuan, and the number of subscribedshares does not exceed 36,756,529 shares; the subscription amount of Zhisheng High-tech does not exceed 200million Yuan, and the number of subscribed shares does not exceed 29,405,223 shares; the subscription amount ofWansheng Industry and Beier High-tech respectively does not exceed 150 million Yuan, and the number ofsubscribed shares does not exceed 22,053,917 shares respectively. See details on the announcement issued by theboard of directors of the company.
The Company convened the first extraordinary general meeting of 2018 on February 13, 2018 which reviewedand passed the Proposal on Plan on Non-public Issue of A shares in 2016 (Third Amended), etc.
XVII. Principle notes of financial statements of parent company
1. Accounts receivable(1) Category
In RMB
| Types | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt 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 | 17,059,517.71 | 100.00% | 51,178.55 | 0.30% | 17,008,339.16 | 17,733,864.75 | 100.00% | 53,201.59 | 0.30% | 17,680,663.16 |
| Total | 17,059,517.71 | 100.00% | 51,178.55 | 0.30% | 17,008,339.16 | 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 applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Account receivable | Bad debt provision | Accrual ratio | |
| Within 1 year | |||
| Within 1 year | 17,059,517.71 | 51,178.55 | 0.30% |
| Subtotal within one year | 17,059,517.71 | 51,178.55 | 0.30% |
| Total | 17,059,517.71 | 51,178.55 | 0.30% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single significant
amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and
the reserve for bad debt provision is withdrawn with age analysis method.
In 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:
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 53,201.59 Yuan; the amount collected or switches back amounting to 2,023.04 Yuan.Important bad debt provision collected or switch back:
In RMB
| Company | 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
| Company | Nature | Amount written off | Reason for write-off | Verification procedures | Arising from related transaction (Y/N) |
| Total | -- | 0.00 | -- | -- | -- |
Explanation for write-off of receivables:
Nil
(4) Top 5 receivables at ending balance by arrears party
Top 5 account recevieblaes at period-end
| Item | Relationship with the company | Amount | Account age | Bad debt provision | Ratio in total receivables (%) | Nature |
| Shenzhen WTR New Energy Technology Co., Ltd. | Unrelated party | 7,923,335.39 | Within 1 year | 23,770.00 | 46.44 | Payment for goods |
| Shenzhen BoYiN Technology Co., Ltd. | Unrelated party | 5,217,743.51 | Within 1 year | 15,653.23 | 30.59 | Payment for goods |
| Shenzhen Jiahaosong Technology Co., Ltd. | Unrelated party | 3,918,438.81 | Within 1 year | 11,755.32 | 22.97 | Payment for goods |
| Total | 17,059,517.71 | 51,178.55 | 100.00 |
(5) Receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by receivable transfer and continuous involvement
NilOther explanation
At end of the period, there was no account receivable from shareholder unit and other related parties that holds 5%(included) voting rights of the Company among Account Receivables
2. Other accounts receivable(1) Other accounts receivable by category
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
| Other receivables with bad debt provision accrual by credit portfolio | 256,350.00 | 100.00% | 769.05 | 0.30% | 255,580.95 | 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 | 256,350.00 | 100.00% | 769.05 | 0.30% | 255,580.95 | 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 applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
| Age | Ending balance | ||
| Other receivable | bad debts provision | Accrual ratio | |
| Within 1 year | |||
| Within one year (one year included) | 5,000.00 | 15.00 | 0.30% |
| Subtotal within one year | 5,000.00 | 15.00 | 0.30% |
| 1-2 years | 200.00 | 0.60 | 0.30% |
| 2-3 years | 251,150.00 | 753.45 | 0.30% |
| Total | 256,350.00 | 769.05 | 0.30% |
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single significant
amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and
the reserve for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 15.00 Yuan; the amount collected or switches back amounting to 0.00 Yuan.Important bad debt provision collected or switch back:
In RMB
| Company | Amount reversal or collected | Collection way |
| Total | 0.00 | -- |
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
| Item | Amount written off |
Written-off for the major other receivable:
In RMB
| Company | 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:
Nil
(4) Other receivables by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Intercourse funds | 29,980.42 | |
| Margin or deposit | 239,950.00 | 239,950.00 |
| Equipment money | 11,400.00 | 11,400.00 |
| Staff borrowing | 5,000.00 | |
| Total | 256,350.00 | 281,330.42 |
(5) Top 5 other receivables at ending balance by arrears party
In RMB
| Company | Nature | Ending balance | Age | Ratio in total ending balance of other receivables | Ending balance of bad bet provision |
| Shenzhen Material Group Co., Ltd. | Deposit or margin | 135,723.00 | 2-3 years | 52.94% | 407.17 |
| Shenzhen Anjinheng Industrial Co., Ltd. | Deposit or margin | 90,100.00 | 2-3 years | 35.15% | 270.30 |
| Shenzhen Baifanghe Property Co., Ltd. | Deposit or margin | 13,627.00 | 2-3 years | 5.31% | 40.88 |
| Shenzhen Hongkang Instrument Technology Co., Ltd. | Equipment money | 11,400.00 | 2-3 years | 4.45% | 34.20 |
| Cui Hongxia | Staff borrowing | 5,000.00 | Within 1 year | 1.95% | 15.00 |
| Total | -- | 255,850.00 | -- | 99.80% | 767.55 |
(6) Account receivable with government grants involved
In RMB
| Company | Item | Ending balance | Ending age | Time, amount and basis of amount collection estimated |
| Total | -- | 0.00 | -- | -- |
Nil
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuous involvement
NilOther explanationNil
3. Long-term equity investment
In RMB
| Item | Ending balance | Opening balance | ||||
| 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 entity | Opening balance | Increase during the year | Decrease during the year | Ending balance | Impairment accrual | Ending balance of impairment provision |
| Shenzhen Emmelle Industrial Co., Ltd. | 1,400,000.00 | 0.00 | 0.00 | 1,400,000.00 | 0.00 | 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
| Company | Opening balance | +,- | Ending balance | 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. Associated 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. Operating income and cost
In RMB
| Item | Current amount | Last amount | ||
| Income | Cost | Income | Cost | |
| Main business | 20,600,065.94 | 18,788,402.55 | ||
| Other business | 3,423,452.74 | 2,057,815.53 | 3,228,905.96 | 1,994,075.80 |
| Total | 24,023,518.68 | 20,846,218.08 | 3,228,905.96 | 1,994,075.80 |
Other explanationNil
5. Investment gains
In RMB
| Item | Current amount | Last amount |
6. Other
Nil
XVIII. Supplementary Information1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | 41,986.28 | |
| Less: Impact on income tax | 17,026.35 | |
| Impact on minority shareholders’ equity | -7,835.74 | |
| Total | 32,795.67 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. REO and earnings per share
| Profits during report period | Weighted average ROE | Earnings per share | |
| Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 3.43% | 0.0010 | 0.0010 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 3.22% | 0.0009 | 0.0009 |
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 Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules 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 the differenceadjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
Section XI. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge ofaccounting and person in charge of accounting organ.
2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period3. English version of the Semi-Annual Report 2018